Wag! Announces Record First Quarter 2022 Results, Exceeds Initial Revenue and Adjusted EBITDA Guidance
Wag! reported a 273% revenue increase in Q1 2022, reaching $9.7 million compared to $2.6 million in Q1 2021. Gross bookings surged 141% to $17.5 million. The company's net loss decreased to $(2.4) million, an improvement from $(2.7) million in the same period last year. Wag! also noted significant Adjusted EBITDA improvements, with a loss of $(2.1) million versus $(2.6) million in Q1 2021. The firm is reaffirming its guidance for 2022 and 2023, projecting $93.4 million and $163.5 million in gross bookings, respectively. Wag! is set to merge with CHW Acquisition Corporation, expected in Q2 2022.
- Revenue increased by 273% year-over-year to $9.7 million.
- Gross bookings grew 141% to $17.5 million.
- Net loss improved to $(2.4) million from $(2.7) million in Q1 2021.
- Adjusted EBITDA loss improved from $(2.6) million to $(2.1) million.
- Wag! Premium penetration increased from 33% to 48% year-over-year.
- Total Platform Participants reached 325,012 in Q1 2022.
- Despite revenue growth, the company still incurred a net loss of $(2.4) million.
- Adjusted EBITDA remains negative at $(2.1) million.
Wag!’s First Quarter Results Drives Outperformance Ahead of Planned Business Combination with
Revenue Increased
Reaffirms 2022 and 2023 Outlook
Quarterly Revenue * (Graphic: Business Wire)
Smallwood continued, “Pet Parents are expressing concerns about missing their pets as they return-to-office, dine-out, and engage in other out-of-home social activities. We have high visibility into this return-to-normal behavior, as demonstrated by Wag!‘s LTV:CAC, which increased to 4:1 in Q1'22. The LTV charts show that our recent cohorts’ lifetime value (“LTV”) continues to expand higher than previous periods, demonstrating both LTV momentum and durability. In the coming quarters, we intend to pursue significant awareness growth for our platform and plan to meet new pet parents via strategic partnerships and performance marketing initiatives.”
First Quarter 2022 Highlights:
-
Gross Bookings increased
141% to , compared to$17.5 million in the first quarter of 2021.$7.3 million -
Revenue increased
273% to , compared to$9.7 million in the first quarter of 2021.$2.6 million -
Net loss improved to
from$(2.4) million in the first quarter of 2021.$(2.7) million -
Adjusted EBITDA improved to a loss of
from a loss of$(2.1) million in the first quarter of 2021.$(2.6) million
Recent Business Highlights:
-
Increased active Pet Parent Wag! Premium penetration year-over-year from
33% to48% , which is exceedingly bullish as Pet Parents who subscribe to Wag! Premium are paying an additional per month and signaling their intent to increase their Wag! usage.$9.99 -
As of Q1'22, we've seen our Pet Parent multi-service attach rate increase to
26% . This is up from20% reported inOctober 2021 . We are increasingly expanding the share-of-wallet captured by the Wag! Platform by helping Pet Parents address a multitude of problems. -
Improved the take rate to
55% in the first quarter 2022, driven by increased Wag! Premium penetration and continued diversification of the platform including significant growth in the Wellness category. -
Rapidly recovered out of the pandemic, with first quarter 2022 gross bookings up
141% from the same period in 2021. - Launched Browse & Book in combination with Wag! Premium, simplifying how Pet Parents discover and book more than 400,000 highly-rated local overnight sitters, boarders, walkers, and trainers.
- Simplified the Wag! Pet Parent sign-up and pet profile experience, lowering the barrier to entry and making it easier to use Wag!.
- Reached a total of 325,012 Platform Participants in Q1’22.
