Financial Performance - The company incurred net losses of $17.6 million, $13.3 million, and $38.6 million for the years ended December 31, 2024, 2023, and 2022, respectively, with an accumulated deficit of $179.3 million as of December 31, 2024[92]. - For the year ended December 31, 2024, the company reported a net loss of $17.6 million and net cash used in operating activities was $7.0 million[129]. - The company has incurred significant losses since inception, and failure to manage risks and challenges may adversely affect its long-term benefits and financial condition[92]. - The company faces substantial doubt regarding its ability to continue as a going concern due to projected cash needs and history of net losses[129]. - The company has approximately $229.6 million in U.S. federal net operating loss carryforwards and $189.9 million in state net operating loss carryforwards as of December 31, 2024[151]. Customer Dependence - For the fiscal year ended December 31, 2024, three customers accounted for an aggregate of 38% of total revenues, indicating substantial dependence on a small number of customers[96]. - The company is substantially dependent on revenues from a small number of customers, and any decline in revenue from these customers could adversely affect its financial condition[96]. Market and Competition - The company faces significant competition from various players in the pet care services market, which may impact its ability to attract and retain users[91]. - Demand for online pet care services has grown rapidly since the platform's launch in 2015, but the market is still in early stages, and future growth is uncertain[94]. - The company has launched new fee or pricing strategies, which may not be successful in attracting and retaining Pet Parents and Pet Caregivers due to competitive pressures[102]. - The company plans to continue investing in new offerings and initiatives to differentiate itself from competitors, but these efforts may increase expenses and organizational complexity[103]. Operational Risks - The company has experienced significant fluctuations in operating results, which may continue to vary significantly and are not necessarily indicative of future performance[93]. - The company faces risks related to privacy, data protection, and security breaches, which could lead to significant legal, regulatory, and financial exposure[161]. - The company has a limited operating history since its launch in 2015, making it difficult to predict future operating results and growth[119]. - International expansion poses additional risks, including compliance with various laws and managing operations across different cultures and legal systems[123]. Financial Condition and Funding - The company needs to obtain additional financing and/or refinance existing indebtedness, raising doubts about its ability to continue as a going concern[89]. - The company completed a registered public offering of common stock in July 2024 for net proceeds of approximately $8.6 million to alleviate financial conditions[129]. - The company is actively engaged in discussions to refinance its Financing Agreement, which is due in August 2025[129]. - As of December 31, 2024, the company had cash and cash equivalents of approximately $5.6 million and accounts receivable of $6.6 million, with total debt obligations amounting to $20.2 million[129]. Legal and Regulatory Risks - The company is subject to various legal and regulatory proceedings that could materially affect its reputation and financial condition[141]. - Regulatory scrutiny on gig economy companies may lead to new laws that could adversely affect the company's business model and operations[140]. - The company is currently subject to audits by tax authorities, which may result in additional tax liabilities[147]. - The company may face legal or regulatory proceedings related to intellectual property claims, which could result in substantial damages and affect its financial condition[183]. Cybersecurity and Data Privacy - The company has been subject to cybersecurity attacks in the past, which could harm its operations and reputation if such incidents occur again[89]. - The company maintains sensitive personal information and is vulnerable to data security breaches, which could adversely affect its business[157]. - The company may incur significant costs related to compliance with data privacy laws, which could affect its financial condition and operational results[165]. - Any negative publicity from data breaches or compliance failures could harm the company's reputation and user trust[166]. Internal Controls and Governance - The company has identified material weaknesses in its internal control over financial reporting as of December 31, 2024, which could lead to misstatements in financial statements[198]. - The company plans to remediate these material weaknesses by implementing technology, hiring personnel, and engaging external resources[199]. - The company is classified as an "emerging growth company," allowing it to take advantage of reduced reporting requirements, which may affect investor perception[202]. - The company has begun implementing remedial measures to address internal control weaknesses, but there is no assurance of success[199]. Stock and Market Risks - The stock price has fluctuated significantly, which may affect investor confidence and the ability to issue additional securities[208]. - The company's common stock has been below the minimum bid price requirement of $1.00 for 30 consecutive business days, which could lead to delisting from Nasdaq[219]. - The Market Value of Listed Securities (MVLS) was below the $50 million minimum requirement for continued listing on Nasdaq for 30 consecutive business days[219]. - If compliance is not regained, the company may face delisting, which could negatively impact share price and liquidity[221].

