- Maintains 2023 revenue guidance, raises adjusted EBITDA
guidance
- Records first Operating Cash Flow Positive Quarter
- Still expects to be near adjusted EBITDA break-even in
Q3
- Announces leadership changes; Jeff Yurcisin appointed new
CEO; Stuart Landesberg to become Executive Chairman; John Replogle
to become lead independent director
- Announces $10 million investment from Volition
Capital
- Larry Cheng, Managing Partner of Volition Capital, Board
Member at GameStop and Former Board member at Chewy, to join
Grove’s Board of Directors
- Introduces new Growth and Market Expansion
Initiative
Grove Collaborative Holdings, Inc. (NYSE: GROV) (“Grove” or “the
Company”), a leading sustainable consumer products company and
certified B Corp, today reported financial results for its fiscal
second quarter ended June 30, 2023.
Fiscal Second Quarter 2023 Financial
Highlights:
Our financial highlights continue to reflect our progress to
rapidly improve our bottom-line-results year-over-year and
sequentially by increasing margins, creating operating efficiency,
and eliminating less productive spend, in order to be profitable,
on an Adjusted EBITDA basis, in 2024. In the second half of 2022,
we made the conscious decision to shift our focus to profitability
rather than top line growth. Therefore, we believe that our
sequential quarterly results are the best indicator of our current
financial performance.
- Net revenue of $66.1 million, down 7.6% from the first quarter
of 2023, and down 16.6% year-over-year, largely due to reductions
in advertising spend as we focus on profitability.
- Gross margin of 51.9%, down slightly by 20 basis points from
Q1’s record of 52.1%, but up 280 basis points year-over-year. Of
note, there was a $1.1 million inventory reserve charge recorded in
Q2 2023. This had a 170 basis point impact to gross margin in the
quarter. Absent the reserve, gross margin would have been 53.6%, a
record for the Company
- Net loss margin of (16.4)%, compared to (18.3)% in the first
quarter of 2023 and (44.5)% in the second quarter of 2022.
- Adjusted EBITDA margin(1) of (3.9)%, an improvement of 570
basis points from the first quarter of 2023 and 2,270 basis points
from the second quarter of 2022. See the reconciliation of adjusted
EBITDA, a non-GAAP financial measure, to net loss in the table at
the end of this press release.
(1)
Adjusted EBITDA margin is a non-GAAP
financial measure. See “Non-GAAP Financial Measures” for additional
information.
Stuart Landesberg, Chief Executive Officer of Grove, said, “This
quarter was another step in the right direction as we continue to
drive the Company towards profitable growth. We not only achieved
record Net Revenue per order of $64.8, reduced SG&A 39%
year-over-year, and improved Media CAC by 60% year-over-year, but
we also achieved positive operating cash flow of $1.2 million, the
first time in the company’s history. I continue to have confidence
that the improvements we are making to our core operations, while
also investing in long-term growth drivers like omni-channel
distribution, expanding the health & wellness category, and
exploring opportunistic M&A all get us closer to fulfilling our
potential as a growing and profitable company that can transform
our categories for a more sustainable future. I am proud of the
exceptional work our teams have done across the business to produce
transformative results in our first year as a public company.”
Fiscal Second Quarter 2023 Key Business
Highlights:
Three Months Ended June
30,
Six Months Ended June
30,
(in thousands, except DTC Net Revenue Per
Order and percentages)
2023
2022
2023
2022
Financial and Operating Data
Grove Brands % Net Revenue
45
%
48
%
47
%
50
%
DTC Total Orders
974
1,315
2,071
2,874
DTC Active Customers
1,133
1,564
1,133
1,564
DTC Net Revenue Per Order
$
65
$
58
$
63
$
57
Grove Brand products represented 45.0% of net revenue in the
second quarter of 2023, a decrease of 380 basis points
quarter-over-quarter and a decrease of 290 basis points
year-over-year. The year over year and sequential decreases are due
to a decrease in Grove Brands products in existing customer orders
as we continue to expand our third-party offering and a decrease in
new customer orders, which include more Grove Brand products. The
sequential decline in existing customer share was further impacted
by coming off a seasonally high Grove Brands performance in Q1,
whereas the year over year decline is due to an expansion to
categories with an increased third party presence, including VMS,
home decor and storage.
