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, 2025.
First Quarter
2025 Highlights:
- Revenues of
$15.2 million, compared to $23.2 million in the first
quarter of 2024 – comprised of $4.9 million of Services
revenue, $9.2 million of Wellness revenue, and
$1.1 million of Pet Food & Treats revenue.
- Net loss was
$4.9 million, compared to $4.2 million in the first
quarter of 2024.
- Adjusted EBITDA
loss was $1.2 million, compared to positive Adjusted EBITDA of
$0.2 million in the first quarter of 2024.
“We are pleased to begin 2025 with results
slightly ahead of our expectations on profitability and in line
with expectations on revenue,” said Garrett Smallwood, CEO and
Chairman of Wag!. “This quarter’s performance reflects the benefits
of our disciplined cost management, operational streamlining and
continued focus on higher-return initiatives. We’re also encouraged
by the early traction we’re seeing from our newly launched
distribution partnerships and the strength of business trends
through April and into May. As we continue to evaluate all
strategic options in partnership with our Board, we remain focused
on delivering long-term value for our shareholders.”
Guidance
For the full year 2025, we continue to
expect:
- Revenue in the range
of $84 million to $88 million.
- Adjusted EBITDA1 in
the range of $2.0 million to $4.0 million.
________________________1 Information reconciling
forward-looking Adjusted EBITDA to the most directly comparable
GAAP financial measure 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 CallWag! will host a
conference call and live webcast today, May 12, 2025, at
8:30am ET to discuss financial results. Investors and analysts
interested in participating in the call are invited to dial
1-800-717-1738 (international callers please dial 1-646-307-1865)
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 of the modern U.S. pet household. Wag!
pioneered on-demand dog walking in 2015 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, one of the
nation’s largest pet insurance comparison marketplaces; 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 MetricsAdjusted EBITDA is a non-GAAP financial
measure defined as net income (loss) adjusted for interest expense,
net; income taxes; depreciation and amortization; and stock-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, severance costs, loss on extinguishment of debt, and
legal settlements. 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 to the most directly comparable GAAP financial measure is
unavailable to the Company without unreasonable effort. The Company
is not able to provide a reconciliation of Adjusted EBITDA to the
most directly comparable GAAP financial measure because certain
items required for such reconciliation are outside of the Company’s
control and/or cannot be reasonably predicted, such as the
provision for income taxes. Preparation of such a reconciliation
would require a forward-looking statement of income, 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 forecast that it
believes will be achieved; however, it cannot accurately predict
all the components of the Adjusted EBITDA calculation. The Company
provides an Adjusted EBITDA forecast because it believes that
Adjusted EBITDA, when viewed with the Company’s results under GAAP,
provides useful information for the reasons noted above. However,
Adjusted EBITDA is not a measure of financial performance or
liquidity under GAAP and, accordingly, should not be considered as
an alternative to net income (loss) or cash flow from operating
activities as an indicator of operating performance.
Forward-Looking StatementsThis
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, product and wellness offerings and achieve scale; ability
to attract and retain personnel; market opportunity, anticipated
growth, ability to achieve and maintain profitability; intended use
