Wag! Group Co. (NASDAQ:PET) Q4 2023 Earnings Call Transcript

Aria Cole: And then just a follow-up question. Just looking at the quarterly seasonality of your business, as you look at 2023 of the year just finished, the number of platform participants actually did not rise between March ’24 and December ’24. But then in 2022, it had more of a sequential quarterly rise during the year. What I’m trying to understand is, going forward, how should we think about the seasonality of your business, is it a business that can grow the number of participants every three months versus the prior three months or is there a real seasonality in the business where the business has the most participants early in the year and it plateaus there?

Garrett Smallwood: Yes, I certainly think that there is some level of seasonality in the business in Q1 and Q3 primarily. Q1, Q3 are in more sitting and boardings occur in the services business, a significant number of pet insurance plans, wellness plans and vet communications happen as a function of new pet adoptions and a few other unique marketplace dynamics. But I would say ’23 is going to look a little bit different than 2024 as we’re really going to be reinvesting in growth in 2024, whereas maybe a little more prudent in ’23 to reach adjusted EBITDA profitability. So we expect quarterly participants to grow year-on-year, maybe not always quarter-on-quarter but certainly year-on-year. Last thing I’ll add Aria is, can you please send me an e-mail with your Rover numbers. The last numbers I have are $97 million in revenue in ’21 at minus $9 million of EBIT. So if you have something different I’d love to see it.

Operator: We have reached the end of the question-and-answer session. I’ll now turn the call back over to Garrett Smallwood for closing remarks.

Garrett Smallwood: Yes. Thank you, everyone, for being here. We’re extremely excited for 2024 and the years to follow. Again, I’ve said this for three or four times now. We have updated our management presentation available at wag.co under Investor. I think it’s under press releases and presentations. Please give it a look. I think it answers the majority of questions you may have as you think about the business, the customers and us as management. And we look forward to keeping in touch and for a great year. Thanks, everyone.

Operator: And this concludes today’s conference and you may disconnect your lines at this time. Thank you for your participation.