0001841761FALSE00018417612024-08-082024-08-08

 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 8, 2024
 
 
GROVE COLLABORATIVE HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
 
 
Delaware 001-40263 88-2840659
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 (IRS Employer
Identification No.)
 
1301 Sansome Street
San Francisco, California
 94111
(Address of principal executive offices) (Zip Code)
(800) 231-8527
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e- 4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class 
Trading
Symbol(s)
 
Name of each exchange
on which registered
Class A common stock, par value $0.0001 GROV New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 
 


Item 2.02. Results of Operations and Financial Condition

On August 8, 2024, Grove Collaborative Holdings, Inc. (the "Company") issued a press release announcing its earnings for the three and six months ended June 30, 2024. A copy of such press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

The information provided pursuant to this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished to the Securities and Exchange Commission and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language within such filings except as expressly set forth by specific reference in such filing


Item 7.01 Regulation FD Disclosure

Investor Presentation

On August 8, 2024, the Company posted an investor presentation on its investor relations website at investors.grove.co, which may be used in presentations by the Company's management to investors, analysts and others from time to time. A copy of this presentation is furnished as Exhibit 99.2 and incorporated into this Item 7.01 by reference.

The foregoing (including Exhibit 99.2) is being furnished pursuant to Item 7.01 and will not be deemed to be filed for purposes of Section 18 of the Exchange Act or otherwise be subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filings, except as expressly set forth by specific reference in such filing. The submission of the information set forth in this Item 7.01 shall not be deemed an admission as to the materiality of any information in this Item 7.01, including the information presented in Exhibit 99.2 that is provided solely in connection with Regulation FD.


Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
GROVE COLLABORATIVE HOLDINGS, INC.

By:
/s/ Sergio Cervantes
Name: Sergio Cervantes
Title: Chief Financial Officer
Date: August 8, 2024



Exhibit 99.1



image_1.jpg

Grove Announces Second Quarter 2024 Financial Results

•Completes Voluntary $42 Million Term Debt Paydown and Delays Principal Payments Until January 2026
•Fourth Consecutive Quarter of Positive Adjusted EBITDA
•Second Quarter 2024 Positive Cash Flow of $1.0M
•Announces Revised FY24 Guidance

SAN FRANCISCO, CA — August 8, 2024 — Grove Collaborative Holdings, Inc. (NYSE: GROV) (“Grove” or “the Company”), the world’s first plastic neutral retailer, a leading sustainable consumer products company, certified B Corporation, and Public Benefit Corporation, today reported financial results for its fiscal second quarter ended June 30, 2024.

“Today’s update marks nearly my first full year as CEO and I am proud of our progress on delivering Adjusted EBITDA profitability, strengthening our balance sheet, stabilizing revenue, and leveraging sustainability as our point of differentiation. We have delivered positive-adjusted EBITDA in four consecutive quarters, positive operating cash flow in three of the last five quarters, and, subsequent to the end of the second quarter, paid down $42 million of term debt to strengthen our balance sheet and reduce interest expense. We are also forecasting sequential revenue growth in the fourth quarter of this year after reshaping our business amidst a major turnaround,” said Jeff Yurcisin, Chief Executive Officer of Grove Collaborative. “Furthermore, over these past twelve months, we have rebuilt our ecommerce customer experience, which we expect will lead to sustained growth in the future.”

Second Quarter 2024 Financial Results

Revenue was $52.1 million, down 2.7% from the first quarter of 2024, and down 21.2% year-over-year resulting from a decline in orders, partially offset by an increase in Net Revenue per Order. Grove is starting to see revenue from its repeat customers stabilize, resulting in a smaller sequential revenue decline than the prior quarter. The strength of the Company’s core customer base is one of its most valuable assets and is a significant factor in the Company’s confidence that it will be able to deliver sequential growth in the fourth quarter of 2024. Since the beginning of its business model transformation, the Company has been disciplined in its deployment of advertising dollars, prioritizing efficiency to ensure spend has the right cost of acquisition and payback period. The Company plans to increase


advertising spend in the fourth quarter of this year to the extent acquisition costs and payback periods warrant the additional investment.