of proceeds from the Company’s underwritten public offering, 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, product and wellness 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.
Contact UsMedia:
Media@wagwalking.com
Investor RelationsWag!:
IR@wagwalking.comGateway for Wag!: PET@gateway-grp.com
|
Wag! Group Co.Condensed Consolidated
Balance Sheets(unaudited) |
|
|
|
March 31,2025 |
|
December 31,2024 |
|
|
(in thousands) |
ASSETS |
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
6,123 |
|
|
$ |
5,630 |
|
Accounts receivable, net |
|
|
5,532 |
|
|
|
6,580 |
|
Prepaid expenses and other current assets |
|
|
3,003 |
|
|
|
2,855 |
|
Total current assets |
|
|
14,658 |
|
|
|
15,065 |
|
Property and equipment,
net |
|
|
2,507 |
|
|
|
2,172 |
|
Operating lease right-of-use
assets |
|
|
655 |
|
|
|
737 |
|
Intangible assets, net |
|
|
6,220 |
|
|
|
6,766 |
|
Goodwill |
|
|
4,646 |
|
|
|
4,646 |
|
Other assets |
|
|
154 |
|
|
|
52 |
|
Total assets |
|
$ |
28,840 |
|
|
$ |
29,438 |
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
|
|
|
|
|
Accounts payable |
|
$ |
7,761 |
|
|
$ |
6,169 |
|
Accrued expenses and other current liabilities |
|
|
2,089 |
|
|
|
2,496 |
|
Deferred revenue |
|
|
2,782 |
|
|
|
1,432 |
|
Operating lease liabilities – current portion |
|
|
359 |
|
|
|
406 |
|
Notes payable, net of debt discount and warrant allocation of $812
and $1,267 as of March 31, 2025 and December 31, 2024,
respectively |
|
|
18,896 |
|
|
|
18,960 |
|
Total current liabilities |
|
|
31,887 |
|
|
|
29,463 |
|
Operating lease liabilities –
non-current portion |
|
|
422 |
|
|
|
464 |
|
Total liabilities |
|
|
32,309 |
|
|
|
29,927 |
|
Commitments and
contingencies |
|
|
|
|
Stockholders’ deficit: |
|
|
|
|
Common stock |
|
|
4 |
|
|
|
4 |
|
Additional paid-in capital |
|
|
180,719 |
|
|
|
178,809 |
|
Accumulated deficit |
|
|
(184,192 |
) |
|
|
(179,302 |
) |
Total stockholders’
deficit |
|
|
(3,469 |
) |
|
|
(489 |
) |
Total liabilities and
stockholders’ deficit |
|
$ |
28,840 |
|
|
$ |
29,438 |
|
|
Wag! Group Co.Condensed Consolidated
Statements of Operations(unaudited) |
|
|
|
Three Months Ended |
|
Three Months Ended |
|
|
March 31,2025 |
|
March 31,2024 |
|
March 31,2025 |
|
March 31,2024 |
|
|
(in thousands, except per share amounts) |
Revenues |
|
$ |
15,165 |
|
|
$ |
23,219 |
|
|
$ |
15,165 |
|
|
$ |
23,219 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
Cost of revenues (exclusive of depreciation and amortization shown
separately below) |
|
|
1,441 |
|
|
|
1,570 |
|
|
|
1,441 |
|
|
|
1,570 |
|
Platform operations and support |
|
|
2,521 |
|
|
|
2,960 |
|
|
|
2,521 |
|
|
|
2,960 |
|
Sales and marketing |
|
|
10,377 |
|
|
|
15,655 |
|
|
|
10,377 |
|
|
|
15,655 |
|
General and administrative |
|
|
3,958 |
|
|
|
4,239 |
|
|
|
3,958 |
|
|
|
4,239 |
|
Depreciation and amortization |
|
|
644 |
|
|
|
578 |
|
|
|
644 |
|
|
|
578 |
|
Total costs and expenses |
|
|
18,941 |
|
|
|
25,002 |
|
|
|
18,941 |
|
|
|
25,002 |
|
Interest expense |
|
|
1,182 |
|
|
|
1,885 |
|
|
|
1,182 |
|
|
|
1,885 |
|
Interest income |
|
|
(27 |
) |
|
|
(152 |
) |
|
|
(27 |
) |
|
|
(152 |
) |
Loss on extinguishment of
debt |
|
|
— |
|
|
|
726 |
|
|
|
— |
|
|
|
726 |
|
Loss before income taxes |
|
|
(4,931 |
) |
|
|
(4,242 |
) |
|
|
(4,931 |
) |
|
|
(4,242 |
) |
Income taxes |
|
|
(41 |
) |
|
|
(1 |
) |
|
|
(41 |
) |
|
|
(1 |
) |
Net loss |
|
$ |
(4,890 |
) |
|
$ |
(4,241 |
) |
|
$ |
(4,890 |
) |
|
$ |
(4,241 |
) |
Loss per share, basic and
diluted |
|
$ |
(0.10 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.11 |
) |
Weighted-average common shares
outstanding used in computing loss per share, basic and
diluted |
|
|
50,487 |
|
|
|
40,077 |
|
|
|
50,487 |
|
|
|
40,077 |
|
|
Wag! Group Co.Condensed Consolidated
Statements of Cash Flows(unaudited) |
|
|
|
Three Months Ended |
|
|
March 31,2025 |
|
