Achieved Record Quarterly Revenue
Achieved Record Platform Participants
Achieved Positive Operating Cash Flow
Paid Down $5 Million of Debt Principal
Wag! Group Co. (the “Company” or “Wag!”; Nasdaq: PET), which
strives to be the number one platform to solve the service,
product, and wellness needs of the modern U.S. pet household, today
announced financial results for the first quarter ended March 31,
2024.
First Quarter 2024 Highlights:
- Revenues increased 13% to $23.2 million, compared to $20.6
million in the first quarter of 2023, a quarterly revenue record –
comprised of $5.3 million of Services revenue, $15.8 million of
Wellness revenue, and $2.1 million of Pet Food & Treats
revenue.
- Net loss was $4.2 million, compared to $3.8 million in the
first quarter of 2023, driven by costs associated with $5 million
debt principal pay down.
- Adjusted EBITDA improved to $0.2 million, compared to an
Adjusted EBITDA loss of $0.4 million in the first quarter of
2023.
- Achieved positive cash flows from operating activities of $0.2
million.
"Q1 marks another record quarter of results for Wag! Group Co.
We achieved both record revenues and Platform Participants in the
quarter,” said Garrett Smallwood, CEO and Chairman of Wag!.
“We have demonstrated that we can expand into fast-growing
categories profitably and meet customers where they need us most,”
said Smallwood. “We are thrilled to have recently announced the
launch of WeCompare, one of the easiest ways to compare insurance
products, starting with auto, and Furscription, beautiful
e-prescribing software for veterinarians,” concluded Smallwood.
Recent Business Highlights:
- Achieved record 671,000 Platform Participants in Q1 2024, an
increase of 10% from 611,000 in Q1 2023.
- Achieved record revenues driven by strong secular growth across
our key verticals, with a specific emphasis on Wellness and the
continued strength in pet insurance, wellness plans, and veterinary
needs.
- Paid down $5 million of debt balance, which drove net loss
higher due to $0.6 million proportional reduction of debt discount
and $0.1 million prepayment penalty.
- 78% of revenues was B2B (Business-to-Business) revenue, which
is defined as revenue that is generated by business partners,
including pet insurance companies, pet food companies, pet treat
companies, and wholesale distribution partners.
- Announced the launch of Furscription — digital e-prescribing
and prescription management SaaS tools for veterinary staff across
the U.S., with a robust waitlist of veterinary clinics.
- Announced the launch of WeCompare — a consumer-facing brand
focused on transferring our best-in-class digital comparison
technology to new verticals, starting with auto insurance.
Guidance
“As a result of our strong first quarter results, we are
continuing to focus our investments within marketing, research and
development, and proprietary partnerships that will drive growth in
2024 and beyond,” said Alec Davidian, Wag! CFO. “In Q2, we are
planning on scaling our new products and services, including
Furscription and WeCompare, which we expect to accelerate in the
back half of 2024. Accordingly, we are closely monitoring all costs
related to our new products and services to ensure we are
optimizing for shareholder value creation via free cash flow
generation,” concluded Davidian.
For the full year 2024, we reiterate our guidance of:
- Revenue in the range of $105 million to $115 million,
consistent with our prior forecast.
- Adjusted EBITDA1 in the range of $2 million to $6 million.
Our financial guidance includes the following outlook:
- We expect holidays to drive incremental overnight vs. daytime
service demand, but also expect that severe weather will impact
Services demand. Pet adoption during the holidays also positively
impacts pet insurance penetration and demand for wellness
plans.
- We anticipate that continued growth in the pet industry, driven
by factors such as higher rates of pet ownership, pet insurance
penetration, and increasing demand for premium pet products and
services, will have a positive impact on our full year 2024
results.
- General trends related to state of the economy, interest rates,
and consumer confidence. We have factored in potential risks and
opportunities related to these macroeconomic factors in order to
accurately forecast our financial performance.
- Sales & Marketing efficiency within the Pet category, our
ability to manage CPCs and CPMs across key partners and advertising
platforms, and our ability to manage search engine results and
search engine optimization (SEO) within competitive keywords.
