Grove Collaborative Holdings Inc (GROV) 2022 Q4 法說會逐字稿

Greetings and welcome to the Grove Collaborative Holdings Fourth Quarter 2022 Earnings Conference Call.

歡迎來到 Grove Collaborative Holdings 2022 年第四季度收益電話會議。

(Operator Instructions) Please note that this call is being recorded. I will now turn the conference over to our host, Alexis Tessier Investor Relations Advisor. Thank you. You may begin.

（操作員說明）請注意，此通話正在錄音中。我現在將會議轉交給我們的主持人 Alexis Tessier 投資者關係顧問。謝謝。你可以開始了。

Hello, and thank you all for joining us today. With me on today's call are Grove's Co-Founder and CEO, Stuart Landesberg; and CFO, Sergio Cervantes. Before we get started, I'll quickly cover the forward-looking safe harbor statement.

大家好，感謝大家今天加入我們。和我一起參加今天電話會議的有 Grove 的聯合創始人兼首席執行官 Stuart Landesberg；首席財務官塞爾吉奧·塞萬提斯 (Sergio Cervantes)。在我們開始之前，我將快速介紹一下前瞻性安全港聲明。

Some of the statements that we make today about our future prospects, financial results, business strategies, industry trends and our ability to successfully respond to business risks may be considered forward-looking. Such statements involve a number of risks and uncertainties that could cause our actual results to differ materially. All of these statements are based on our view of the world and our business as we see it today. As described in our SEC filings, the underlying facts and assumptions for these statements can change as the world and our business changes.

我們今天就我們的未來前景、財務業績、業務戰略、行業趨勢以及我們成功應對業務風險的能力所做的一些陳述可能被認為是前瞻性的。此類陳述涉及許多風險和不確定性，可能導致我們的實際結果存在重大差異。所有這些陳述均基於我們對當今世界和業務的看法。正如我們在提交給美國證券交易委員會的文件中所述，這些陳述的基本事實和假設可能會隨著世界和我們業務的變化而變化。

For more information, please refer to the risk factors discussed in our most recent filings with the SEC, which are available on our Investor Relations website at investors.grove.co. During today's call, we 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 our earnings release and supplemental earnings presentation, which are also available on our Investor Relations website.

有關更多信息，請參閱我們最近提交給美國證券交易委員會的文件中討論的風險因素，這些文件可在我們的投資者關係網站 investors.grove.co 上找到。在今天的電話會議中，我們還將討論某些非 GAAP 財務指標。這些非 GAAP 項目與最直接可比的 GAAP 財務指標的對賬在我們的收益發布和補充收益報告中提供，也可以在我們的投資者關係網站上找到。

With that, I'll turn it over to Stu.

有了這個，我會把它交給斯圖。

Thank you, Alexis. Hello, everyone, and thank you for joining our earnings call today. In 2022, we laid out our value creation plan with the goal of achieving profitable growth in 2024. And I'm pleased to report that progress against this strategy drove full year results that were ahead of our guidance on both top and bottom line for '22. Our value creation plan is built upon 4 pillars: improved marketing efficiency, omni-channel expansion, net revenue management and operating expense discipline, and we made progress on each during the fourth quarter.

謝謝你，亞歷克西斯。大家好，感謝您今天參加我們的財報電話會議。 2022 年，我們制定了價值創造計劃，目標是在 2024 年實現盈利增長。我很高興地報告，這一戰略取得的進展推動了全年業績，超過了我們對“ 22.我們的價值創造計劃建立在四大支柱之上：提高營銷效率、全渠道擴張、淨收入管理和運營支出紀律，第四季度我們在每一個方面都取得了進展。

We have leveraged this value creation plan to make important strides to profitability over the course of the second half of 2022. Now you will hear Grove talk more about the growth drivers for 2024 and beyond, starting with today's call.

我們利用這一價值創造計劃在 2022 年下半年實現了盈利能力的重要進步。現在，從今天的電話會議開始，您將聽到格魯夫更多地談論 2024 年及以後的增長動力。

In 2023, we will have challenging comparables to 2022 when we overspend on marketing. That marketing overspend will benefit cohorts through the beginning of 2023. But as revenue stabilizes in the back half of this year, we are working to set ourselves up for growth in 2024.

2023 年，當我們在營銷上超支時，我們將面臨與 2022 年相比具有挑戰性的挑戰。到 2023 年初，營銷超支將使同類人群受益。但隨著今年下半年收入趨於穩定，我們正在努力為 2024 年的增長做好準備。

Our strategy for 2023 is to drive our core business to profitability, while investing in 3 levers for material upside potential. The first is channel expansion into retail, which I've discussed previously, and we'll talk about more on this call. Category expansion into wellness on our DTC site via Grove Wellness, the launch of which we announced today.

我們 2023 年的戰略是推動我們的核心業務實現盈利，同時投資於 3 個槓桿以獲得實質性的上行潛力。首先是向零售渠道擴張，我之前已經討論過，我們將在本次電話會議上討論更多內容。通過我們今天宣布推出的 Grove Wellness，在我們的 DTC 網站上將類別擴展到健康。

And three, mergers and acquisitions, including through our partnership with HumanCo that we announced last quarter. We think this approach allows us to continue to push the overall profitability and growth while leveraging our unique market position for above-industry long-term trends.

第三，併購，包括通過我們上個季度宣布的與 HumanCo 的合作夥伴關係。我們認為這種方法使我們能夠繼續推動整體盈利能力和增長，同時利用我們獨特的市場地位來實現高於行業的長期趨勢。

Now on to our fourth quarter results. Marketing efficiencies continue to improve on lower spend levels across channels, particularly in paid social and organic. In fact, our fourth quarter saw the lowest CAC since 2020. In addition, we have further enhanced our segmentation, targeting and creative with the new marketing technology stack we rolled out in 2022. We are pleased with the initial impact on customer engagement and anticipate that results will accelerate through the year as we further refine our capabilities.

現在來看我們的第四季度業績。由於跨渠道的支出水平較低，營銷效率繼續提高，特別是在付費社交和有機渠道中。事實上，我們第四季度的 CAC 是 2020 年以來最低的。此外，我們通過 2022 年推出的新營銷技術堆棧進一步加強了細分、定位和創意。我們對客戶參與度的初步影響感到滿意，並預計隨著我們進一步完善我們的能力，這一結果將在今年加速推進。

We continue to make progress in our omnichannel distribution expansion, though the retail rollout has been slower than initially anticipated. We recently announced the official launch of Grove Co, our flagship Zero Waste Home Care brand on Amazon at select Walmart stores nationwide and at walmart.com.