March 31,2024 |
|
|
(in thousands) |
Cash flow from operating
activities: |
|
|
|
|
Net loss |
|
$ |
(4,890 |
) |
|
$ |
(4,241 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
Stock-based compensation |
|
|
1,872 |
|
|
|
1,296 |
|
Non-cash interest expense |
|
|
455 |
|
|
|
665 |
|
Depreciation and amortization |
|
|
644 |
|
|
|
578 |
|
Reduction in carrying amount of operating lease right-of-use
assets |
|
|
81 |
|
|
|
75 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
726 |
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
|
1,048 |
|
|
|
(1,081 |
) |
Prepaid expenses and other current assets |
|
|
(148 |
) |
|
|
918 |
|
Other assets |
|
|
(102 |
) |
|
|
5 |
|
Accounts payable |
|
|
1,592 |
|
|
|
2,456 |
|
Accrued expenses and other current liabilities |
|
|
(407 |
) |
|
|
(1,062 |
) |
Deferred revenue |
|
|
1,350 |
|
|
|
(39 |
) |
Operating lease liabilities |
|
|
(88 |
) |
|
|
(81 |
) |
Other non-current liabilities |
|
|
— |
|
|
|
(47 |
) |
Net cash provided by operating
activities |
|
|
1,407 |
|
|
|
168 |
|
Cash flows from investing
activities: |
|
|
|
|
Purchase of property and equipment |
|
|
(396 |
) |
|
|
(305 |
) |
Net cash used in investing
activities |
|
|
(396 |
) |
|
|
(305 |
) |
Cash flows from financing
activities: |
|
|
|
|
Repayment of debt |
|
|
(519 |
) |
|
|
(5,357 |
) |
Debt prepayment penalty |
|
|
— |
|
|
|
(100 |
) |
Proceeds from exercises of stock options |
|
|
1 |
|
|
|
61 |
|
Other |
|
|
— |
|
|
|
(187 |
) |
Net cash used in financing
activities |
|
|
(518 |
) |
|
|
(5,583 |
) |
Net change in cash and cash
equivalents |
|
|
493 |
|
|
|
(5,720 |
) |
Cash and cash equivalents,
beginning of period |
|
|
5,630 |
|
|
|
18,323 |
|
Cash and cash equivalents, end
of period |
|
$ |
6,123 |
|
|
$ |
12,603 |
|
|
Wag! Group Co.Adjusted EBITDA (Loss)
Reconciliation(unaudited) |
|
|
|
Three Months Ended |
|
Three Months Ended |
|
|
March 31,2025 |
|
March 31,2024 |
|
March 31,2025 |
|
March 31,2024 |
|
|
(in thousands, except percentages) |
Net loss |
|
$ |
(4,890 |
) |
|
$ |
(4,241 |
) |
|
$ |
(4,890 |
) |
|
$ |
(4,241 |
) |
Interest expense, net |
|
|
1,155 |
|
|
|
1,733 |
|
|
|
1,155 |
|
|
|
1,733 |
|
Income taxes |
|
|
(41 |
) |
|
|
(1 |
) |
|
|
(41 |
) |
|
|
(1 |
) |
Depreciation and
amortization |
|
|
644 |
|
|
|
578 |
|
|
|
644 |
|
|
|
578 |
|
Stock-based compensation |
|
|
1,872 |
|
|
|
1,296 |
|
|
|
1,872 |
|
|
|
1,296 |
|
Integration and transaction
costs associated with acquired business |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Severance costs |
|
|
— |
|
|
|
77 |
|
|
|
— |
|
|
|
77 |
|
Loss on extinguishment of
debt |
|
|
— |
|
|
|
726 |
|
|
|
— |
|
|
|
726 |
|
Legal settlement |
|
|
25 |
|
|
|
— |
|
|
|
25 |
|
|
|
— |
|
Adjusted EBITDA (loss) |
|
$ |
(1,235 |
) |
|
$ |
168 |
|
|
$ |
(1,235 |
) |
|
$ |
168 |
|
Revenues |
|
$ |
15,165 |
|
|
$ |
23,219 |
|
|
$ |
15,165 |
|
|
$ |
23,219 |
|
Adjusted EBITDA (loss)
margin |
|
(8.1 |
)% |
|
|
0.7 |
% |
|
(8.1 |
)% |
|
|
0.7 |
% |
|
Wag! Group Co.Key Operating and Financial
Metrics(unaudited) |
|
|
|
Three Months Ended |
|
Three Months Ended |
|
|
March 31,2025 |
|
March 31,2024 |
|
March 31,2025 |
|
March 31,2024 |
|
|
(in thousands, except percentages) |
Platform Participants (as of period end) |
|
|
472 |
|
|
|
671 |
|
|
|
472 |
|
|
|
671 |
|
Revenues |
|
$ |
15,165 |
|
|
$ |
23,219 |
|
|
$ |
15,165 |
|
|
$ |
23,219 |
|
Net loss |
|
$ |
(4,890 |
) |
|
$ |
(4,241 |
) |
|
$ |
(4,890 |
) |
|
$ |
(4,241 |
) |
Net loss margin |
|
(32.2 |
)% |
|
(18.3 |
)% |
|
(32.2 |
)% |
|
(18.3 |
)% |
Net cash provided by operating
activities |
|
$ |
1,407 |
|
|
$ |
168 |
|
|
$ |
1,407 |
|
|
$ |
168 |
|
Adjusted EBITDA (loss) |
|
$ |
(1,235 |
) |
|
$ |
168 |
|
|
$ |
(1,235 |
) |
|
$ |
168 |
|
Adjusted EBITDA (loss)
margin |
|
(8.1 |
)% |
|
|
0.7 |
% |
|
(8.1 |
)% |
|
|
0.7 |
% |
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