Grove Investor Presentation Deck
Non-GAAP Financial Measures
Some of the financial information and data contained in this presentation, such as adjusted EBITDA and adjusted EBITDA margin, have not been
prepared in accordance with United States generally accepted accounting principles ("GAAP"). These non-GAAP measures, and other measures that
are calculated using such non-GAAP measures, are an addition to, and not a substitute for or superior to, measures of financial performance prepared
in accordance with GAAP and should not be considered as an alternative to revenue, operating income, profit before tax, net income or any other
performance measures derived in accordance with GAAP. A reconciliation of historical adjusted EBITDA to Net Income is provided in the appendix.
The reconciliation of projected adjusted EBITDA and adjusted EBITDA Margin to the closest corresponding GAAP measure is not available without
unreasonable efforts on a forward-looking basis due to the high variability, complexity, and low visibility with respect to the charges excluded from
these non-GAAP measures, such as the impact of depreciation and amortization of fixed assets, amortization of internal use software, the effects of
net interest expense (income), other expense (income), and non-cash stock based compensation expense. Grove believes these non-GAAP measures
of financial results, including on a forward-looking basis, provide useful information to management and investors regarding certain financial and
business trends relating to Grove's financial condition and results of operations. Grove's management uses these non-GAAP measures for trend
analyses and for budgeting and planning purposes. Grove believes that the use of these non-GAAP financial measures provides an additional tool for
investors to use in evaluating projected operating results and trends in and in comparing Grove's financial measures with other similar companies,
many of which present similar non-GAAP financial measures to investors. Management of Grove does not consider these non-GAAP measures in
isolation or as an alternative to financial measures determined in accordance with GAAP. However, there are a number of limitations related to the use
of these non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently, or
may use other measures to calculate their financial performance, and therefore Grove's non-GAAP measures may not be directly comparable to
similarly titled measures of other companies.
We calculate Adjusted EBITDA as net loss, adjusted to exclude: (1) stock-based compensation expense; (2) depreciation and amortization; (3)
remeasurement of convertible preferred stock warrant liability; (4) changes in fair values of Additional Shares, Earn-Out Shares, Public and Private
Placement Warrants and Structural derivative liabilities; (5) transaction costs allocated to derivative liabilities upon Business Combination; (6) interest
expense; (7) interest income; (8) provision for income taxes, (9) restructuring expenses and (10) loss on extinguishment of debt. We define Adjusted
EBITDA Margin as Adjusted EBITDA divided by revenue.
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