DTC total orders were 1.0 million, down 11% quarter-over-quarter
and 26% year-over-year. The year-over-year and sequential declines
are due to lower advertising spend throughout 2022 and 2023 YTD,
resulting in fewer new customers and therefore fewer overall
orders.
DTC active customers were 1.1 million, down 9%
quarter-over-quarter and 28% year-over-year. The year-over-year and
sequential declines are due to lower advertising spend resulting in
fewer new customers.
DTC net revenue per order was $64.8 in the second quarter of
2023, a record for Grove, up 5% quarter-over-quarter and up 11%
year-over-year. The sequential improvement is due to higher percent
of existing customer orders which have higher Net Revenue per
Order. The year-over-year improvement is due to net revenue
management initiatives including a Supply Chain Fee, a mix shift
towards existing customer orders which have a higher DTC Net
Revenue Per Order compared to new customer orders, as well as the
introduction of strategic price increases on Grove Brands and third
party products.
In the second quarter, 67% of Grove Co. product net revenue came
from either zero-plastic, re-usable or refillable and zero plastic
waste products, determined as meeting the Company’s Beyond Plastic™
standard1, down slightly from 70% in the first quarter of 2023 and
the second quarter of 2022.
Grove believes that publishing plastic intensity (pounds of
plastic sold per $100 in revenue) enables the Company to hold
itself accountable for the pace at which it decouples revenue from
its use of plastic.
- Across the Grove.co site and through retail partners, plastic
intensity was 1.01 pounds of plastic per $100 in revenue in the
second quarter of 2023, a slight improvement from 1.02 in the first
quarter of 2023 and meaningfully improved from 1.07 in the second
quarter of 2022
- Across all Grove Brands, plastic intensity was 0.95 pounds of
plastic per $100 in revenue in the second quarter of 2023,
increasing from 0.90 pounds in the first quarter of 2023 and 0.87
pounds in the second quarter of 2022
__________________
1
Starting in Q1 2023, we break out Beyond
Plastic™ for Grove Co. as our flagship brand, instead of grouping
together all owned brands within the Grove family.
Business Updates
Leadership changes
The Company separately announced the appointment of Jeff
Yurcisin as new CEO, effective August 16, 2023. Mr. Yurcisin will
also join the Company’s Board of Directors. He will succeed Stu
Landesberg, the Company’s co-Founder, who will become the Executive
Chairman of the Board. Mr. Landesberg will succeed former Seventh
Generation and Burt’s Bees CEO, John Replogle, who will serve as
the Board’s Lead Independent Director.
$10 Million PIPE investment from Volition Capital
The Company announced a $10 million investment from Volition
Capital (“Volition”), a leading growth equity firm that notably was
a large investor in Chewy. The proceeds will be used for general
corporate expenses, growth opportunities and potentially for stock
buybacks. Volition invested in Series A Preferred Stock, with a
common stock conversion price of $2.11, which is a 9% premium to
the 45 day VWAP as of the date of closing. Dividends are paid only
if declared by the board. Volition also received warrants to
purchase an additional $10 million of Grove’s Class A Common Stock
at an exercise price of $6.33 per share. In addition, Volition’s
managing partner and co-founder Larry Cheng will join Grove’s Board
of Directors. Mr. Cheng led Volition’s investment in Chewy and also
serves on the Board of Directors of GameStop where he has helped
drive their digital transformation.