Gross Margin was 53.9%, a decrease of 170 basis points from the first quarter of 2024, but an increase of 200 basis points year-over-year. The sequential decline was mostly driven by a decrease in recognized third party vendor allowances due to an accounting true-up in the first quarter of 2024, the discontinuation of certain customer fees, and an increase in discounts. Absent the accounting adjustment, third party vendor allowances increased in the second quarter compared to the first quarter as the Company onboarded more vendors to its subscribe and save program. The year-over-year improvement in gross margin was mostly due to the sell-through of previously reserved for inventory, lower discounts from a decrease in first order volume, and an increase in vendor allowances, offset by a decrease in Grove Brands % of Net Revenue.

Operating Expenses were $35.0 million, an increase of 15.6% from the first quarter of 2024 but down 20.2% year-over-year. The sequential increase is mostly driven by the $2.9 million gain from restructuring recorded in the first quarter that did not recur, compounded by a $2.2 million restructuring charge in the second quarter. The year-over-year improvement is primarily driven by lower fulfillment costs from fewer orders, lower personnel, facility and professional expenses, and lower advertising expense.

Net Loss was $10.1 million, (19.3%) margin, compared to $3.4 million, (6.3%) margin in the first quarter of 2024, and $10.9 million, (16.4%) margin, in the second quarter of 2023. Net loss increased in the second quarter compared to the first quarter primarily due to the $5.1 million adverse movement in the restructuring line from the first to in the second quarter.

Adjusted EBITDA1 was positive $1.1 million, 2.0% margin, compared to positive $1.9 million, 3.5% margin, in the first quarter of 2024, and negative $2.6 million, (3.9%) margin, in the second quarter of 2023.

Cash, Cash equivalents, and Restricted Cash was $82.6 million at the end of the second quarter of 2024, an increase of $1.0 million from the first quarter of 2024, primarily driven by a reduction in working capital partially offset by net interest expense. After quarter end, Grove completed a $42 million paydown of its term debt.
1 Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See “Non-GAAP Financial Measures” for a description of Adjusted EBITDA and Adjusted EBITDA margin and a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin to net loss and net loss margin in the table at the end of this press release.
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Second Quarter 2024 Key Business Highlights:
Three months ended
(in thousands, except DTC Net Revenue Per Order and percentages)June 30, 2023March 31, 2024June 30, 2024
Financial and Operating Data
Grove Brands % Net Revenue45 %43 %41 %
DTC Total Orders974 773 732 
DTC Active Customers1,133 807 745 
DTC Net Revenue Per Order$65 $66 $68 
Grove Brands % of Net Revenue was 41.1% in the second quarter of 2024, down 190 basis points quarter-over-quarter and 390 basis points year-over-year. The sequential and year-over-year declines were largely due to the expansion of the Company’s third party product offering and the recent transformation of the customer experience on the Company’s ecommerce platform, which no longer utilizes recommended baskets in first orders that included a higher percentage of Grove Branded products.

Direct to Consumer (DTC) Total Orders totaled 0.7 million, down 5.4%, quarter-over-quarter and 24.9% year-over-year. The year-over-year and sequential declines continued to be impacted by lower advertising spend, with sequential declines slowing as historical cohorts stabilize.

DTC Active Customers, the number of customers that have placed an order in the trailing twelve months ended June 30, 2024 totaled 0.7 million, down 7.8% compared to the first quarter and 34.3% compared to the second quarter of 2023. Similarly, the year-over-year and sequential declines were due to lower advertising spend.

DTC Net Revenue Per Order was $67.73 in the second quarter of 2024, an improvement of 2.2% compared to the first quarter of 2024 and 4.5% compared to the second quarter of 2023. The sequential and year over year improvements are due to an increase in units per order and sales of higher priced products, including Vitamins, Minerals, and Supplements, partially offset by the discontinuation of certain fees the Company charged customers.

Second Quarter 2024 Operational Highlights
Amidst Grove’s turnaround, the Company has refocused its priorities to be (1) Profitability and (2) Balance sheet strength, the foundational elements of financial stability, (3) Stabilizing Revenue, and ultimately delivering Revenue Growth, which will create long-term shareholder value, and (4) Sustainability, Grove’s point of differentiation and reason for being.

