Grove Collaborative Holdings, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total revenue of $203.4 million, a decrease of 22% from $259.3 million in 2023. The company attributed this decline primarily to a reduction in direct-to-consumer (DTC) orders, which fell to 2.93 million from 3.85 million in the previous year. The company's net loss narrowed to $27.4 million from $43.2 million in 2023, reflecting a strategic shift towards profitability that included substantial cuts in advertising expenses, which decreased by 52% to $10.3 million.
In terms of operational metrics, Grove's DTC active customer count dropped to approximately 688,000 from 920,000 in 2023, indicating challenges in customer retention and acquisition. Despite these declines, the average revenue per order increased to $67 from $64, suggesting that remaining customers are purchasing more per transaction. The company has also made a strategic decision to exit its brick-and-mortar retail business, which it expects will enhance profitability without significantly impacting revenue.
Grove's restructuring efforts included workforce reductions and facility closures, resulting in charges of $2.0 million in 2024. The company reported an accumulated deficit of $648.5 million as of December 31, 2024, reflecting its ongoing challenges in achieving sustainable profitability. The company has also transitioned its e-commerce platform to Shopify, which it anticipates will improve operational efficiency, although it has faced disruptions during the migration process.
Looking ahead, Grove expects revenue to remain flat or decline in the mid-single digits for 2025, with a forecast of lower first-quarter revenue due to seasonality and the Shopify transition. However, the company anticipates growth in the second and third quarters of 2025, leading to year-over-year growth in the fourth quarter. Grove's management remains focused on enhancing brand awareness, product innovation, and cost-effective customer acquisition strategies to drive future growth and profitability.
About Grove Collaborative Holdings, Inc.
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