Grove Announces Fiscal Third Quarter 2023 Financial Results.

Highlights:

* Positive Third Quarter Adjusted EBITDA of $0.2 million, a first for the company

* Achieves Record Net Revenue per Order of $65.2 and Gross Margin of 53.8%

* Raises full year Adjusted EBITDA Margin Guidance midpoint by 100 basis points; lowers Revenue Guidance midpoint by 2%

* Expanded retail distribution to 7,500 stores, including new partnerships with Wegmans and KeHE

SAN FRANCISCO- Grove Collaborative Holdings, Inc. (NYSE: GROV) ('Grove' or 'the Company'), a leading sustainable consumer products company and certified B Corp, today reported financial results for its fiscal third quarter ended September 30, 2023.

Fiscal Third Quarter 2023 Financial Highlights:

Grove Collaborative's third quarter 2023 financial results include a number of significant milestones for the company, including the first Adjusted EBITDA profitable quarter and records for Gross Margin and Net Revenue per Order. These results reflect progress in improving our bottom-line-results year-over-year and sequentially by increasing margins, creating operating efficiency, and eliminating less productive spend. The decision to focus on profitability over top line growth was a strategic decision made in the second half of 2022. Our Q3 results directly reflect the decisions we have made in prior quarters to set Grove up well for profitable growth in the second half of 2024.

Net revenue of $61.8 million, down 6.6% from the second quarter of 2023, and down 20.6% year-over-year

Gross margin of 53.8%, a record for the Company, improving 190 basis points from the second quarter of 2023 and up 470 basis points year-over-year

Net loss margin of (15.9)%, compared to (16.4)% in the second quarter of 2023 and 9.9% in the third quarter of 2022.

Adjusted EBITDA margin1 of 0.3%, an improvement of 420 basis points from the second quarter of 2023 and 1,270 basis points from the third quarter of 2022.

Jeff Yurcisin, Chief Executive Officer of Grove Collaborative, said, 'First of all, I want to say how honored I am to be taking over as Grove's new Chief Executive Officer. I joined Grove because I believe in our purpose. What unites Grove's team is that we are all committed to a singular mission - one that is bigger than ourselves. We create and curate high-performing, planet-first products and aspire to transform the consumer products industry into a force for human and environmental good. In my first 75 days, I've been reaffirmed by our brand loyalty and devoted customers, demonstrated success in and potential for category expansion, best in class team and talent, and our strong business foundation with great unit economics - all of which position us well for profitable growth.'

Yurcisin continued: 'I'm also proud to share a significant milestone for Grove - our first Adjusted EBITDA profitable quarter - which serves as an inflection point as we look to the future. We will remain focused on profitability in the near-term while also pursuing a path for profitable growth in the second half of 2024 by becoming more meaningful in the daily lives of our customers and further embracing sustainability as our point of differentiation. I look forward to leveraging the strength of the Grove brand and the trust of our community to re-accelerate revenue growth and expand shareholder value while prioritizing profitability.'

1	Adjusted EBITDA margin is a non-GAAP financial measure. See 'Non-GAAP Financial Measures' for a reconciliation of adjusted EBITDA, a non-GAAP financial measure, to net loss in the table at the end of this press release

Fiscal Third Quarter 2023 Key Business Highlights:

https://investors.grove.co/news-events/press-releases/detail/73/grove-announces-fiscal-third-quarter-2023-financial-results

Investor Relations Contact

ir@grove.co

Media Relations Contact

Ryan Zimmerman

Ryan.Zimmerman@grove.co

Source: Grove Collaborative Holdings, Inc.

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