Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Wag! Reports Record Fourth Quarter and Preliminary Full Year 2023 Results By: Wag! Group Co. via Business Wire February 14, 2024 at 16:05 PM EST Record Q4 Revenues of $21.7 Million, Up 27% Year-over-Year Record Annual Revenues of $83.9 Million, Up 53% Year-over-Year Positive Annual Adjusted EBITDA of $0.7 Million Board Approves Up to $10 Million Debt Pay Down Management Announces 2024 Guidance and Longer Term Outlook Wag! Group Co. (the “Company” or “Wag!”; Nasdaq: PET), which strives to be the #1 platform to solve the service, product, and wellness needs of the modern U.S. pet household, today announced financial results for the fourth quarter and full year ended December 31, 2023. Fourth Quarter 2023 Highlights: Revenues increased 27% to $21.7 million, compared to $17.0 million in the fourth quarter of 2022, a quarterly revenue record – comprised of $6.3 million of Services revenue, $13.5 million of Wellness revenue, and $1.9 million of Pet Food & Treats revenue. Net loss was $3.5 million, compared to net income of $5.8 million in the fourth quarter of 2022, which included a one-time benefit of $8.8 million related to the Forward Share Purchase Agreement. Breakeven Adjusted EBITDA, compared to an Adjusted EBITDA loss of $0.4 million in the fourth quarter of 2022. Full Year 2023 Highlights: Revenues increased 53% to $83.9 million, compared to $54.9 million in 2022, an annual record – comprised of $24.4 million of Services revenue, $52.9 million of Wellness revenue, and $6.6 million of Pet Food & Treats revenue. Net loss was $13.3 million, compared to net loss of $38.6 million in 2022, primarily due to one-time transaction costs of going public in 2022. Adjusted EBITDA of $0.7 million, compared to an Adjusted EBITDA loss of $3.9 million in 2022. "2023 marks another record year of results for Wag!. We achieved both record revenues and Adjusted EBITDA in the year,” said Garrett Smallwood, CEO and Chairman of Wag!. “The compounding of our bets in Services, Wellness, and Pet Food & Treats are enabling us to differentiate Wag! for long-term, profitable growth, and we’re thrilled to enter 2024 stronger than ever,” concluded Smallwood. Recent Business Highlights: Achieved 600,000 Platform Participants in Q4 2023, an increase of 38% from 434,000 in Q4 2022. Acquired WoofWoofTV, a leading pet social media platform, with 18 million followers across Facebook, Instagram, Snapchat, TikTok, and YouTube. WoofWoofTV marks Wag!’s entrance into media and advertising. Achieved record revenue per Services cohort, after setting a prior record in 2022. Annual cohort performance continues to outperform legacy cohorts. Announced Wag! Pet Care Solutions are now available through Bright Horizons Back-up Care Services, providing employers across the nation with the ability to offer sponsored pet care solutions for employees. This marks Wag!’s entrance into the employer sponsored distribution channel. Guidance and Outlook For the full year 2024, we expect: Revenues in the range of $105 million to $115 million, representing growth of 25% to 37%. Adjusted EBITDA1 in the range of $2 million to $6 million, representing growth of 177% to 731%. This guidance anticipates an Adjusted EBITDA margin in the range of 2% to 5% and free cash flow in the second half of 2024. We also announced that our Board of Directors has authorized a debt pay down of up to $10 million of principal in 2024, which is expected to accelerate the path to free cash flow. Looking beyond 2024, we expect 25% compound revenue growth from 2024 through 2027, assuming no meaningful changes in the macroeconomic environment, with the expectation of driving towards greater than $200 million of revenues in 2027. Management will further address full-year guidance on the earnings conference call. 1 Information reconciling forward-looking Adjusted EBITDA and Adjusted EBITDA margin to the comparable GAAP financial measures is unavailable to the company without unreasonable effort, as discussed in our Non-GAAP Financial Measures and Other Operating Metrics section below. Wag!’s Fourth Quarter and Full Year 2023 Conference Call Wag! will host a conference call and live webcast today, February 14, 2024, at 4:30 p.m. ET to discuss financial results. Investors and analysts interested in participating in the call are invited to dial 877-407-9208 (international callers please dial 1-201-493-6784) 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! – Wag.co Wag! Group Co. strives to be the #1 platform to solve the service, product, and wellness needs for the modern U.S. pet household. Wag! pioneered on-demand dog walking in 2016 with the Wag! app, which offers access to 5-star dog walking, sitting, and one-on-one training from a community of more than 500,000 Pet Caregivers nationwide. In addition, Wag! Group Co. operates Petted, the nation’s largest pet insurance comparison marketplace; 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 Metrics Adjusted EBITDA is a non-GAAP financial measure defined as net income (loss) adjusted for interest expense, net; income taxes; depreciation and amortization; and share-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, business combination transaction and integration costs and PPP loan forgiveness. 