[Company Overview & Q4 2023 Highlights](index=1&type=section&id=1_CompanyOverview) [Executive Summary & Strategic Direction](index=1&type=section&id=1.1_ExecutiveSummary) Grove Collaborative achieved a second consecutive quarter of positive Adjusted EBITDA and operating cash flow in Q4 2023, targeting sustainable growth and profitability in 2024 - Achieved a second consecutive quarter of **positive Adjusted EBITDA and positive operating cash flow** in Q4 2023[2](index=2&type=chunk)[3](index=3&type=chunk) - Set a new record for net revenue per order, reaching **$66.83**[2](index=2&type=chunk)[6](index=6&type=chunk) - Expects to achieve **sequential revenue growth in the second half of 2024**, positive Adjusted EBITDA for the full year 2024, and plans for full-year growth and profitability in 2025[3](index=3&type=chunk) [Q4 2023 Financial Performance Summary](index=1&type=section&id=1.2_Q4_FinancialPerformanceSummary) Q4 2023 net revenue declined 19.2% YoY to $59.9 million due to reduced ad spend, though gross margin improved significantly to 54.4% Q4 2023 Key Financial Performance | Metric | Q4 2023 | Q3 2023 | Q4 2022 | YoY Change | QoQ Change | | :---------------------- | :-------- | :-------- | :-------- | :--------- | :--------- | | Net Revenue | $59.9M | $61.8M | $74.0M | -19.2% | -3.1% | | Gross Margin | 54.4% | 53.8% | 47.0% | +740 bps | +60 bps | | Operating Expenses | $40.5M | $37.3M | $63.2M | -35.9% | +8.5% | | Net Loss Margin | (15.8%) | (15.9%) | (17.1%) | +130 bps | +10 bps | | Adjusted EBITDA | $0.1M | N/A | -$9.5M | N/A | N/A | | Adjusted EBITDA Margin | 0.2% | 0.3% | (12.9%) | +1310 bps | -10 bps | | Operating Cash Flow | $1.1M | N/A | N/A | N/A | N/A | | Net Revenue per Order | $66.83 | N/A | $63 | +5.4% | +2.4% | [Q4 2023 Detailed Financial Results](index=1&type=section&id=2_Q4_DetailedFinancialResults) [Income Statement Highlights](index=1&type=section&id=2.1_IncomeStatementHighlights) Net revenue declined from lower DTC orders, but improved margins and significantly lower operating expenses YoY narrowed the net loss and improved Adjusted EBITDA Q4 2023 Income Statement Highlights | Metric | Q4 2023 (in thousands) | Q4 2022 (in thousands) | YoY Change | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | | Net Revenue | $59,857 | $74,036 | -19.2% | | Cost of Goods Sold | $27,295 | $39,245 | -30.5% | | Gross Profit | $32,562 | $34,791 | -6.4% | | Loss from Operations | $(7,943) | $(28,398) | +72.0% | | Net Loss | $(9,485) | $(12,683) | +25.2% | - Operating expenses increased 8.5% quarter-over-quarter, including **$3.3 million in restructuring charges** and a **$1.5 million increase in stock-based compensation**[5](index=5&type=chunk) [Balance Sheet & Cash Flow Snapshot](index=2&type=section&id=2.2_BalanceSheetCashFlowSnapshot) The company ended Q4 2023 with $94.9 million in cash, cash equivalents, and restricted cash, supported by positive operating cash flow Q4 2023 Balance Sheet Snapshot | Metric | Dec 31, 2023 (in thousands) | Dec 31, 2022 (in thousands) | YoY Change | | :-------------------------------- | :-------------------------- | :-------------------------- | :--------- | | Cash and Cash Equivalents | $86,411 | $81,084 | +6.6% | | Restricted Cash | $5,650 | $11,950 | -52.7% | | Total Current Assets | $124,196 | $142,010 | -12.5% | | Total Assets | $150,742 | $174,045 | -13.4% | | Total Current Liabilities | $35,043 | $57,473 | -39.0% | | Total Liabilities | $132,620 | $147,512 | -10.1% | | Total Stockholders' Equity | $8,122 | $26,533 | -69.4% | - Cash, cash equivalents, and restricted cash increased by **$0.2 million** from the prior quarter, driven by **$1.1 million in operating cash flow**, partially offset by $0.5 million in capital expenditures[7](index=7&type=chunk) [Key Business & Operational Metrics](index=2&type=section&id=2.3_KeyBusinessOperationalMetrics) Grove-branded revenue share declined slightly amid third-party expansion, while lower ad spend reduced active customers but drove record-high net revenue per order Q4 2023 Key Business