- We recognize that there may be potential risks to our financial
performance in 2024, such as disruptions to global supply chains,
changes in consumer behavior due to unexpected events such as a
delayed or imbalanced return-to-office, digital and performance
marketing trends, the potential impact of AI, and our ability to
expand through partnerships.
1 Information reconciling forward-looking
Adjusted EBITDA and Adjusted EBITDA margin to the comparable GAAP
financial measures is unavailable to the company without
unreasonable effort, as discussed in our Non-GAAP Financial
Measures and Other Operating Metrics section below.
Wag!’s First Quarter Results Conference Call
Wag! will host a conference call and live webcast today, May 09,
2024, at 8:30 a.m. ET to discuss financial results. Investors and
analysts interested in participating in the call are invited to
dial 888-999-6281 (international callers please dial
1-848-280-6550) approximately 10 minutes prior to the start of the
call. A live audio webcast of the conference call will be available
online at https://investors.wag.co.
A recorded replay of the conference call will be available
approximately three hours after the conclusion of the call and can
be accessed online at https://investors.wag.co for 90 days.
Wag! also provides announcements regarding financial performance
and other matters, including SEC filings, investor events, press
and earnings releases, on our investor relations website
(https://investors.wag.co), and/or social media outlets, as a means
of disclosing material information and complying with disclosure
obligations under Regulation FD. The list of social media channels
that Wag! uses may be updated on the investor relations website
from time to time. In addition, you may automatically receive email
alerts and other information about Wag! when you enroll your email
address by visiting the “Email Alerts” section at
(https://investors.wag.co/ir-resources/email-alerts).
About Wag! Group Co.
Wag! Group Co. strives to be the number one platform to solve
the service, product, and wellness needs for the modern U.S. pet
household. Wag! pioneered on-demand dog walking in 2016 with the
Wag! app, which offers access to 5-star dog walking, sitting, and
one-on-one training from a community of over 500,000 Pet Caregivers
nationwide. In addition, Wag! Group Co. operates Petted, the
nation’s largest pet insurance comparison marketplace; Dog Food
Advisor, one of the most visited and trusted pet food review
platforms; WoofWoofTV, a multi-media company bringing delightful
pet content to over 18 million followers across social media;
maxbone, a digital platform for modern pet essentials; and Furmacy,
software to simplify pet prescriptions. For more information, visit
Wag.co.
Non-GAAP Financial Measures and Other Operating
Metrics
Adjusted EBITDA is a non-GAAP financial measure defined as net
income (loss) adjusted for interest expense, net; income taxes;
depreciation and amortization; and share-based compensation, as
well as other items to be consistent with definitions typically
used by lenders, including transaction costs. Additionally, we
exclude the impact of certain non-recurring items which are not
indicative of our operating performance as well as other
transaction-specific costs that do not represent an ongoing
operating expense of the business, including but not limited to,
integration and transaction costs associated with acquired
businesses and severance costs. Adjusted EBITDA margin is
calculated by dividing Adjusted EBITDA by revenues. Adjusted EBITDA
and Adjusted EBITDA margin provide a basis for comparison of our
business operations between current, past, and future periods by
excluding items from net income (loss) that we do not believe are
indicative of our core operating performance.
Platform Participant is defined as a Pet Parent or Pet Caregiver
who transacted on the Wag! platform for a service in the quarter.
Services include dog walking, sitting, boarding, drop-ins,
training, premium telehealth services, wellness plans, and pet
insurance plan comparison.
