Grove Announces Third Quarter 2024 Financial Results
Grove Collaborative (NYSE: GROV) reported Q3 2024 financial results with revenue of $48.3 million, down from $52.1 million in Q2 2024 and $61.8 million in Q3 2023. The company achieved positive operating cash flow of $0.8 million and secured a $15 million PIPE investment from Volition Capital. Grove announced its exit from brick & mortar retail to focus on e-commerce, as retail accounts for less than 4% of revenue and has been unprofitable since 2021. The company revised its full-year 2024 revenue guidance to $200-205 million while maintaining Adjusted EBITDA margin guidance of 0.5-1.5%.
Grove Collaborative (NYSE: GROV) ha riportato i risultati finanziari del terzo trimestre 2024 con ricavi di $48,3 milioni, in calo rispetto ai $52,1 milioni del secondo trimestre 2024 e ai $61,8 milioni del terzo trimestre 2023. L'azienda ha ottenuto un flusso di cassa operativo positivo di $0,8 milioni e ha assicurato un investimento PIPE di $15 milioni da Volition Capital. Grove ha annunciato la sua uscita dalla vendita al dettaglio fisica per concentrarsi sull'e-commerce, poiché il commercio al dettaglio rappresenta meno del 4% dei ricavi ed è stato non redditizio dal 2021. L'azienda ha rivisto le sue previsioni di ricavi per l'intero anno 2024 a $200-205 milioni, mantenendo al contempo le previsioni per il margine EBITDA rettificato tra lo 0,5% e l'1,5%.
Grove Collaborative (NYSE: GROV) informó los resultados financieros del tercer trimestre de 2024 con ingresos de $48.3 millones, una disminución desde los $52.1 millones en el segundo trimestre de 2024 y $61.8 millones en el tercer trimestre de 2023. La compañía logró un flujo de efectivo operativo positivo de $0.8 millones y aseguró una inversión PIPE de $15 millones de Volition Capital. Grove anunció su salida del comercio minorista físico para centrarse en el comercio electrónico, ya que el comercio minorista representa menos del 4% de los ingresos y ha sido no rentable desde 2021. La empresa revisó su guía de ingresos para todo el año 2024 a entre $200 y $205 millones, manteniendo al mismo tiempo la guía del margen EBITDA ajustado entre el 0.5% y el 1.5%.
Grove Collaborative (NYSE: GROV)는 2024년 3분기 재무 결과를 보고하며 수익이 $48.3 million으로 2024년 2분기 $52.1 million에서, 그리고 2023년 3분기 $61.8 million에서 감소했다고 전했습니다. 회사는 $0.8 million의 긍정적인 운영 현금 흐름을 기록했으며, Volition Capital로부터 $15 million의 PIPE 투자를 확보했습니다. Grove는 소매업에서 철수하고 전자상거래에 집중한다고 발표했으며, 소매업이 수익의 4% 미만을 차지하고 2021년 이후로 적자를 보고 있습니다. 회사는 2024년 전체 연도 수익 가이드를 $200-205 million로 수정했으며, 조정 EBITDA 마진 가이드는 0.5%에서 1.5%로 유지하고 있습니다.
Grove Collaborative (NYSE: GROV) a publié ses résultats financiers pour le troisième trimestre 2024, avec des revenus de 48,3 millions de dollars, en baisse par rapport à 52,1 millions de dollars au deuxième trimestre 2024 et 61,8 millions de dollars au troisième trimestre 2023. L'entreprise a réalisé un flux de trésorerie opérationnel positif de 0,8 million de dollars et a sécurisé un investissement PIPE de 15 millions de dollars de Volition Capital. Grove a annoncé son retrait du commerce de détail traditionnel pour se concentrer sur le commerce électronique, car le commerce de détail représente moins de 4 % des revenus et est déficitaire depuis 2021. L'entreprise a révisé ses prévisions de revenus pour l'année 2024 à 200-205 millions de dollars tout en maintenant des prévisions de marge EBITDA ajustée comprises entre 0,5 % et 1,5 %.
Grove Collaborative (NYSE: GROV) hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht, mit einem Umsatz von $48,3 Millionen, der im Vergleich zu $52,1 Millionen im zweiten Quartal 2024 und $61,8 Millionen im dritten Quartal 2023 zurückgegangen ist. Das Unternehmen erzielte einen positiven operativen Cashflow von $0,8 Millionen und sicherte sich eine PIPE-Investition in Höhe von $15 Millionen von Volition Capital. Grove gab bekannt, dass es sich aus dem stationären Einzelhandel zurückzieht, um sich auf den E-Commerce zu konzentrieren, da der Einzelhandel weniger als 4% des Umsatzes ausmacht und seit 2021 unprofitabel ist. Das Unternehmen hat seine Umsatzprognose für das Gesamtjahr 2024 auf $200-205 Millionen angepasst und die Prognose für die bereinigte EBITDA-Marge von 0,5% bis 1,5% beibehalten.