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Key operational highlights related to the Company’s refocused strategic pillars in the second quarter include:
1.Profitability:
a.Positive Adjusted EBITDA and Cash Flow: Delivered $1.1 million of Adjusted EBITDA, the fourth consecutive positive quarter, and $1.0 million of positive cash flow as the Company continues to prioritize profitability, improve its cost structure and optimize working capital. The Company has also delivered positive operating cash flow three out of the last five quarters.
b.Continued Improvement of Operating Costs: Pursued additional initiatives, including vendor and contract negotiations, to increase operating leverage and improve profitability. Specifically, the Company signed a lease in a new location for its fulfillment center operations in Reno, NV, avoiding a significant rent increase, and fully ceased operations in its fulfillment center in St. Peters, MO.
2.Balance Sheet:
a.Debt Paydown: Subsequent to the end of the quarter, Grove repaid $42M of term debt and delayed its term debt principal payments until January 2026. More specific details can be found in the Current Report on Form 8-K filed by the Company on July 19, 2024.2
3.Revenue Growth:
a.Third Party Category and Selection Expansion: Grove continues to offer more planet-first brands and products that are relevant to the conscientious consumer, increasing the number of third party brands sold by 12% in the second quarter of 2024 compared to the second quarter of 2023. A sample of new brands welcomed to the collaborative this quarter include: Nellie’s, Freestyle World, Fresh Wave, Caboo, and Koala Eco. Grove also continues to expand its subscribe and save program, with 63% of all products now available for customers to subscribe to at a discounted rate, providing customers an incentive to build larger planet- and wallet-friendly boxes.
b.Shopify Transition: Grove today announced that it will replatform its custom direct to consumer website to Shopify technology as part of the Company’s ongoing transformation, meant to create opportunities for new customer enhancements, drive down costs for ongoing site maintenance, and better leverage industry best practices and innovations for future growth. The transition began in July 2024 and is expected to be completed in the first quarter of 2025.
4.Sustainability:
a.B Corporation Recertification: Grove launched its fifth annual sustainability report in May 2024, providing comprehensive reporting on key company commitments, progress,
2 https://www.sec.gov/ix?doc=/Archives/edgar/data/1841761/000162828024032249/grov-20240716.htm
4

and partnerships. The Company also announced its B Corp recertification with a score of 100.9 points3, significantly higher than its 2020 recertification of 80.3 points, joining the 5% of companies that have maintained B Corp certification for more than ten years.
b.Plastic Intensity4: Plastic intensity across the entire Grove business (across all online and retail sales) was 1.02 pounds of plastic per $100 in net revenue in the second quarter of 2024, down from 1.08 pounds in the first quarter of 2024 and down from 1.11 pounds in the second quarter of 2023.

Financial Outlook:

Chief Financial Officer Sergio Cervantes commented, “We are in the middle of transforming our business model and improving the customer experience. But at the same time, we are strengthening our balance sheet, maintaining strict expense and investment discipline, and starting to see revenue from repeat customers stabilize, resulting in smaller sequential revenue declines. We are optimistic that our strategy will allow us to increase advertising and drive sequential growth in the fourth quarter and beyond, as we grow off a stabilized core revenue base. This transformation has taken longer than anticipated at the beginning of the year and therefore we are lowering our revenue guidance to reflect this. However, we are increasing our Adjusted EBITDA margin guidance as we continue to identify additional savings throughout the business.”

The Company is announcing the following revised guidance for the full fiscal year 2024:
•Net revenue of $205 to $215 million, a decrease from $215M to $225M
•Adjusted EBITDA margin of 0.5% to 1.5%, an increase from 0% to 1.0%

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 August 8, 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 September 7, 2024 and can be accessed by dialing 877-660-6853 or 201-612-7415, access code: 13748176. The webcast will remain available on the Company’s investor relations website for 6 months following the webcast.
3 https://www.bcorporation.net/en-us/find-a-b-corp/company/grove-collaborative/
4 Grove defines plastic intensity as pounds of plastic used per $100 in revenue as a way to hold itself accountable for the pace at which it decouples revenue from the use of plastic. To calculate plastic intensity, Grove Collaborative defines "plastic" as any of the following materials within both products and packaging: plastic resin codes #1-7 (from the ASTM International Resin Identification Coding System), inclusive of polyvinyl alcohol (PVA, PVOH, PVAl), silicone, bioplastics, and any plastic liners, coatings, and resins.
5