我們在全渠道分銷擴張方面繼續取得進展，儘管零售推出速度低於最初預期。我們最近宣佈在亞馬遜全國范圍內的指定沃爾瑪商店和 walmart.com 上正式推出我們的旗艦零廢物家庭護理品牌 Grove Co。

The Amazon launch was facilitated by learnings gained from our plastic-free personal care brand, Peach not Plastic, which is approaching $1 million in lifetime sales in Amazon in since November 2021 launch. We remain excited about this growth strategy that is not only extraordinarily capital-efficient, but puts Grove products into place or over 90% of purchases in our category are made.

我們的無塑料個人護理品牌 Peach not Plastic 從 2021 年 11 月推出以來在亞馬遜的終身銷售額接近 100 萬美元。我們對這種增長戰略仍然感到興奮，它不僅具有極高的資本效率，而且使 Grove 產品到位或我們類別中超過 90% 的採購已經完成。

During the fourth quarter, we also implemented several net revenue management initiatives focused on strategic pricing, both on third-party and Grove brand products and our optimization of DTC net revenue per order. These initiatives are particularly important in this environment where inflation remains stubbornly high, and while consumer response has been in line with our expectations, we are continuing to monitor our consumers' price elasticity in response to these actions.

在第四季度，我們還實施了多項淨收入管理計劃，重點是第三方和 Grove 品牌產品的戰略定價，以及我們對每筆訂單的 DTC 淨收入的優化。在通脹居高不下的環境下，這些舉措尤為重要，雖然消費者的反應符合我們的預期，但我們將繼續監測消費者的價格彈性以應對這些行動。

Lastly, by maintaining strict expense discipline, we've been able to streamline our operations and redirect resources towards initiatives that are most aligned with our objective of attaining profitability while investing for long-term future growth.

最後，通過保持嚴格的費用紀律，我們已經能夠簡化我們的運營並將資源重新定向到最符合我們實現盈利目標的計劃，同時投資於長期的未來增長。

Successful execution of this 4-part value creation plan drove market improvement in our financial results throughout the year. Adjusted EBITDA loss in the second half of '22 was $19.1 million as compared to a loss of $60.7 million in the first half of 2022, a staggering improvement of $41.6 million as we implemented our VCP.

這一由 4 部分組成的價值創造計劃的成功執行推動了我們全年財務業績的市場改善。與 2022 年上半年的虧損 6070 萬美元相比，22 年下半年調整後的 EBITDA 虧損為 1910 萬美元，在我們實施 VCP 後驚人地改善了 4160 萬美元。

In the fourth quarter, adjusted EBITDA loss was $9.5 million as compared to $9.6 million in the third quarter of 2022 and $25.2 million loss in the fourth quarter of last year. Margins declined 50 basis points sequentially and improved 1,610 basis points year-over-year and came despite lower revenue as we strategically cut back on advertising spend to focus on the most efficient channel. It's also worth noting here that once we remove the impact of non-cash items, gross margin and EBITDA margin was up both sequentially and year-over-year. Sergio will give more detail on that in his section.

第四季度，調整後的 EBITDA 虧損為 950 萬美元，而 2022 年第三季度為 960 萬美元，去年第四季度為 2520 萬美元。利潤率連續下降 50 個基點，同比提高 1,610 個基點，儘管收入下降，但我們戰略性地削減了廣告支出以專注於最高效的渠道。這裡還值得注意的是，一旦我們消除了非現金項目的影響，毛利率和 EBITDA 利潤率環比和同比都有所上升。 Sergio 將在他的部分中提供更多詳細信息。

Revenue in the fourth quarter was $74.0 million as compared to $77.7 million in the third quarter of 2022. While the reduction in advertising spend has resulted in year-over-year comparative pressure on revenue. Our current efforts to improve advertising efficiency have driven strong results, and we remain confident that it is the right step to position ourselves for profitable growth in the future.

第四季度的收入為 7400 萬美元，而 2022 年第三季度為 7770 萬美元。雖然廣告支出的減少導致收入同比出現相對壓力。我們目前為提高廣告效率所做的努力取得了強勁的成果，我們仍然相信這是為未來盈利增長定位的正確步驟。

During the quarter, we continued to make progress towards our goal of being free from single-use plastic waste by 2025. In the fourth quarter, 65% of Grove brands net revenue came from either zero plastic, reusable or refillable products, meeting the company's Beyond Plastic standard, up significantly from 49% in the fourth quarter of 2021.

在本季度，我們繼續朝著到 2025 年消除一次性塑料垃圾的目標取得進展。第四季度，Grove 品牌 65% 的淨收入來自零塑料、可重複使用或可再填充產品，滿足了公司的目標超越塑料標準，比 2021 年第四季度的 49% 大幅上升。

We also improved on plastic intensity or pounds of plastic per $100 of revenue, site-wide and through our retail partners Plastic intensity improved to 0.98 pounds of plastic per $100 in revenue from 1.21 in the fourth quarter of 2021. And across all Grove brands, plastic intensity moved from 0.80 pounds of plastic per $100 in revenue from 0.99 in 4Q '21. We challenge others to disclose the same metric as we lead the industry in our move away from plastic. And I'm pleased to report that every sustainability metric in this paragraph is a record for Grove.

我們還提高了塑料強度或每 100 美元收入的塑料磅數，在整個站點範圍內並通過我們的零售合作夥伴塑料強度從 2021 年第四季度的 1.21 提高到每 100 美元收入 0.98 磅塑料。在所有 Grove 品牌中，塑料強度從 21 年第四季度的每 100 美元收入 0.99 磅塑料增加到 0.80 磅塑料。我們要求其他人披露與我們引領行業遠離塑料的相同指標。我很高興地報告，本段中的每個可持續性指標都是 Grove 的記錄。

As I mentioned, 1 of the things I'm most excited about is that we have line of sight to stabilizing our core business despite the challenging environment as we lap advertising -- as we lap advertising overspend in the first half of 2022. We are investing in new capabilities in our communication stack and doubling down on benefits for our best customers to improve retention and set the stage for growth. I've already touched on the omnichannel distribution opportunity. So I'd like to take a minute to discuss the 2 other growth levers, wellness and M&A.