New Growth and Market Expansion (GME) Initiative
The newly announced Growth and Market Expansion (GME) Initiative
will build on the success of the Company’s Value Creation Plan,
announced in 2022, which helped drive improvements in Adjusted
EBITDA in Q2. This initiative builds on Grove’s strong position in
sustainability with a focus on the continuation of strong customer
service, building on the momentum within the health and wellness
category, and enhancing focus on our replenishment categories and
regularly consumed items. Additionally, the Company is improving
its VIP program by making its benefits and experience easier and
more intuitive to use. Today it announced the completion and
rollout of a cornerstone project, a new VIP Hub, that makes it
seamless for VIP customers to access exclusive benefits like
samples, VIP gifts, discounts, and early access to limited edition
collections.
Fiscal Second Quarter 2023 Operating
Results
Net revenue of $66.1 million, down 7.6% from the first quarter
of 2023, and down 16.6% year-over-year. The sequential and
year-over-year declines were due to a decrease in DTC Orders caused
by a reduction in DTC Active Customers from the reduction in
advertising spend, partially offset by the increase in DTC Net
Revenue Per Order.
Gross margin of 51.9%, down slightly by 20 basis points from the
first quarter of 2023, which was a record for the Company, and up
280 basis points year-over-year. The sequential decline is largely
due to $1.1 million in inventory reserve charges and decrease in
Grove Brands % Net Revenue, offset by a decrease in discount rate
and lower product costs. The year-over-year improvement is due to
the impacts of net revenue management initiatives, including the
introduction of a Supply Chain Fee, a decrease in the number of
lower-margin first orders as a percentage of total orders and
strategic price increases on Grove Brands and third party products,
partially offset by increases in inventory reserve charges, as a
percentage of net revenue, and product costs and a decrease in
Grove Brands mix as a percentage of total revenue.
Operating expenses of $43.9 million were down 14% from the first
quarter of 2023, and down 46% year-over-year. The sequential
improvement is largely due to a $4.0 million decrease in
advertising expenses, $2.1 million decrease in fulfillment costs,
and $1.1 million decrease in other operating expenses, including
lower personnel expenses and legal and professional fees, which are
reflective of our strategy of creating operating efficiency, and
eliminating less productive spend, to focus on profitability.
Net loss margin of (16.4)%, compared to (18.3)% in the first
quarter of 2022 and (44.5)% in the second quarter of 2022.
Adjusted EBITDA margin of (3.9)%, an improvement of 570 basis
points from the first quarter of 2023 and 2,270 basis points from
the second quarter of 2022, reflecting strong gross margin
performance, coupled with lower operating and advertising costs.
See the reconciliation of adjusted EBITDA, a non-GAAP financial
measure, to net loss in the table at the end of this press
release.
Second Quarter 2023 Key Operational
Highlights:
The Company continued to make progress against its four-pronged
value creation plan, compassing:
- Improved marketing efficiency
- Reduced Media CAC by 32% quarter over quarter and 60%
year-over-year as we continue to diversify and improve customer
targeting and focus on maximizing our returns on marketing
investment.
- Drove unpaid checkouts to record high percent of first orders
due to strong brand messaging and organic traffic
- Decreased advertising spend by 74% year over year, while
revenue only decreased 17%, demonstrating strong customer
loyalty.
- Omni-channel expansion
- Scaled Grove Co., our flagship brand, on Amazon.com, adding
laundry sheets, foaming hand soap, floor cleaner, glass cleaner,
and tub & tile product lines to our SKU assortment during the
quarter, expanding on the successful launches of multi-purpose
cleaner concentrates and hand and dish soap bundles during Q1.
- Announced new partnerships with Kroger and Hannaford,
increasing in-store presence at 450 additional brick & mortar
locations and increasing our total footprint to over 5,700
locations
- Net revenue management
- Launched the VIP store providing exclusive benefits to our VIP
customers as described above
- Recorded a record percent of revenue and orders containing
wellness products, contributing to the record Net Revenue per order
in the current quarter. We have grown our SKU count in this
category by 63% YTD and expect to double our SKU count in this
category by the end of the year. While health and wellness sales
still make up a small percentage of overall sales, we continue to
be encouraged by customers' response to these new offerings.
