Wag! Group Reaffirms 2024 Revenue Guidance Of $92M-$102M Vs. $104.097M Est., And Adjusted EBITDA of $4M-$8M; Sees Q3 Revenue Of $20M-$24M Vs. $28.065M Est., And Adjusted EBITDA of $1.5M-$2.5M
Author: Benzinga Newsdesk | August 08, 2024 03:26am
Guidance
"In the second quarter, we delivered our highest quarterly Adjusted EBITDA, which was driven by our focus on cost management and operational efficiency," said Alec Davidian, Wag! CFO. "Our ability to generate free cash flow will allow us to service our debt, improve our balance sheet and return to growth."
For the third quarter 2024, we expect:
- Revenue in the range of $20 million to $24 million.
- Adjusted EBITDA1 in the range of $1.5 million to $2.5 million.
For the full year 2024, as previously communicated on July 10, 2024, we expect:
- Revenue in the range of $92 million to $102 million.
- Adjusted EBITDA1 in the range of $4 million to $8 million.
Our financial guidance includes the following outlook:
- We expect holidays to drive incremental overnight vs. daytime service demand, but also expect that severe weather will impact Services demand. Pet adoption during the holidays also positively impacts pet insurance penetration and demand for wellness plans.
- We anticipate that continued growth in the pet industry, driven by factors such as higher rates of pet ownership, pet insurance penetration, and increasing demand for premium pet products and services, will have a positive impact on our full year 2024 results.
- We have factored in potential risks and opportunities related to macroeconomic trends related to state of the economy, interest rates, and consumer confidence in order to forecast our financial performance.
- We expect Sales & Marketing efficiency within the Pet category, our ability to manage CPCs and CPMs across key partners and advertising platforms, and our ability to manage search engine results and search engine optimization (SEO) within competitive keywords.
- We recognize that there may be potential risks to our financial performance in 2024, such as disruptions to global supply chains, changes in consumer behavior due to unexpected events such as a delayed or imbalanced return-to-office, digital and performance marketing trends, the potential impact of AI, and our ability to expand through partnerships.
Posted In: PET