Metrics | Metric | Q4 2023 | Q4 2022 | YoY Change | | :---------------------- | :-------- | :-------- | :--------- | | Grove Brands Net Revenue % | 44% | 46% | -200 bps | | Total DTC Orders | 864K | 1,132K | -23.7% | | Active DTC Customers | 920K | 1,377K | -33.2% | | DTC Net Revenue per Order | $66.83 | $63 | +5.4% | - The decline in Grove Brands' net revenue percentage was primarily due to the **expansion of third-party product offerings**, especially in the Health & Wellness category[8](index=8&type=chunk) - The decrease in total DTC orders and active customers resulted from **reduced advertising spend** in 2022 and 2023[9](index=9&type=chunk) - Record growth in DTC net revenue per order was driven by a **mix shift toward existing customer orders** and an increase in the average number of items per order[10](index=10&type=chunk) [Customer-Driven Growth](index=3&type=section&id=2.3.1_CustomerDrivenGrowth) - Implemented a new growth model incentivizing customers through **subscription and savings programs** to align with e-commerce best practices[14](index=14&type=chunk) - Expanded third-party brand offerings, adding brands such as **Ancient Nutrition, Compostic, The Honest Company, and WishGardens**[14](index=14&type=chunk) - Launched **Grove Co. Bottle Wash Power Packs** and consolidated the Grove owned-brand strategy under the flagship Grove Co. brand[14](index=14&type=chunk) - The Health & Wellness category's share of orders **grew by over 75% year-over-year**, supported by the formation of a Health & Wellness Advisory Council[14](index=14&type=chunk) - Enhanced the customer website experience through **improved personalized product recommendations** and an updated VIP program[14](index=14&type=chunk) [Sustainability Initiatives](index=3&type=section&id=2.3.2_SustainabilityInitiatives) - Recovered **15 million pounds of single-use plastic** from nature and oceans since 2020 through plastic neutrality commitments and partnerships[14](index=14&type=chunk) - Launched the **"Beyond Plastic™" digital badging system** to identify products meeting Grove's plastic standards (100% plastic-free, 95%+ plastic-free, or no single-use plastic)[14](index=14&type=chunk) [Profitability Initiatives](index=3&type=section&id=2.3.3_ProfitabilityInitiatives) - Continued to improve operating costs through **negotiations with suppliers, partners, and contracts** to enhance operating leverage and profitability[14](index=14&type=chunk) - Took additional actions in Q1 2024 to further optimize operating costs and expense structure, including **reducing headquarters lease footprint** and optimizing the fulfillment network[14](index=14&type=chunk) [Plastic Intensity Score](index=2&type=section&id=2.3.4_PlasticIntensityScore) Q4 2023 Plastic Intensity Score | Metric | Q4 2023 | Q3 2023 | Q4 2022 | YoY Change | QoQ Change | | :------------------------------------------------ | :-------- | :-------- | :-------- | :--------- | :--------- | | Plastic Intensity (Total Business) | 1.07 lbs/$100 | 1.11 lbs/$100 | 1.08 lbs/$100 | -0.01 lbs | -0.04 lbs | | Plastic Intensity (Grove Brands Only) | 1.07 lbs/$100 | 1.14 lbs/$100 | 0.98 lbs/$100 | +0.09 lbs | -0.07 lbs | - The year-over-year increase in Grove Brands' plastic intensity was primarily driven by the **Grove Co. 100% recycled plastic trash bag product category**[11](index=11&type=chunk) [Full Year 2023 Financial Results](index=3&type=section&id=3_FullYear2023FinancialResults) [Full Year Income Statement Highlights](index=3&type=section&id=3.1_FullYearIncomeStatementHighlights) FY2023 net revenue decreased 19.4% to $259.3 million due to lower ad spend, while gross margin improved significantly to 53.0% FY2023 Income Statement Highlights | Metric | FY2023 (in thousands) | FY2022 (in thousands) | YoY Change | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | | Net Revenue | $259,278 | $321,527 | -19.4% | | Gross Margin | 53.0% | 48.1% | +490 bps | | Operating Expenses | $172,622 | $295,635 | -41.6% | | Net Loss Margin | (16.7%) | (27.3%) | +1060 