Wag! Group Co. (NASDAQ:PET) Q4 2024 Earnings Conference Call March 24, 2025 8:30 AM ET Company Participants Greg Robles - IR Garrett Smallwood - Chairman & CEO Adam Storm - President & Chief Product Officer Alec Davidian - CFO Conference Call Participants Jeremy Hamblin - Craig-Hallum Operator Good morning, and welcome to the Wag. Fourth Quarter and Full-Year 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal pr ...

Financial Performance - Revenues for Q4 2024 were $15.4 million, a decrease of 29.9% from $21.7 million in Q4 2023[10] - Full year 2024 revenues decreased 16% to $70.5 million, down from $83.9 million in 2023[10] - Net loss for Q4 2024 was $4.8 million, compared to a net loss of $3.5 million in Q4 2023[10] - Full year 2024 net loss was $17.6 million, compared to a net loss of $13.3 million in 2023[10] - Adjusted EBITDA loss for Q4 2024 was $1.0 million, compared to breakeven in Q4 2023[10] - Full year 2024 Adjusted EBITDA loss was $1.1 million, down from a positive Adjusted EBITDA of $0.7 million in 2023[10] - Revenues for Q4 2024 were $15,433,000, a decrease of 28.5% compared to $21,673,000 in Q4 2023[20] - Net loss for Q4 2024 was $4,814,000, compared to a net loss of $3,465,000 in Q4 2023, representing an increase in loss of 38.8%[20] - Adjusted EBITDA loss for Q4 2024 was $963,000, compared to a positive adjusted EBITDA of $5,000 in Q4 2023[24] - The net loss margin for Q4 2024 was 31.2%, up from 16.0% in Q4 2023[26] - Total costs and expenses for Q4 2024 were $18,971,000, down 19.7% from $23,586,000 in Q4 2023[20] - Cash used in operating activities for the year ended December 31, 2024, was $7,003,000, compared to $6,465,000 in 2023[22] - Cash and cash equivalents at the end of the period were $5,630,000, down from $18,323,000 at the beginning of the period[22] - The company incurred a loss on extinguishment of debt of $1,180,000 for the year ended December 31, 2024[22] - The company reported a decrease in sales and marketing expenses to $10,385,000 in Q4 2024, down from $13,735,000 in Q4 2023, a reduction of 24.5%[20] Future Outlook - The company expects revenues for 2025 to be in the range of $84 million to $88 million[10] - Adjusted EBITDA guidance for 2025 is projected to be between $2.0 million and $4.0 million[10] Strategic Initiatives - The company is reviewing strategic alternatives to maximize shareholder value, including potential investments and partnerships[1][2] - Three major new distribution partners were added, which are expected to accelerate demand for Wellness products[4] Operational Metrics - Platform participants as of December 31, 2024, were 445, unchanged from the previous year[26]

Core Viewpoint - Wag! Group Co. announced its financial results for Q4 and full year 2024, highlighting a strategic review process to maximize shareholder value through potential investments, partnerships, or other transactions [1][2]. Financial Performance Fourth Quarter 2024 Results - Revenues were $15.4 million, down from $21.7 million in Q4 2023, with $5.3 million from Services, $8.9 million from Wellness, and $1.2 million from Pet Food & Treats [7]. - Net loss increased to $4.8 million from $3.5 million in Q4 2023 [7]. - Adjusted EBITDA loss was $1.0 million, compared to breakeven in Q4 2023 [7]. Full Year 2024 Results - Total revenues decreased by 16% to $70.5 million from $83.9 million in 2023, with $21.6 million from Services, $42.7 million from Wellness, and $6.2 million from Pet Food & Treats [7]. - Net loss for the year was $17.6 million, compared to a net loss of $13.3 million in 2023 [7]. - Adjusted EBITDA loss was $1.1 million, down from a positive $0.7 million in 2023 [7]. Guidance for 2025 - The company expects revenues in the range of $84 million to $88 million and Adjusted EBITDA between $2.0 million and $4.0 million for the full year 2025 [7]. Strategic Initiatives - The company is focused on strengthening its balance sheet and reducing debt, with a disciplined approach to strategic alternatives [2]. - The addition of three major distribution partners is expected to accelerate demand for Wellness products [4]. Operational Metrics - As of December 31, 2024, the number of platform participants was 445, down from 600 in 2023 [23]. - The net loss margin for Q4 2024 was 31.2%, compared to 16.0% in Q4 2023 [23]. - Adjusted EBITDA margin for Q4 2024 was -6.2%, compared to 0% in Q4 2023 [23].

