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Wag! (PET) - 2024 Q3 - Quarterly Results
PETWag! (PET)2024-11-13 12:09

Financial Performance - Revenues decreased 39% to 13.2millioninQ32024,downfrom13.2 million in Q3 2024, down from 21.8 million in Q3 2023, with 5.4millionfromServices,5.4 million from Services, 6.5 million from Wellness, and 1.3 million from Pet Food & Treats [2] - Net loss was 6.3 million in Q3 2024, compared to a net loss of 2.2millioninQ32023[2]−AdjustedEBITDAlosswas2.2 million in Q3 2023 [2] - Adjusted EBITDA loss was 1.9 million in Q3 2024, down from a positive Adjusted EBITDA of 1.0millioninQ32023[2]−RevenuesforthethreemonthsendedSeptember30,2024,were1.0 million in Q3 2023 [2] - Revenues for the three months ended September 30, 2024, were 13,204 thousand, a decrease of 39.5% compared to 21,800thousandforthesameperiodin2023[24]−NetlossforthethreemonthsendedSeptember30,2024,was21,800 thousand for the same period in 2023 [24] - Net loss for the three months ended September 30, 2024, was (6,262) thousand, compared to a net loss of (2,196)thousandforthesameperiodin2023,representinganincreaseinlossof185.5(2,196) thousand for the same period in 2023, representing an increase in loss of 185.5% [24] - Adjusted EBITDA loss for the three months ended September 30, 2024, was (1,943) thousand, compared to an adjusted EBITDA of 1,007thousandforthesameperiodin2023[27]−TheadjustedEBITDAlossmarginforthethreemonthsendedSeptember30,2024,was(14.7)1,007 thousand for the same period in 2023 [27] - The adjusted EBITDA loss margin for the three months ended September 30, 2024, was (14.7)%, compared to a margin of 4.6% for the same period in 2023 [27] Debt and Cash Management - The company paid down 5 million of its debt balance in Q3 2024 and is exploring strategic asset sales to further reduce debt [3] - Cash and cash equivalents at the end of the period on September 30, 2024, were 8,445thousand,downfrom8,445 thousand, down from 22,304 thousand at the end of the same period in 2023 [25] - Net cash used in operating activities for the nine months ended September 30, 2024, was (5,274)thousand,comparedto(5,274) thousand, compared to (4,624) thousand for the same period in 2023 [25] - Interest expense for the three months ended September 30, 2024, was 1,497thousand,comparedto1,497 thousand, compared to 1,915 thousand for the same period in 2023 [24] Future Outlook - For Q4 2024, the company expects revenue in the range of 15millionto15 million to 18 million and Adjusted EBITDA between (0.5)millionand(0.5) million and 0.5 million [4] - Full year 2024 revenue guidance is projected to be between 70millionand70 million and 73 million [4] - The company anticipates that increased pet ownership and demand for premium products will positively impact its 2024 results [7] Operational Metrics - Platform participants as of September 30, 2024, were 367, a decrease from 632 participants as of September 30, 2023 [29] - Total costs and expenses for the three months ended September 30, 2024, were 17,620thousand,downfrom17,620 thousand, down from 22,260 thousand for the same period in 2023 [24] - The company reported a month-over-month growth of 79% in Wellness revenue in October 2024 [3] Risks - Potential risks to financial performance include disruptions to global supply chains and changes in consumer behavior [9] - The total assets decreased to 32.6millionasofSeptember30,2024,from32.6 million as of September 30, 2024, from 46.7 million as of December 31, 2023 [21]