bps | | Adjusted EBITDA Margin | (3.5%) | (24.8%) | +2130 bps | - Gross margin improvement was driven by the **full-year impact of online order-related fees**, a reduction in lower-margin first orders, and the sale of previously reserved inventory[15](index=15&type=chunk) - The decrease in operating expenses was due to **reductions in advertising expenses**, product development costs, and selling, general, and administrative expenses[15](index=15&type=chunk) [Full Year Plastic Intensity](index=4&type=section&id=3.2_FullYearPlasticIntensity) The company's overall plastic intensity improved in FY2023, decreasing to 1.10 pounds of plastic per $100 of revenue FY2023 Plastic Intensity | Metric | FY2023 | FY2022 | YoY Change | | :---------------------- | :-------- | :-------- | :--------- | | Plastic Intensity | 1.10 lbs/$100 | 1.17 lbs/$100 | -0.07 lbs | [Financial Outlook](index=4&type=section&id=4_FinancialOutlook) [Fiscal Year 2024 Guidance](index=4&type=section&id=4.1_FiscalYear2024Guidance) The company projects FY2024 net revenue between $215-$225 million and an Adjusted EBITDA margin of 0.0% to 1.0%, expecting sequential growth in H2 - Expects a **revenue decline in Q1 2024** but anticipates sequential revenue growth in the second half of the year while balancing advertising efficiency and profitability[18](index=18&type=chunk) FY2024 Guidance | Metric | Guidance Range | | :---------------------- | :------------- | | Net Revenue | $215M to $225M | | Adjusted EBITDA Margin | 0.0% to 1.0% | [Additional Information](index=4&type=section&id=5_AdditionalInformation) [About Grove Collaborative](index=4&type=section&id=5.1_AboutGroveCollaborative) Grove Collaborative is a certified B Corporation offering over 200 eco-friendly brands with a mission to move 'Beyond Plastic™' - Founded in 2016, it is a **certified B Corporation** dedicated to transforming consumer products into a force for good for people and the planet[20](index=20&type=chunk) - Offers and curates **over 200 high-performance, eco-friendly brands** across categories like home cleaning, personal care, and health & wellness[20](index=20&type=chunk) - All products are vetted against the **"Grove Feel Good Standard"**, ensuring ingredient standards, 100% plastic-neutral orders, carbon-neutral shipping, cruelty-free practices, and ethical production[21](index=21&type=chunk) - As a public benefit corporation, its mission is to be **"Beyond Plastic™"** and its products are available at select national retailers[21](index=21&type=chunk)[23](index=23&type=chunk) [Conference Call Details](index=4&type=section&id=5.2_ConferenceCallDetails) The company held an investor conference call on March 6, 2024, to review financial results, with replay details available - The investor conference call and webcast were held on **March 6, 2024, at 5:00 p.m. ET / 2:00 p.m. PT**[19](index=19&type=chunk) - The webcast is accessible at **https://investors.grove.co/**; a telephone replay is available until March 20, 2024[19](index=19&type=chunk) [Non-GAAP Financial Measures Explanation](index=7&type=section&id=5.3_NonGAAPFinancialMeasuresExplanation) The report includes non-GAAP measures like Adjusted EBITDA, which management uses for analysis, with a full reconciliation to GAAP net loss provided - Non-GAAP measures like **Adjusted EBITDA and Adjusted EBITDA Margin** are supplemental to, not a substitute for or superior to, GAAP financial results[25](index=25&type=chunk) - Management uses these non-GAAP measures for **trend analysis, budgeting, and planning**, and for comparison with similar companies[25](index=25&type=chunk) - Adjusted EBITDA is calculated by adding back items such as **stock-based compensation, depreciation and amortization, change in fair value of derivative liabilities, interest, and restructuring charges** to net income (loss)[26](index=26&type=chunk) [Cautionary Note on Forward-Looking Statements](index=6&type=section&id=5.4_CautionForwardLookingStatements) This release contains forward-looking statements involving risks