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 and Adjusted EBITDA margin to GAAP financial measures is unavailable to the Company without unreasonable effort. The Company is not able to provide reconciliations of Adjusted EBITDA and Adjusted EBITDA margin to GAAP financial measures because certain items required for such reconciliations are outside of the Company’s control and/or cannot be reasonably predicted, such as the provision for income taxes. Preparation of such reconciliations would require a forward-looking balance sheet, statement of income and statement of cash flow, 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 and Adjusted EBITDA margin forecast that it believes will be achieved, however it cannot accurately predict all the components of the Adjusted EBITDA and Adjusted EBITDA margin calculation. The Company provides an Adjusted EBITDA and an Adjusted EBITDA margin forecast because it believes that Adjusted EBITDA and Adjusted EBITDA margin, when viewed with the Company’s results under GAAP, provides useful information for the reasons noted above. However, Adjusted EBITDA and Adjusted EBITDA margin are not measures of financial performance or liquidity under GAAP and, accordingly, should not be considered as alternatives to net income (loss), net income (loss) margin or cash flow from operating activities as an indicator of operating performance or liquidity. Forward-Looking Statements This 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 offerings and achieve scale; ability to attract and retain personnel; market opportunity, anticipated growth, and future financial performance, including management’s financial outlook for the fiscal year 2024 and through fiscal year 2027 and other expectations described under “Guidance and Outlook”. 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. The preliminary financial results for the Company’s fourth quarter and full year ended December 31, 2023 included in this press release represent the most current information available to management. The Company’s actual results when disclosed in its Form 10-K may differ from these preliminary results as a result of the completion of the Company’s financial closing procedures; completion of the audit by the Company’s independent registered accounting firm; and other developments that may arise between now and the filing of its Form 10-K. 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 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. Wag! Group Co. Preliminary Consolidated Balance Sheets (unaudited) December 31, 2023 2022 (in thousands) ASSETS Current assets: Cash and cash equivalents $ 18,323 $ 38,966 Accounts receivable, net 10,023 5,872 Prepaid expenses and other current assets 3,428 2,585 Total current assets 31,774 47,423 Property and equipment, net 347 88 Operating lease right-of-use assets 1,045 695 Intangible assets, net 8,828 2,590 Goodwill 4,646 1,451 Other assets 57 64 Total assets $ 46,697 $ 52,311 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 9,919 $ 7,174 Accrued expenses and other current liabilities 4,015 4,765 Deferred revenue 1,781 2,232 Deferred purchase consideration – current portion 547 750 Operating lease liabilities – current portion 386 306 Notes payable – current portion 1,751 1,264 Total current liabilities 18,399 16,491 Operating lease liabilities – non-current portion 816 435 Notes payable – non-current portion, net of debt discount and warrant allocation of $4,380 and $7,008 as of December 31, 2023 and December 31, 2022, respectively 25,664 24,970 Deferred purchase consideration – non-current portion — 493 Other non-current liabilities 172 — Total liabilities 45,051 42,389 Commitments and contingencies Stockholders’ equity: Common stock 4 4 Additional paid-in capital 163,376 158,335 Accumulated deficit (161,734 ) (148,417 ) Total stockholders’ equity 1,646 9,922 Total liabilities and stockholders’ equity $ 46,697 $ 52,311 Wag! Group Co. Preliminary Consolidated Statements of Operations (unaudited) Three Months Ended Twelve Months Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (in thousands, except per share amounts) Revenues $ 21,673 $ 17,036 $ 83,916 $ 54,865 Costs and expenses: Cost of revenues (exclusive of depreciation and amortization shown separately below) 1,767 997 5,477 4,024 Platform operations and support 2,845 2,790 12,475 13,825 Sales and marketing 13,735 10,500 50,523 35,156 Royalty — — 1,791 — General and administrative 4,736 3,869 19,223 32,415 Depreciation and amortization 503 140 1,673 571 Total costs and expenses 23,586 18,296 91,162 85,991 Interest expense 1,731 1,961 7,417 2,886 Interest income (193 ) (275 ) (907 ) (416 ) Other expense (income), net — (8,750 ) 21 4,958 Income (Loss) before income taxes and equity in net earnings of affiliate (3,451 ) 5,804 (13,777 ) (38,554 ) Income taxes 14 — 93 13 Equity in net earnings of equity method investments — — 553 — Net income (loss) $ (3,465 ) $ 5,804 $ (13,317 ) $ (38,567 ) Earnings (Loss) per share: Basic $ (0.09 ) $ 0.16 $ (0.35 ) $ (2.07 ) Diluted $ (0.09 ) $ 0.07 $ (0.35 ) $ (2.07 ) Weighted-average common shares outstanding used in computing earnings (loss) per share: Basic 39,416 37,372 38,402 18,641 Diluted 39,416 79,468 38,402 18,641 Wag! Group Co. Preliminary Consolidated Statements