The following is a summary of the Grove Collaborative Holdings, Inc. (GROV) Q1 2024 Earnings Call Transcript:
Financial Performance:
Grove Collaborative reported Q1 net revenue of $53.5 million, decline of 25.2% year-over-year and 10.5% quarter-over-quarter.
DTC net revenue per order was down 0.8% quarter-over-quarter but saw an increase of 7.5% year-over-year.
Gross margin increased by 110 basis points quarter-over-quarter and 350 basis points year-over-year to 55.5%.Adjusted EBITDA for the quarter was $1.9 million, an improvement over previous quarter and the same quarter last year.
The company ended the quarter with net cash and cash equivalents of $81.6 million.
Business Progress:
Grove expanded its third-party product assortment by 34% year-over-year with 41% of these products enlisted in new subscribe and save program.
The company launched various products under Grove Co., including new artwork, sustainable packaging, and ready-to-use hand soap, dish soap, and liquid laundry detergent.
Grove executed several sustainability initiatives and released its 2023 annual sustainability report.
A multiyear transformation has been initiated focused on customer experience, corporate restructuring, and brand development.
Grove sustained its adjusted EBITDA positive for the third consecutive quarter and expects its growth strategies to drive sequential growth in H2.
Growth in gross margin was driven both by third-party offerings and the Grove brand.
A rise in orders was noted, especially with VMS items, from 8% last year to 13.8% this year, showcasing the company's focus on wellness products.
More details: Grove Collaborative IR
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