and uncertainties, and the company does not assume an obligation to update them - The press release includes forward-looking statements regarding **profitable revenue growth in H2 2024**, positive Adjusted EBITDA for 2024, and the 2024 guidance[24](index=24&type=chunk) - These statements are subject to risks and uncertainties, including changes in **business, market, financial, political, and legal conditions**, competition, and inflation[24](index=24&type=chunk) - Grove undertakes **no obligation to update any forward-looking statements**, except as required by applicable securities laws[24](index=24&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=6_ConsolidatedFinancialStatements) [Consolidated Balance Sheets](index=8&type=section&id=6.1_ConsolidatedBalanceSheets) The balance sheets show a year-over-year decrease in total assets and liabilities as of December 31, 2023 Consolidated Balance Sheets (Selected Items) | Item | Dec 31, 2023 (in thousands) | Dec 31, 2022 (in thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | | Cash and cash equivalents | $86,411 | $81,084 | | Inventories, net | $28,776 | $44,132 | | Total current assets | $124,196 | $142,010 | | Total assets | $150,742 | $174,045 | | Accounts payable | $8,074 | $10,712 | | Accrued expenses | $16,020 | $31,354 | | Total current liabilities | $35,043 | $57,473 | | Non-current liabilities | $71,662 | $60,620 | | Total liabilities | $132,620 | $147,512 | | Total stockholders' equity | $8,122 | $26,533 | [Consolidated Statements of Operations](index=9&type=section&id=6.2_ConsolidatedStatementsOfOperations) These statements detail revenues, costs, and expenses, showing a narrowing of net loss for Q4 and the full year 2023 Consolidated Statements of Operations (Selected Items) | Item | Q4 2023 (in thousands) | Q4 2022 (in thousands) | FY2023 (in thousands) | FY2022 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Net revenues | $59,857 | $74,036 | $259,278 | $321,527 | | Gross profit | $32,562 | $34,791 | $137,359 | $154,652 | | Loss from operations | $(7,943) | $(28,398) | $(35,263) | $(140,983) | | Net loss | $(9,485) | $(12,683) | $(43,232) | $(87,715) | | Net loss per share (basic and diluted) | $(0.27) | $(0.39) | $(1.28) | $(4.85) | [Consolidated Statements of Cash Flows](index=10&type=section&id=6.3_ConsolidatedStatementsOfCashFlows) These statements show a significant reduction in net cash used in operating activities for the year ended December 31, 2023 Consolidated Statements of Cash Flows (Selected Items) | Item | FY2023 (in thousands) | FY2022 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | | Net cash used in operating activities | $(7,993) | $(96,261) | | Net cash used in investing activities | $(2,985) | $(4,222) | | Net cash provided by financing activities | $9,856 | $118,092 | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $(1,122) | $17,609 | | Cash, cash equivalents, and restricted cash at end of period | $94,863 | $95,985 | [Non-GAAP Reconciliation (Adjusted EBITDA)](index=11&type=section&id=6.4_NonGAAPReconciliation) This section provides a detailed reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA for Q4 and the full year 2023 Reconciliation of Net Loss to Adjusted EBITDA (Selected Items) | Item | Q4 2023 (in thousands) | Q4 2022 (in thousands) | FY2023 (in thousands) | FY2022 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Net loss | $(9,485) | $(12,683) | $(43,232) | $(87,715) | | Stock-based compensation expense | $3,572 | $11,312 | $15,513 | $45,660 | | Depreciation and amortization | $1,465 | $1,425 | $5,824 | $5,716 | | Interest expense | $4,159 | $2,767 | $16,077 | $9,685 | | Restructuring costs | $3,258 | $5,887 | $3,811 | $8,879 | | Total Adjusted EBITDA | $137 | $(9,514) | $(9,183) | $(79,854) | | Adjusted EBITDA Margin | 0.2% | (12.9%) | (3.5%) | (24.8%) |

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q _____________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40263 Grove Collaborative Holdings, Inc. (Exact name of registrant a ...

