Grove Collaborative Holdings, Inc. · NYSE:GROV
Grove Collaborative — Q4 2024 Earnings Presentation
31 slides from Grove Collaborative's earnings presentation, Mar 11, 2025
Slide 1: Investor Presentation Q4 2024
Investor Presentation Q4 2024 As of March 11, 2025
Slide 2: Safe Harbor Statement/Non-GAAP Measures
Safe Harbor Statement/Non-GAAP Measures All information in this presentation is as of March 11, 2025. 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 Litig
Slide 3: Grove's transformation fuels momentum for 2025 and beyond
Grove’s transformation fuels momentum for 2025 and beyond 2024 ● Sequential revenue growth in fourth quarter ● $1.3M positive adjusted EBITDA in FY24 ● Positive Operating Cash Flow in last three quarters of 2024 ● Removed default subscriptions and opened business model ● Optimized own Fulfillment Cen
Slide 4: Our journey to building a healthier home and planet
Our journey to building a healthier home and planet 2012 2014 2016 2021 2024 2025 and Beyond Founded as Officially Grove Became a Public Transformed Prioritizing ePantry to became a Collaborative Benefit business model environmental deliver healthy, Certified B rebranded and Corporation by shifting away
Slide 5: Your home, healthier.
Your home, healthier. Our mission is to transform the products you use every day into a force for environmental and human health.
Slide 6: Vetted essentials for a healthier home, body, and planet
Grove Collaborative: The leading platform for conscientious consumers Vetted essentials for Leading the way a healthier home, A higher standard Beyond Plastic™ body, and planet Every product meets rigorous Helping consumers reduce A differentiated alternative to standards for health, exposure to chem
Slide 7: The mindful shopper wants healthy, sustainable products, but faces obstacles
Empowering customers to create a healthier home and planet The mindful shopper wants healthy, provides: sustainable products, but faces obstacles. CURATED QUALITY EDUCATIONAL SUPPORT We vet every product for safety Science-backed guidance for HARMFUL INGREDIENTS in many products and sustainability,
Slide 8: 57 million conscientious consumers
Expanding our reach to reflect our broader commitment to a healthier home and planet BEFORE 57 million 1 5 million customers 2 reached through conscientious consumers want healthier, cleaning focus and subscription boxes planet-friendly products for their families AFTER Better serve the remaining 52
Slide 9: Consumers are prioritizing natural and sustainable products like never before
Consumers are prioritizing natural and sustainable products like never before Consumers are voting with their wallets—brands that align with sustainability and wellness are positioned for long-term growth. SUSTAINABILITY MATTERS WELLNESS-DRIVEN PURCHASING 80% +28% of U.S. consumers cumulative growth
Slide 10: Grove's turnaround roadmap
Grove’s turnaround roadmap 2026 & Beyond PROFITABLE GROWTH 2024-2025 - Consistent, profitable revenue growth TRANSFORMATION - Scale advertising - Shift to open shopping investment with high return 2022-2023 experience on investment DRIVE TO PROFITABILITY - Expand focus to - Maintain operating and env
Slide 11: Successfully navigating our transformation to profitable growth
Successfully navigating our transformation to profitable growth BALANCE SHEET ENVIRONMENTAL & PROFITABILITY REVENUE GROWTH STRENGTH HUMAN HEALTH Positive 2024 Adjusted EBITDA $72M term debt repayment First quarter of sequential Plastic intensity decreased of +$1.3M resulted in a stronger balance reve
Slide 12: From strategic vision to financial results
MEASURING OUR IMPACT From strategic vision to financial results CONFIDENTIAL
Slide 13: Revenue stabilizing as business optimizes for efficiency and lays foundation for growth
Revenue stabilizing as business optimizes for efficiency and lays foundation for growth Quarterly Revenue ($M) Scaled back advertising while charting our path to profitable growth began in +2.5% 2022 but accelerated in Q2 2023 sequential revenue growth Cohort stabilizatio n CONFIDENTIAL
Slide 14: Expense discipline driving Adjusted EBITDA and cash flow improvements
Expense discipline driving Adjusted EBITDA and cash flow improvements Significant Adjusted EBITDA improvement Positive operating cash flow in last 3 quarters 3 consecutive quarters of positive operating cash flow One-time expenses (Lease termination) and interest payments Adjusted EBITDA ($M) Operating
Slide 15: Growth in customer value is unlocking revenue opportunities