- Operating expense discipline
- We reduced SG&A by 7.5% quarter over quarter and 39.3%
year-over-year. We continued to demonstrate improved efficiencies
across all line items of the P&L as we monitor and eliminate
unproductive spend across the business.
Financial Outlook:
“As we continue to make progress driving operating efficiencies
and reducing expenses, it gives us the confidence to further
increase our adjusted EBITDA margin guidance for fiscal 2023
despite planning to increase our marketing investment again in Q4
when compared to Q2 and Q3. We are proud of the progress we have
made in our full P&L value creation plan to date, and look
forward to driving additional efficiencies in future quarters. Our
efforts are translating to durable improvements in profitability,
despite a challenging consumer environment,” stated Sergio
Cervantes, Chief Financial Officer of Grove.
Based on performance to date and current expectations, Grove is
providing the following updated guidance:
For the 12-month period ending December 31, 2023, we expect:
- Net revenue of $260.0 to $270.0 million
- Adjusted EBITDA margin(1) of (5.0)% to (7.0)%, an improvement
from (5.5)% to (7.5)%
(1)
Adjusted EBITDA margin is a non-GAAP
financial measure. See “Non-GAAP Financial Measures” for additional
information.
In addition to slightly raising Adjusted EBITDA guidance, the
Company also reiterates its expectation that Q3 2023 Adjusted
EBITDA will be close to break-even. However, Q4 will turn back to a
loss due to seasonality of the business and as we plan to increase
marketing investment to capitalize on the strong CAC momentum.
“We have confidence that the efforts to drive profitability over
the first half of this year set us up to operate near Adjusted
EBITDA positive in Q3, and to create a mentality across our
organization that can build sustainable innovation for growth going
forward. While this is not the finish line, it highlights the
durable and high impact changes we have made across the business,
while delivering exceptional value to our customers and mission,”
said CEO Stuart Landesberg.
Conference Call
Information:
The Company will host an investor conference call and webcast to
review these financial results at 5:00pm ET / 2:00pm PT on the same
day. The webcast can be accessed at https://investors.grove.co/.
The conference call can be accessed by calling 800-343-4849.
International callers may dial 203-518-9848. Please note, the
code “GROVE” is required for entry. A replay of the call will
be available until August 28, 2023 and can be accessed by dialing
877-660-6853 or 201-612-7415, access code: 13740599. The webcast
will remain available on the Company’s investor relations website
for 6 months following the webcast.
About Grove Collaborative Holdings,
Inc.
Launched in 2016 as a Certified B Corp, Grove Collaborative
Holdings, Inc. (NYSE: GROV) is transforming consumer products into
a positive force for human and environmental good. Driven by the
belief that sustainability is the only future, Grove creates and
curates more than 150 high-performing eco-friendly brands of
household cleaning, personal care, laundry, clean beauty, baby and
pet care products serving millions of households across the U.S.
each year. With a flexible monthly delivery model and access to
knowledgeable Grove Guides, Grove makes it easy for everyone to
build sustainable routines.
Every product Grove offers — from its flagship brand of
sustainably powerful home care essentials, Grove Co., plastic-free,
vegan personal care line, Peach Not Plastic, and zero-waste pet
care brand, Good Fur, to its exceptional third-party brands — has
been thoroughly vetted against Grove’s strict standards to be
beautifully effective, supportive of healthy habits, ethically
produced and cruelty-free. The first plastic neutral retailer in
the world, Grove is a public benefit corporation on a mission to
move Beyond Plastic™. In 2021, Grove entered physical retail for
the first time at Target stores nationwide, making sustainable home
care products even more accessible.
For more information, visit www.grove.co.
