Slide 1: Q4 and Fiscal Year 2022
Q4 and Fiscal Year 2022
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: Q4 2022 Business Highlights
Q4 2022 Business Highlights 3
Slide 4: Executing Against Value Creation Plan to Achieve Profitable Growth in 2024
Executing Against Value Creation Plan to Achieve Profitable Growth in 2024 ● Continued efficiencies ● Reached $1M sales on of lower spend across Amazon channels ● Grove Co secured first ● Further optimization of quarter launch at new marketing Walmart and Amazon technology stack to improve targeting ● S
Slide 5: New Product Launches
New Product Launches Fresh Horizons New collection launched in partnership with Drew Barrymore 5
Slide 6: Our Journey Beyond Plastic
Our Journey Beyond Plastic TODAY BY 2025 Plastic Neutral Beyond Plastic 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. T
Slide 7: Our Total Plastic Footprint / Beyond Plastic: Tracking Our Progress
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 0.98 lbs / $100 in Net Revenue
Slide 8: FY 2022 Financial Update
Q4 and FY 2022 Financial Update 8
Slide 9: Fiscal 2022 Financial Highlights
Q4 and Fiscal 2022 • Financial Highlights Three months ended Twelve months ended Q4-22 Q4-21 % Change FY22 FY21 % Change Financials Revenue, Net ($mm) $74.0 $87.3 (15%) $321.5 $383.7 (16%) Gross Profit ($mm) $34.8 $39.3 (11%) $154.7 $188.5 (18%) % Revenue, Net 47% 45% 200bps 48% 49% (100bps) Net Los
Slide 10: Net Revenue and Gross Margin
Q4 and Fiscal 2022 • Financial Highlights NET REVENUE ($MM) GROSS MARGIN Net revenue was $74 million, a year over year Gross margin improved 200 bps year over year to 47.0%, decrease of 15 percent. The decrease was primarily mainly driven by the impacts of net revenue driven by fewer DTC orders caus
Slide 11: Adjusted EBITDA Margin and Net Loss Margin
Q4 and Fiscal 2022 • Financial Highlights ADJUSTED EBITDA MARGIN NET LOSS MARGIN Adjusted EBITDA Margin improved 1,610 bps to -12.9% Net Loss Margin improved 1,950 bps to -17.1% year over year over year. This reflects an improved gross margin year, primarily driven due to improved Adjusted EBITDA cou
Slide 12: DTC Total Orders and Active Customers
Q4 and Fiscal 2022 • Financial Highlights DTC TOTAL ORDERS (K) DTC ACTIVE CUSTOMERS (K) DTC Total orders were down 25% year-over-year due to a DTC Active customers were down 16% year-over-year decrease in active customers driven by the decrease in due to the reduction in DTC advertising spend as the
Slide 13: DTC Net Revenue per Order and Grove Brands % Net Revenue
Q4 and Fiscal 2022 • Financial Highlights DTC NET REVENUE PER ORDER GROVE BRANDS % NET REVENUE DTC net revenue per order increased 11% year-over-year Grove Brands as a percent of net revenue declined 220 to $63 primarily driven by the impacts of Net Revenue bps year-over-year to 46% driven by the la
Slide 14: Guidance
Guidance Based on performance to date and current expectations, Grove is providing the following guidance: FISCAL YEAR 2023 GUIDANCE Net Revenue $260.0 to $270.0 million Adjusted EBITDA Margin (9)% to (11)% 14
Slide 15: Financial Statements
ing a Grove Co. rating as Hand Soap =
Slide 16: Statement of Operations
Statement of Operations Three Months Ended December 31 Year Ended December 31 2022 2021 2022 2021 (IN THOUSANDS) (unaudited) Revenue, net $ 74,036 $ 87,264 $ 321,527 $ 383,685 Cost of goods sold 39,245 48,002 166,875 195,181 Gross profit 34,791 39,262 154,652 188,504 Operating expenses: Advertising 6
Slide 17: Balance Sheets
Balance December 31, ASSETS Sheets 2022 2021 Current Assets: Cash and cash equivalents $ 81,084 $ 78,376 (IN THOUSANDS) Restricted cash 11,950 — Inventory, net 44,132 54,453 Prepaid expenses and other current assets 4,844 8,104 Total current assets 142,010 140,933 Restricted cash 2,951 — Property an
Slide 18: Statements of Cash Flows
Twelve Months Ended December 31, Statements of CASH FLOWS FROM OPERATING ACTIVITIES Net loss 2022 $ (87,715) 2021 $ (135,896) Cash Flows Adjustments to reconcile net loss to net cash used in operating activities: Remeasurement of convertible preferred stock warrant liability (1,616) 1,234 (IN THOUSA
Slide 19: 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 20: Thank you
Thank you