of Cash Flows (unaudited) Year Ended December 31, 2023 2022 (in thousands) Cash flow from operating activities: Net loss $ (13,317 ) $ (38,567 ) Adjustments to reconcile net loss to net cash used in operating activities: Stock-based compensation 4,712 24,492 Non-cash interest expense 2,506 1,115 Depreciation and amortization 1,673 571 Reduction in carrying amount of operating lease right-of-use assets 333 366 Change in fair value of derivative liability — 4,958 Issuance of Community Shares — 1,971 Equity in net earnings of equity method investments (553 ) — Other 12 — Changes in operating assets and liabilities, net of effect of acquired business: Accounts receivable (4,083 ) (3,234 ) Prepaid expenses and other current assets (395 ) 534 Operating lease liabilities (208 ) (334 ) Other assets 7 — Accounts payable 3,995 4,853 Accrued expenses and other current liabilities (841 ) 128 Deferred revenue (478 ) 344 Other non-current liabilities 172 — Net cash used in operating activities (6,465 ) (2,803 ) Cash flows from investing activities: Proceeds from sale and maturity of short-term investments — 2,550 Cash paid for acquisitions, net of cash acquired (10,430 ) 54 Cash paid for equity method investment (1,470 ) — Purchase of property and equipment (361 ) (51 ) Other — (718 ) Net cash provided by (used in) investing activities (12,261 ) 1,835 Cash flows from financing activities: Proceeds from exercises of stock options 104 17 Proceeds from debt, net of discount — 24,123 Repayment of debt (1,264 ) (565 ) Proceeds from issuance of Series P preferred stock, net of issuance costs — 10,925 Proceeds from Business Combination with CHW, net of transaction costs — 2,589 Other (757 ) — Net cash provided by (used in) financing activities (1,917 ) 37,089 Net change in cash and cash equivalents (20,643 ) 36,121 Cash and cash equivalents, beginning of period 38,966 2,845 Cash and cash equivalents, end of period $ 18,323 $ 38,966 Wag! Group Co. Preliminary Adjusted EBITDA (Loss) Reconciliation (unaudited) Three Months Ended Twelve Months Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (in thousands, except percentages) Net income (loss) $ (3,465 ) $ 5,804 $ (13,317 ) $ (38,567 ) Interest expense, net 1,538 1,686 6,510 2,470 Income taxes 14 — 93 13 Depreciation and amortization 503 140 1,673 571 Stock-based compensation 1,184 476 4,712 24,492 Integration and transaction costs associated with acquired business — 220 189 220 Severance costs 68 — 199 — Legal settlements 163 — 663 — Change in fair value of derivative liability — (8,750 ) — 4,958 Issuance of Community Shares — — — 1,971 Adjusted EBITDA (loss) $ 5 $ (424 ) $ 722 $ (3,872 ) Revenues $ 21,673 $ 17,036 $ 83,916 $ 54,865 Adjusted EBITDA (loss) margin — % (2.5 ) % 0.9 % (7.1 ) % Wag! Group Co. Preliminary Key Operating and Financial Metrics (unaudited) Three Months Ended Twelve Months Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (in thousands, except percentages) Platform Participants (as of period end) 600 434 600 434 Revenues $ 21,673 $ 17,036 $ 83,916 $ 54,865 Net income (loss) $ (3,465 ) $ 5,804 $ (13,317 ) $ (38,567 ) Net income (loss) margin (16.0 ) % 34.1 % (15.9 ) % (70.3 ) % Net cash provided by (used in) operating activities $ (1,841 ) $ 775 $ (6,465 ) $ (2,803 ) Adjusted EBITDA (loss) $ 5 $ (424 ) $ 722 $ (3,872 ) Adjusted EBITDA (loss) margin — % (2.5 ) % 0.9 % (7.1 ) % View source version on businesswire.com: https://www.businesswire.com/news/home/20240214548963/en/Contacts Media: Wag!: Media@wagwalking.com Investor Relations: Wag!: IR@wagwalking.com Gateway for Wag!: PET@gateway-grp.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Wag! Reports Record Fourth Quarter and Preliminary Full Year 2023 Results By: Wag! Group Co. via Business Wire February 14, 2024 at 16:05 PM EST Record Q4 Revenues of $21.7 Million, Up 27% Year-over-Year Record Annual Revenues of $83.9 Million, Up 53% Year-over-Year Positive Annual Adjusted EBITDA of $0.7 Million Board Approves Up to $10 Million Debt Pay Down Management Announces 2024 Guidance and Longer Term Outlook Wag! Group Co. (the “Company” or “Wag!”; Nasdaq: PET), which strives to be the #1 platform to solve the service, product, and wellness needs of the modern U.S. pet household, today announced financial results for the fourth quarter and full year ended December 31, 2023. Fourth Quarter 2023 Highlights: Revenues increased 27% to $21.7 million, compared to $17.0 million in the fourth quarter of 2022, a quarterly revenue record – comprised of $6.3 million of Services revenue, $13.5 million of Wellness revenue, and $1.9 million of Pet Food & Treats revenue. Net loss was $3.5 million, compared to net income of $5.8 million in the fourth quarter of 2022, which included a one-time benefit of $8.8 million related to the Forward Share Purchase Agreement. Breakeven Adjusted EBITDA, compared to an Adjusted EBITDA loss of $0.4 million in the fourth quarter of 2022. Full Year 2023 Highlights: Revenues increased 53% to $83.9 million, compared to $54.9 million in 2022, an annual record – comprised of $24.4 million of Services revenue, $52.9 million of Wellness revenue, and $6.6 million of Pet Food & Treats revenue. Net loss was $13.3 million, compared to net loss of $38.6 million in 2022, primarily due to one-time transaction costs