Rover Group (NASDAQ: ROVR), an online marketplace for people to buy and sell pet care services soared in pre-market trading at the time of publishing on Wednesday after the company broke even in the second quarter as compared to a loss of $0.02 per share in the same period last year while analysts were forecasting earnings of $0.03 per share.
The company’s revenues increased 35% year-over-year to $58.5 million but fell short of Street estimates of $59.9 million. Rover’s gross booking value (GBV) rose 25% year-over-year to $266.1 million while total bookings increased by 20% year-over-year to 1.7 million.
More encouragingly, Rover raised its FY23 outlook and now projects revenues in the range of $222 million to $227 million while adjusted EBITDA is likely to be between $37 million and $41 million. In Q3, the company anticipates revenues in the range of $61 million to $63 million and adjusted EBITDA is likely to be between $12 million and $14 million.
Charlie Wickers, Rover CFO commented, “While we are retaining potential macro economic and health impacts in our forecast, we now expect the peak timing of a recession impact to occur in the mid first half of 2024 versus the previously modeled mid second half of 2023.”
Analysts are cautiously optimistic about ROVR stock with a Moderate Buy consensus rating based on two Buys and two Holds.