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 Grove’s core initiatives reshaping their business, sequential growth in the fourth quarter and beyond, the rebuilt ecommerce customer experience leading to future sustained growth, an increase in advertising spend in the fourth quarter, completion of the replatform to Shopify in the first quarter 2025 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 efforts; demand for Grove products and other brands that sold and those factors discussed in documents filed, or to be filed, with the U.S. Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. All forward-looking statements in this press release are made as of the date hereof, based on information available to Grove as of the date hereof, and Grove assumes no obligation to update any
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forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
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 United States generally accepted accounting principles (“GAAP”). These non-GAAP financial measures, and other measures that are calculated using such non-GAAP measures, are an addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to revenue, operating income, profit before tax, net income or any other performance measures derived in accordance with GAAP. Investors should not consider them in isolation from, or as a substitute for, GAAP measures. A reconciliation of historical Adjusted EBITDA to Net Income is provided in the tables at the end of this press release. The reconciliation of projected Adjusted EBITDA and projected Adjusted EBITDA Margin to the closest corresponding GAAP measure is not available without unreasonable effort on a forward-looking basis due to the high variability, complexity, and low visibility with respect to the charges excluded from these non-GAAP measures, such as the impact of depreciation and amortization of fixed assets, amortization of internal use software, the effects of net interest expense (income), other expense (income), and non-cash stock based compensation expense. Grove believes these non-GAAP measures of financial results, including on a forward-looking basis, provide useful information to management and investors regarding certain financial and business trends relating to Grove’s financial condition and results of operations. Grove’s management uses these non-GAAP measures for trend analyses and for budgeting and planning purposes. Grove believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating projected operating results and trends in and in comparing Grove’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Management of Grove does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP measures and their nearest GAAP equivalents. Other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore Grove’s non-GAAP measures may not be directly comparable to similarly titled measures of other companies.
Grove calculates Adjusted EBITDA as net income (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 the transaction where Grove became a publicly traded company; interest income; interest expense; restructuring and severance related costs; provision for
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income taxes and certain litigation and legal settlement expenses. Grove defines 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.

Investor Relations Contact

ir@grove.co
Media Relations Contact

Ryan.Zimmerman@grove.co
Source: Grove Collaborative Holdings, Inc.
8

Grove Collaborative Holdings, Inc.
Consolidated Balance Sheets
(In thousands, except per share amounts)
June 30,
2024		December 31,
2023
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $78,807 $86,411 
Restricted cash3,325 5,650 
Inventory, net27,842 28,776 
Prepaid expenses and other current assets3,352 3,359 
Total current assets113,326 124,196 
Restricted cash502 2,802 
Property and equipment, net7,995 11,625 
Operating lease right-of-use assets7,744 9,612 
Other long-term assets2,208 2,507 
Total assets$131,775 $150,742 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$9,251 $8,074 
Accrued expenses11,322 16,020 
Deferred revenue6,886 7,154 
Operating lease liabilities, current1,551 3,489 
Other current liabilities221 306 
Total current liabilities29,231 35,043 
Debt, noncurrent73,404 71,662 
Operating lease liabilities, noncurrent7,149 14,404 
Derivative liabilities11,305 11,511 
Total liabilities121,089 132,620 
Commitments and contingencies (Note 6)
Redeemable convertible preferred stock — $0.0001 par value10,000 10,000 
Stockholders’ equity:
Common stock — $0.0001 par value4 4 
Additional paid-in capital635,224 629,208 
Accumulated deficit(634,542)(621,090)
Total stockholders’ equity686 8,122 
Total liabilities, redeemable convertible preferred stock and stockholders’ equity$131,775 $150,742 
9

Grove Collaborative Holdings, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share amounts)


Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Revenue, net$52,099 $66,106 $105,644 $137,671 
Cost of goods sold24,036 31,798 47,841 66,108 
Gross profit28,063 34,308 57,803 71,563 
Operating expenses:
Advertising2,439 4,657 4,492 13,330 
Product development5,436 4,052 9,062 8,268 
Selling, general and administrative27,124 35,159 51,718 73,180 
Operating loss(6,936)(9,560)(7,469)(23,215)
Non-operating expenses:
Interest expense 4,117 4,044 8,246 7,773 
Changes in fair value of derivative liabilities(8)(1,727)
Other income, net (994)(1,021)(2,077)(5,638)
Total non-operating expenses (income), net3,115 1,296 5,963 700 
Loss before provision for income taxes(10,051)(10,856)(13,432)(23,915)
Provision for income taxes10 11 20 21 
Net loss$(10,061)$(10,867)$(13,452)$(23,936)
Less: Accumulated dividends on redeemable convertible preferred stock(150)— (300)— 
Net loss attributable to common stockholders, basic and diluted$(10,211)$(10,867)$(13,752)$(23,936)
Net loss per share attributable to common stockholders, basic and diluted$(0.28)$(0.32)$(0.38)$(0.70)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted36,768,249 34,280,844 36,517,787 34,015,827 

10

Grove Collaborative Holdings, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)

Six Months Ended June 30,
20242023
Cash Flows from Operating Activities
Net loss$(13,452)$(23,936)
Adjustments to reconcile net loss to net cash used in operating activities:
Gain on lease modification(3,139)— 
Stock-based compensation expense6,510 9,841 
Depreciation and amortization4,627 2,897 
Changes in fair value of derivative liabilities(206)(1,435)
Reduction of transaction costs allocated to derivative liabilities upon Business Combination— (3,745)
Non-cash interest expense1,922 1,911 
Inventory reserve(1,216)1,228 
Other non-cash expenses— 95 
Changes in operating assets and liabilities:
Inventory2,150 8,355 
Prepaids and other assets99 716 
Accounts payable1,175 (34)
Accrued expenses(4,700)812 
Deferred revenue(268)(1,890)
Operating lease right-of-use assets and liabilities(4,886)(507)
Other liabilities(85)120 
Net cash used in operating activities(10,769)(5,572)
Cash Flows from Investing Activities
Purchase of property and equipment(906)(1,539)
Net cash used in investing activities(906)(1,539)
Cash Flows from Financing Activities
Payment of transaction costs related to the Business Combination— (4,150)
Proceeds from issuance of debt— 7,500 
Payment of debt issuance costs— (925)
Repayment of debt— (575)
Payments related to stock-based award activities, net(789)(1,201)
Proceeds from issuance under employee stock purchase plan235 213 
Payment in lieu of fractional shares in connection with reverse split— (1)
Net cash (used in) provided by financing activities(554)861 
Net decrease in cash, cash equivalents and restricted cash(12,229)(6,250)
Cash, cash equivalents and restricted cash at beginning of period94,863 95,985 
Cash, cash equivalents and restricted cash at end of period $82,634 $89,735 
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Grove Collaborative Holdings, Inc.
Non-GAAP Financial Measures
(Unaudited)
(In thousands, except percentages)

Three Months Ended
June 30,		Six Months Ended
June 30,
Reconciliation of Net Loss to Adjusted EBITDA
Net loss$(10,061)(10,867)$(13,452)(23,936)
Stock-based compensation3,397 4,948 $6,510 9,841 
Depreciation and amortization2,426 1,449 $4,627 2,897 
Changes in fair value of derivative liabilities(8)(1,727)$(206)(1,435)
Reduction of transaction costs allocated to derivative liabilities upon Business Combination— — $— (3,745)
Interest income(993)(1,021)(2,079)(1,445)
Interest expense4,117 4,044 8,246 7,773 
Restructuring and severance related costs(1)2,170 553 (715)553 
Provision for income taxes10 11 20 21 
Total Adjusted EBITDA$1,058 $(2,610)$2,951 $(9,476)
Net loss margin(19.3)%(16.4)%(12.7)%(17.4)%
Adjusted EBITDA margin (loss)2.0 %(3.9)%2.8 %(6.9)%
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Investor Presentation August 2024 Updated Post Q2 2024 Earnings

