Grove Collaborative Holdings, Inc. · NYSE:GROV
Grove Collaborative — Q4 2023 Earnings Presentation
33 slides from Grove Collaborative's earnings presentation, Mar 6, 2024
Slide 1: Investor Presentation
March 2024 Investor Presentation
Slide 2: Safe Harbor Statement/Non-GAAP Measures
Safe Harbor Statement/Non-GAAP Measures 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 state
Slide 3: A Premier Long Term Brand
A Premier Long Term Brand Customer Driven Growth Sequential Growth Will Resume in 2H 2024 ● New leadership brings DTC best practices from Amazon to transform the customer experience ● Expansion into wellness has provided the blueprint for further cross category expansion ● Sustainable innovation wil
Slide 4: THE Trusted Brand for Conscientious Consumers
THE Trusted Brand for Conscientious Consumers Grove creates and curates high performance, planet-first products 4
Slide 5: A Leading Sustainable Brand is Inevitable
A Leading Sustainable Brand is Inevitable CONSUMER PREFERENCE IS CLEAR SUSTAINABILITY TRANSPARENCY MISSION-DRIVEN 73% 72% 74% Of shoppers believe it is important to Of consumers place importance on Of retail consumers aged 25 – 34 place shop sustainably (1) purchasing beauty and personal care import
Slide 6: Plastic is a Core Sustainability Issue
Plastic is a Core Sustainability Issue More U.S. consumers care about plastic waste than about climate change. (1) Plastic packaging represents nearly half of all plastic waste. (2) 89 98 5 240K Percent of Ocean plastic is Percent of single use plastic is Percent of plastic is Number of detectable s
Slide 7: Leadership on Plastic Helped Make Grove a Breakthrough Brand in Digitally Native HPC
Leadership on Plastic Helped Make Grove a Breakthrough Brand in Digitally Native HPC BRAND HIGHLIGHTS CLEAR WINNER IN NEXT-GEN HPC #1 Brand awareness among plastic neutral brands(1) CATEGORY LEADER IN SUSTAINABLE PACKAGING Grove customers have prevented >10 million lbs of plastic waste Beyond 16M Be
Slide 8: 2023: Set the Stage for Profitable Growth
2023: Set the Stage for Profitable Growth 8
Slide 9: We Reached Adjusted EBITDA Profitability One Year Ahead of Plan
We Reached Adjusted EBITDA Profitability One Year Ahead of Plan We have a track record of exceeding our public estimates: ➢ Achieved positive Adjusted EBITDA(1) two consecutive quarters ➢ Consistently beat and raised Adjusted EBITDA guidance in 2023 ➢ Positive Operating Cash Flow in Q2 and Q4 2023 "W
Slide 10: In the Last Two Years, We Have Prioritized Profitability
In the Last Two Years, We Have Prioritized Profitability ADJUSTED EBITDA(1) (000’s) $300 rs y ea five in ts p oin sis 0 ba $150 ,25 /6 M 1 46 +$ $0 ($150) 2024 2019 2020 2021 2022 1H-2023 2H-2023 Guidance (2) Adjusted EBITDA (7%) (62%) (15%) (28%) (25%) +0.2% +0.5% Margin Notes: (1) (2) Adj. EBITDA i
Slide 11: We Aggressively Right Sized Our Cost Structure in 2023
We Aggressively Right Sized Our Cost Structure in 2023 GAAP SG&A 2022-2023 Hard Decisions Executed in 2023 ➢ >50% reduction of corporate personnel since beginning of 2022 ➢ Increased utilization of near-shore resources where possible ➢ Significantly reduced software spend where not generating enough
Slide 12: 2024: Transforming the Business
2024: Transforming the Business CONFIDENTIAL
Slide 13: 2024 Will Be a Transformative Year
2024 Will Be a Transformative Year 1. Transform the Customer 2. Category Expansion 3. Innovation 4. Sustainability Experience Expand and curate third-party Bring innovative products to our Introduce best in class e-commerce selection to new and adjacent online platform and 7,500 retail Build upon su
Slide 14: Transforming Our Customer Experience and Optimizing Our Growth Model
1 Transforming Our Customer Experience and Optimizing Our Growth Model to Improve Customer Loyalty and grow TAM 1. Shopping focused 2. Subscribe for extra 3. VIP perk promotion 4. Open up Total landing page savings Addressable Market Closed Email gated subscription Old landing page with Default expe
Slide 15: Long Term Customer Loyalty Creates Revenue Base
Long Term Customer Loyalty Creates Revenue Base NET REVENUE RETENTION BY COHORT(1) (Excluding VIP & Shipping) (Quarterly, 2015-2023) ~35% of revenue retained at 3 years Asymptotic Retention Note: (1) Y-axis represents average of all historical quarterly cohort revenue as % of the cohort first order
Slide 16: The Value of Our Active Customers Increases Over Time
The Value of Our Active Customers Increases Over Time ORDERS PER ACTIVE CUSTOMER(1) NET REVENUE PER ACTIVE CUSTOMER(1) s 4 year th in grow ~2x Note: (1) As of the last day of each reporting period, we determine our number of DTC Active Customers by counting the number of individual customers who sub
Slide 17: Evolving Beyond Sustainable Home Care into New Categories
2 Evolving Beyond Sustainable Home Care into New Categories % of Third Party Net Revenue by Category (Q4-2023)1 Beauty & Personal Care Home Care “Grove has so 33% many product 48% options. They make it even 8% easier to shop my 5% 6% VMS other favorite Pet brands.” All Other (Baby, Kitchen Tools, Ga