of going public in 2022. Adjusted EBITDA of $0.7 million, compared to an Adjusted EBITDA loss of $3.9 million in 2022. "2023 marks another record year of results for Wag!. We achieved both record revenues and Adjusted EBITDA in the year,” said Garrett Smallwood, CEO and Chairman of Wag!. “The compounding of our bets in Services, Wellness, and Pet Food & Treats are enabling us to differentiate Wag! for long-term, profitable growth, and we’re thrilled to enter 2024 stronger than ever,” concluded Smallwood. Recent Business Highlights: Achieved 600,000 Platform Participants in Q4 2023, an increase of 38% from 434,000 in Q4 2022. Acquired WoofWoofTV, a leading pet social media platform, with 18 million followers across Facebook, Instagram, Snapchat, TikTok, and YouTube. WoofWoofTV marks Wag!’s entrance into media and advertising. Achieved record revenue per Services cohort, after setting a prior record in 2022. Annual cohort performance continues to outperform legacy cohorts. Announced Wag! Pet Care Solutions are now available through Bright Horizons Back-up Care Services, providing employers across the nation with the ability to offer sponsored pet care solutions for employees. This marks Wag!’s entrance into the employer sponsored distribution channel. Guidance and Outlook For the full year 2024, we expect: Revenues in the range of $105 million to $115 million, representing growth of 25% to 37%. Adjusted EBITDA1 in the range of $2 million to $6 million, representing growth of 177% to 731%. This guidance anticipates an Adjusted EBITDA margin in the range of 2% to 5% and free cash flow in the second half of 2024. We also announced that our Board of Directors has authorized a debt pay down of up to $10 million of principal in 2024, which is expected to accelerate the path to free cash flow. Looking beyond 2024, we expect 25% compound revenue growth from 2024 through 2027, assuming no meaningful changes in the macroeconomic environment, with the expectation of driving towards greater than $200 million of revenues in 2027. Management will further address full-year guidance on the earnings conference call. 1 Information reconciling forward-looking Adjusted EBITDA and Adjusted EBITDA margin to the comparable GAAP financial measures is unavailable to the company without unreasonable effort, as discussed in our Non-GAAP Financial Measures and Other Operating Metrics section below. Wag!’s Fourth Quarter and Full Year 2023 Conference Call Wag! will host a conference call and live webcast today, February 14, 2024, at 4:30 p.m. ET to discuss financial results. Investors and analysts interested in participating in the call are invited to dial 877-407-9208 (international callers please dial 1-201-493-6784) 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! – Wag.co Wag! Group Co. strives to be the #1 platform to solve the service, product, and wellness needs for the modern U.S. pet household. Wag! pioneered on-demand dog walking in 2016 with the Wag! app, which offers access to 5-star dog walking, sitting, and one-on-one training from a community of more than 500,000 Pet Caregivers nationwide. In addition, Wag! Group Co. operates Petted, the nation’s largest pet insurance comparison marketplace; 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 Metrics Adjusted EBITDA is a non-GAAP financial measure defined as net income (loss) adjusted for interest expense, net; income taxes; depreciation and amortization; and share-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, business combination transaction and integration costs and PPP loan forgiveness. 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 and Adjusted EBITDA margin to GAAP financial measures is unavailable to the Company without unreasonable effort. The Company is not able to provide reconciliations of Adjusted EBITDA and Adjusted EBITDA margin to GAAP financial measures because certain items required for such reconciliations are outside of the Company’s control and/or cannot be reasonably predicted, such as the provision for income taxes. Preparation of such reconciliations would require a forward-looking balance sheet, statement of income and statement of cash flow, 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 and Adjusted EBITDA margin forecast that it believes will be achieved, however it cannot accurately predict all the components of the Adjusted EBITDA and Adjusted EBITDA margin calculation. The Company provides an Adjusted EBITDA and an Adjusted EBITDA margin forecast because it believes that Adjusted EBITDA and Adjusted EBITDA margin, when viewed with the Company’s results under GAAP, provides useful information for the reasons noted above. However, Adjusted EBITDA and Adjusted EBITDA margin are not measures of financial performance or liquidity under GAAP and, accordingly, should not be considered as alternatives to net income (loss), net income (loss) margin or cash flow from operating activities as an indicator of operating performance or liquidity. Forward-Looking Statements This 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 offerings and achieve scale; ability to attract and retain personnel; market opportunity, anticipated growth, and future financial performance, including management’s financial outlook for the fiscal year 2024 and through fiscal year 2027 and other expectations described under “Guidance and Outlook”. 