Caution Concerning Forward-Looking
Statements
This press release contains "forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements include, but are not limited to, statements
about our ability to drive toward profitability in 2024, our
expectation that the DTC business will stabilize, our ability to
consummate acquisitions, our 2023 business performance, the 2023
financial outlook, and our or our management team’s expectations,
hopes, beliefs, intentions, plans, prospects or strategies
regarding the future, including revenue growth and financial
performance, profitability, product expansion and services. Any
statements contained herein that are not statements of historical
fact may be deemed to be forward-looking statements. In addition,
any statements that refer to projections, forecasts or other
characterizations of future events or circumstances, including any
underlying assumptions, are forward-looking statements. The words
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“intends,” “may,” “might,” “plan,” “possible,” “potential,”
“predict,” “project,” “should,” “would” and similar expressions may
identify forward-looking statements, but the absence of these words
does not mean that a statement is not forward-looking. The
forward-looking statements contained in this press release are
based on our current expectations and beliefs made by our
management in light of their experience and their perception of
historical trends, current conditions and expected future
developments and their potential effects on the Company as well as
other factors they believe are appropriate in the circumstances.
There can be no assurance that future developments affecting the
Company will be those that we have anticipated. These
forward-looking statements involve a number of risks, uncertainties
(some of which are beyond our control) or other assumptions that
may cause actual results or performance to be materially different
from those expressed or implied by these forward-looking
statements, including changes in domestic and foreign business,
market, financial, political and legal conditions; risks relating
to the uncertainty of the projected financial information with
respect to Grove; Grove’s ability to successfully expand its
business; competition; the uncertain effects of the COVID-19
pandemic; risks relating to growing inflation and rising interest
rates; and those factors discussed in documents of Grove filed, or
to be filed, with the U.S. Securities and Exchange Commission (the
“SEC”). Should one or more of these risks or uncertainties
materialize, or should any of our assumptions prove incorrect,
actual results may vary in material respects from those projected
in these forward-looking statements. All forward-looking statements
in this press release are made as of the date hereof, based on
information available to Grove as of the date hereof, and Grove
assumes no obligation to update any forward-looking statement,
whether as a result of new information, future events or otherwise,
except as may be required under applicable securities laws.
Non-GAAP Financial
Measures
Some of the financial information and data contained in this
press release, such as adjusted EBITDA and adjusted EBITDA margin,
have not been prepared in accordance with United States generally
accepted accounting principles (“GAAP”). These non-GAAP measures,
and other measures that are calculated using such non-GAAP
measures, are an addition to, and not a substitute for or superior
to, measures of financial performance prepared in accordance with
GAAP and should not be considered as an alternative to revenue,
operating income, profit before tax, net income or any other
performance measures derived in accordance with GAAP. A
reconciliation of historical adjusted EBITDA to Net Income is
provided in the tables at the end of this press release. The
reconciliation of projected adjusted EBITDA and adjusted EBITDA
Margin to the closest corresponding GAAP measure is not available
without unreasonable efforts on a forward-looking basis due to the
high variability, complexity, and low visibility with respect to
the charges excluded from these non-GAAP measures, such as the
impact of depreciation and amortization of fixed assets,
amortization of internal use software, the effects of net interest
expense (income), other expense (income), and non-cash stock based
compensation expense. Grove believes these non-GAAP measures of
financial results, including on a forward-looking basis, provide
useful information to management and investors regarding certain
financial and business trends relating to Grove’s financial
condition and results of operations. Grove’s management uses these
non-GAAP measures for trend analyses and for budgeting and planning
purposes. Grove believes that the use of these non-GAAP financial
measures provides an additional tool for investors to use in
evaluating projected operating results and trends in and in
comparing Grove’s financial measures with other similar companies,
many of which present similar non-GAAP financial measures to
investors. Management of Grove does not consider these non-GAAP
measures in isolation or as an alternative to financial measures
determined in accordance with GAAP. However, there are a number of
limitations related to the use of these non-GAAP measures and their
nearest GAAP equivalents. For example, other companies may
calculate non-GAAP measures differently, or may use other measures
to calculate their financial performance, and therefore Grove’s
non-GAAP measures may not be directly comparable to similarly
titled measures of other companies.