Grove Collaborative Holdings, Inc. (NYSE:GROV) Q2 2023 Earnings Conference Call August 14, 2023 5:00 PM ET Company Participants Stuart Landesberg - Chief Executive Officer Sergio Cervantes - Chief Financial Officer Conference Call Participants Susan Anderson - Canaccord Genuity Dana Telsey - Telsey Group Operator Good afternoon and thank you for standing by. Welcome to Grove Collaborative Holdings, Inc.'s Second Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference ca ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q _____________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40263 Grove Collaborative Holdings, Inc. (Exact name of registrant as spe ...

Financial Performance - Revenue for Q1 2023 was $71.565 million, a decrease of 21% compared to $90.479 million in Q1 2022[17]. - Gross profit for Q1 2023 was $37.255 million, down from $42.737 million in Q1 2022, reflecting a gross margin of approximately 52%[17]. - Operating loss for Q1 2023 was $13.655 million, significantly improved from a loss of $47.266 million in Q1 2022[17]. - Net loss for Q1 2023 was $13.069 million, compared to a net loss of $47.384 million in Q1 2022, resulting in a net loss per share of $0.08[17]. - Total net revenue for the three months ended March 31, 2023, was $71.565 million, a decrease of 20.9% from $90.479 million in the same period of 2022[57]. - The net loss for the three months ended March 31, 2023, was $13.1 million, a decrease from a net loss of $47.4 million in the same period of 2022, representing a 72.5% improvement[24]. - Adjusted EBITDA for the three months ended March 31, 2023, was $(6.866) million, compared to $(39.654) million in the same period of 2022, reflecting a significant reduction in losses[172]. Cash Flow and Assets - Cash used in operating activities decreased to $6.7 million in Q1 2023 from $29.5 million in Q1 2022, indicating a 77.3% reduction in cash outflow[24]. - Cash and cash equivalents increased slightly to $81.653 million as of March 31, 2023, compared to $81.084 million as of December 31, 2022[15]. - The company reported cash and cash equivalents of $81.7 million as of March 31, 2023, compared to $74.4 million at the end of Q1 2022, reflecting a year-over-year increase of 9.3%[27]. - Total cash, cash equivalents, and restricted cash at the end of Q1 2023 amounted to $90.5 million, up from $74.4 million in Q1 2022, marking a 21.6% increase[27]. - As of March 31, 2023, the company had $81.7 million in unrestricted cash and incurred negative cash flows from operating activities of $6.7 million[185]. Liabilities and Debt - Total liabilities decreased to $137.880 million as of March 31, 2023, down from $147.512 million as of December 31, 2022[15]. - The Company recorded a total debt of $69.389 million as of March 31, 2023, an increase from $61.195 million as of December 31, 2022[77]. - The Company entered into a Structural Debt Facility borrowing $72.0 million with an effective interest rate of 20.34%[83]. - The Structural Debt Facility requires maintaining a minimum of $57.0 million in unrestricted cash and achieving specific revenue targets[79]. - The total outstanding indebtedness was $69.4 million as of March 31, 2023, net of debt issuance costs[185]. Operational Efficiency and Cost Management - The company reported a significant reduction in advertising expenses, which were $8.673 million in Q1 2023 compared to $32.793 million in Q1 2022[17]. - Selling, general and administrative expenses decreased by $12.949 million or 25%, amounting to $38.021 million compared to $50.970 million in 2022, driven by reduced fulfillment costs and corporate expenses[179]. - The company anticipates continued focus on cost management and operational efficiency to improve future performance[11]. - The company expects advertising costs to continue decreasing as part of its cost management initiatives while balancing consumer awareness[164]. Customer Metrics and Market Strategy - DTC Total Orders decreased to 1,097 in Q1 2023 from 1,558 in Q1 2022, primarily due to reduced advertising spend[148][151]. - DTC Active Customers fell to 1,241 in Q1 2023, down from 1,653 in Q1 2022, reflecting a decline in new customer acquisition[148][152]. - DTC Net Revenue Per Order increased to $62 in Q1 2023 from $55 in Q1 2022, attributed to strategic price increases and the introduction of a Supply Chain Fee[148][153]. - The company aims to expand its retail distribution, pursuing partnerships with various retailers including Target, Amazon, and Walmart[146][139]. - Future growth is expected to depend on the ability to attract new customers and enhance engagement with existing customers on the DTC platform[140][141]. Sustainability and Innovation - The company is focused on sustainability and aims to be the first plastic neutral retailer globally, which is a key part of its business strategy[30]. - Grove Collaborative has launched over 500 individual products in recent years, emphasizing its commitment to product innovation and sustainability[138]. Stock and Equity - The Company recorded $1.2 million in stock-based compensation expense related to the HGI Subscription Agreement, with a total unrecognized compensation expense of $28.6 million as of March 31, 2023[115][126]. - The total shares of common stock reserved for future issuance amounted to 72,749,491 as of March 31, 2023[119]. - The Company has 10,172,491 common stock options outstanding as of March 31, 2023, with a weighted average exercise price of $1.59[120].