正如我所提到的，我最興奮的一件事是，儘管我們在廣告方面面臨充滿挑戰的環境，但我們仍然有能力穩定我們的核心業務——因為我們在 2022 年上半年解決了廣告超支問題。我們是在我們的通信堆棧中投資新功能，並加倍為我們最好的客戶帶來好處，以提高保留率並為增長奠定基礎。我已經談到了全渠道分銷機會。所以我想花一點時間討論另外兩個增長槓桿，健康和併購。

Today, we announced the launch of Grove Wellness. Wellness is a massive market with dietary supplements alone expected to reach $53 billion in the U.S. in 2023. Grove has always been known for duration on the basis of efficacy, sustainability, consumer centricity and innovation in a complicated world. As we investigated our consumers' pain points, an exciting 89% of respondents said they would trust Grove over other brands to provide them with wellness products. Consumer trust has never been more important as claims and bad practices bound and there is no true sustainability leader across the wellness space. And we are excited to help our consumers find products to improve their lives and see how they can drive sustainability into yet another category.

今天，我們宣布推出 Grove Wellness。健康是一個巨大的市場，僅膳食補充劑一項在美國的市場規模預計到 2023 年就將達到 530 億美元。Grove 一直以功效、可持續性、以消費者為中心和在復雜世界中的創新而聞名。在我們調查消費者的痛點時，令人興奮的 89% 的受訪者表示，他們會信任 Grove 而不是其他品牌來為他們提供健康產品。消費者信任從未像現在這樣重要，因為索賠和不良做法受到約束，並且整個健康領域沒有真正的可持續發展領導者。我們很高興能幫助我們的消費者找到改善他們生活的產品，並了解他們如何將可持續發展推向另一個類別。

Since our founding, our mission has been to make the CPG industry a positive force for human and environmental health. And we are excited to further this goal through our strategic expansion into wellness. I look forward to sharing more about this in future calls.

自成立以來，我們的使命就是使 CPG 行業成為促進人類和環境健康的積極力量。我們很高興通過我們向健康領域的戰略擴張來進一步實現這一目標。我期待在以後的電話會議中分享更多相關信息。

The other future growth lever is strategic M&A. During the quarter, we announced that we entered into an agreement with HumanCo Investments, a subsidiary of HumanCo, the mission-driven health and wellness holding company, cofounded by Jason Karp and Ross Berman.

另一個未來的增長槓桿是戰略併購。在本季度，我們宣布與 HumanCo 的子公司 HumanCo Investments 達成協議，HumanCo 是一家以使命為導向的健康和保健控股公司，由 Jason Karp 和 Ross Berman 共同創立。

Under the agreement, HumanCo will help us identify, evaluate and fund material M&A opportunities that can accelerate Grove's business and mission impact by quickly driving scale and shortening our path to profitability. HumanCo has deep operational and capital markets expertise and their founders have deployed billions of dollars into public and private companies. Importantly, HumanCo shares our passion for making it easier for consumers to live healthier and more sustainable life. After extensive diligence, HumanCo acquired single-digit percent ownership in our company.

根據協議，HumanCo 將幫助我們識別、評估和資助重大併購機會，這些機會可以通過快速擴大規模和縮短我們的盈利路徑來加速 Grove 的業務和使命影響。 HumanCo 擁有深厚的運營和資本市場專業知識，其創始人已將數十億美元投入上市公司和私營公司。重要的是，HumanCo 與我們一樣熱衷於讓消費者更輕鬆地過上更健康、更可持續的生活。經過廣泛的努力，HumanCo 獲得了我們公司個位數百分比的所有權。

We partnered with the intention of finding 1 or more highly synergistic M&A opportunities that has meaningful impact to accelerate our profitable growth strategy. And to this end, HumanCo has agreed to [consider] funding up to $100 million of new capital as previously announced. While we remain laser-focused on continuing our path to improve profitability as an independent entity as demonstrated this quarter. We believe the difficult macroeconomic environment will provide step change opportunities to advance our mission and create meaningful shareholder value over the coming quarters and years. We plan to leverage our capital and strategic partnership with HumanCo to evaluate exactly those opportunities that would allow growth to emerge stronger and better positioned for growth and that we think could create step changes in shareholder value.

我們合作的目的是尋找 1 個或多個具有顯著影響的高度協同的併購機會，以加速我們的盈利增長戰略。為此，HumanCo 已同意 [考慮] 提供高達 1 億美元的新資本，如先前宣布的那樣。正如本季度所展示的那樣，我們仍然專注於繼續提高作為獨立實體的盈利能力的道路。我們相信，困難的宏觀經濟環境將為推進我們的使命和在未來幾個季度和幾年創造有意義的股東價值提供逐步改變的機會。我們計劃利用我們的資本和與 HumanCo 的戰略合作夥伴關係來準確評估那些可以讓增長變得更強勁、更好地為增長做好準備的機會，我們認為這些機會可以為股東價值帶來階梯式變化。

We are confident that we will achieve stable profitability of our business through continued execution of our value creation plan and that we are investing in the right strategies to drive future growth and increase market leadership.

我們相信，通過持續執行我們的價值創造計劃，我們將實現業務的穩定盈利能力，並且我們正在投資於正確的戰略，以推動未來增長和提高市場領導地位。

Before I turn the call over to Sergio, I want to thank all of our team members for the hard work they do each day. Their commitment to our customers and to our mission is what makes everything possible. It is a true privilege to work alongside each of you. And now I'd like to turn the call over to Sergio to review our financial results in more detail. Go ahead, Sergio.

在我將電話轉給塞爾吉奧之前，我要感謝我們所有的團隊成員每天所做的辛勤工作。他們對我們的客戶和我們的使命的承諾使一切成為可能。與你們每個人一起工作是一種真正的榮幸。現在我想把電話轉給塞爾吉奧，讓他更詳細地審查我們的財務業績。去吧，塞爾吉奧。

Thank you, Stu. Similar to previous calls, will provide quarter-over-quarter comparisons in addition to the year-over-year changes as we believe the sequential comparisons better reflect the trends in the business and the steps we have taken to position ourselves for sustainable, profitable growth.

謝謝你，斯圖。與之前的電話會議類似，除了同比變化外，還將提供季度環比比較，因為我們認為順序比較更好地反映了業務趨勢以及我們為實現可持續盈利增長而採取的措施.

Fourth quarter net revenue was $74 million, down 5% from the third quarter of 2022 and 15% year-over-year. Both comparisons were impacted by the strategic decision to reduce advertising spend as the company focuses on achieving sustainable profitable growth in 2024, as Stu discussed. Similarly, total orders were down 9% quarter-over-quarter and 25% year-over-year to [1.1 billion]. And active customers were down 6% quarter-over-quarter and 16% year-over-year to 1.4 million on a trailing 12-month basis.