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. The preliminary financial results for the Company’s fourth quarter and full year ended December 31, 2023 included in this press release represent the most current information available to management. The Company’s actual results when disclosed in its Form 10-K may differ from these preliminary results as a result of the completion of the Company’s financial closing procedures; completion of the audit by the Company’s independent registered accounting firm; and other developments that may arise between now and the filing of its Form 10-K. 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 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. Wag! Group Co. Preliminary Consolidated Balance Sheets (unaudited) December 31, 2023 2022 (in thousands) ASSETS Current assets: Cash and cash equivalents $ 18,323 $ 38,966 Accounts receivable, net 10,023 5,872 Prepaid expenses and other current assets 3,428 2,585 Total current assets 31,774 47,423 Property and equipment, net 347 88 Operating lease right-of-use assets 1,045 695 Intangible assets, net 8,828 2,590 Goodwill 4,646 1,451 Other assets 57 64 Total assets $ 46,697 $ 52,311 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 9,919 $ 7,174 Accrued expenses and other current liabilities 4,015 4,765 Deferred revenue 1,781 2,232 Deferred purchase consideration – current portion 547 750 Operating lease liabilities – current portion 386 306 Notes payable – current portion 1,751 1,264 Total current liabilities 18,399 16,491 Operating lease liabilities – non-current portion 816 435 Notes payable – non-current portion, net of debt discount and warrant allocation of $4,380 and $7,008 as of December 31, 2023 and December 31, 2022, respectively 25,664 24,970 Deferred purchase consideration – non-current portion — 493 Other non-current liabilities 172 — Total liabilities 45,051 42,389 Commitments and contingencies Stockholders’ equity: Common stock 4 4 Additional paid-in capital 163,376 158,335 Accumulated deficit (161,734 ) (148,417 ) Total stockholders’ equity 1,646 9,922 Total liabilities and stockholders’ equity $ 46,697 $ 52,311 Wag! Group Co. Preliminary Consolidated Statements of Operations (unaudited) Three Months Ended Twelve Months Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (in thousands, except per share amounts) Revenues $ 21,673 $ 17,036 $ 83,916 $ 54,865 Costs and expenses: Cost of revenues (exclusive of depreciation and amortization shown separately below) 1,767 997 5,477 4,024 Platform operations and support 2,845 2,790 12,475 13,825 Sales and marketing 13,735 10,500 50,523 35,156 Royalty — — 1,791 — General and administrative 4,736 3,869 19,223 32,415 Depreciation and amortization 503 140 1,673 571 Total costs and expenses 23,586 18,296 91,162 85,991 Interest expense 1,731 1,961 7,417 2,886 Interest income (193 ) (275 ) (907 ) (416 ) Other expense (income), net — (8,750 ) 21 4,958 Income (Loss) before income taxes and equity in net earnings of affiliate (3,451 ) 5,804 (13,777 ) (38,554 ) Income taxes 14 — 93 13 Equity in net earnings of equity method investments — — 553 — Net income (loss) $ (3,465 ) $ 5,804 $ (13,317 ) $ (38,567 ) Earnings (Loss) per share: Basic $ (0.09 ) $ 0.16 $ (0.35 ) $ (2.07 ) Diluted $ (0.09 ) $ 0.07 $ (0.35 ) $ (2.07 ) Weighted-average common shares outstanding used in computing earnings (loss) per share: Basic 39,416 37,372 38,402 18,641 Diluted 39,416 79,468 38,402 18,641 Wag! Group Co. Preliminary Consolidated Statements of Cash Flows (unaudited) Year Ended December 31, 2023 2022 (in thousands) Cash flow from operating activities: Net loss $ (13,317 ) $ (38,567 ) Adjustments to reconcile net loss to net cash used in operating activities: Stock-based compensation 4,712 24,492 Non-cash interest expense 2,506 1,115 Depreciation and amortization 1,673 571 Reduction in carrying amount of operating lease right-of-use assets 333 366 Change in fair value of derivative liability — 4,958 Issuance of Community Shares — 1,971 Equity in net earnings of equity method investments (553 ) — Other 12 — Changes in operating assets and liabilities, net of effect of acquired business: Accounts receivable (4,083 ) (3,234 ) Prepaid expenses and other current assets (395 ) 534 Operating lease liabilities (208 ) (334 ) Other assets 7 — Accounts payable 3,995 4,853 Accrued expenses and other current liabilities (841 ) 128 Deferred revenue (478 ) 344 Other non-current liabilities 172 — Net cash used in operating activities (6,465 ) (2,803 ) Cash flows from investing activities: Proceeds from sale and maturity of short-term investments — 2,550 Cash paid for acquisitions, net of cash acquired (10,430 ) 54 Cash paid for equity method investment (1,470 ) — Purchase of property and equipment (361 ) (51 ) Other — (718 ) Net cash provided by (used in) investing activities (12,261 ) 1,835 Cash flows from financing activities: Proceeds from exercises of stock options 104 17 Proceeds from debt, net of discount — 24,123 Repayment of debt (1,264 ) (565 ) Proceeds from issuance of Series P preferred stock, net of issuance costs — 10,925 Proceeds from Business Combination with CHW, net of transaction costs — 2,589 Other (757 ) — Net