We calculate adjusted EBITDA as net loss, adjusted to exclude:
(1) stock-based compensation expense; (2) depreciation and
amortization; (3) remeasurement of convertible preferred stock
warrant liability; (4) changes in fair values of Additional Shares,
Earn-out Shares, Public Private Placement Warrant, Structural
Derivative liabilities; (5) transaction costs allocated to
derivative liabilities upon Business Combination; (6) interest
income; (7) interest expense; (8) restructuring and severance
related costs and (9) provision for income taxes. We define
Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue.
Grove Collaborative Holdings,
Inc.
Condensed Consolidated Balance
Sheets
(In thousands)
June 30, 2023
December 31,
2022
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
81,084
$
81,084
Restricted cash
5,700
11,950
Inventory, net
34,549
44,132
Prepaid expenses and other current
assets
4,236
4,844
Total current assets
125,569
142,010
Restricted cash
2,951
2,951
Property and equipment, net
13,256
14,530
Operating lease right-of-use assets
13,272
12,362
Other long-term assets
2,825
2,192
Total assets
$
157,873
$
174,045
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
10,687
$
10,712
Accrued expenses
14,676
31,354
Deferred revenue
8,988
10,878
Operating lease liabilities, current
3,949
3,705
Other current liabilities
369
249
Debt, current
—
575
Total current liabilities
38,669
57,473
Debt, noncurrent
69,920
60,620
Operating lease liabilities,
noncurrent
16,351
16,192
Derivative liabilities
11,792
13,227
Total liabilities
136,732
147,512
Commitments and contingencies
Stockholders’ equity:
Preferred stock
—
—
Common stock
4
4
Additional paid-in capital
622,931
604,387
Accumulated deficit
(601,794
)
(577,858
)
Total stockholders’ equity
21,141
26,533
Total liabilities and stockholders’
equity
$
157,873
$
174,045
Grove Collaborative Holdings,
Inc.
Condensed Consolidated
Statements of Operations
(Unaudited)
(In thousands, except share
and per share amounts)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Revenue, net
$
66,106
$
79,279
$
137,671
$
169,758
Cost of goods sold
31,798
40,322
66,108
88,064
Gross profit
34,308
38,957
71,563
81,694
Operating expenses:
Advertising
4,657
17,898
13,330
50,691
Product development
4,052
5,922
8,268
12,162
Selling, general and administrative
35,159
57,895
73,180
108,865
Operating loss
(9,560
)
(42,758
)
(23,215
)
(90,024
)
Interest expense
4,044
2,285
7,773
4,372
Change in fair value of Additional Shares
liability
97
2,015
320
2,015
Change in fair value of Earn-Out
liability
(1,201
)
(17,345
)
(1,058
)
(17,345
)
Change in fair value of Public and Private
Placement Warrants liability
(713
)
(1,180
)
(1,387
)
(1,180
)
Change in fair value of Structural
Derivative liability
90
—
690
—
Other expense (income), net
(1,021
)
6,775
(5,638
)
4,783
Interest and other expense (income),
net
1,296
(7,450
)
700
(7,355
)
Loss before provision for income taxes
(10,856
)
(35,308
)
(23,915
)
(82,669
)
Provision for income taxes
11
2
21
25
Net loss
$
(10,867
)
$
(35,310
)
$
(23,936
)
$
(82,694
)
Net loss per share attributable to common
stockholders, basic and diluted
$
(0.32
)
$
(5.29
)
$
(0.70
)
$
(19.30
)
Weighted-average shares used in computing
net loss per share attributable to common stockholders, basic and
diluted
34,280,844
6,676,852
34,015,827
4,283,842
Grove Collaborative Holdings,
Inc.