Core Viewpoint - Wag! Group Co. aims to be the leading platform addressing the service, product, and wellness needs of modern U.S. pet households, with a financial results announcement scheduled for March 24, 2025 [1]. Company Overview - Wag! Group Co. pioneered on-demand dog walking in 2015 with the Wag! app, which connects users to over 500,000 Pet Caregivers nationwide for services like dog walking, sitting, and training [3]. - The company operates several platforms, including Petted (a pet insurance comparison marketplace), Dog Food Advisor (a trusted pet food review site), WoofWoofTV (a multimedia company with over 18 million social media followers), maxbone (a digital platform for pet essentials), and Furmacy (software for pet prescriptions) [3]. Financial Information - The company will report its fourth quarter and full year 2024 financial results before market open on March 24, 2025, followed by a conference call at 8:30 a.m. Eastern Time [1]. - Investors and analysts can participate in the call by dialing specific numbers provided, with a live audio webcast available online [2].

Financial Data and Key Metrics Changes - Revenue for Q3 2024 decreased to $13.2 million, down 39% year-over-year [6][13] - Adjusted EBITDA loss was $1.9 million, representing a $2.9 million decline year-over-year [14] - The company paid down $5 million in debt during Q3, reducing interest payments by $0.5 million in Q4 [8][16] - Cash, cash equivalents, and accounts receivable at the end of the quarter totaled $15 million [16] Business Line Data and Key Metrics Changes - Wellness revenue was $6.5 million, significantly impacted by marketing dynamics [13] - Services revenue was $5.4 million, while Pet Food & Treats revenue was $1.3 million [13] - Wellness revenue showed a recovery with a 79% month-over-month growth in October [7][13] Market Data and Key Metrics Changes - The company faced challenges due to changes in Google’s search engine algorithms, affecting visibility and traffic [6][20] - The marketing environment became less efficient, leading to increased customer acquisition costs [7] Company Strategy and Development Direction - The company is focusing on consolidating headcount and increasing profitability on social media campaigns [9] - Plans to explore asset sales for select products to address debt issues [8][9] - Emphasis on signing new distribution partners in the Wellness ecosystem to enhance performance [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a rebound for Q4 and 2025, despite Q3 challenges [7][12] - The company is adapting to changes in the marketing landscape and expects to return to positive adjusted EBITDA [8][14] - Management is cautious about future guidance due to ongoing uncertainties with Google [23] Other Important Information - The company expects Q4 revenue to range from $15 million to $18 million, with adjusted EBITDA projected between a $0.5 million loss and a $0.5 million profit [17] - The total annual revenue for 2024 is expected to be between $70 million and $73 million [17] Q&A Session Summary Question: What changed regarding marketing efficiency? - Management noted unexpected changes in Google’s algorithms significantly impacted marketing efficiency [20] Question: When did the marketing dynamics start affecting the business? - The impact was felt throughout Q3, with management being cautious in their Q4 outlook [23] Question: What is the current quarterly cash burn rate? - The company finished the quarter with $8.5 million in cash, with a net change of just over $9 million [25] Question: Can you provide details on Q4 revenue expectations by segment? - Wellness is expected to bounce back significantly, while services and pet food revenues will align with previous trends [28] Question: What assets are being considered for sale? - The Dog Food Advisor and Cat Food Advisor websites are potential assets for sale to address debt [33] Question: What is the timeline for potential asset sales? - Discussions regarding asset sales have been ongoing for several weeks, with potential developments expected by early Q1 2025 [35] Question: How does the company plan to adapt to Google changes? - The company is diversifying its partners and marketing channels to improve resilience against search engine changes [45] Question: Why is the refinancing delayed until Q1? - The delay is due to the need to assess the rebound in adjusted EBITDA and finalize cash balances [46]