- Achieved positive operating cash flow of $0.8 million
- Secured $15 million PIPE investment from Volition Capital
- Gross margin remained strong at 53.0%
- Operating expenses decreased by 13.4% year-over-year to $32.3 million
- Net loss improved to $1.3 million from $10.1 million in Q2 2024
- Revenue declined to $48.3 million, down 21.8% year-over-year
- DTC Active Customers decreased 30.4% year-over-year to 0.7 million
- Grove Brands percentage of net revenue declined to 38.5%
- Lowered full-year 2024 revenue guidance to $200-205 million
- DTC Total Orders decreased 22.8% year-over-year
Insights
Grove's Q3 results reveal a challenging period with revenue declining to
Notable metrics include positive operating cash flow of
The strategic pivot to balance environmental and human health messaging represents an important market positioning shift. This approach targets the estimated 57 million conscientious consumers more effectively by expanding the value proposition beyond just sustainability. The expansion of third-party brands (
However, the reduced FY2024 revenue guidance to
-
Delivers Third Quarter 2024 Positive Operating Cash Flow of
$0.8 Million -
Raises
PIPE Investment from Volition Capital$15M - Announces Exit from Brick & Mortar Retail Channel, Doubles Down on Direct-to-Consumer foundation
- Shifts Strategic Focus to Equal Balance Between Both Environmental and Human Health in Customer Education, Offering
- Announces Revised Full Year 2024 Revenue Guidance
"We are making essential progress in our multi-year turnaround journey," said Jeff Yurcisin, Chief Executive Officer of Grove Collaborative. "First, we want to reinforce that, amidst this transformation, our priorities remain clear: drive profitability, strengthen our balance sheet, foster revenue growth, and advance sustainability. When we deliver on these priorities, we will set the stage for being THE destination for conscientious customers who buy natural and environmentally-friendly products. There is also a strategic opportunity for us to expand how we talk about sustainability with our customers by educating them on products that are both good for them AND good for the planet - encompassing environmental AND human health in our differentiated offering. We’re excited to integrate this into our marketing, selection, and customer experience in the coming months.
"We’ve also made the decision to focus our efforts on e-commerce while operating more efficiently overall with the customer at the center of everything we do. Furthermore, the
Third Quarter 2024 Financial Results
Revenue was
Gross Margin was
Operating Expenses were
Net Loss was
Adjusted EBITDA was breakeven, (0.1)% margin, compared to positive
Cash, Cash Equivalents, and Restricted Cash were
Operating Cash Flow was
Third Quarter 2024 Key Business Highlights:
|
Three months ended |
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|
|
|
|
|
||||||
(in thousands, except DTC Net Revenue Per Order and percentages) |
September 30, 2023 |
|
June 30, 2024 |
|
September 30, 2024 |
||||||
Financial and Operating Data |
|
|
|
|
|
||||||
Grove Brands % Net Revenue |
|
44.8 |
% |
|
|
41.1 |
% |
|
|
38.5 |
% |
DTC Total Orders |
|
917 |
|
|
|
732 |
|
|
|
708 |
|
DTC Active Customers |
|
1,019 |
|
|
|
745 |
|
|
|
710 |
|
DTC Net Revenue Per Order |
$ |
65 |
|
|
$ |
68 |
|
|
$ |
67 |
|
Grove Brands % of Net Revenue was
Direct to Consumer (DTC) Total Orders totaled 0.7 million, down
DTC Net Revenue Per Order was
Brick & Mortar Retail Update:
The Company is announcing that it is doubling down on its direct to consumer business and heritage by exiting Grove Co. branded products from brick and mortar retail locations nationwide. Brick and mortar accounts for less than
Plastic Intensity1:
Plastic intensity across the entire Grove business (across all online and retail sales) was 1.06 pounds of plastic per
Financial Outlook:
The Company is revising revenue guidance for the full fiscal year 2024 to
The Company is maintaining Adjusted EBITDA Margin guidance of
Conference Call Information:
The Company will host an investor conference call and webcast to review these financial results at 5:00pm ET / 2:00pm PT on November 12, 2024. The webcast can be accessed at https://investors.grove.co/. The conference call can be accessed by calling 877-413-7205. International callers may dial 201-689-8537. A replay of the call will be available until December 12, 2024 and can be accessed by dialing 877-660-6853 or 201-612-7415, access code: 13749762. The webcast will remain available on the Company’s investor relations website for 6 months following the webcast.