Slide 18: VMS Success Provides the Blueprint for Further Cross Category Expansion
VMS Success Provides the Blueprint for Further Cross Category Expansion ➢ 89% of survey respondents would % of Orders Containing Vitamin, Mineral & Supplements Purchase trust Grove over other retailers to solve their Health & Wellness needs(1) ➢ Customers purchasing VMS have >20% higher Net Revenue
Slide 19: Grove's Flagship Brand, Grove Co., Includes a Portfolio of Over 300 Items
3 Grove’s Flagship Brand, Grove Co., Includes a Portfolio of Over 300 Items ● With over 50 no-way ingredients, including parabens, phthalates, and phosphates, we work hard to create products we use in our own homes. ● A true omni-channel presence is possible: we now sell nationwide with Target, CVS,
Slide 20: Our Innovation Pipeline Focuses on Delivering Beyond Plastic Options
Our Innovation Pipeline Focuses on Delivering Beyond Plastic Options Hero Platforms of Beyond 1 Accessible Sustainability for All 2 Plastic Innovation 3 Buzzworthy & Counterworthy ● New Ready-to-Use hand and dish ● Grove Co’s Ultra-concentrated laundry ● The summer limited edition collection soaps,
Slide 21: Platform for Conscientious Shoppers Can Be Enabled With M&A
Platform for Conscientious Shoppers Can Be Enabled With M&A Leading Sustainable Platform We evaluate M&A opportunities with our strategic partner, HumanCo. Synergy opportunities include: ➢ Grove.com platform sales of acquired brand ➢ Grove DTC fulfillment capability Strategic Partner + Access to Cap
Slide 22: Grove is the Leader in Sustainable Home and Wellness
4 Grove is the Leader in Sustainable Home and Wellness ➢ Sustainability is why customers trust us and what differentiates us from others. ➢ We are the first plastic neutral retailer, but will further serve customers by building off our Beyond Plastic framework with education and new products. ➢ Our
Slide 23: Our Newly Introduced Badges Earn Customer Trust Through Transparency
Our Newly Introduced Badges Earn Customer Trust Through Transparency • 100% plastic-free and does not include any PVA or plastic lacquers, liners, 100% or coatings Plastic-Free • Product Examples: Wool Dryer Balls, Candles, and Bar Soaps • There is no single-use plastic, such as polybags. The produc
Slide 24: Grove's Annual Sustainability Report is a Catalyst for Change Within the CPG Industry
Grove’s Annual Sustainability Report is a Catalyst for Change Within the CPG Industry Other Key Achievements By setting new benchmarks and spotlighting key metrics, our reports inspire action towards a more 15M lbs of single-use sustainable future for all. nature- and ocean-bound plastic collected(1
Slide 25: Financials
Financials 25
Slide 26: We Will be Adjusted EBITDA Profitable and Growing in 2024
We Will be Adjusted EBITDA Profitable and Growing in 2024 REVENUE & ADJUSTED EBITDA FINANCIAL RESULTS & GUIDANCE (000’s) Pandemic bump in 2020-2021 Revenue Adjusted EBITDA(1) Sequential quarterly revenue growth $300 expected in 2H 2024 $150 $0 Adjusted EBITDA Profitable for ($150) Full Year 2019 2020
Slide 27: Sequential Revenue Growth Expected in the Back Half of 2024
Sequential Revenue Growth Expected in the Back Half of 2024 QUARTERLY REVENUE (1) owth ntial Gr Seque Notes: (1) Represents potential trajectory of revenue in 2024 and should not be interpreted as quarterly revenue guidance 27
Slide 28: We Have Built a Platform that Delivers Strong Unit Economics
We Have Built a Platform that Delivers Strong Unit Economics DTC NET REVENUE PER ORDER GAAP GROSS MARGIN % 54.4% in Q4 $66.8 in Q4 2023 2023 Category Expansion + Improved E-commerce Platform + Product Innovation will drive further Unit Economic Growth 28
Slide 29: Balance Sheet + Available Capital
Balance Sheet + Available Capital 12/31/23 Cash + Available Liquidity ($M) 12/31/23 Cash, Cash Equivalents, $95 and Restricted Cash(1) ABL availability $8 Total Liquidity(2) $103 In July 2022, we entered into a Standby Equity Purchase Agreement, which would allow us to raise approximately $11.9M(3).
Slide 30: Supplemental Materials
Supplemental Materials 30 CONFIDENTIAL
Slide 31: Management Team
Jeff Yurcisin, Chief Executive Officer Sergio Cervantes, Chief Financial Officer ● Proven direct to consumer leadership as CEO ● Global Executive with entrepreneurial mindset and of multiple billion-dollar brands, twice extensive leadership experience in turning around succeeding founders businesses deli
Slide 32: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $MM (1) 2019A 2020A 2021A 2022A 2023A Q4-2022A Q4-2023A Net Loss ($161.0) ($72.3) ($135.9) ($87.7) ($43.2) ($12.7) ($9.5) Stock-Based Compensation $12.0 $7.8 $14.6 $45.7 $15.5 $11.3 $3.6 Depreciation and Amortization $2.0 $4.1 $5.0 $5.7 $5.8 $1.4 $1.5 Remeasurement of
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Grove Collaborative Holdings — Q4 2023 Earnings Presentation on 6ix