Grove laborative (GROV) - 2024 Q4 - Annual Results

Revenue Performance - Fourth quarter 2024 revenue was $49.5 million, a sequential increase of 2.5% from $48.3 million in Q3 2024, but a year-over-year decline of 17.3% from $59.9 million in Q4 2023[4] - Full year 2024 revenue totaled $203.4 million, representing a 21.5% year-over-year decline, primarily due to a decrease in direct-to-consumer (DTC) orders[17] - For the year ended December 31, 2024, Grove reported a net revenue of $203.425 million, a decrease of 21.5% compared to $259.278 million in 2023[40] Profitability and Loss - Net loss for Q4 2024 was $12.6 million, with a net loss margin of (25.5%), compared to a net loss of $1.3 million in Q3 2024[8] - The net loss for the year ended December 31, 2024, was $27.423 million, compared to a net loss of $43.232 million in 2023, representing a 36.3% improvement[40] - Net loss for the three months ended December 31, 2024, was $12.635 million, compared to a net loss of $9.485 million for the same period in 2023[44] Adjusted EBITDA - Adjusted EBITDA for Q4 2024 was negative $1.6 million, compared to breakeven in Q3 2024 and $0.1 million in Q4 2023[9] - Total Adjusted EBITDA for the year ended December 31, 2024, was $1.301 million, a significant improvement from a loss of $9.183 million in 2023[44] - Adjusted EBITDA margin for the three months ended December 31, 2024, was (3.3)%, compared to 0.2% in the same period of 2023[44] Operating Expenses - Operating expenses in Q4 2024 were $34.3 million, a 6.0% increase sequentially but a 15.4% decrease year-over-year[7] - Operating expenses for the year ended December 31, 2024, totaled $132.895 million, compared to $172.622 million in 2023, a decrease of 23%[40] Balance Sheet and Cash Flow - The company completed a voluntary $72 million repayment of term debt in Q4 2024, improving its balance sheet[5] - The total current assets decreased from $124.196 million in 2023 to $44.941 million in 2024, a decline of 63.8%[38] - Total liabilities decreased from $132.620 million in 2023 to $48.787 million in 2024, a reduction of 63.3%[38] - Cash and cash equivalents at the end of the period were $19.627 million, down from $86.411 million in 2023, a decrease of 77.3%[38] Gross Margin - Gross margin for Q4 2024 was 52.4%, down from 53.0% in Q3 2024 and 54.4% in Q4 2023, attributed to increased promotional activity[5] - The company’s gross profit for the year ended December 31, 2024, was $109.348 million, down from $137.359 million in 2023, reflecting a decline of 20.4%[40] Direct-to-Consumer Orders - DTC total orders in Q4 2024 were 717,000, up 1.3% quarter-over-quarter but down 17.0% year-over-year[14] Future Outlook - The company expects 2025 revenue to be approximately flat to down mid-single digit percentage year-over-year, with a focus on sustainable growth[31] - Recent acquisitions of Grab Green and 8Greens are expected to enhance the company's product offerings and align with its sustainability goals[22] Management Commentary - Grove's management emphasizes the importance of non-GAAP measures like Adjusted EBITDA for evaluating financial performance and trends, despite their limitations[35]