Grove Collaborative Holdings, Inc. (NYSE:GROV) Q1 2024 Earnings Call Transcript May 14, 2024 5:00 PM ET

Company Participants

Jeff Yurcisin - CEO
Sergio Cervantes - CFO

Conference Call Participants

Susan Anderson - Canaccord Genuity
Dana Telsey - Telsey Advisory Group

Operator

Good afternoon, and thank you for standing by. Welcome to Grove Collaborative Holdings, Inc.'s First Quarter 2024 Earnings Conference Call. At this time, all lines have been placed on mute to prevent any background noise. Following the speakers' remarks, we will open your lines for your questions. As a reminder, this conference call is being recorded. As a reminder, this conference call is being recorded. Hosting today's call are Grove's CEO, Jeff Yurcisin, and CFO, Sergio Cervantes. Before they begin their prepared remarks, I will review the forward-looking statement safe harbor.

Some of the statements made today about future prospects, financial results, business strategies, industry trends and Grove's ability to successfully respond to business risks may be considered forward-looking including statements relating to our intention to increase marketing spend, the addition of products to our subscribe and save program, future improvement in first order conversion rates and payback period, our net revenue and adjusted EBITDA margin guidance, sequential revenue growth in the second half of the year and adjusted EBITDA profitability for 2024. Such statements are based on current expectations and beliefs in our subject to a number of risks and uncertainties that could cause actual results to differ materially, including those factors discussed in our filings with the Securities and Exchange Commission. All of these statements are based on Grove's view today, and Grove assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. For more information, please refer to the risk factors discussed in Grove's most recent filings with the SEC, which are available on Grove's Investor Relations website at investors.grove.com.

During today's call, Grove will also discuss certain non-GAAP financial measures. Reconciliations of these non-GAAP items to the most directly comparable GAAP financial measures are provided in the earnings release, which is also available on their Investor Relations website.

I would now like to turn the call over to Jeff Yurcisin to begin.

Jeff Yurcisin

Thank you, operator. Hello, everyone, and thank you for joining the call today. I'm going to share our financial performance for the first quarter of 2024 as well as certain operational updates. This is my third earnings announcement with Grove as CEO, and I remain deeply confident in our incredible team's ability to, first, deliver incremental ongoing results against our strategy. Our focus on our core pillars of customer, sustainability and profitability guides our decision-making activities and progress. Second, evolve our brand into the destination for conscientious consumers. We've expanded our own brand and third-party product assortment significantly in recent years to meet our customers' needs. We will continue to be a trusted destination for conscientious consumers who want the best for their family and in. Third, transform growth collaborative. The early results of our strategy represent the beginning of a multiyear transformation of the company, building a new foundation for our company and our brand to expand into a household name for sustainable products.