Slide 1: Investor Presentation
August 2024 Investor Presentation Updated Post Q2 2024 Earnings
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: Long Term Sustainable Growth
Long Term Sustainable Growth 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 $3.0M; Adjusted EBITD
Slide 4: THE Trusted Brand for Conscientious Consumers
THE Trusted Brand for Conscientious Consumers Grove creates and curates high performance, planet-first products 4
Slide 5: A Leading Sustainable Brand is Inevitable
A Leading Sustainable Brand is Inevitable CONSUMER PREFERENCE IS CLEAR SUSTAINABILITY TRANSPARENCY MISSION-DRIVEN 73% 72% 74% Of shoppers believe it is important to Of consumers place importance on Of retail consumers aged 25 – 34 place shop sustainably (1) purchasing beauty and personal care import
Slide 6: Plastic is a Core Sustainability Issue
Plastic is a Core Sustainability Issue More U.S. consumers care about plastic waste than about climate change. (1) Plastic packaging represents nearly half of all plastic waste. (2) 89 98 5 240K Percent of Ocean plastic is Percent of single use plastic is Percent of plastic is Number of detectable s
Slide 7: Leadership on Plastic Helped Make Grove a Breakthrough Brand
Leadership on Plastic Helped Make Grove a Breakthrough Brand in Digitally Native HPC BRAND HIGHLIGHTS CLEAR WINNER IN NEXT-GEN HPC #1 Brand awareness among plastic neutral brands(1) CATEGORY LEADER IN SUSTAINABLE PACKAGING Grove customers have prevented >10 million lbs of plastic waste Beyond 16M Be
Slide 8: 2023 Set the Stage for Profitable Growth
2023 Set the Stage for Profitable Growth 8
Slide 9: In the Last Two Years, We Have Driven Profitability
In the Last Two Years, We Have Driven Profitability ADJUSTED EBITDA(1) (000’s) rs y ea e fiv s in int po is as 0b ,30 /6 7M 14 +$ 2024 2019 2020 2021 2022 1H-2023 2H-2023 Guidance (2) Adjusted EBITDA (7%) (62%) (15%) (28%) (25%) +0.2% +1.0% Margin Notes: (1) (2) Adj. EBITDA is a non-GAAP metric; plea
Slide 10: We Aggressively Right Sized Our Cost Structure in 2023
We Aggressively Right Sized Our Cost Structure in 2023 & Continue to Optimize in 2024 Hard Decisions Executed in 2023 GAAP SG&A 2022-Q2 2024 ➢ >50% reduction of corporate personnel since beginning of 2022 ➢ Increased utilization of near-shore resources where possible ➢ Significantly reduced software
Slide 11: 2024: Transforming the Business
2024: Transforming the Business CONFIDENTIAL
Slide 12: Strategic Pillars
Strategic Pillars 1. Transform the 2. Platform for Safe and 3. Owned Brand 5. Revenue 4. Sustainability Customer Experience Sustainable Products Innovation Acceleration Bring innovative products Expand and curate Introduce best in class to our online platform and Accelerate revenue third-party selec
Slide 13: Optimizing Our Growth Model to Improve Customer Loyalty and Grow TAM
1 Optimizing Our Growth Model to Improve Customer Loyalty and Grow TAM Historical ● Default subscriptions and gated shopping experience Customer-centered Experience ● Incentive to Subscribe and Save ● Open shopping experience ● Larger TAM ● Removing Fees that drove attrition ● Premium shopping exper
Slide 14: 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 15: 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 5 year th in grow >2x Note: (1) (2) 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
Slide 16: Building a Platform from Everyday Essentials
2 Building a Platform from Everyday Essentials Discovery & Inspiration - Highly differentiated Sustainable- - Strong sustainability story Lifestyle Home Durables - Rotated and curated VMS Innovate for Growth Pet Food - Disruptive brands with high social currency Baby Feeding & Diapering - Stretching
Slide 17: Evolving Beyond Sustainable Home Care into New Categories
Evolving Beyond Sustainable Home Care into New Categories % of Third Party Net Revenue by Category (Q2-2024)1 Beauty & Personal Care Home Care 33% “Grove has so many 45% product options. They make it even easier to shop my 10% other favorite 6% Vitamins, Mineral & 6% Supplements brands.” Pet All Oth
Slide 18: We are Creating a Platform for Curated Discovery
We are Creating a Platform for Curated Discovery th o w r rG Fo ay u nw R SKU Count Third Party Average Order Value 18
Slide 19: Accelerating Assortment Expansion and Driving Order Size
We Are Accelerating the Pace at Which We are Expanding Assortment and Driving Order Size # of Third Party Products (1) 4,600 Testing: Follow on categories include Pet, Gardening, 5% Kitchen Tools and Baby, with early research proving large +4 opportunity for continued expansion. 3,100 % +30 2,400 Gr
Slide 20: VMS Success Provides the Blueprint for Further Category Expansion
VMS Success Provides the Blueprint for Further Category Expansion ➢ 89% of survey respondents would trust VMS Net Revenue per order in $ Grove over other retailers to solve their Health & Wellness needs(1) ➢ Customers purchasing VMS have >20% higher Net Revenue per Order than average ➢ Highly regime
Slide 21: 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 22: 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 23: 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 24: Grove is the Leader in Sustainable Home and Wellness
4 Grove is the Leader in Sustainable Home and Wellness Sustainability and Trust Differentiate Us 24
Slide 25: 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 26: Annual Sustainability Report is a Catalyst for Change
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 27: Financials
Financials 27
Slide 28: 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 Revenue in 2020-2021 Adjusted EBITDA(1) Sequential quarterly revenue growth expected in Q4 2024 Adjusted EBITDA Profitable for Full Year Updated 2024 2019 2020 2021 2
Slide 29: Sequential Revenue Growth Expected in Q4-2024
Sequential Revenue Growth Expected in Q4-2024 QUARTERLY REVENUE (1) Cohort Stabiliz l Growth ation Sequentia Notes: (1) Represents potential trajectory of revenue in 2024 and should not be interpreted as quarterly revenue guidance 29
Slide 30: 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 % Category Expansion + Improved E-commerce Platform + Product Innovation will drive further Unit Economic Growth 30
Slide 31: Balance Sheet + Available Capital
Balance Sheet + Available Capital 6/30/24 Cash + Available Liquidity ($M) (1) Subsequent Event(4) 6/30/24 Cash $83 On July 16, 2024, Grove voluntarily ABL Availability $6 prepaid $42.0M of principal outstanding Total Liquidity $89 under the Structural Debt Facility, while reducing the cash covenant
Slide 32: Supplemental Materials
Supplemental Materials 32 CONFIDENTIAL
Slide 33: Leadership Team With Depth of Ecommerce Experience to Execute
Leadership Team With Depth of Ecommerce Experience to Execute Jeff Yurcisin, Chief Executive Officer Sergio Cervantes, Chief Financial Officer ● Proven direct to consumer leadership as CEO of ● Global Executive with entrepreneurial mindset and multiple billion-dollar brands, twice succeeding extensi
Slide 34: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $MM (1) 2019A 2020A 2021A 2022A 2023A Q2-2023A Q2-2024A Net Loss ($161.0) ($72.3) ($135.9) ($87.7) ($43.2) ($10.9) ($10.1) Stock-Based Compensation $12.0 $7.8 $14.6 $45.7 $15.5 $4.9 $3.4 Depreciation and Amortization $2.0 $4.1 $5.0 $5.7 $5.8 $1.4 $2.4 Remeasurement of
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