Grove laborative (GROV) - 2024 Q3 - Quarterly Results

Financial Performance - Third Quarter 2024 revenue was $48.3 million, a decline of 7.3% sequentially from $52.1 million and a 22.0% decrease year-over-year from $61.8 million[4] - Net revenue for the three months ended September 30, 2024, was $48,280 thousand, down from $61,750 thousand in the same period of 2023, representing a decrease of about 22%[26] - Gross profit for the nine months ended September 30, 2024, was $83,405 thousand, compared to $104,797 thousand for the same period in 2023, a decline of approximately 20.4%[26] - Operating loss for the three months ended September 30, 2024, was $(6,746) thousand, compared to $(4,105) thousand in the same period of 2023, indicating a worsening of 64.3%[26] - Net loss attributable to common stockholders for the three months ended September 30, 2024, was $(1,510) thousand, compared to $(10,869) thousand in the same period of 2023, showing an improvement of approximately 86.1%[26] Margins and Expenses - Gross Margin for the quarter was 53.0%, down from 53.9% in the previous quarter and 53.8% in the same quarter last year[5] - Operating Expenses decreased to $32.3 million, a 7.6% reduction from $35.0 million in the second quarter of 2024 and a 13.4% decrease from $37.3 million in the third quarter of 2023[6] - The company reported an Adjusted EBITDA margin of (0.1)% for the nine months ended September 30, 2024, compared to (4.7)% for the same period in 2023, indicating an improvement[28] - The company incurred stock-based compensation expenses of $9,268 thousand for the nine months ended September 30, 2024, compared to $11,941 thousand for the same period in 2023, a decrease of approximately 22.3%[27] Cash Flow and Assets - Operating Cash Flow was positive at $0.8 million, marking the fourth consecutive quarter of positive operating cash flow[9] - Total current assets decreased from $124,196 thousand in December 2023 to $81,841 thousand in September 2024, a decline of approximately 34.1%[25] - Cash, cash equivalents, and restricted cash at the end of the period decreased to $55,589 thousand from $94,863 thousand at the beginning of the period, a reduction of about 41%[27] - Total liabilities decreased from $132,620 thousand in December 2023 to $78,831 thousand in September 2024, a decline of approximately 40.5%[25] Customer Metrics - Direct-to-Consumer (DTC) Total Orders were 0.7 million, down 3.3% from the previous quarter and 22.8% year-over-year[10] - DTC Active Customers totaled 0.7 million, a decrease of 4.8% quarter-over-quarter and 30.4% year-over-year[10] Strategic Changes - The company revised its full-year 2024 revenue guidance to a range of $200 million to $205 million, down from the previous guidance of $205 million to $215 million[17] - Grove Brands accounted for 38.5% of Net Revenue, down 260 basis points quarter-over-quarter and 630 basis points year-over-year[9] - The company plans to exit the brick-and-mortar retail channel, which has accounted for less than 4% of revenue and has been consistently unprofitable since its launch[14] - The company’s total stockholders' equity decreased from $8,122 thousand in December 2023 to $1,520 thousand in September 2024, a decline of approximately 81.3%[25]