By Daniella Parra of Exec Edge
Grove Collaborative Holdings, Inc. (NYSE: GROV) posted better gross margins in the first quarter and expects to be breakeven ahead of schedule.
Net revenue was $71.6 million, down 3.3% from the fourth quarter of 2022, largely due to reductions in advertising spend as the company focuses on profitability.
Gross margin reached 52.1%, a record for the company, and was up 510 basis points from the fourth quarter of 2022.
Stuart Landesberg, Chief Executive Officer of Grove, said, “I am pleased to announce another successful quarter, during which record gross margin performance, a 25.4% reduction in SG&A year-over-year, and an approximately 50% year-over-year improvement in media CAC and the related reduction in advertising expense, drove improvement in adjusted EBITDA margin. The expense efficiencies we have achieved reinforce our confidence in our goal of achieving profitability in 2024, and we believe the steps we have taken to improve our liquidity position ensure we have the means to reach that goal. We are making excellent progress towards reaching breakeven bottom line and are seeing exciting green shoots in our strategic growth drivers of omni-channel distribution, the health & wellness category, and potential M&A opportunities, while staying true to our vision that the HPC industry can be a positive force for human and environmental health.”