Financial Performance - Grove Collaborative Holdings, Inc. reported an accumulated deficit of $577.9 million as of December 31, 2022, indicating ongoing financial challenges [289]. - The company experienced a revenue decline of approximately 16% in the year ended December 31, 2022, compared to the prior year, attributed to changing consumer behaviors post-COVID-19 [301]. - The company reported a net loss of $87.7 million in 2022, an improvement from a net loss of $135.9 million in 2021 [323]. - Adjusted EBITDA for 2022 was $(79.9) million, compared to $(108.8) million in 2021, indicating a reduction in operational losses [323]. - The net loss margin for 2022 was (27.3)%, improving from (35.4)% in 2021, while the adjusted EBITDA margin was (24.8)%, compared to (28.4)% in 2021 [323]. - Operating loss increased to $140.983 million in 2022 from $128.855 million in 2021, reflecting a 9.3% increase in losses [430]. - The company’s net loss was equal to its comprehensive loss for all periods presented [457]. Revenue and Customer Metrics - Total revenue decreased by $62.2 million, or 16%, to $321.5 million for the year ended December 31, 2022, compared to $383.7 million in 2021, primarily due to a reduction in DTC Active Customers and advertising spend [339]. - DTC total orders declined to 5,248 in 2022 from 6,659 in 2021, reflecting a decrease in new customer acquisition due to reduced advertising spend [316]. - DTC active customers decreased to 1,377 in 2022, down from 1,640 in 2021, indicating challenges in customer retention as the economy recovers from the COVID-19 pandemic [317]. - DTC net revenue per order increased to $59 in 2022, up from $56 in 2021, attributed to strategic price increases on Grove Brands and third-party products [318]. - Grove Brands' net revenue percentage was 48% in 2022, a slight decrease from 49% in 2021 and an increase from 45% in 2020 [314]. Cost Management and Expenses - A workforce reduction of more than 30% was implemented in 2022, resulting in charges totaling $3.6 million to reduce operating expenses [290]. - Advertising expenses were reduced by $41.0 million, or 38%, to $66.3 million in 2022, driven by cash flow management initiatives [342]. - Selling, general and administrative expenses increased by $20.2 million, or 11%, to $206.9 million in 2022, primarily due to increased stock-based compensation and restructuring-related expenses [344]. - Interest expense rose by $4.5 million, or 86%, to $9.7 million in 2022, attributed to draws under loan facilities and rising prime interest rates [345]. - Product development costs are anticipated to remain consistent as a percentage of revenue, balancing investments in technology and product innovation with revenue growth [330]. Business Strategy and Expansion - Grove has launched over 500 individual products in recent years, emphasizing its commitment to product innovation and sustainability [298]. - The company expanded its retail partnerships to over 4,000 stores, including major retailers like Target and CVS, to enhance brand awareness and distribution [288]. - The company plans to aggressively expand its physical retail presence over the next few years to enhance omnichannel leadership and sustainability [312]. - The company anticipates that retail expansion may lead to potential negative effects on gross margins, which could be offset by savings in fulfillment costs [299]. - Ongoing investments in advertising and strategic initiatives are expected to continue, necessitating additional capital resources for operations [289]. Cash Flow and Financing - Net cash used in operating activities decreased by $30.8 million in 2022 compared to 2021, primarily due to a $22.6 million decrease in net loss and a $41.0 million reduction in advertising expenses [382]. - Net cash provided by financing