Grove laborative (US:GROV)2025-03-19 20:29Revenue Performance - Total revenue for 2024 was $203,425,000, down 22% from $259,278,000 in 2023, primarily due to a decrease in DTC Total Orders[324]. - Revenue from Grove Brands was $82,942,000 in 2024, down from $119,006,000 in 2023, indicating a decrease of about 30.3%[450]. - Revenue from third-party products decreased to $120,483,000 in 2024 from $140,272,000 in 2023, reflecting a decline of approximately 14.1%[450]. - For the year ended December 31, 2024, total revenue decreased to $203,425,000 from $259,278,000 in 2023, representing a decline of approximately 21.5%[450]. Customer Metrics - Total DTC orders decreased to 2,930 in 2024 from 3,852 in 2023, primarily due to reduced advertising spend[300]. - DTC active customers declined to 688 in 2024 from 920 in 2023, reflecting fewer new customer acquisitions[301]. - DTC net revenue per order increased to $67 in 2024 from $64 in 2023, attributed to a higher number of products sold per order[302]. Financial Losses and Deficits - Net loss for the year ended December 31, 2024, was $27,423,000, a decrease from a net loss of $43,232,000 in 2023, resulting in a net loss margin improvement from (16.7)% to (13.5)%[307]. - The company reported an accumulated deficit of $648.5 million as of December 31, 2024[283]. - Net loss attributable to common stockholders for 2024 was $28,272 million, compared to a net loss of $44,422 million in 2023, indicating a reduction in losses[400]. Cash Flow and Liquidity - As of December 31, 2024, the company had $19.6 million in unrestricted cash and cash equivalents, with negative cash flow from operating activities of $9.7 million for the year[337]. - Cash and cash equivalents decreased to $19.627 million in 2024 from $86.411 million in 2023, representing a decline of 77.3%[398]. - Cash used in operating activities for 2024 was $9.749 million, compared to $7.993 million in 2023, indicating an increase in cash outflow[406]. Expenses and Cost Management - Gross profit decreased by $28,011,000, or 20%, to $109,348,000 in 2024, while gross margin improved to 54% from 53% in 2023[326][327]. - Advertising expenses decreased by $11,027,000, or 52%, to $10,265,000 in 2024, reflecting a lower-spend strategy for customer acquisition[328]. - Selling, general and administrative expenses decreased by $31.8 million, or 24%, to $103.2 million for the year ended December 31, 2024, compared to $134.9 million in 2023[331]. Restructuring and Strategic Changes - The company recorded restructuring charges of $2.0 million in 2024 and $3.8 million in 2023 related to workforce and facility reductions[285]. - The exit from brick-and-mortar retail is anticipated to improve profitability with minimal revenue impact, expected to be completed by 2025[282]. - The company has exited brick-and-mortar retail channels, expecting minimal impact on financial results[309]. Product Development and Innovation - The company has launched over 500 individual products in recent years, focusing on product innovation and sustainable packaging[288]. - Product development expenses increased by $2,055,000, or 13%, to $18,456,000 in 2024, driven by higher severance-related expenses and accelerated software amortization[329]. Debt and Financing - Total outstanding indebtedness was $7.5 million as of December 31, 2024, after using $72.3 million to repay the Structural Debt Facility in full during the year[337]. - The company entered into a subscription agreement with Volition Capital on September 20, 2024, receiving gross proceeds of $15.0 million in exchange for 15,000 shares of Series A' Redeemable Convertible Preferred Stock[339]. - Interest expense decreased to $12,777,000 in 2024 from $16,077,000 in 2023, with expectations for further decline following the repayment of term debt[322][317]. Inventory and Assets - Inventory decreased by $12.5 million in 2024, contributing to changes in operating assets and liabilities[353]. - Total assets decreased to $65.010 million in 2024 from $150.742 million in 2023, a reduction of 56.8%[398]. - The company had enforceable and legally binding inventory purchase commitments of $9.1 million due within one year as of December 31, 2024[345]. Compliance and Reporting - The Company adopted ASU 2023-07 for segment reporting beginning January 1, 2024, which enhances segment disclosures but did not impact consolidated financial results[472]. - The Company is evaluating the impact of ASU 2023-09, effective for fiscal years starting after December 15, 2024, which requires additional income tax disclosures[473]. - The company remains classified as an "emerging growth company" and a "smaller reporting company," allowing it to take advantage of reduced disclosure obligations[380][381].