Core Viewpoint - Wag! Group Co. reported a quarterly loss of $0.13 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.04, marking an earnings surprise of -225% [1][2] Financial Performance - The company posted revenues of $13.2 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 36.97%, compared to $21.8 million in revenues a year ago [2] - Over the last four quarters, Wag! Group Co. has surpassed consensus EPS estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is -$0.03 on revenues of $26.15 million, and for the current fiscal year, it is -$0.21 on revenues of $89 million [7] Stock Performance - Shares of Wag! Group Co. have declined approximately 62.6% since the beginning of the year, while the S&P 500 has gained 25.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Industry Outlook - The Consumer Services - Miscellaneous industry, to which Wag! Group Co. belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Revenue Performance - Revenues decreased by $8.6 million, or approximately 39.4%, from $21.8 million for the three months ended September 30, 2023, to $13.2 million for the three months ended September 30, 2024[132]. - Revenues decreased by $7.2 million, or approximately 11.5%, from $62.2 million for the nine months ended September 30, 2023 to $55.1 million for the nine months ended September 30, 2024[133]. - The decrease in revenues was attributed to a $1.1 million decrease in Services revenue, a $7.1 million decrease in Wellness revenue, and a $0.4 million decrease in Pet Food & Treats revenue[132]. - Services revenue decreased by $1.8 million and Wellness revenue decreased by $5.6 million, attributed to a 42% decrease in Platform Participants year-over-year[133]. - Platform Participants decreased by 42% year-over-year, contributing to the decline in revenue[132]. Financial Losses - Net loss for the three months ended September 30, 2024, was $6.262 million, compared to a net loss of $2.196 million for the same period in 2023, representing an increase of 185.2%[131]. - Adjusted EBITDA loss for the three months ended September 30, 2024, was $(1.943) million, compared to a positive $1.007 million for the same period in 2023[127]. - The company expects operating losses to continue in the foreseeable future as it continues to invest in growing its business[150]. Expenses and Cost Management - Total costs and expenses for the three months ended September 30, 2024, were $17.620 million, a decrease of 20.8% from $22.260 million in the same period in 2023[131]. - Sales and marketing expenses decreased by $3.893 million, or 30.5%, from $12.755 million for the three months ended September 30, 2023, to $8.862 million for the same period in 2024[131]. - General and administrative expenses decreased by $2.2 million, or approximately 15.2%, from $14.5 million for the nine months ended September 30, 2023 to $12.3 million for the nine months ended September 30, 2024[142]. - Interest expense, net decreased by $0.3 million, or approximately 17.3%, from $1.7 million for the three months ended September 30, 2023 to $1.4 million for the three months ended September 30, 2024[145]. Cash Flow and Financing - The company reported a net cash used in operating activities of $(3.253) million for the three months ended September 30, 2024, compared to $(2.297) million for the same period in 2023, an increase of 41.6%[123]. - Net cash used in operating activities for the nine months ended September 30, 2024 was $5.3 million, an increase of $0.7 million from $4.6 million for the nine months ended September 30, 2023[157]. - Net cash used in investing activities for the nine months ended September 30, 2024 was $1.4 million, a decrease of $9.3 million from $10.7 million for the nine months ended September 30, 2023[158]. - As of September 30, 2024, the amount outstanding under debt obligations was $20.7 million, with $20.3 million related to the Financing Agreement[152]. - The Company entered into a financing agreement with Blue Torch for a senior secured term loan of approximately $32.2 million[162]. - The Financing Agreement is secured by a first priority security interest in substantially all assets of the Company and its subsidiaries[162]. - The Company received approximately $5.1 million from the Paycheck Protection Program, with $3.5 million subsequently forgiven[160]. - As of September 30, 2024, the outstanding amount under the PPP Loan was $0.4 million[160]. Accounting and Reporting - The Company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay adopting new accounting standards[167]. - The Company has not made material changes to its critical accounting policies since the 2023 10-K[166]. - Actual results may differ from estimates and assumptions used in financial reporting, impacting asset values and revenue recognition[165]. - The Company has elected to use an extended transition period for new accounting standards until it is no longer classified as an emerging growth company[167]. - As a smaller reporting company, the Company is not required to provide certain market risk disclosures[169]. Strategic Initiatives - The company expanded its market presence by acquiring Dog Food Advisor and maxbone in 2023, enhancing its offerings in the Pet Food & Treats and Pet Supplies markets[113]. - The company aims to be the go-to platform for modern U.S. pet households, offering a range of services and products through its various platforms[112].

Exhibit 99.1 Wag! Reports Third Quarter 2024 Results SAN FRANCISCO – (BUSINESS WIRE) – November 13, 2024 – 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 third quarter ended September 30, 2024. Third Quarter 2024 Highlights: • Revenues decreased 39% to $13.2 million, compared to $21.8 million in the third quarter of 2023 – comprised ...

Freshpet launches its first apparel collection in collaboration with the singer just in time for the holidays, with 100% of proceeds going to animal rescues BEDMINSTER, N.J., Oct. 1, 2024 /PRNewswire/ -- Freshpet (NYSE: FRPT) today launches its first-ever apparel collection with its global superstar partner Meghan Trainor in time for the holiday season. The collection includes a "Dog Mom" and "Dog Dad" sweatshirt - sold separately or bundled with other pet-related products. Available only on https://shop.fr ...