Condensed Consolidated
Statements of Cash Flows
(Unaudited)
(In thousands)
Six Months Ended June
30,
2023
2022
Cash Flows from Operating
Activities
Net loss
$
(23,936
)
$
(82,694
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Remeasurement of convertible preferred
stock warrant liability
—
(1,616
)
Stock-based compensation expense
9,841
24,534
Depreciation and amortization
2,897
2,864
Changes in fair value of derivative
liabilities
(1,435
)
(16,510
)
Reduction in transaction costs allocated
to derivative liabilities upon Business Combination
(3,745
)
—
Deferred offering costs allocated to
derivative liabilities upon Business Combination
—
6,673
Non-cash interest expense
1,911
312
Inventory reserve
1,228
1,693
Other non-cash expenses
95
139
Changes in operating assets and
liabilities:
Inventory
8,355
(734
)
Prepaids and other assets
716
613
Accounts payable
(34
)
(3,495
)
Accrued expenses
812
525
Deferred revenue
(1,890
)
1,308
Operating lease right-of-use assets and
liabilities
(507
)
(52
)
Other liabilities
120
302
Net cash used in operating
activities
(5,572
)
(66,138
)
Cash Flows from Investing
Activities
Purchase of property and equipment
(1,539
)
(2,610
)
Net cash used in investing
activities
(1,539
)
(2,610
)
Cash Flows from Financing
Activities
Proceeds from issuance of common stock
upon Closing of Business Combination
—
97,100
Proceeds from issuance of contingently
redeemable convertible common stock
—
27,500
Payment of transaction costs related to
the Business Combination and convertible preferred stock issuance
costs
(4,150
)
(1,267
)
Proceeds from issuance of debt
7,500
—
Payment of debt issuance costs
(925
)
(211
)
Repayment of debt
(575
)
(562
)
Proceeds (payments) from exercise of stock
options and settlement of restricted stock units, net of
withholding taxes paid related to common stock issued to
employees
(1,201
)
237
Proceeds from issuance under employee
stock purchase plan
213
—
Payment in lieu of fractional shares in
connection with reverse split
(1
)
—
Repurchase of common stock
—
(32
)
Net cash provided by financing
activities
861
122,765
Net increase (decrease) in cash, cash
equivalents and restricted cash
(6,250
)
54,017
Cash, cash equivalents and restricted cash
at beginning of period
95,985
78,376
Cash, cash equivalents and restricted cash
at end of period
$
89,735
$
132,393
Grove Collaborative Holdings,
Inc.
Non-GAAP Financial
Measures
(Unaudited)
(In thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Reconciliation of Net Loss to Adjusted
EBITDA
(in thousands)
Net loss
$
(10,867
)
$
(35,310
)
$
(23,936
)
$
(82,694
)
Stock-based compensation
4,948
20,074
9,841
24,534
Depreciation and amortization
1,449
1,454
2,897
2,864
Remeasurement of convertible preferred
stock warrant liability
—
270
—
(1,616
)
Change in fair value of Additional Shares
liability
97
2,015
320
2,015
Change in fair value of Earn-Out
liability
(1,201
)
(17,345
)
(1,058
)
(17,345
)
Change in fair value of Public and Private
Placement Warrants liability
(713
)
(1,180
)
(1,387
)
(1,180
)
Change in fair value of Structural
Derivative liability
90
—
690
—
Deferred offering costs allocated to
derivative liabilities upon Business Combination
—
6,673
—
6,673
Reduction in transaction costs allocated
to derivative liabilities upon Business Combination
—
—
(3,745
)
—
Interest income
(1,021
)
—
(1,445
)
—
Interest expense
4,044
2,285
7,773
4,372
Restructuring and severance related
costs
553
—
553
1,636
Provision for income taxes
11
2
21
25
Total Adjusted EBITDA
$
(2,610
)
$
(21,062
)
$
(9,476
)
$
(60,716
)
Net loss margin
(16.4
)%
(44.5
)%
(17.4
)%
(48.7
)%
Adjusted EBITDA margin
(3.9
)%
(26.6
)%
(6.9
)%
(35.8
)%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230814220072/en/
Investor Relations Contact
ir@grove.co
Media Relations Contact
pr@grove.co
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