Information reconciling forward-looking Adjusted EBITDA and
Adjusted EBITDA margin to GAAP financial measures is unavailable to
the Company without unreasonable effort. The Company is not able to
provide reconciliations of Adjusted EBITDA and Adjusted EBITDA
margin to GAAP financial measures because certain items required
for such reconciliations are outside of the Company’s control
and/or cannot be reasonably predicted, such as the provision for
income taxes. Preparation of such reconciliations would require a
forward-looking balance sheet, statement of income and statement of
cash flow, prepared in accordance with GAAP, and such
forward-looking financial statements are unavailable to the company
without unreasonable effort. The Company provides a range for its
Adjusted EBITDA and Adjusted EBITDA margin forecast that it
believes will be achieved, however it cannot accurately predict all
the components of the Adjusted EBITDA and Adjusted EBITDA margin
calculation. The Company provides an Adjusted EBITDA and an
Adjusted EBITDA margin forecast because it believes that Adjusted
EBITDA and Adjusted EBITDA margin, when viewed with the Company’s
results under GAAP, provides useful information for the reasons
noted above. However, Adjusted EBITDA and Adjusted EBITDA margin
are not measures of financial performance or liquidity under GAAP
and, accordingly, should not be considered as alternatives to net
income (loss), net income (loss) margin, or cash flow from
operating activities as an indicator of operating performance or
liquidity.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Some of the forward-looking statements can be identified
by the use of forward-looking words. Statements that are not
historical in nature, including the words “anticipate,” “expect,”
“suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,”
“projects,” “should,” “could,” “would,” “may,” “will,” “forecast”
and other similar expressions are intended to identify
forward-looking statements. These statements include those related
to the Company’s ability to further develop and advance its pet
service offerings and achieve scale; ability to attract and retain
personnel; market opportunity, anticipated growth, and future
financial performance, including management’s financial outlook for
the future. Forward-looking statements are predictions, projections
and other statements about future events that are based on current
expectations and assumptions and, as a result, are subject to risks
and uncertainties. Many factors could cause actual future events to
differ materially from the forward-looking statements in this press
release, including but not limited to: management’s financial
outlook for the future; market adoption of the Company’s pet
service offerings and solutions; failure to realize the financial
benefits of acquisitions; the ability of the Company to protect its
intellectual property; changes in the competitive industries in
which the Company operates; changes in laws and regulations
affecting the Company’s business; the Company’s ability to
implement its business plans, forecasts and other expectations, and
identify and realize additional partnerships and opportunities; and
the risk of downturns in the market and the technology industry.
The foregoing list of factors is not exhaustive. You should
carefully consider the foregoing factors and the other risks and
uncertainties described in the “Risk Factors” section of the
Company’s filings with the Securities and Exchange Commission,
including the most recent Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q. These filings identify and address other
important risks and uncertainties that could cause actual events
and results to differ materially from those contained in the
forward-looking statements. Forward-looking statements speak only
as of the date they are made. Readers are cautioned not to put
undue reliance on forward-looking statements, and the Company
assumes no obligation and does not intend to update or revise these
forward-looking statements, whether as a result of new information,
future events, or otherwise. The Company does not give any
assurance that it will achieve its expectations.
Wag! Group Co.
Condensed Consolidated Balance
Sheets
(unaudited)
March 31, 2024
December 31,
2023
(in thousands, except par value
amounts)
ASSETS
Current assets:
Cash and cash equivalents
$
12,603
$
18,323
Accounts receivable, net
11,104
10,023
Prepaid expenses and other current
assets
2,510
3,428
Total current assets
26,217
31,774
Property and equipment, net
622
347
Operating lease right-of-use assets
970
1,045
Intangible assets, net
8,280
8,828
Goodwill
4,646
4,646
Other assets
52
57
Total assets
$
40,787
$
46,697
LIABILITIES AND STOCKHOLDERS’
EQUITY (DEFICIT)
Current liabilities:
Accounts payable
$
12,375
$
9,919
Accrued expenses and other current
liabilities
2,953
4,015
Deferred revenue
1,742
1,781
Deferred purchase consideration – current
portion
368
547
Operating lease liabilities – current
portion
390
386
Notes payable – current portion
1,913
1,751
Total current liabilities
19,741
18,399
Operating lease liabilities – non-current
portion
731
816
Notes payable – non-current portion, net
of debt discount and warrant allocation of $3,280 and $4,563 as of
March 31, 2024 and December 31, 2023, respectively
21,428
25,664
Other non-current liabilities
125
172
Total liabilities
42,025
45,051
Commitments and contingencies
Stockholders’ equity (deficit):
Common stock
4
4
Additional paid-in capital
164,733
163,376
Accumulated deficit
(165,975
)
(161,734
)
Total stockholders’ equity (deficit)
(1,238
)
1,646
Total liabilities and stockholders’ equity
(deficit)
$
40,787
$
46,697
Wag! Group Co.