1 |
Grove defines plastic intensity as pounds of plastic used per |
About Grove Collaborative Holdings, Inc.
Grove Collaborative Holdings, Inc. (NYSE: GROV) is the one-stop online destination for sustainable everyday essentials. Driven by the belief that changing the world starts with what you bring into your home, Grove creates and curates household cleaning, personal care, health and wellness, laundry, clean beauty, baby, and pet care products from over 240 brands that help you Go Beyond Plastic. Everything Grove sells meets a higher standard — from ingredients to performance to packaging and environmental impact — so you get a great value without compromising your values. With Grove, you can see, track, and celebrate your sustainable choices. Be a force of nature at Grove.com.
Forward-Looking Statements
This press release contains "forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements regarding the paydown of Grove’s remaining term debt, Grove’s plans relating to the exit of its retail channel, delivering higher returns by focusing its investment in DTC, expansion of the Grove Co. brand, future sustainable profitable growth and Grove’s 2024 guidance for Net Revenue and Adjusted EBITDA margin. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. The forward-looking statements contained in this press release are based on Grove’s current expectations and beliefs in light of the Company’s experience and perception of historical trends, current conditions and expected future developments and their potential effects on the Company as well as other factors believed to be appropriate under the circumstances. There can be no assurance that future developments affecting the Company will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the Company’s control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including changes in business, market, financial, political and legal conditions; legal and regulatory matters and developments; risks relating to the uncertainty of the projected financial information; Grove’s ability to successfully expand their business; competition; the uncertain effects of the COVID-19 pandemic; risks relating to inflation and interest rates; effectiveness of the Company’s ecommerce platform and selling and marketing efforts; demand for Grove products and other brands that it sells and those factors discussed in documents filed, or to be filed, with the
Non-GAAP Financial Measures
Some of the financial information and data contained in this press release, such as Adjusted EBITDA and Adjusted EBITDA margin, have not been prepared in accordance with
Grove calculates Adjusted EBITDA as net loss, adjusted to exclude: stock-based compensation expense; depreciation and amortization; changes in fair values of derivative liabilities; transaction costs allocated to derivative liabilities upon closing of the transaction where we became a publicly traded company; interest income; interest expense; restructuring and severance related costs; provision for income taxes and certain litigation and legal settlement expenses. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by net revenue. Because Adjusted EBITDA excludes these elements that are otherwise included in the Company’s GAAP financial results, this measure has limitations when compared to net loss determined in accordance with GAAP. Further, Adjusted EBITDA is not necessarily comparable to similarly titled measures used by other companies. For these reasons, investors should not consider Adjusted EBITDA in isolation from, or as a substitute for, net loss determined in accordance with GAAP.
Grove Collaborative Holdings, Inc. Consolidated Balance Sheets (Unaudited) (In thousands, except per share amounts) |
|||||||
|
September 30,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
50,762 |
|
|
$ |
86,411 |
|
Restricted cash |
|
3,825 |
|
|
|
5,650 |
|
Inventory |
|
24,546 |
|
|
|
28,776 |
|
Prepaid expenses and other current assets |