 
NOTES START FROM HERE AND GROW UP NO CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE 3 59 76 0 114 88 120 159 144 130 186 128 102 163 157 172 196 200 255 255 255 0 0 0 247 243 228 3 59 76 247 243 228 2 Forward-Looking Statements Certain statements included in this presentation are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than statements about historical fact. The forward looking statements in this presentation include, but are not limited to, statements regarding 2024 Adjusted EBITDA profitability and revenue growth, growth in the second half of 2024, 2024 Adjusted EBITDA margin, growth and profitability in 2025, transformation in 2024, category expansion, customer experience transformation, future product launches, continuing momentum in VMS, completion of Shopify replatforming, future SKU count and third party average order value and the impact of customer experience changes. These forward-looking statements are subject to a number of risks and uncertainties, and you should not rely upon the forward-looking statements as predictions of future events. The future events and trends discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Grove cannot guarantee that future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. Except as required by law, Grove disclaims any obligation to update these forward-looking statements to reflect future events or circumstances. The forward-looking statements are subject to a number of risks and uncertainties, including: changes in business, market, financial, political and legal conditions; risks relating to the uncertainty of the projected financial information; Grove’s ability to successfully expand its business; competition; the uncertain effects of the COVID-19 pandemic; risks relating to growing inflation and rising interest rates; and those factors discussed in documents of Grove filed, or to be filed, with the U.S. Securities and Exchange Commission. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements should not be relied upon as representing Grove’s assessments as of any date subsequent to the date of this presentation. Non-GAAP Information Grove uses certain non-GAAP measures in this presentation including Adjusted EBITDA. Grove believes the presentation of its non-GAAP financial measures enhances investors' overall understanding of the company's historical financial performance. The presentation of the company's non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company's financial results prepared in accordance with GAAP, and the company's non-GAAP measures may be different from non-GAAP measures used by other companies. Reconciliations of these non-GAAP financial measures to the most comparable GAAP measures, may be found in the Supplemental Materials at the end of this presentation. Safe Harbor Statement/Non-GAAP Measures

 
NOTES START FROM HERE AND GROW UP NO CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE 3 59 76 0 114 88 120 159 144 130 186 128 102 163 157 172 196 200 255 255 255 0 0 0 247 243 228 3 59 76 247 243 228 3 Prioritize Profitability Four Consecutive Quarters of Positive Adjusted EBITDA(1) ● Grove beat and raised Adjusted EBITDA guidance in each quarter of 2023, achieving Adjusted EBITDA profitability one year ahead of schedule ● 1H 2024 Adjusted EBITDA of $3.0M; Adjusted EBITDA profitability projected for full year 2024 ● 1H 2024 Gross Margin of 54.7% Strengthen Balance Sheet ● $42M Term Debt Paydown and delayed principal payments until January 2026; $6.3 million in interest expense savings over the next twelve months Customer Driven Growth Sequential Growth Will Resume in Q4 2024 ● New leadership brings DTC best practices from Amazon to transform the customer experience ● Expansion into wellness has provided the blueprint for further category expansion ● Sustainable innovation brings lower cost Grove Co. products to Target and Grove.com Leading Brand in Sustainability Developing a Platform for Conscientious Consumers ● 5 million lifetime customers ● #1 market share, awareness, and assortment in plastic neutral Home & Personal Care (“HPC”)(3) ● Leading plastic neutral home care brand at Target Long Term Sustainable Growth Notes: (1) Adj. EBITDA is a non-GAAP metric; please refer to Appendix for reconciliation of adjusted EBITDA to net loss in the table at the end (2) Grove consumer awareness survey, June 2023

 
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CONFIDENTIAL 2024: Transforming the Business

 
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Cover
Aug. 08, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 08, 2024
Entity Incorporation, State or Country Code DE
Entity Registrant Name GROVE COLLABORATIVE HOLDINGS, INC.
Entity File Number 001-40263
Entity Tax Identification Number 88-2840659
Entity Address, Address Line One 1301 Sansome Street
Entity Address, City or Town San Francisco
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94111
City Area Code 800
Local Phone Number 231-8527
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Class A common stock, par value $0.0001
Trading Symbol GROV
Security Exchange Name NYSE
Entity Emerging Growth Company true
Entity Ex Transition Period false
Entity Central Index Key 0001841761
Amendment Flag false
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