第四季度淨收入為 7400 萬美元，比 2022 年第三季度下降 5%，同比下降 15%。正如 Stu 所討論的那樣，這兩項比較都受到了減少廣告支出的戰略決策的影響，因為公司專注於在 2024 年實現可持續的盈利增長。同樣，總訂單環比下降 9%，同比下降 25% 至 [11 億]。在連續 12 個月的基礎上，活躍客戶環比下降 6%，同比下降 16% 至 140 萬。

Partially offsetting the decline in total orders were continued positive trends in DTC net revenue per order, which was up 5% quarter-over-quarter and 11% year-over-year to $63.4. This increase was driven primarily by the impacts of net revenue management initiatives, including the implementation of strategic price increases on both Grove brands and third-party products and the introduction of a supply chain fee at the end of the third quarter as well as by strong performance for seasonals.

DTC 每筆訂單淨收入的持續積極趨勢部分抵消了總訂單的下降，環比增長 5%，同比增長 11% 至 63.4 美元。這一增長主要是由淨收入管理舉措的影響推動的，包括對 Grove 品牌和第三方產品實施戰略性價格上漲以及在第三季度末引入供應鏈費用以及強勁的季節性表現。

We expect this long-term trend to continue that we note it will be seasonally strong in Q4 and softer in Q1. Gross margin was down 210 basis points from the third quarter of 2022 and up 200 basis points year-over-year to 47%. Excluding the full impact of the inventory reserves in the fourth quarter, gross margin would have been 51.7%. The year-over-year increase was driven primarily by the positive impact of the above-mentioned net revenue management initiatives as well by the improved promotional strategy, partly offset by increased product costs, including inbound freight costs. Grove brand as a percentage of net revenue declined 140 basis points quarter-over-quarter and 220 basis points year-over-year to 45.5%. The year-over-year decline was driven by the launch of a large number of new third-party products to our website as compared to Grove brands as well as by a decrease in new customer orders, which tend to include more Grove brand products.

我們預計這種長期趨勢將繼續下去，我們注意到它將在第四季度季節性強勁，而在第一季度則趨於疲軟。毛利率比 2022 年第三季度下降 210 個基點，同比上升 200 個基點至 47%。剔除第四季度庫存儲備的全部影響，毛利率為 51.7%。同比增長的主要原因是上述淨收入管理舉措的積極影響以及改進的促銷策略，部分被增加的產品成本所抵消，包括入境運費。 Grove 品牌占淨收入的百分比環比下降 140 個基點，同比下降 220 個基點至 45.5%。同比下降的原因是與 Grove 品牌相比，我們網站上推出了大量新的第三方產品，以及新客戶訂單減少，其中往往包括更多 Grove 品牌產品。

Advertising expenses fell 20% quarter-over-quarter and 59% year-over-year to $6.9 million, reflecting our strategic pullback in advertising spend and focus on improving marketing investment efficiency. Of note, we are pleased that as we reduce advertising, the impact to revenue is much less severe. We are pleased with improvement in advertising efficiencies resulting from this change, which drove our lowest CAC since 2020.

廣告費用環比下降 20%，同比下降 59% 至 690 萬美元，反映出我們戰略性地縮減廣告支出並專注於提高營銷投資效率。值得注意的是，我們很高興當我們減少廣告時，對收入的影響要小得多。我們很高興這一變化提高了廣告效率，這使我們的 CAC 達到了 2020 年以來的最低水平。

SG&A expense increased 12% quarter-over-quarter and 12% year-over-year to $51.7 million. The year-over-year increase was driven by a $7.2 million increase in stock-based compensation, largely from charges related to [our dues] from which we started to record related expenses in June 2022 when the performance conditions related to going public was met, as well as by $5.3 million expense related to operating lease right-of-use asset impairment and an increase in costs related to being a public company.

SG&A 費用環比增長 12%，同比增長 12% 至 5170 萬美元。同比增長是由基於股票的薪酬增加 720 萬美元推動的，主要來自與 [我們的會費] 相關的費用，我們在 2022 年 6 月滿足與上市相關的業績條件時開始記錄相關費用，以及與經營租賃使用權資產減值相關的 530 萬美元費用以及與上市公司相關的成本增加。

This was partially offset by a decrease in fulfillment costs driven by lower orders volume and lower salaries and benefits due to a reduction in head count, largely attributable to the risks that occurred in 2022. Excluding stock-based compensation, severance and the right-of-use asset based impairment, SG&A expense in the quarter would have been $35.1 million or 5% less than the third quarter of 2022 and 17% less than the same period last year. The quarter-over-quarter decline was driven by lower salaries and benefits due to reductions in force, partially offset by an increase in costs related to being a public company and other professional fees.

這部分被訂單量減少以及員工人數減少導致的工資和福利減少所導致的履行成本下降所抵消，這主要歸因於 2022 年發生的風險。不包括基於股票的補償、遣散費和離職權- 使用基於資產的減值，本季度的 SG&A 費用將比 2022 年第三季度減少 3510 萬美元或 5%，比去年同期減少 17%。環比下降是由於裁員導致工資和福利下降，部分被與上市公司相關的成本增加和其他專業費用所抵消。

As a percent of net revenue, SG&A expense would have been 47.5% compared to 47.4% in the third quarter of 2022 and 48.8% in the fourth quarter of 2021. Our adjusted EBITDA loss was $9.5 million a slight improvement from the $9.6 million loss in the third quarter and a material improvement from the $25.2 million loss in the fourth quarter of 2021, despite lower sales.

作為淨收入的百分比，SG&A 費用為 47.5%，而 2022 年第三季度為 47.4%，2021 年第四季度為 48.8%。我們調整後的 EBITDA 虧損為 950 萬美元，與 2022 年 960 萬美元的虧損相比略有改善第三季度，儘管銷售額下降，但與 2021 年第四季度 2520 萬美元的虧損相比有了實質性改善。

Our adjusted EBITDA margin declined by 50 basis points quarter-over-quarter and improved by 1,610 basis points year-over-year to minus 12.9%, inclusive of the impact of non-cash inventory reserves. The year-over-year improvement was primarily due to the reduction in advertising spend.

我們調整後的 EBITDA 利潤率環比下降 50 個基點，同比提高 1,610 個基點至負 12.9%，其中包括非現金庫存儲備的影響。同比增長主要是由於廣告支出的減少。

Net loss in the quarter was $12.7 million, compared to net income of $7.7 million in the third quarter of 2022 and a loss of $32 million in the fourth quarter of 2021. Net income in the third quarter and fourth quarter of 2022 was inclusive of $32.6 million, $22.4 million, respectively, in gains on the remeasurement of derivative liabilities.

