Company: GROVW
Filing Date: 2025-03-19
Form Type: 10-K
Source: 0001628280-25-013839
Chunk: 109

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-03-19
Form: 10-K
Item: Item 7
Chunk 109
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 million, or 52%, for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to implementing a lower-spend strategy to optimize the cost of acquiring new customers, while balancing driving consumer awareness and cash flow management. Performance partnerships expenses decreased by $4.3 million, advertising targeted at attracting retail customers decreased by $3.4 million, online and social media advertising expenses decreased by $1.6 million, television, audio, and mailer advertising expenses decreased by $1.1 million, and creative content production costs decreased by $0.6 million.

Product Development Expenses

Year Ended December 31,Change20242023Amount% (in thousands)Product development$18,456 $16,401 $2,055 13 %

Product development expenses increased by $2.1 million, or 13%, for the year ended December 31, 2024 as compared to the year ended December 31, 2023, primarily due to increases in severance-related expenses and accelerated amortization related to internally developed software.

55

Selling, General and Administrative Expenses

Year Ended December 31,Change20242023Amount% (in thousands)Selling, general and administrative$103,174 $134,929 $(31,755)(24)%

Selling, general and administrative expenses decreased by $31.8 million, or 24%, for the year ended December 31, 2024 as compared to the year ended December 31, 2023. Fulfillment costs decreased by $13.6 million, including an $8.6 million decrease in outbound shipping and handling expenses and a $2.8 million decrease in fulfillment labor both due to a lower volume of orders. Stock-based compensation expense decreased by $2.8 million driven by lower expense relating to the vesting of RSU awards resulting from the terms of the option exchange we effected in October 2022 and reductions in headcount. Other general and administrative expenses, excluding stock-based compensation expense and fulfillment costs, decreased by $15.4 million, which includes $5.9 million in reductions to corporate compensation and benefits due to decreases in headcount, a $1.8 million reduction in professional fees, a $1.5 million decrease in costs associated with being a publicly traded company, a $1.1 million net decrease in operating lease right of use asset and other fixed asset impairments, a $0.6