Wag! Group Co. ( (PET) ) has released its Q3 earnings. Here is a breakdown of the information Wag! Group Co. presented to its investors.
Wag! Group Co. is a company dedicated to meeting the service, product, and wellness needs of pet households in the United States, primarily through its platform offering dog walking, pet sitting, and other related services.
In its third quarter of 2024, Wag! Group Co. faced a challenging period with a significant drop in revenues, reporting a 39% decline to $13.2 million compared to the same quarter in the previous year. The company also experienced a net loss of $6.3 million, a sharp increase from the $2.2 million lost in the third quarter of 2023.
Key financial metrics highlight that the company’s adjusted EBITDA turned negative, with a loss of $1.9 million compared to a positive $1.0 million in the prior year. CEO Garrett Smallwood acknowledged inefficient marketing spend as a major factor impacting the Wellness and Pet Food & Treats segments but expressed optimism for a recovery, citing a month-over-month increase of 79% in Wellness revenue during October.
Despite the setbacks, Wag! made progress in debt reduction by paying down $5 million and is considering strategic asset sales to further improve its financial position. The company remains focused on strengthening its balance sheet and achieving growth and profitability by 2025.
Looking forward, Wag! anticipates bouncing back in the fourth quarter with projected revenues between $15 million and $18 million, and an adjusted EBITDA ranging from a loss of $0.5 million to a gain of $0.5 million. The company expects the upcoming holiday season and trends in the pet industry to positively influence its performance.