本季度淨虧損 1270 萬美元，而 2022 年第三季度的淨收入為 770 萬美元，2021 年第四季度虧損 3200 萬美元。2022 年第三季度和第四季度的淨收入包括 32.6 美元百萬美元和 2240 萬美元，分別為衍生負債重新計量的收益。

Turning now to the balance sheet. We finished the quarter with an inventory balance of $44.1 million, down $11.9 million from the end of September 2022, fueled by our year-long efforts to improve working capital coupled with increasing the inventory reserves. We ended the quarter with $96 million in cash, cash equivalents and restricted cash, down $7.8 million from the previous quarter, mainly from the adjusted EBITDA losses partially offset by improvements in working capital.

現在轉向資產負債表。本季度結束時，我們的庫存餘額為 4,410 萬美元，比 2022 年 9 月底減少了 1,190 萬美元，這得益於我們長達一年的改善營運資金和增加庫存儲備的努力。本季度結束時，我們的現金、現金等價物和受限制現金為 9600 萬美元，比上一季度減少 780 萬美元，這主要是由於調整後的 EBITDA 虧損部分被營運資本的改善所抵消。

As previously announced, during the quarter, we also refinanced our debt obligation to extend maturity. The new $72 million term loan facility does not have any maturities or amortization on December 2025, has limited [over] operating covenants and was executed at third terms in a challenging market.

正如之前宣布的那樣，在本季度，我們還為延長到期期限的債務再融資。新的 7200 萬美元定期貸款安排在 2025 年 12 月沒有任何期限或攤銷，限制了[超過]運營契約，並在充滿挑戰的市場中以第三期執行。

Subsequent to the end of the quarter, we closed on an asset-based loan facility with 35% total capacity for which borrowing capacity is calculated from our inventory and accounts receivable balances. The loan is for term of 3 years and will support our strategic initiatives and working capital needs.

本季度末，我們關閉了一項基於資產的貸款工具，其總容量為 35%，其借貸能力是根據我們的存貨和應收賬款餘額計算的。貸款期限為 3 年，將支持我們的戰略舉措和營運資金需求。

We feel good about our current liquidity position and plan to continue our aggressive push to profitability in addition to actively managing our capital structure. Now turning to our outlook. We made considerable stride towards profitability in 2022, ending the year at a significantly lower rate than the rate we began it with. Yet the macro environment remains challenging. Consumers continue to feel pressure, and we are seeing the impact across our business, particularly in the retail channel.

我們對當前的流動性狀況感到滿意，併計劃在積極管理資本結構的同時繼續積極推動盈利。現在轉向我們的前景。我們在 2022 年的盈利方面取得了長足的進步，年底的盈利率明顯低於我們年初的盈利率。然而，宏觀環境仍然充滿挑戰。消費者繼續感受到壓力，我們看到了對我們業務的影響，尤其是在零售渠道。

We view 2023 as a transitional year for growth, during which we will continue to focus on profitability, stabilize our core business as we lap the reduction in advertising spend that began in the second half of 2022 and generate new sources of growth to position ourselves for profitable growth in 2024.

我們將 2023 年視為增長的過渡年，在此期間，我們將繼續關注盈利能力，穩定我們的核心業務，因為我們將從 2022 年下半年開始減少廣告支出，並創造新的增長來源，為我們定位2024 年盈利增長。

Factoring in our performance to date and our expectations for the remainder of the year, we are offering the following guidance. For the 12-month period ending December 31, 2022, we expect net revenue of $260 million to $270 million, adjusted EBITDA margin of minus 9% to minus 11%. In conclusion, while the environment remains challenging and the headwinds for our strategic reduction in advertising spend will drive revenue down year-over-year in 2023. The year-over-year improvement in adjusted EBITDA give us confidence that our strategy is the right one. We continue to invest in future growth drivers, such as public channel expansion, the health and wellness vertical and strategic M&A and are excited about the future as we position ourselves for long-term success and lead the CPG industry away from plastic. I'd now like to turn the call back over to Stu for some closing remarks. Go for it, Stu.

考慮到我們迄今為止的表現和我們對今年剩餘時間的預期，我們提供以下指導。在截至 2022 年 12 月 31 日的 12 個月期間，我們預計淨收入為 2.6 億美元至 2.7 億美元，調整後的 EBITDA 利潤率為負 9% 至負 11%。總之，儘管環境仍然充滿挑戰，而且我們戰略性削減廣告支出的不利因素將導致 2023 年收入同比下降。調整後 EBITDA 的同比改善讓我們相信我們的戰略是正確的.我們繼續投資於未來的增長動力，例如公共渠道擴張、健康與保健垂直和戰略併購，並且對未來感到興奮，因為我們將自己定位為長期成功並引領 CPG 行業遠離塑料。我現在想把電話轉回給 Stu，聽取一些結束語。去吧，斯圖。

Thank you, Sergio. We're very pleased with the improvements that we have made in our push to profitability. Rapidly moving the company towards positive EBITDA despite the challenging environment. We are also very pleased with our efforts to ensure strong liquidity through restructuring our balance sheet with no maturities until 2025. As Sergio stated, we plan to continue our aggressive push to outperform, especially on the bottom line throughout 2023 and set ourselves up to drive growth once we are past the challenging variables to over investment in marketing in 2022. That combined with opportunities for growth in retail, wellness and M&A to make this a very exciting year for Grove, for our mission and for all stakeholders.

謝謝你，塞爾吉奧。我們對我們在推動盈利方面所做的改進感到非常滿意。儘管環境充滿挑戰，但仍使公司迅速實現正 EBITDA。我們也很高興我們通過重組我們的資產負債表來確保強勁的流動性，直到 2025 年才到期。正如塞爾吉奧所說，我們計劃繼續積極推動跑贏大市，尤其是在整個 2023 年的底線，並準備好推動一旦我們克服了 2022 年營銷過度投資的挑戰性變量，我們將實現增長。這與零售、健康和併購方面的增長機會相結合，使今年對 Grove、我們的使命和所有利益相關者來說都是非常激動人心的一年。

We are now happy to answer any questions you may have. Operator, please open the line for questions.

我們現在很樂意回答您的任何問題。接線員，請打開問題線路。

(Operator Instructions) Our first question comes from Susan Anderson with Canaccord Genuity.

（操作員說明）我們的第一個問題來自 Susan Anderson 和 Canaccord Genuity。

Nice job on improving the profitability this quarter. Stu, I was wondering maybe if you could give some more color on the new health and wellness category that you talked about, I guess, will you be creating your own new brands for this category or distributing third-party, and I assume it's going to be through your own DTC site at least in the beginning?