Growth in customer value is unlocking revenue opportunities GROWING ORDER VALUE INCREASED ENGAGEMENT HIGHER SPENDING +24% DTC Net Revenue per Order DTC Orders per Active Customer1 DTC Net Revenue per Active Customer1 Note: (1) As of the last day of each reporting period, we determine our number of D
Slide 16: Loyal customers and subscription growth driving long-term success
Loyal customers and subscription growth driving long-term success STABLE VIP RENEWAL RATE INCREASING SUBSCRIPTION HAPPY CUSTOMERS ENGAGEMENT 74% renewal rate Business model change driving +30% 86% of orders now include one or more increase in new customer satisfaction subscriptions Business model ch
Slide 17: Improved efficiency fueling margin expansion and sustainable profit growth
Improved efficiency fueling margin expansion and sustainable profit growth EXPANDING MARGINS CONTROLLING EXPENSES REDUCING INVENTORY +470bps -65% GAAP Gross Margin GAAP SG&A ($M) GAAP Inventory ($M) Note: (1) 2022 includes $42.9M of Stock Based Compensation CONFIDENTIAL
Slide 18: Building a trusted marketplace with a winning product mix
STRATEGIC FOCUS Building a trusted marketplace with a winning product mix CONFIDENTIAL
Slide 19: Our 2025 strategy is concentrated around three strategic initiatives
Our 2025 strategy is concentrated around three strategic initiatives Empowering 57M conscientious consumers to create a healthier home and planet MAKING GROVE THE PREFERRED CHOICE SCALE PLATFORM TO WIN GROW PRODUCT MIX BUILD CUSTOMER LOVE Optimize growth with leading Through third-party Strengthenin
Slide 20: Trusted, curated marketplace
PLATFORM SCALED TO WIN Trusted, curated MARKETING EFFICIENT COST BOX ECONOMICS FRAMEWORK STRUCTURE marketplace Guided, personalized Strategic cost optimization 9+ units per order1 experience $67+ net revenue per A higher standard: Where value Media mix informed by Streamlined workforce order1 meet v
Slide 21: Win in human health and wellness
GROW PRODUCT MIX Win in human health and wellness VMS GROWTH Improve customer conversion through increased selection, increased marketing exposure, and enhanced content EXPAND NON-VMS ADVISORY BOARD Target white space categories to aid the customer journey of Experts for credibility and trust buildi
Slide 22: Third-party learning from VMS success
GROW PRODUCT MIX VMS success lays the blueprint for further expansion into white Third-party learning space categories from VMS success Customers trust us1: 89% of customers trust Grove for health and wellness needs. Increased order value: 20%+ higher net revenue per order. Adding 100+ brands and in
Slide 23: Owned brands strategy evolution
GROW PRODUCT MIX Owned brands strategy evolution Building our portfolio of exclusive products CORE CLEANING: REFILLABLES EVOLUTION IN THE HOME: MARGIN ACCRETIVE EXPANSION AND CONCENTRATES PAPER, TRASH, DURABLES Industry leading sustainability: Bamboo based paper enabling meeting and exceeding unique
Slide 24: Earn trust through authentic content
BUILD CUSTOMER LOVE Earn trust through authentic content Deepen trust and brand authority with engaging, educational storytelling that inspires informed choices Home Planet Blog Organic Social Product Rich Editorials PLPs and PDPs Builds trust and Provides educational Bridges education Guide custome
Slide 25: Supplemental
Supplemental CONFIDENTIAL
Slide 26: Financial outlook 2025 Guidance
Financial outlook 2025 Guidance First quarter revenue is expected to Revenue ➔ be the lowest revenue quarter in 2025 and going forward, including the negative revenue impact of the Shopify transition. ➔ Revenue is expected to improve through the second and third quarters, leading to year-over-year g
Slide 27: Balance Sheet and Cash
Balance Sheet and Cash Balance Sheet Cash & Debt Dec. 31, Dec. 31, 2023 2024 Ending Cash, Cash Equivalents & $94.9 million $24.3 million Restricted Cash $79.5 million $7.5 million Outstanding Debt Term + ABL ABL CONFIDENTIAL
Slide 28: Leadership Team With Depth of Ecommerce Experience to Execute
Leadership Team With Depth of Ecommerce Experience to Execute Jeff Yurcisin, Jason Buursma, Vice President, Tom Siragusa, Interim Chief Jennifer Pann, Vice President, Scott Giesler, General Counsel Chief Executive Officer Marketing Financial Officer Merchandising & E-Commerce Nearly 20 years of experienc
Slide 29: Appendix
Qos Appendix ‘CONFIDENTIAL,
Slide 30: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $MM (1) Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Net Loss ($13.1) ($10.9) ($9.8) ($9.5) ($43.2) ($3.4) ($10.1) ($1.3) ($12.6) ($27.4) Stock-Based Compensation $4.9 $4.9 $2.1 $3.6 $15.5 $3.1 $3.4 $2.8 $2.7 $12.0 Depreciation and Am
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