Laundry Sauce

Q4 ‘24 Recap & 2025 Outlook

From the Founders We're excited to share our Q4 '24 results and an overview of the past year, along with our strategic priorities for '25. As we continue to build momentum and refine our approach, we remain committed to delivering The World’s Best Smelling Laundry Products that make laundry the best day of the week!

2024 Full-Year Performance Net Revenue: $17M Gross Revenue: $18.8M Sales Channels: $15.6M via D2C and $3.2M on Amazon Subscription Growth: Subscriptions now represent a significantly larger share of our total sales. Strategic Investments: We maintained healthy growth while reducing our burn rate (compared to 2023), investing in subscription optimization, new product R&D, and optimizing shipping and fulfillment costs.

Q4 '24 Highlights & Key Wins - Doubling Subscription Opt-Ins - In December '24, our subscription opt-in rate jumped from 20% to 40%, significantly increasing our base of higher-LTV customers. We've seen this 40% rate hold steady into January—a strong validation of our improved offers and customer experience. - Growing ARR & Subscriber Base - We're now closing in on $11M ARR, supported by over 26,000 active subscribers—a direct testament to our ability to convert one-time purchasers into loyal, recurring customers. - Ambassador Program Growth - Word-of-mouth referral marketing via our ambassador program generated over $450,000 in sales during 2024. We plan to scale this channel further in '25, leveraging our loyal community to fuel organic brand growth.

2025 Strategic Initiatives - 1. Strengthen Subscription Growth - With our increased subscription opt-in rate at 40%, our top priority is to scale this success further. We aim to refine retention tactics, enhance subscriber perks, and deepen our understanding of customer usage to bolster lifetime value and manage churn. - 2. Top-of-Funnel Marketing & Brand Awareness MATTE Projects: After a thorough RFP process, we've chosen MATTE Projects to lead our Q2 ‘25 top-of-funnel creative campaign. Their track record in brand storytelling will help us build new audiences more efficiently. Creative Presentation Sharma Brands: We've onboarded Sharma Brands to lead our paid media strategy. By focusing on high-impact full-finnel creative and refining targeting, we anticipate stronger conversion and lower CAC across Meta and Google. - 3. Retail Readiness for 2026 - We've partnered with The Bridge—the same consulting firm instrumental in Dr. Squatch's "Target Road To Retail"—to accelerate our brick-and-mortar expansion plans. While our principal focus remains D2C through ’25, positioning ourselves for a major retail launch in ‘26 is key to our long-term vision. - 4. Manufacturing Transition - We’re planning to shift our laundry pod production to the U.S. later this year. This move will significantly improve margins, streamline our supply chain, and allow us to be more agile in future product rollouts.

Bridge Funding & Future Capital Plans - Convertible Note Extension - In August '24, we raised a bridge funding round from Melitas Ventures under a $50M valuation cap. After discussions with Melitas and our advisors, we've opted to extend this convertible note through ‘25. Given our relatively low burn rate and the desire to reach key profitability milestones, this extension provides the runway to solidify our D2C profitability before pursuing retail expansion. - Series-A Timing & Strategy - We anticipate raising a larger Series-A in Q4 '25 once we're in the range of $25–30M in trailing 12-month revenue. The main goal of this round is to build out a robust retail team, support our eventual foray into brick-and-mortar, and maintain a strong balance sheet to effectively capitalize on retail growth opportunities. Our plan is for this Series A to be the final fundraise prior to exploring majority liquidity or a strategic sale of the company. - Looking Ahead - We head into '25 with solid operational momentum, a stronger subscription engine, and a sharper focus on brand awareness. We deeply appreciate the continued support from our investor community as we strive to deliver the next wave of transformational growth for Laundry Sauce. Our aim in '25 is to manage towards profitable growth as a D2C company, positioning us well for sustainable D2C growth in '26 and allowing us to allocate future fundraising dollars towards retail channel expansion. - Our Latest Fragrances - We introduced Spanish Leather in October '24, met with overwhelming enthusiasm—further proof that our limited-edition scents and premium positioning continue to resonate with consumers. We also introduced Oregon Mint two weeks ago. This release has been met with overwhelming enthusiasm, proving that our strategy of limited-edition scents and premium positioning continues to resonate with our audience. Oregon Mint Videos Behind The Scents: Meet Chris Jenkins of Essex Mint Farms Behind The Scents: What Inspires The Laundry Sauce Scents? Behind The Scents: The Laundry Sauce Testing Process

We are building something truly extraordinary together, and your continued belief in Laundry Sauce makes it all possible. If you have questions or need additional information, please reach out anytime.

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