activities was $118.1 million for the year ended December 31, 2022, mainly from $97.1 million in common stock issuance and $70.8 million in debt issuance, offset by $66.0 million in debt extinguishment [386]. - The company entered into a Structural Debt Facility in December 2022, borrowing gross proceeds of $72.0 million to settle previous loan facilities [375]. - The company entered into a Loan and Security Agreement with Siena Lending Group, allowing for a revolving line of credit up to $35.0 million, with a borrowing capacity of $16.5 million as of March 10, 2023, and an outstanding principal balance of $7.5 million [377]. - The company had $81.1 million in unrestricted cash and cash equivalents as of December 31, 2022, with an accumulated deficit of $577.9 million [363]. Inventory and Assets - As of December 31, 2022, total assets amounted to $174,045,000, a decrease from $182,473,000 in 2021 [428]. - Inventory, net decreased to $44,132,000 in 2022 from $54,453,000 in 2021, reflecting a reduction of approximately 19% [428]. - Total current liabilities decreased to $57,473,000 in 2022 from $69,214,000 in 2021, a reduction of approximately 17% [428]. - Total stockholders' equity improved to $26,533,000 in 2022 from $(456,279,000) in 2021, marking a significant turnaround [428]. Stock and Liabilities - The company has not paid dividends on its common stock and has no plans to do so, maintaining an expected dividend yield of zero [409]. - The fair value of common stock is determined based on market prices and significant judgment by the board of directors [407]. - The company recognized stock-based compensation expenses using various valuation models, including the Black-Scholes option-pricing model and Monte Carlo simulations [407][411]. - The company recorded a debt discount of $1.1 million related to the issuance of 4,950,000 shares of Class A Common Stock in connection with the Structural Debt Facility [402]. - The Earn-Out Share liability includes 13,999,960 shares subject to vesting based on stock price performance, with 7,000,173 shares vesting if the stock price exceeds $12.50 over a specified period [391].

Grove Collaborative Holdings, Inc. (NYSE:GROV) Q4 2022 Earnings Conference Call March 14, 2023 5:00 PM ET Company Participants Alexis Tessier – Director-Investor Relations Stuart Landesberg – Co-Founder and Chief Executive Officer Sergio Cervantes – Chief Financial Officer Conference Call Participants Susan Anderson - Canaccord Genuity Dana Telsey - Telsey Advisory Group Operator Greetings and welcome to the Grove Collaborative Holdings Fourth Quarter 2022 Earnings Conference Call. At this time, all partici ...

Grove Collaborative Holdings, Inc. (NYSE:GROV) Q3 2022 Earnings Conference Call November 10, 2022 5:00 PM ET Company Participants Alexis Tessier – Director-Investor Relations Stuart Landesberg – Co-Founder and Chief Executive Officer Sergio Cervantes – Chief Financial Officer Conference Call Participants Darla Whitlock – Telsey Advisory Group Operator Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to Grove Collaborative Holdings, Inc.’s Third Quarter 2022 Earnings Conference C ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40263 _____________________________________ Grove Collaborative Holdings, Inc. (Exact name of registrant a ...

Grove Collaborative Holdings, Inc. (NYSE:GROV) Q2 2022 Earnings Conference Call August 11, 2022 5:00 PM ET Company Participants Alexis Tessier - Investor Relations. Stuart Landesberg - Co-Founder & Chief Executive Officer Sergio Cervantes - Chief Financial Officer Conference Call Participants Dana Tesley - Telsey Advisory Group Operator Good day, ladies and gentlemen, and welcome to the Grove Collaborative 2Q 2022 Earnings Call. All lines have been placed on a listen-only mode, and the floor will be open fo ...