本季度在提高盈利能力方面做得很好。 Stu，我想知道你是否可以在你談到的新的健康和保健類別上提供更多顏色，我猜你會為這個類別創建自己的新品牌還是分銷第三方，我想它會至少在開始時通過您自己的 DTC 網站？

Thanks for the question, Susan. So when we look out at the categories that are within our overall desire to create impact, we think that wellness is incredibly compelling for a few reasons. I mentioned market size on the call. It's also 1 that has incredible retention and regimen build when you get a consumer product they truly love.

謝謝你的問題，蘇珊。因此，當我們審視我們創造影響力的總體願望中的類別時，我們認為出於以下幾個原因，健康非常引人注目。我在電話中提到了市場規模。當您獲得他們真正喜愛的消費品時，它也具有令人難以置信的保留率和養生法。

And when we surveyed our consumers, something like 78% of consumers are already taking vitamins and supplements. And the stat I mentioned in the call blew us away, 89% of them would trust Grove over other brands [to provide them this]. And so when you look at that and the lack of sustainability leadership in the space, we were sort of compelled almost forced to do it.

當我們對消費者進行調查時，大約 78% 的消費者已經在服用維生素和補充劑。我在電話中提到的統計數據讓我們大吃一驚，89% 的人會相信 Grove 而不是其他品牌 [為他們提供這個]。因此，當您看到這一點以及該領域缺乏可持續發展領導力時，我們有點被迫幾乎被迫這樣做。

And from a business perspective, when you look at the P&L, these are higher average unit revenue products than our core home care category and when done well, it can also be a higher-margin category. So there's a lot of really exciting business elements for us in terms of how it will come to life? It will come to live first for folks who are already existing customers of Grove, and we'll start through our direct-to-consumer platform. We have vitamins brand called -- Oh no, I shouldn't say vitamins, it's a supplements brand called HONU, which is sort of a legacy brand that does pretty well. I think it's unclear that 1 will be the future for us. But what we are certain of is that the playbook of gathering data from a direct-to-consumer business model to allow us to create real innovation that answers a customer need is 1 that works in home care, works in personal care, and we are certain will work in VMS.

從業務角度來看，當您查看損益表時，這些產品的平均單位收入高於我們的核心家庭護理類別，如果做得好，它也可以成為利潤率更高的類別。因此，就如何實現它而言，我們有很多真正令人興奮的商業元素？它將首先為已經是 Grove 現有客戶的人們上線，我們將從直接面向消費者的平台開始。我們有維生素品牌——哦不，我不應該說維生素，它是一個叫做 HONU 的補充劑品牌，這是一個做得很好的傳統品牌。我認為目前還不清楚 1 是否會成為我們的未來。但我們可以肯定的是，從直接面向消費者的商業模式中收集數據，讓我們能夠創造真正的創新來滿足客戶需求的劇本是 1 在家庭護理、個人護理領域工作，我們是某些將在 VMS 中工作。

So the way that you should expect wellness to roll out is first as an enhancement to the direct-to-consumer offering. And then hopefully, over not too much time, a place where we can leverage the learning in the second pillar category to not just improve our P&L today, but really help us build brand through innovation, from a sustainability and efficacy perspective, just like we did in home care in a second category that can drive expansion.

因此，您應該期望健康推出的方式首先是作為對直接面向消費者產品的增強。然後希望，在不多的時間裡，我們可以利用第二個支柱類別中的學習，不僅可以改善我們今天的損益，而且可以真正幫助我們通過創新從可持續性和功效的角度建立品牌，就像我們一樣在可以推動擴張的第二類家庭護理中做了。

And you know as well as I do time line for product innovation can be long, so I don't want to say that's going to come out and the impact of our 2023 financials. But certainly, we expect to use the same playbook that's been really successful in driving customer satisfaction, loyalty and innovation on the home and personal care side. We expect to bring that same playbook to wellness. I think there's a huge opportunity here, both on the sort of direct-to-consumer side and over the long term on the brand building side.

你和我一樣知道產品創新的時間線可能很長，所以我不想說這會出現以及我們 2023 年財務的影響。但可以肯定的是，我們希望使用在家庭和個人護理方面真正成功地提高客戶滿意度、忠誠度和創新的相同劇本。我們希望將同樣的劇本帶到健康領域。我認為這裡有巨大的機會，無論是在直接面向消費者方面還是在長期品牌建設方面。

Great. And do you -- I guess, just thinking about kind of ramping that business up, like how should we think about the investment needed, if any, to kind of ramp that category on your site?

偉大的。你——我想，只是想著要提升那個業務，比如我們應該如何考慮需要的投資，如果有的話，在你的網站上提升那個類別？

I think the investment is, really comes in the form of being willing to invest in brand building on the site, even if it takes a little bit of time to build awareness. And so you've probably heard Sergio and I talk a lot about profitability on this call on the last call, and that absolutely is our focus. As I said earlier today, in a team meeting the first word in profitable growth is profitable.

我認為投資實際上是以願意投資網站品牌建設的形式出現的，即使建立知名度需要一點時間。所以你可能聽說過塞爾吉奧和我在最後一次電話會議上談論了很多關於盈利能力的問題，這絕對是我們的重點。正如我今天早些時候所說，在團隊會議上，盈利增長的第一個詞是盈利。

So we are cautious of overinvesting here and feel really fortunate to have an extraordinary base of customers that we can build brand with organic (inaudible). So that's where we are going to start. If you do see us make a big investment here, it will be 1 that we have a ton of conviction in and because we have the data to support that, that's an investment that can really step change what's happening for us in the category.

因此，我們對在這裡過度投資持謹慎態度，並為擁有非凡的客戶群感到非常幸運，我們可以通過有機（聽不清）建立品牌。這就是我們要開始的地方。如果您確實看到我們在這裡進行大筆投資，那將是 1 我們對此深信不疑，因為我們有數據支持這一點，這是一項真正可以逐步改變我們在該類別中發生的事情的投資。

Great. Okay. And then if I could just add 1 more. I'm curious not sure if you talked about just the growth in wholesale versus DTC in the quarter, if there was any big divergence there? And then also, the recent rollout to Amazon, Walmart, et cetera. I'm curious if there's any early reads there? And if you're seeing any impact on the other channels that you already did business in, such as like your own DTC site or Target?

偉大的。好的。然後，如果我可以再添加 1 個。我很好奇，不確定您是否只談論本季度批發與 DTC 的增長，那裡是否存在重大差異？然後，最近向亞馬遜、沃爾瑪等推出。我很好奇那裡有沒有早讀？如果您發現對您已經開展業務的其他渠道有任何影響，例如您自己的 DTC 網站或 Target？

Sure. So we're not going to comment on the relative growth of channels just yet. But to answer the question about Walmart and Amazon it's too early to say in those channels. I mean, obviously, we're excited about both of them. But in both cases, we're thinking long term, not short term. And so we will see how they go. I'm excited, but I'm also very aware it's too early to understand exactly which direction those will go in.