|
2,708 |
|
|
|
3,359 |
|
Total current assets |
|
81,841 |
|
|
|
124,196 |
|
Restricted cash |
|
1,002 |
|
|
|
2,802 |
|
Property and equipment, net |
|
5,987 |
|
|
|
11,625 |
|
Operating lease right-of-use assets |
|
13,622 |
|
|
|
9,612 |
|
Other long-term assets |
|
2,741 |
|
|
|
2,507 |
|
Total assets |
$ |
105,193 |
|
|
$ |
150,742 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
9,668 |
|
|
$ |
8,074 |
|
Accrued expenses |
|
11,550 |
|
|
|
16,020 |
|
Deferred revenue |
|
6,770 |
|
|
|
7,154 |
|
Debt, current |
|
10,000 |
|
|
|
— |
|
Operating lease liabilities, current |
|
1,205 |
|
|
|
3,489 |
|
Other current liabilities |
|
393 |
|
|
|
306 |
|
Total current liabilities |
|
39,586 |
|
|
|
35,043 |
|
Debt, noncurrent |
|
22,166 |
|
|
|
71,662 |
|
Operating lease liabilities, noncurrent |
|
13,588 |
|
|
|
14,404 |
|
Derivative liabilities |
|
3,491 |
|
|
|
11,511 |
|
Total liabilities |
|
78,831 |
|
|
|
132,620 |
|
|
|
|
|
||||
Redeemable convertible preferred stock, |
|
24,842 |
|
|
|
10,000 |
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Common stock, |
|
4 |
|
|
|
4 |
|
Additional paid-in capital |
|
637,394 |
|
|
|
629,208 |
|
Accumulated deficit |
|
(635,878 |
) |
|
|
(621,090 |
) |
Total stockholders’ equity |
|
1,520 |
|
|
|
8,122 |
|
Total liabilities, redeemable convertible preferred stock and stockholders’ equity |
$ |
105,193 |
|
|
$ |
150,742 |
|
Grove Collaborative Holdings, Inc. Consolidated Statements of Operations (Unaudited) (In thousands, except share and per share amounts) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue, net |
$ |
48,280 |
|
|
$ |
61,750 |
|
|
$ |
153,924 |
|
|
$ |
199,421 |
|
Cost of goods sold |
|
22,678 |
|
|
|
28,516 |
|
|
|
70,519 |
|
|
|
94,624 |
|
Gross profit |
|
25,602 |
|
|
|
33,234 |
|
|
|
83,405 |
|
|
|
104,797 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Advertising |
|
2,820 |
|
|
|
4,062 |
|
|
|
7,312 |
|
|
|
17,392 |
|
Product development |
|
4,802 |
|
|
|
3,578 |
|
|
|
13,864 |
|
|
|
11,846 |
|
Selling, general and administrative |
|
24,726 |
|
|
|
29,699 |
|
|
|
76,444 |
|
|
|
102,879 |
|
Operating loss |
|
(6,746 |
) |
|
|
(4,105 |
) |
|
|
(14,215 |
) |
|
|
(27,320 |
) |
|
|
|
|
|
|
|
|
||||||||
Non-operating expenses (income): |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
2,942 |
|
|
|
4,145 |
|
|
|
11,188 |
|
|
|
11,918 |
|
Changes in fair value of derivative liabilities |
|
(7,813 |
) |
|
|
2,733 |
|
|
|
(8,019 |
) |
|
|
1,298 |
|
Other income, net |
|
(550 |
) |
|
|
(1,179 |
) |
|
|
(2,627 |
) |
|
|
(6,817 |
) |
Total non-operating expenses (income), net |
|
(5,421 |
) |
|
|
5,699 |
|
|
|
542 |
|
|
|
6,399 |
|
Loss before provision for income taxes |
|
(1,325 |
) |
|
|
(9,804 |
) |
|
|
(14,757 |
) |
|
|
(33,719 |
) |
Provision for income taxes |
|
11 |
|
|
|
7 |
|
|
|
31 |
|
|
|
28 |
|
Net loss |
$ |
(1,336 |
) |
|
$ |
(9,811 |
) |
|
$ |
(14,788 |
) |
|
$ |
(33,747 |
) |
Less: Accretion on Series A preferred stock |
|
— |
|
|
|
(976 |
) |
|
|
— |
|
|
|
(976 |
) |
Less: Accumulated dividends on convertible preferred stock |
|
(174 |
) |
|
|
(82 |
) |
|
|
(474 |
) |
|
|
(82 |
) |
Net loss attributable to common stockholders, basic and diluted |
$ |
(1,510 |
) |
|
$ |
(10,869 |
) |
|
$ |
(15,262 |
) |
|
$ |
(34,805 |
) |
Net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.04 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.41 |
) |
|
$ |
(1.01 |
) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted |
|
37,343,930 |
|
|
|
35,253,756 |
|
|
|
36,798,814 |
|
|
|
34,433,760 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
Grove Collaborative Holdings, Inc. Consolidated Statements of Cash Flows (Unaudited) (In thousands) |
|||||||
|
Nine Months Ended September 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash Flows from Operating Activities |
|
|
|
||||
Net loss |
$ |
(14,788 |
) |
|
$ |
(33,747 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Gain on lease modification |
