Grove laborative (GROV) - 2024 Q2 - Quarterly Results

Revenue Performance - Revenue for Q2 2024 was $52.1 million, down 2.7% from Q1 2024 and down 21.2% year-over-year[2]. - For the three months ended June 30, 2024, Grove reported net revenue of $52.1 million, a decrease of 21.2% compared to $66.1 million for the same period in 2023[26]. Profitability Metrics - Adjusted EBITDA was positive $1.1 million, representing a 2.0% margin, compared to positive $1.9 million (3.5% margin) in Q1 2024[5]. - Operating loss for the three months ended June 30, 2024, was $6.9 million, an improvement from a loss of $9.6 million in the prior year[26]. - Net loss was $10.1 million, a margin of (19.3%), compared to a loss of $3.4 million (6.3% margin) in Q1 2024[4]. - Net loss attributable to common stockholders for the three months ended June 30, 2024, was $10.2 million, compared to a loss of $10.9 million in the same period last year[26]. - Total Adjusted EBITDA for the six months ended June 30 was $2,951 thousand, a significant improvement from a loss of $9,476 thousand in the prior year[28]. - Adjusted EBITDA margin for the three months ended June 30 was 2.0%, recovering from a loss margin of (3.9)% in the prior year[28]. Customer Metrics - DTC Total Orders were 0.7 million, down 5.4% quarter-over-quarter and 24.9% year-over-year[7]. - DTC Active Customers totaled 0.7 million, down 7.8% from Q1 2024 and 34.3% from Q2 2023[7]. Operating Expenses - Operating Expenses were $35.0 million, up 15.6% from Q1 2024 but down 20.2% year-over-year[4]. - Stock-based compensation for the three months ended June 30 amounted to $3,397 thousand, up from $4,948 thousand in the same period last year[28]. - Restructuring and severance related costs for the three months ended June 30 were $2,170 thousand, compared to $553 thousand in the same period last year[28]. Financial Position - Total current assets decreased to $113.3 million as of June 30, 2024, from $124.2 million at the end of 2023, reflecting a reduction in cash and cash equivalents[24]. - Total liabilities decreased to $121.1 million as of June 30, 2024, from $132.6 million at the end of 2023, indicating improved financial health[24]. - Cash and cash equivalents at the end of the period were $78.8 million, down from $86.4 million at the end of 2023[24]. - Grove's accumulated deficit increased to $634.5 million as of June 30, 2024, from $621.1 million at the end of 2023, highlighting ongoing challenges in profitability[24]. Interest and Expenses - The company incurred $4.1 million in interest expense for the three months ended June 30, 2024, slightly up from $4.0 million in the same period last year[26]. - Interest expense for the six months ended June 30 was $8,246 thousand, compared to $7,773 thousand in the prior year[28]. - Interest income for the six months ended June 30 was $2,079 thousand, compared to $1,445 thousand in the same period last year[28]. Future Outlook - The company plans to increase advertising spend in Q4 2024 to drive sequential revenue growth[3]. - Revised FY24 guidance includes net revenue of $205 to $215 million, down from $215 million to $225 million[15]. Sustainability Achievement - Grove achieved a B Corp recertification score of 100.9 points, significantly higher than its previous score of 80.3 points[14].