當然。所以我們現在不打算評論渠道的相對增長。但要回答有關沃爾瑪和亞馬遜的問題，現在就在這些渠道上說還為時過早。我的意思是，很明顯，我們對他們兩個都很興奮。但在這兩種情況下，我們都是從長遠考慮，而不是短期考慮。因此，我們將看看他們的進展情況。我很興奮，但我也很清楚現在就確切地了解這些將走向哪個方向還為時過早。

And from a cannibalization perspective across channels, we've now gone from 1,600 Target doors to well over 5,000, and we haven't yet seen any reason to believe there's sort of a cannibalistic impact from 1 channel to the other. In practice, what's probably happened is happening is we are losing some customers to target in other places, and there's probably other customers who find us in Target and then come to our direct-to-consumer site.

從跨渠道的同類相食的角度來看，我們現在已經從 1,600 個 Target 門增加到 5,000 多個，而且我們還沒有看到任何理由相信從一個渠道到另一個渠道存在某種同類相食的影響。在實踐中，可能發生的事情是我們正在失去一些客戶去其他地方定位，並且可能還有其他客戶在 Target 中找到我們，然後來到我們的直接面向消費者的網站。

So what we really do see is the biggest result of growing our retail presence is that our awareness is growing. And we think that will have long-term benefits across the omnichannel footprint, but we don't have any reason yet to think that we're trading customers off among channels.

因此，我們真正看到的是，擴大零售業務的最大結果是我們的意識正在增強。我們認為這將在全渠道足跡中帶來長期利益，但我們還沒有任何理由認為我們在渠道之間交易客戶。

(Operator Instructions) Our next question comes from Dana Telsey with Telsey Advisory Group.

（操作員說明）我們的下一個問題來自 Telsey Advisory Group 的 Dana Telsey。

As you think about the adjustments to the earnings for this upcoming fiscal year, with a lowered sales guidance, but the lesser EBITDA loss, how much of this is due to the reduced marketing spend? And as you go forward with the new business with health and wellness, how much is invested in marketing there? And then just lastly, on the expansion into retail, how do you think of that expansion into 2023 when do you add more -- when do you add more doors? How do you assess it? Is it different with each particular company? And how you're planning inventory?

當您考慮對即將到來的財政年度的收益進行調整時，銷售指引降低，但 EBITDA 損失減少，其中有多少是由於營銷支出減少造成的？隨著您在健康和保健方面的新業務的推進，在那裡的營銷投入了多少？最後，關於零售業的擴張，你如何看待 2023 年的擴張——你什麼時候增加更多的門？你如何評價它？是不是每個公司都不一樣？你是如何計劃庫存的？

Thank you for the question. I'm going to do my best to answer them in sequence, but I may need a reminder after question one. So I'll give a high level of how we think about the priority in terms of revenue and bottom line? And then Sergio can speak more specifically to your question. I think when we look out across driving profit -- our push to drive profitable growth in 2024. And we do still think we will grow that year, and we still believe it's possible that we will hit profitability right here, very optimistic.

感謝你的提問。我將盡力按順序回答它們，但在第一個問題之後我可能需要提醒。因此，我將高級別地說明我們如何考慮收入和底線方面的優先級？然後 Sergio 可以更具體地回答您的問題。我認為，當我們展望推動利潤時——我們推動 2024 年盈利增長的努力。我們仍然認為那一年我們會增長，我們仍然相信我們有可能在這裡實現盈利，非常樂觀。

The goal for us really is to understand what we -- where our cohorts sort of imply that we will hit the bottom of the curve and start growing. I talked a little bit about on the call, the big marketing spend in the first half of '22. And just as a reminder to folks if you haven't seen our first investor presentation, really the first 6 months of the cohorts life are particularly strong. And then the first 14 months are strong and then after the first 14 months, you really don't see a whole lot of degradation. So if we are lapping high marketing spend through June, you can sort of 14 months from there is where we'll stop having the particularly tough comparables on a year-over-year basis.

我們的真正目標是了解我們——我們的同齡人暗示我們將觸及曲線底部並開始成長。我在電話中談到了 22 年上半年的巨額營銷支出。如果你還沒有看過我們的第一次投資者介紹，就像提醒人們一樣，隊列生活的前 6 個月真的特別強勁。然後前 14 個月很強勁，然後在前 14 個月之後，你真的看不到很多退化。因此，如果我們在 6 月之前進行高額營銷支出，那麼您可以從那裡開始大約 14 個月，我們將不再有特別艱難的同比比較。

So we can look at that and say, gosh, what builds the best P&L for 2024? And also, how do we build the right muscles around improving marketing efficiency, which I've been extraordinarily pleased with our progress and pushing for faster payback and improving metrics up and down the P&L, including gross margin, and you can see revenue came down on a year-over-year basis, but gross margin came down less because we're really doing a nice job controlling margin.

所以我們可以看看那個，然後說，天哪，是什麼建立了 2024 年最好的損益表？而且，我們如何圍繞提高營銷效率建立正確的力量，我對我們的進展和推動更快的回報以及提高損益表上下指標（包括毛利率）感到非常滿意，你可以看到收入下降了與去年同期相比，但毛利率下降幅度較小，因為我們確實在控制利潤率方面做得很好。

So I'll let Sergio speak to the specifics. But our overall goal really is to make sure that we emerge from 2023 with a healthy P&L and an incredibly healthy set of practices and metrics across the business that can drive sustained profitable growth, and we think we're putting the building blocks in place now. Sergio is going to speak specifically to the question of marketing investment.

所以我會讓 Sergio 談談具體情況。但我們的總體目標確實是確保我們從 2023 年開始在整個業務中實現健康的損益和一套令人難以置信的健康實踐和指標，從而推動持續的盈利增長，我們認為我們現在正在構建基石. Sergio 將專門談到營銷投資的問題。

Yes, of course. And Dana, probably, I will need some reminders as I answer the question, okay? So first of all, I think the answer to your question is yes. So 1 of the biggest impacts that we have seen and is a conscious decision as we move into the future per previous discussions is prioritizing profitability, so reducing the level of investment, yes, it's impacting. It's impacting the growth that we have projected before and that we have put out a guidance for 2023. So the first answer to that question is yes. Second answer, which I believe you said is so how much is coming from reducing marketing basically and how much is coming from other factors?