cash provided by (used in) financing activities (1,917 ) 37,089 Net change in cash and cash equivalents (20,643 ) 36,121 Cash and cash equivalents, beginning of period 38,966 2,845 Cash and cash equivalents, end of period $ 18,323 $ 38,966 Wag! Group Co. Preliminary Adjusted EBITDA (Loss) Reconciliation (unaudited) Three Months Ended Twelve Months Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (in thousands, except percentages) Net income (loss) $ (3,465 ) $ 5,804 $ (13,317 ) $ (38,567 ) Interest expense, net 1,538 1,686 6,510 2,470 Income taxes 14 — 93 13 Depreciation and amortization 503 140 1,673 571 Stock-based compensation 1,184 476 4,712 24,492 Integration and transaction costs associated with acquired business — 220 189 220 Severance costs 68 — 199 — Legal settlements 163 — 663 — Change in fair value of derivative liability — (8,750 ) — 4,958 Issuance of Community Shares — — — 1,971 Adjusted EBITDA (loss) $ 5 $ (424 ) $ 722 $ (3,872 ) Revenues $ 21,673 $ 17,036 $ 83,916 $ 54,865 Adjusted EBITDA (loss) margin — % (2.5 ) % 0.9 % (7.1 ) % Wag! Group Co. Preliminary Key Operating and Financial Metrics (unaudited) Three Months Ended Twelve Months Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (in thousands, except percentages) Platform Participants (as of period end) 600 434 600 434 Revenues $ 21,673 $ 17,036 $ 83,916 $ 54,865 Net income (loss) $ (3,465 ) $ 5,804 $ (13,317 ) $ (38,567 ) Net income (loss) margin (16.0 ) % 34.1 % (15.9 ) % (70.3 ) % Net cash provided by (used in) operating activities $ (1,841 ) $ 775 $ (6,465 ) $ (2,803 ) Adjusted EBITDA (loss) $ 5 $ (424 ) $ 722 $ (3,872 ) Adjusted EBITDA (loss) margin — % (2.5 ) % 0.9 % (7.1 ) % View source version on businesswire.com: https://www.businesswire.com/news/home/20240214548963/en/Contacts Media: Wag!: Media@wagwalking.com Investor Relations: Wag!: IR@wagwalking.com Gateway for Wag!: PET@gateway-grp.com
Record Q4 Revenues of $21.7 Million, Up 27% Year-over-Year Record Annual Revenues of $83.9 Million, Up 53% Year-over-Year Positive Annual Adjusted EBITDA of $0.7 Million Board Approves Up to $10 Million Debt Pay Down Management Announces 2024 Guidance and Longer Term Outlook
Wag! Group Co. (the “Company” or “Wag!”; Nasdaq: PET), which strives to be the #1 platform to solve the service, product, and wellness needs of the modern U.S. pet household, today announced financial results for the fourth quarter and full year ended December 31, 2023. Fourth Quarter 2023 Highlights: Revenues increased 27% to $21.7 million, compared to $17.0 million in the fourth quarter of 2022, a quarterly revenue record – comprised of $6.3 million of Services revenue, $13.5 million of Wellness revenue, and $1.9 million of Pet Food & Treats revenue. Net loss was $3.5 million, compared to net income of $5.8 million in the fourth quarter of 2022, which included a one-time benefit of $8.8 million related to the Forward Share Purchase Agreement. Breakeven Adjusted EBITDA, compared to an Adjusted EBITDA loss of $0.4 million in the fourth quarter of 2022. Full Year 2023 Highlights: Revenues increased 53% to $83.9 million, compared to $54.9 million in 2022, an annual record – comprised of $24.4 million of Services revenue, $52.9 million of Wellness revenue, and $6.6 million of Pet Food & Treats revenue. Net loss was $13.3 million, compared to net loss of $38.6 million in 2022, primarily due to one-time transaction costs of going public in 2022. Adjusted EBITDA of $0.7 million, compared to an Adjusted EBITDA loss of $3.9 million in 2022. "2023 marks another record year of results for Wag!. We achieved both record revenues and Adjusted EBITDA in the year,” said Garrett Smallwood, CEO and Chairman of Wag!. “The compounding of our bets in Services, Wellness, and Pet Food & Treats are enabling us to differentiate Wag! for long-term, profitable growth, and we’re thrilled to enter 2024 stronger than ever,” concluded Smallwood. Recent Business Highlights: Achieved 600,000 Platform Participants in Q4 2023, an increase of 38% from 434,000 in Q4 2022. Acquired WoofWoofTV, a leading pet social media platform, with 18 million followers across Facebook, Instagram, Snapchat, TikTok, and YouTube. WoofWoofTV marks Wag!’s entrance into media and advertising. Achieved record revenue per Services cohort, after setting a prior record in 2022. Annual cohort performance continues to outperform legacy cohorts. Announced Wag! Pet Care Solutions are now available through Bright Horizons Back-up Care Services, providing employers across the nation with the ability to offer sponsored pet care solutions for employees. This marks Wag!’s entrance into the employer sponsored distribution channel. Guidance and Outlook For the full year 2024, we expect: Revenues in the range of $105 million to $115 million, representing growth of 25% to 37%. Adjusted EBITDA1 in the range of $2 million to $6 million, representing growth of 177% to 731%. This guidance anticipates an Adjusted EBITDA margin in the range of 2% to 5% and free cash flow in the second half of 2024. We also announced that our Board of Directors has authorized a debt pay down of up to $10 million of principal in 2024, which is expected to accelerate the path to free cash flow. Looking beyond 2024, we expect 25% compound revenue growth from 2024 through 