Condensed Consolidated
Statements of Operations
(unaudited)
Three Months Ended
March 31, 2024
March 31, 2023
(in thousands, except per share
amounts)
Revenues
$
23,219
$
20,623
Costs and expenses:
Cost of revenues (exclusive of
depreciation and amortization shown separately below)
1,570
1,026
Platform operations and support
2,960
3,170
Sales and marketing
15,655
13,275
General and administrative
4,239
4,984
Depreciation and amortization
578
381
Total costs and expenses
25,002
22,836
Interest expense
1,885
1,874
Interest income
(152
)
(244
)
Loss on extinguishment of debt
726
—
Other income, net
—
(56
)
Loss before income taxes
(4,242
)
(3,787
)
Income taxes
(1
)
—
Net loss
$
(4,241
)
$
(3,787
)
Loss per share, basic and diluted
$
(0.11
)
$
(0.10
)
Weighted-average common shares outstanding
used in computing loss per share, basic and diluted
40,077
37,065
Wag! Group Co.
Condensed Consolidated
Statements of Cash Flows
(unaudited)
Three Months Ended
March 31, 2024
March 31, 2023
(in thousands)
Cash flow from operating activities:
Net loss
$
(4,241
)
$
(3,787
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Stock-based compensation
1,296
1,342
Non-cash interest expense
665
685
Depreciation and amortization
578
381
Reduction in carrying amount of operating
lease right-of-use assets
75
83
Loss on extinguishment of debt
726
—
Changes in operating assets and
liabilities, net of effect of acquired business:
Accounts receivable
(1,081
)
(2,351
)
Prepaid expenses and other current
assets
918
537
Operating lease liabilities
(81
)
(78
)
Other assets
5
(5
)
Accounts payable
2,456
(459
)
Accrued expenses and other current
liabilities
(1,062
)
(250
)
Deferred revenue
(39
)
322
Other non-current liabilities
(47
)
—
Net cash provided by (used in) operating
activities
168
(3,580
)
Cash flows from investing activities:
Cash paid for acquisitions, net of cash
acquired
—
(9,000
)
Cash paid for equity method investment
—
(1,470
)
Purchase of property and equipment
(305
)
(16
)
Net cash used in investing activities
(305
)
(10,486
)
Cash flows from financing activities:
Repayment of debt
(5,357
)
(277
)
Debt prepayment penalty
(100
)
—
Proceeds from exercises of stock
options
61
54
Other
(187
)
(175
)
Net cash used in financing activities
(5,583
)
(398
)
Net change in cash and cash
equivalents
(5,720
)
(14,464
)
Cash and cash equivalents, beginning of
period
18,323
38,966
Cash and cash equivalents, end of
period
$
12,603
$
24,502
Wag! Group Co.
Adjusted EBITDA (Loss)
Reconciliation
(unaudited)
Three Months Ended
March 31, 2024
March 31, 2023
(in thousands, except
percentages)
Net loss
$
(4,241
)
$
(3,787
)
Interest expense, net
1,733
1,630
Income taxes
(1
)
—
Depreciation and amortization
578
381
Stock-based compensation
1,296
1,342
Integration and transaction costs
associated with acquired business
—
37
Severance costs
77
—
Loss on extinguishment of debt
726
—
Adjusted EBITDA (loss)
$
168
$
(397
)
Revenues
$
23,219
$
20,623
Adjusted EBITDA (loss) margin
0.7
%
(1.9
)%
Wag! Group Co.
Key Operating and Financial
Metrics
(unaudited)
Three Months Ended
March 31, 2024
March 31, 2023
(in thousands, except
percentages)
Platform Participants (as of period
end)
671
611
Revenues
$
23,219
$
20,623
Net loss
$
(4,241
)
$
(3,787
)
Net loss margin
(18.3
)%
(18.4
)%
Net cash provided by (used in) operating
activities
$
168
$
(3,580
)
Adjusted EBITDA (loss)
$
168
$
(397
)
Adjusted EBITDA (loss) margin
0.7
%
(1.9
)%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240509183469/en/
Media: Wag!: Media@wagwalking.com
Investor Relations: Wag!: IR@wagwalking.com Gateway for
Wag!: PET@gateway-grp.com
Wag (NASDAQ:PET)
Gráfica de Acción Histórica
De Oct 2024 a Nov 2024
Wag (NASDAQ:PET)
Gráfica de Acción Histórica
De Nov 2023 a Nov 2024