是的當然。達娜，在我回答問題時可能需要一些提醒，好嗎？所以首先，我認為你的問題的答案是肯定的。因此，我們看到的最大影響之一是我們根據之前的討論進入未來時有意識地決定優先考慮盈利能力，因此降低投資水平，是的，它正在產生影響。它正在影響我們之前預測的增長，我們已經為 2023 年制定了指導方針。所以這個問題的第一個答案是肯定的。第二個答案，我相信你說的是基本上減少營銷有多少，其他因素有多少？

I would say at this point, I'm not going to (inaudible) clarify split specifically the question, but I'm going to tell you that the majority is coming from the reduction in advertising, as you could imagine. And the second part of that 1 is slower retail environment that is not pacing at the level that we want it to be. It's still favorable. We are still winning, but it's not growing at the pace that we wanted it to grow. So that answers that part of the question, Dana. Can you remind me of the remainder?

在這一點上，我會說，我不會（聽不清）具體澄清這個問題，但我會告訴你，正如你想像的那樣，大部分來自廣告的減少。 1 的第二部分是較慢的零售環境，沒有達到我們想要的水平。還是很優惠的我們仍在獲勝，但它並沒有按照我們希望的速度增長。這樣就回答了問題的那一部分，Dana。你能提醒我剩下的嗎？

The other one is just when you're thinking about the retail expansion, what allows you to expand more or less, what's the assessment of when -- how you're progressing forward with that with the new businesses you just added?

另一個是當你考慮零售擴張時，是什麼讓你或多或少地擴張，對什麼時候的評估是什麼——你是如何通過剛剛添加的新業務取得進展的？

Yes. So I want to take part of that question and Stu is going to complement the answer. So basically, as we -- of course, part of the strategy as Stu was describing, we have 3 levers for that growth, and it's pretty important for us to continue pushing for the growth. So we want to get the growth to expand the business and one of those opportunities in the retail environment, as you know. So expanding retail, the decisions that come to the -- where to expand? How to expand? And how much to expand? Is basically is based on the decision of which are the big players. What are the chains that can give us the leverage and the return on investment, the fastest. And where do we want to create long-term partnerships.

是的。所以我想參與這個問題，Stu 將補充答案。所以基本上，正如我們 - 當然，正如 Stu 所描述的戰略的一部分，我們有 3 個增長槓桿，繼續推動增長對我們來說非常重要。因此，如您所知，我們希望獲得增長以擴大業務以及零售環境中的機會之一。所以擴大零售，做出的決定——在哪裡擴張？如何擴展？以及要擴大多少？基本上是根據哪些是大玩家來決定的。哪些鏈條可以給我們帶來槓桿作用，投資回報最快。我們希望在哪裡建立長期合作夥伴關係。

So those together with the assessment of volumes, the assessment of how they go to market, what type of businesses they carry in the different regions. That's part of the assessment, how much would that cost? And of course, at the beginning of each of those investments, you would imagine that we have impact in the profitability. And as we go and grow in the different channels, we expect this to become profitable by having better leverage on the levers that we can pull by reducing the level of investment that is required at the beginning of each launch and also by having more awareness of our brand out there. But I'm going to leave also some space for Stu to answer this question.

因此，那些與數量評估、他們如何進入市場的評估、他們在不同地區開展的業務類型一起評估。這是評估的一部分，那要花多少錢？當然，在每一項投資開始時，您都會想像我們對盈利能力有影響。隨著我們在不同渠道的發展和發展，我們希望通過更好地利用槓桿來實現盈利，我們可以通過減少每次發布開始時所需的投資水平以及提高對我們的品牌在那裡。但我也會為 Stu 留出一些空間來回答這個問題。

I think that's well said, Sergio. I would just say, I think at a high level, Dana, we see that the push towards zero waste from consumers is continuing to be a big tailwind for us. And I think that's in something like 84% of U.S. consumers want to see action taken on single-use plastic. And our brand is such a clear market leader in the push away from single-use plastic that it keeps us in every conversation. And I think when I look at partnerships across the board, I think -- look, we're learning into retail. We have a little over decade of experience in DTC and not even 2 years in retail.

我認為這說得好，塞爾吉奧。我只想說，我認為在高層次上，Dana，我們看到消費者推動零浪費繼續成為我們的一大推動力。我認為大約 84% 的美國消費者希望看到對一次性塑料採取行動。我們的品牌在遠離一次性塑料方面是一個明顯的市場領導者，它讓我們參與到每一次談話中。而且我認為，當我全面審視合作夥伴關係時，我認為 - 看，我們正在學習零售。我們在 DTC 領域擁有十多年的經驗，在零售領域的經驗還不到 2 年。

And so as we continue to learn into the channel, I think the core thing that allowed us to be so successful in gaining distribution, in growing SKU count and continuing to put up good velocity numbers really is that intrinsic consumer value proposition of being a product that answers an unmet need in terms of zero waste that can be available at a really approachable price point and that has extraordinary efficacy that drives high [repeat].

因此，隨著我們繼續學習渠道，我認為讓我們能夠如此成功地獲得分銷、增加 SKU 數量並繼續提供良好速度數字的核心因素確實是作為產品的內在消費者價值主張這在零浪費方面滿足了未滿足的需求，可以以真正平易近人的價格提供，並且具有推動高 [repeat] 的非凡功效。

And so I think Sergio is right, the rollout has been a little bit slower than we had originally anticipated, but growth rates in this segment are still very healthy. We expect them to continue to be healthy, and the core thesis that's allowing us to grow is very much intact. I think you had further question there, Dana, and I think I lost it somewhere in track.

所以我認為 Sergio 是對的，推出速度比我們原先預期的要慢一些，但該細分市場的增長率仍然非常健康。我們希望他們繼續保持健康，讓我們成長的核心論點完好無損。我想你在那裡還有進一步的問題，達娜，我想我在軌道上的某個地方迷路了。

We can take that offline. No problem. I'll pass it on.

我們可以把它離線。沒問題。我會傳下去的。

And there are no further questions at this time. I'll hand the floor back to Stuart Landesberg to conclude. Thank you.

目前沒有其他問題。我將把發言權交還給 Stuart Landesberg 來結束。謝謝。

Thank you much. Well, thanks, everyone, for listening. Really looking forward to a very exciting year through 2023. Many thanks to you all for your support, and I hope you all go check out grove.com/wellness for our new wellness launch today. Thanks very much.

非常感謝。嗯，謝謝大家的聆聽。真的很期待到 2023 年是非常激動人心的一年。非常感謝大家的支持，我希望你們都去 grove.com/wellness 查看我們今天推出的新健康產品。非常感謝。

Thank you. And that concludes today's conference. All parties may disconnect. Have a great day.

謝謝。今天的會議到此結束。各方可能會斷開連接。祝你有美好的一天。