|
(3,139 |
) |
|
|
— |
|
Stock-based compensation expense |
|
9,268 |
|
|
|
11,941 |
|
Depreciation and amortization |
|
7,401 |
|
|
|
4,359 |
|
Changes in fair value of derivative liabilities |
|
(8,019 |
) |
|
|
1,298 |
|
Reduction of transaction costs allocated to derivative liabilities upon Business Combination |
|
— |
|
|
|
(3,745 |
) |
Non-cash interest expense |
|
2,811 |
|
|
|
2,872 |
|
Asset impairment charges |
|
700 |
|
|
|
— |
|
Inventory reserve |
|
(1,883 |
) |
|
|
1,123 |
|
Other non-cash expenses (income) |
|
(133 |
) |
|
|
99 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Inventory |
|
6,113 |
|
|
|
10,297 |
|
Prepaids and other assets |
|
340 |
|
|
|
(574 |
) |
Accounts payable |
|
1,318 |
|
|
|
(1,846 |
) |
Accrued expenses |
|
(5,040 |
) |
|
|
2,469 |
|
Deferred revenue |
|
(384 |
) |
|
|
(3,133 |
) |
Operating lease right-of-use assets and liabilities |
|
(4,671 |
) |
|
|
(752 |
) |
Other liabilities |
|
87 |
|
|
|
237 |
|
Net cash used in operating activities |
|
(10,019 |
) |
|
|
(9,102 |
) |
|
|
|
|
||||
Cash Flows from Investing Activities |
|
|
|
||||
Proceeds from sale of property and equipment |
|
93 |
|
|
|
— |
|
Purchase of property and equipment |
|
(1,392 |
) |
|
|
(2,383 |
) |
Net cash used in investing activities |
|
(1,299 |
) |
|
|
(2,383 |
) |
|
|
|
|
||||
Cash Flows from Financing Activities |
|
|
|
||||
Proceeds from issuance of debt |
|
— |
|
|
|
7,500 |
|
Payment of debt issuance costs |
|
(114 |
) |
|
|
(925 |
) |
Repayment of debt |
|
(42,000 |
) |
|
|
(575 |
) |
Proceeds from issuance of redeemable convertible preferred stock |
|
15,000 |
|
|
|
10,000 |
|
Payment of transaction costs related to Business Combination, Preferred Stock and settlement of Additional Shares liability |
|
— |
|
|
|
(4,295 |
) |
Payments related to stock-based award activities, net |
|
(1,077 |
) |
|
|
(1,672 |
) |
Proceeds from issuance under employee stock purchase plan |
|
235 |
|
|
|
213 |
|
Net cash (used in) provided by financing activities |
|
(27,956 |
) |
|
|
10,246 |
|
|
|
|
|
||||
Net decrease in cash, cash equivalents and restricted cash |
|
(39,274 |
) |
|
|
(1,239 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
94,863 |
|
|
|
95,985 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
55,589 |
|
|
$ |
94,746 |
|
Grove Collaborative Holdings, Inc. Non-GAAP Financial Measures (Unaudited) (In thousands, except percentages) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of Net Loss to Adjusted EBITDA |
|
||||||||||||||
Net loss |
$ |
(1,336 |
) |
|
$ |
(9,811 |
) |
|
$ |
(14,788 |
) |
|
$ |
(33,747 |
) |
Stock-based compensation |
|
2,758 |
|
|
|
2,100 |
|
|
|
9,268 |
|
|
|
11,941 |
|
Depreciation and amortization |
|
2,774 |
|
|
|
1,462 |
|
|
|
7,401 |
|
|
|
4,359 |
|
Changes in fair value of derivative liabilities |
|
(7,813 |
) |
|
|
2,733 |
|
|
|
(8,019 |
) |
|
|
1,298 |
|
Reduction of transaction costs allocated to derivative liabilities upon Business Combination |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,745 |
) |
Interest income |
|
(549 |
) |
|
|
(1,180 |
) |
|
|
(2,628 |
) |
|
|
(2,625 |
) |
Interest expense |
|
2,942 |
|
|
|
4,145 |
|
|
|
11,188 |
|
|
|
11,918 |
|
Restructuring and severance related costs |
|
1,181 |
|
|
|
— |
|
|
|
466 |
|
|
|
553 |
|
Provision for income taxes |
|
11 |
|
|
|
7 |
|
|
|
31 |
|
|
|
28 |
|
Litigation and legal settlement expenses |
|
— |
|
|
|
700 |
|
|
|
— |
|
|
|
700 |
|
Total Adjusted EBITDA |
$ |
(32 |
) |
|
$ |
156 |
|
|
$ |
2,919 |
|
|
$ |
(9,320 |
) |
Net loss margin |
|
(2.8 |
)% |
|
|
(15.9 |
)% |
|
|
(9.6 |
)% |
|
|
(16.9 |
)% |
Adjusted EBITDA margin (loss) |
|
(0.1 |
)% |
|
|
0.3 |
% |
|
|
1.9 |
% |
|
|
(4.7 |
)% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241112206937/en/
Investor Relations Contact
ir@grove.co
Media Relations Contact
Ryan.Zimmerman@grove.co
Source: Grove Collaborative Holdings, Inc.
FAQ
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