e.l.f. Beauty, Inc. (NYSE:ELF) Q4 2022 Earnings Conference Call May 25, 2022 4:30 PM ET
Company Representatives
Tarang Amin - Chairman, Chief Executive Officer
Mandy Fields - Senior Vice President, Chief Financial Officer
KC Katten - Vice President of Corporate Development & Investor Relations
Conference Call Participants
Dara Mohsenian - Morgan Stanley
Andrea Teixeira - JPMorgan
Linda Bolton-Weiser - D.A. Davidson
Steph Wissink - Jefferies
Olivia Tong - Raymond James
Oliver Chen - Cowen
Bill Chappell - Truist Securities
Rupesh Parikh - Oppenhimer
Jon Andersen - William Blair
Mark Astrachan - Stifel
Korinne Wolfmeyer - Piper Sandler
KC Katten
Thank you for joining us today to discuss e.l.f. Beauty’s, Fourth Quarter and Fiscal ‘22 Results. I’m KC Katten, Vice President of Corporate Development & Investor Relations. With me today are Tarang Amin, Chairman and Chief Executive Officer; and Mandy Fields, Senior Vice President and Chief Financial Officer.
We encourage you to tune into our webcast presentation for the best viewing experience, which you can access on our website at investor.elfbeauty.com. Since many of our remarks today contain forward-looking statements, please refer to our earnings release and reports filed with the SEC, where you’ll find factors that could cause actual results to differ materially from these forward-looking statements.
In addition, the company’s presentation today includes information presented on a non-GAAP basis. Our earnings release contains reconciliations of the differences between the non-GAAP presentation and the most directly comparable GAAP measure.
With that, let me turn the webcast over to Tarang.
Tarang Amin
Thank you, KC, and good afternoon everyone. Today, we will discuss the drivers of our Q4 results and outlook for fiscal ‘23. I want to start by recognizing the e.l.f. Beauty team. We’ve much to be proud of in fiscal ‘22. Our innovation, digitally led strategy, core value proposition and ability to adapt at e.l.f. speed continue to fuel our performance. Our results speak for themselves.
Q4 marked our 13th consecutive quarter of net sales growth. In fiscal ‘22, we grew net sales by 23% and adjusted EBITDA by 22%, well above our original expectations for the year. We also continue to gain market share with 5.9% of the mass cosmetics category, up 25 basis points. We are the only top five brand to grow share above pre-pandemic levels by a wide margin.
Before I detail our recent accomplishments, I want to briefly touch on a few topics that are likely top of mind. First, on category outlook and our guidance: We remain bullish on the mass cosmetics category. Overall, trends have improved, and in recent weeks are positive on both a one and two year basis as consumer usage occasions increase. More importantly, we remain optimistic about our ability to continue to gain share. Our consumption trends are strong, giving us the confidence to issue initial guidance at the 10% to 12% net sales growth for the year, with double digit growth expected in each quarter.