Wag! Group (PET) Q4 2024 earnings summary

Executive summary

• Q4 2024 showed a rebound from Q3, with platform participants, revenue, and adjusted EBITDA all increasing over 17% sequentially.

• Full year 2024 revenue was $70.5 million, down 16% year-over-year but within guidance.

• Net loss for Q4 2024 was $4.8 million versus $3.5 million in Q4 2023; full-year net loss was $17.6 million compared to $13.3 million in 2023.

• The company is undergoing a board-led strategic review to enhance shareholder value, including potential sale, merger, or partnerships, with no set timeline for completion.

• Three new major distribution partners were signed in Q4, expected to drive growth in the wellness segment starting Q1 2025.

Financial highlights

• Q4 revenue reached $15.4 million, with an adjusted EBITDA loss of $963,000.

• Full year adjusted EBITDA loss was $1.1 million, compared to a $0.7 million profit in 2023.

• Full year segment revenues: Services $21.6M, Wellness $42.7M, Pet Food & Treats $6.2M.

• Ended 2024 with $5.6 million in cash and equivalents, down from $18.3 million in 2023.

• Net cash used in operating activities for 2024 was $7.0 million, compared to $6.5 million in 2023.

Outlook and guidance

• 2025 revenue guidance is $84–$88 million, with adjusted EBITDA expected between $2–$4 million.

• Revenue growth in 2025 is expected to be driven primarily by the wellness segment and new partnerships.

• Sequential revenue growth anticipated throughout 2025 as new partners scale.