Wag! (US:PET)2024-11-13 12:09Financial Performance - Revenues decreased 39% to $13.2 million in Q3 2024, down from $21.8 million in Q3 2023, with $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 $2.2 million in Q3 2023 [2] - Adjusted EBITDA loss was $1.9 million in Q3 2024, down from a positive Adjusted EBITDA of $1.0 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 $21,800 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) 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 $1,007 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 $8,445 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, compared to $(4,624) thousand for the same period in 2023 [25] - Interest expense for the three months ended September 30, 2024, was $1,497 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 $15 million to $18 million and Adjusted EBITDA between $(0.5) million and $0.5 million [4] - Full year 2024 revenue guidance is projected to be between $70 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 $17,620 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 $32.6 million as of September 30, 2024, from $46.7 million as of December 31, 2023 [21]