Slide 1: Q2 2022 Earnings Presentation
Q2 2022 Earnings Presentation
Slide 2: Forward-Looking Statements / Non-GAAP Financial Measures
Forward-Looking Statements / Non-GAAP Financial Measures Forward-Looking Statements This presentation contains forward-looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than those that are purely historical are forwar
Slide 3: Q2 2022 Business Highlights
Q2 2022 Business Highlights 3
Slide 4: Implemented Value Creation Plan to Achieve Profitable Growth in 2024
Implemented Value Creation Plan to Achieve Profitable Growth in 2024 4
Slide 5: Drew Barrymore as Sustainability & Brand Advocate
Drew Barrymore as Sustainability & Brand Advocate Drew Barrymore is one of Hollywood’s most well-known, relatable and beloved celebrities and host of the emmy nominated THE DREW BARRYMORE SHOW on CBS. She is also a serial entrepreneur with two highly successful brands Flower Beauty & Beautiful home.
Slide 6: Amplifying our unique market positioning with Drew Barrymore
Amplifying our unique market positioning with Drew Barrymore Drew Barrymore 30s Ad Link Integrated media plan to drive CPA performance and increase awareness ● Our boldest Grove Co. Beyond Plastic creative to-date. Drew lands the message that only 9% of plastic is recycled no matter how much we put
Slide 7: Q2 Fiscal 2022 Retail Distribution Progress
Q2 Fiscal 2022 • Retail Distribution Progress Multiple New Retail Partners Growing Points of Distribution(1) 3 303% Expected Increase in New confirmed retail Distribution Points partnerships for 2022: Kohl’s, Meijer, Giant Eagle 100% Increase in Target Grove Co. 50%+ Further potential upside in distr
Slide 8: Our Journey Beyond Plastic
Our Journey Beyond Plastic TODAY BY 2025 Plastic Neutral Plastic-Free At Grove, our Plastic Neutral program ensures that for every Beyond Plastic is our plan to solve the single-use plastic ounce of plastic we sell, an ounce of ocean-bound plastic is problem for home and personal care products. Toda
Slide 9: Our Total Plastic Footprint
OUR TOTAL PLASTIC FOOTPRINT We are the first in our industry to report on our plastic given its materiality to our business. We're using this scorecard to challenge our industry to track and publish their plastic use. BEYOND PLASTIC: TRACKING OUR PROGRESS* Grove Brands 1.07 lbs / $100 in Net Revenue
Slide 10: Company & Product Awards
Company & Product Awards 2021 #107 Grove Co. Peach Peach Beyond Plastic Grove Co. Initiative & Peach 2022 to-date Grove Co. Beyond Plastic Peach Good Fur No. 1 in CPG category In 2Q22, Grove won two Dieline Awards for Peach Not Plastic and Good Fur celebrating the best in sustainable packaging. Grov
Slide 11: Q2 2022 Financial Update
Qds Grove Co: Laundry Detergent Sheets Q2 2022 Financial Update PROVEN TO | REMOVE TOUGH STAINS® Grove Co. Hand Soap Sheets
Slide 12: Q2 Fiscal 2022 Financial Highlights
Q2 Fiscal 2022 • Financial Highlights Three months ended Q2-22A Q2-21A % Change Financials Revenue, Net ($mm) $79.3 $99.0 (20%) Gross Profit ($mm) $39.0 $49.1 (21%) % Revenue, Net 49% 50% (40bps) Net Income ($mm) -$35.3 -$28.5 (24%) % Revenue, Net -45% -29% (1,570bps) Adjusted EBITDA ($mm)¹ -$21.1 -$
Slide 13: Q2 Fiscal 2022 Financial Highlights: Net Revenue and Gross Margin
Q2 Fiscal 2022 • Financial Highlights NET REVENUE ($MM) GROSS MARGIN Net revenue was $79 million, a year-over-year Gross margin was slightly down 40 bps year-over-year to decrease of 20 percent. The decrease was primarily 49.1% as a result of increased discounts due to a less driven by fewer new and
Slide 14: Q2 Fiscal 2022 Financial Highlights: Adjusted EBITDA and Net Loss Margin
Q2 Fiscal 2022 • Financial Highlights ADJUSTED EBITDA MARGIN NET LOSS MARGIN Adjusted EBITDA Margin declined 540 bps Net Loss Margin declined 1570 bps year-over-year, year-over-year, driven primarily by the increased SG&A primarily driven by increased SG&A costs as a % of net costs as a % of net rev
Slide 15: Q2 Fiscal 2022 Financial Highlights: DTC Orders and Active Customers
Q2 Fiscal 2022 • Financial Highlights DTC TOTAL ORDERS (K) DTC ACTIVE CUSTOMERS (M) DTC Total orders were down 22% year-over-year due to DTC Active customers were down 10% year-over-year lower order retention from a decrease in active following COVID-related tailwinds in 2021. Similar to customers,
Slide 16: Q2 Fiscal 2022 Financial Highlights: Net Revenue per Order, Grove Brands
Q2 Fiscal 2022 • Financial Highlights DTC NET REVENUE PER ORDER GROVE BRANDS % NET REVENUE DTC net revenue per order continued its long-term Grove Brands as a percent of net revenue gained 30 bps upward trend, increasing 3% year-over-year to $58.3. The year-over-year to 48.2% driven by improvement i
Slide 17: Guidance
Guidance Given our performance YTD as well as our expectations for the remainder of the year, we are raising full year guidance as follows: FISCAL YEAR 2022 GUIDANCE Net Revenue $302.5 million to $312.5 million up from $300 million to $310 million previously Adjusted EBITDA Margin (27.5)% to (30.5)%
Slide 18: Financial Statements
ing a Grove Co. rating as Hand Soap = 18
Slide 19: Balance Sheets
Balance June 30, 2022 December 31, 2021 ASSETS (unaudited) Sheets Current Assets: Cash and cash equivalents $ 132,393 $ 78,376 (IN THOUSANDS) Inventory, net 53,494 54,453 Prepaid expenses and other current assets 7,491 8,104 Total current assets 193,378 140,933 Property and equipment, net 15,831 15,
Slide 20: Statement of Operations
Statement of Operations Three Months Ended June 30 2022 2021 (IN THOUSANDS) Revenue, net $ 79,279 $ 99,023 (Unaudited) Cost of goods sold 40,322 49,957 Gross profit 38,957 49,066 Operating expenses: Advertising 17,898 22,516 Product development 5,922 5,688 Selling, general and administrative 57,895 4
Slide 21: Statements of Cash Flows
Statements of CASH FLOWS FROM OPERATING ACTIVITIES Six Months Ended June 30, 2022 2021 Cash Flows Net loss Adjustments to reconcile net loss to net cash used in operating activities: $ (82,694) $ (66,411) Remeasurement of convertible preferred stock warrant liability (1,616) 1,308 (IN THOUSANDS) (Un
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Grove Collaborative uses the non-GAAP financial measures set forth below in assessing its operating performance and in its financial communications. Management believes these non-GAAP financial measures provide useful additional information to investors about current trends
Slide 23: Thank you
Thank you