GROV Earnings Prediction
The chart below shows how GROV performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GROV sees a -16.03% change in stock price 10 days leading up to the earnings, and a -10.26% change 10 days following the report. On the earnings day itself, the stock moves by -1.52%. This data can give you a slight idea of what to expect for the next quarter's release.
GROV Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
48.28M
-21.81%
-7.33%
Gross Margin
53.03%
-1.47%
-1.54%
Operating Margin
-11.53%
109.26%
26.01%
Net Margin
-2.77%
-82.57%
-85.66%
EPS
-0.04
-87.50%
-85.71%
No Data Available
GROV Earnings Analysis
Grove Collaborative Holdings, Inc. Corporation (GROV.N) Earnings Conference Call
Positive
Adjusted EBITDA Break Even: This quarter saw us break even on adjusted EBITDA with four previous consecutive quarters of positive adjusted EBITDA, demonstrating our commitment to profitability despite a revenue decline.
Positive Operating Cash Flow: We also achieved positive operating cash flow against this quarter, marking the fourth quarter we have done so out of the last six.
Inventory Reduction Impact: Contributing to the positive operating cash flow, we reduced our inventory position from $27.8 million at the end of Q2 2024 to $24.5 million at the end of Q3 2024, further rightsizing our ownership for the current scale of our business.
Additional Investment Announcement: This quarter, we announced an additional $15 million investment from Volition Capital on top of the $10 million they invested in August of '23.
Cash Position Decline: We ended the quarter with $55.6 million in cash, cash equivalents and restricted cash, down from $82.6 million in Q2.
Negative
Revenue Decline Analysis: Net revenue was $48.3 million in the third quarter, down 7.3% from the second quarter of 2024 and down 21.8% year-over-year, mainly due to fewer repeat orders and lower advertising spend throughout 2024 compared to prior years.
Order and Customer Decline: Total orders were $0.7 million in Q3, down 3.3% quarter-over-quarter and 22.8% year-over-year, while active customers were also 0.7 million, down 4.8% quarter-over-quarter and 30.4% year-over-year, both influenced by reduced advertising spend relative to prior periods.
Gross Margin Decline: Gross margin was 53%, down 80 basis points from the second quarter of 2024, mainly due to the retail markdowns mentioned earlier.
Cash Position Update: We ended the quarter with $55.6 million in cash, down from $82.6 million in Q2, reflecting our recent $42 million voluntary payment of term debt, partially offset by a $15 million investment from Volition Capital, which enabled us to pay off the remaining term debt.
Net Revenue Guidance Revision: We are revising our net revenue guidance and now expect 2024 net revenue to be in the range of $200 million to $205 million, a change from $205 million to $215 million guidance we gave previously.
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GROV Earning Call Sentiment
Grove Collaborative Holdings, Inc. (GROV) Q3 2024 Earnings Call Transcript
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GROV.N
0.6%Positive
The earnings call reveals significant concerns: a 21.8% revenue decline, reduced revenue guidance, and a 30.4% drop in active customers, all pointing to potential future growth challenges. Although there is a $15 million investment and debt reduction, the overall financial health remains strained with a net revenue decrease and reduced advertising spend. Vague management responses in the Q&A add to uncertainties. Despite some positive aspects, like increased DTC net revenue per order, the negative trends and unclear guidance suggest a negative stock price movement.