2027, assuming no meaningful changes in the macroeconomic environment, with the expectation of driving towards greater than $200 million of revenues in 2027. Management will further address full-year guidance on the earnings conference call. 1 Information reconciling forward-looking Adjusted EBITDA and Adjusted EBITDA margin to the comparable GAAP financial measures is unavailable to the company without unreasonable effort, as discussed in our Non-GAAP Financial Measures and Other Operating Metrics section below. Wag!’s Fourth Quarter and Full Year 2023 Conference Call Wag! will host a conference call and live webcast today, February 14, 2024, at 4:30 p.m. ET to discuss financial results. Investors and analysts interested in participating in the call are invited to dial 877-407-9208 (international callers please dial 1-201-493-6784) 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! – Wag.co Wag! Group Co. strives to be the #1 platform to solve the service, product, and wellness needs for the modern U.S. pet household. Wag! pioneered on-demand dog walking in 2016 with the Wag! app, which offers access to 5-star dog walking, sitting, and one-on-one training from a community of more than 500,000 Pet Caregivers nationwide. In addition, Wag! Group Co. operates Petted, the nation’s largest pet insurance comparison marketplace; 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 Metrics Adjusted EBITDA is a non-GAAP financial measure defined as net income (loss) adjusted for interest expense, net; income taxes; depreciation and amortization; and share-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, business combination transaction and integration costs and PPP loan forgiveness. 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 and Adjusted EBITDA margin to GAAP financial measures is unavailable to the Company without unreasonable effort. The Company is not able to provide reconciliations of Adjusted EBITDA and Adjusted EBITDA margin to GAAP financial measures because certain items required for such reconciliations are outside of the Company’s control and/or cannot be reasonably predicted, such as the provision for income taxes. Preparation of such reconciliations would require a forward-looking balance sheet, statement of income and statement of cash flow, 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 and Adjusted EBITDA margin forecast that it believes will be achieved, however it cannot accurately predict all the components of the Adjusted EBITDA and Adjusted EBITDA margin calculation. The Company provides an Adjusted EBITDA and an Adjusted EBITDA margin forecast because it believes that Adjusted EBITDA and Adjusted EBITDA margin, when viewed with the Company’s results under GAAP, provides useful information for the reasons noted above. However, Adjusted EBITDA and Adjusted EBITDA margin are not measures of financial performance or liquidity under GAAP and, accordingly, should not be considered as alternatives to net income (loss), net income (loss) margin or cash flow from operating activities as an indicator of operating performance or liquidity. Forward-Looking Statements This 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 offerings and achieve scale; ability to attract and retain personnel; market opportunity, anticipated growth, and future financial performance, including management’s financial outlook for the fiscal year 2024 and through fiscal year 2027 and other expectations described under “Guidance and Outlook”. 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. The preliminary financial results for the Company’s fourth quarter and full year ended December 31, 2023 included in this press release represent the most current information available to management. The Company’s actual results when disclosed in its Form 10-K may differ from these preliminary results as a result of the completion of the Company’s financial closing procedures; completion of the audit by the Company’s independent registered accounting firm; and other developments that may arise between now and the filing of its Form 10-K. 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 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. Wag! Group Co. Preliminary Consolidated Balance Sheets (unaudited) December 31, 2023 2022 (in thousands) ASSETS Current assets: Cash and cash equivalents $ 18,323 $ 38,966 Accounts receivable, net 10,023 5,872 Prepaid expenses and other current assets 3,428 2,585 Total current assets 31,774 47,423 Property and equipment, net 347 88 Operating lease right-of-use assets 1,045 695 Intangible assets, net 8,828 2,590 Goodwill 4,646 1,451 Other assets 57 64 Total assets $ 46,697 $ 52,311 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 9,919 $ 7,174 Accrued expenses and other current liabilities 4,015 4,765 Deferred revenue 1,781 2,232 Deferred purchase consideration – current portion 547 750 Operating lease liabilities – current portion 386 306 Notes payable – current portion 1,751 1,264 Total current liabilities 18,399 16,491 Operating lease liabilities – non-current portion 816 435 Notes payable – non-current portion, net of debt discount and warrant allocation of $4,380 and $7,008 as of December 31, 2023 and December 31, 2022, respectively 25,664 24,970 Deferred purchase consideration – non-current portion — 493 Other non-current liabilities 172 — Total liabilities 45,051 42,389 Commitments and contingencies Stockholders’ equity: Common stock 4 4 Additional paid-in capital 163,376 158,335 Accumulated deficit (161,734 ) (148,417 ) Total stockholders’ equity 1,646 9,922 Total liabilities and stockholders’ equity $ 46,697 $ 52,311 Wag! Group Co. Preliminary Consolidated Statements of Operations (unaudited) Three Months Ended Twelve Months Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (in thousands, except per share amounts) Revenues $ 21,673 $ 17,036 $ 83,916 $ 54,865 Costs and expenses: Cost of revenues (exclusive of depreciation and amortization shown separately below) 1,767 997 5,477 4,024 Platform operations and support 2,845 2,790 12,475 13,825 Sales and marketing 13,735 10,500 50,523 35,156 Royalty — — 1,791 — General and administrative 4,736 3,869 19,223 32,415 Depreciation and amortization 503 140 1,673 571 Total costs and expenses 23,586 18,296 91,162 85,991 Interest expense 1,731 1,961 7,417 2,886 Interest income (193 ) (275 ) (907 ) (416 ) Other expense (income), net — (8,750 ) 21 4,958 Income (Loss) before income taxes and equity in net earnings of affiliate (3,451 ) 5,804 (13,777 ) (38,554 ) Income taxes 14 — 93 13 Equity in net earnings of equity method investments — — 553 — Net income (loss) $ (3,465 ) $ 5,804 $ (13,317 ) $ (38,567 ) Earnings (Loss) per share: Basic $ (0.09 ) $ 0.16 $ (0.35 ) $ (2.07 ) Diluted $ (0.09 ) $ 0.07 $ (0.35 ) $ (2.07 ) Weighted-average common shares outstanding used in computing earnings (loss) per share: Basic 39,416 37,372 38,402 18,641 Diluted 39,416 79,468 38,402 18,641 Wag! Group Co. Preliminary Consolidated Statements of Cash Flows (unaudited) Year Ended December 31, 2023 2022 (in thousands) Cash flow from operating activities: Net loss $ (13,317 ) $ (38,567 ) Adjustments to reconcile net loss to net cash used in operating activities: Stock-based compensation 4,712 24,492 Non-cash interest expense 2,506 1,115 Depreciation and amortization 1,673 571 Reduction in carrying amount of operating lease right-of-use assets 333 366 Change in fair value of derivative liability — 4,958 Issuance of Community Shares — 1,971 Equity in net earnings of equity method investments (553 ) — Other 12 — Changes in operating assets and liabilities, net of effect of acquired business: Accounts receivable (4,083 ) (3,234 ) Prepaid expenses and other current assets (395 ) 534 Operating lease liabilities (208 ) (334 ) Other assets 7 — Accounts payable 3,995 4,853 Accrued expenses and other current liabilities (841 ) 128 Deferred revenue (478 ) 344 Other non-current liabilities 172 — Net cash used in operating activities (6,465 ) (2,803 ) Cash flows from investing activities: Proceeds from sale and maturity of short-term investments — 2,550 Cash paid for acquisitions, net of cash acquired (10,430 ) 54 Cash paid for equity method investment (1,470 ) — Purchase of property and equipment (361 ) (51 ) Other — (718 ) Net cash provided by (used in) investing activities (12,261 ) 1,835 Cash flows from financing activities: Proceeds from exercises of stock options 104 17 Proceeds from debt, net of discount — 24,123 Repayment of debt (1,264 ) (565 ) Proceeds from issuance of Series P preferred stock, net of issuance costs — 10,925 Proceeds from Business Combination with CHW, net of transaction costs — 2,589 Other (757 ) — Net cash provided by (used in) financing activities (1,917 ) 37,089 Net change in cash and cash equivalents (20,643 ) 36,121 Cash and cash equivalents, beginning of period 38,966 2,845 Cash and cash equivalents, end of period $ 18,323 $ 38,966 Wag! Group Co. Preliminary Adjusted EBITDA (Loss) Reconciliation (unaudited) Three Months Ended Twelve Months Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (in thousands, except percentages) Net income (loss) $ (3,465 ) $ 5,804 $ (13,317 ) $ (38,567 ) Interest expense, net 1,538 1,686 6,510 2,470 Income taxes 14 — 93 13 Depreciation and amortization 503 140 1,673 571 Stock-based compensation 1,184 476 4,712 24,492 Integration and transaction costs associated with acquired business — 220 189 220 Severance costs 68 — 199 — Legal settlements 163 — 663 — Change in fair value of derivative liability — (8,750 ) — 4,958 Issuance of Community Shares — — — 1,971 Adjusted EBITDA (loss) $ 5 $ (424 ) $ 722 $ (3,872 ) Revenues $ 21,673 $ 17,036 $ 83,916 $ 54,865 Adjusted EBITDA (loss) margin — % (2.5 ) % 0.9 % (7.1 ) % Wag! Group Co. Preliminary Key Operating and Financial Metrics (unaudited) Three Months Ended Twelve Months Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (in thousands, except percentages) Platform Participants (as of period end) 600 434 600 434 Revenues $ 21,673 $ 17,036 $ 83,916 $ 54,865 Net income (loss) $ (3,465 ) $ 5,804 $ (13,317 ) $ (38,567 ) Net income (loss) margin (16.0 ) % 34.1 % (15.9 ) % (70.3 ) % Net cash provided by (used in) operating activities $ (1,841 ) $ 775 $ (6,465 ) $ (2,803 ) Adjusted EBITDA (loss) $ 5 $ (424 ) $ 722 $ (3,872 ) Adjusted EBITDA (loss) margin — % (2.5 ) % 0.9 % (7.1 ) % View source version on businesswire.com: https://www.businesswire.com/news/home/20240214548963/en/
Media: Wag!: Media@wagwalking.com Investor Relations: Wag!: IR@wagwalking.com Gateway for Wag!: PET@gateway-grp.com