On
Outlook
Wag! is reaffirming its guidance for the year ending
-
Full Year 2022 Guidance:
-
Gross Bookings of
$93.4 million -
Revenue of
$41.8 million -
Adjusted EBITDA of
$(15.6) million
-
Gross Bookings of
-
Full Year 2023 Guidance:
-
Gross Bookings of
$163.5 million -
Revenue of
$71.0 million -
Adjusted EBITDA of
$(10.7) million
-
Gross Bookings of
Business Combination Transaction:
On
Form S-4 Filing
On
Non-GAAP Financial Measures and Other Operating Metrics
Adjusted EBITDA is a non-GAAP financial measure defined as net income (loss) adjusted for (benefit from) income taxes, interest income (expense), depreciation and amortization, and stock-based compensation expense. Adjusted EBITDA provides 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.
Gross bookings is defined as the total dollar value of a transaction booked via the platform for pet and wellness services, in each case without any adjustment for discounts or refunds, Pet Caregiver earnings and Pet Parent incentives. Bookings are an indication of the scale of our current platform, which ultimately impacts revenue.
Take rate is calculated as revenue divided by gross bookings.
Platform Participant is defined as a Pet Parent or Pet Caregiver who transacted on the Wag! platform for a service in the quarter. Services includes dog walking, sitting, boarding, drop-ins, training, premium, telehealth services, wellness plans, and pet insurance plan comparison.
About Wag! – Wag.co
Wag! strives to be the #1 app for pet parents, offering access to 5-star dog walking, pet sitting, expert pet advice and training from local pet caregivers nationwide. Wag!'s community of over 400,000 pet caregivers are pet people, and it shows. Making pet parents happy is what Wag! does best. With safety and happiness at the forefront, pet caregivers with Wag! have a trusted record of experience with over 12.1 million pet care services completed by pet caregivers on the Wag! Platform and over
About
CHW is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. The focus of the team is to pursue a business combination within the consumer, health and wellness or retail sector. Management is led by
Additional Information and Where to Find It
In connection with the proposed business combination, on
Participants in Solicitation
CHW, Wag! and their respective directors and executive officers, under
No Offer or Solicitation
This communication shall not constitute a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the proposed business combination. This communication shall also not constitute an offer to sell or a solicitation of an offer to buy any securities of CHW or Wag!, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Forward-Looking Statements
This communication includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 with respect to the proposed business combination between CHW and Wag!. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believe," "predict," "potential," "continue," "strategy," "future," "opportunity," "would," "seem," "seek," "outlook" and similar expressions are intended to identify such forward-looking statements. 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 that could cause the actual results to differ materially from the expected results. These statements are based on various assumptions, whether or not identified in this communication. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and they must not be relied on by an investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. These forward-looking statements include, without limitation, Wag!'s and CHW's expectations with respect to anticipated financial impacts of the proposed business combination, the satisfaction of closing conditions to the proposed business combination, and the timing of the completion of the proposed business combination. You should carefully consider the risks and uncertainties described in the "Risk Factors" section of CHW's initial public offering prospectus and its subsequent quarterly reports on Form 10-Q and annual reports on Form 10-K. In addition, there will be risks and uncertainties described in the Form S-4 and other documents which are or will be filed by CHW from time to time with the
|
||||
Three Months Ended |
||||
($ in thousands, except per share amounts) |
2022 |
2021 |
||
Revenues |
$ |
9,666 |
$ |
2,589 |
Costs and expenses: |
||||
Cost of revenues (exclusive of depreciation and amortization shown separately below) |
|
806 |
|
523 |
Platform operations and support | 2,577 |
2,446 |
||
Sales and marketing |
|
6,082 |
|
605 |
General and administrative | 2,367 |
1,663 |
||
Depreciation and amortization |
|
152 |
|
55 |
Total costs and expenses |
11,984 |
5,292 |
||
Interest expense, net |
|
(32) |
|
(5) |
Loss before income taxes | (2,350) |
(2,708) |
||
Income tax expense |
|
- |
|
- |
Net loss |
$ |
(2,350) |
$ |
(2,708) |
Net loss per share |
|
|
|
|
Basic and diluted | $ |
(0.37) |
$ |
(0.48) |
Weighted-average shares used to compute net loss per share |
||||
Basic and diluted |
|
6,297,398 |
|
5,634,632 |
|
|||||
Three Months Ended |
|||||
2022 |
2021 |
||||
($ in thousands) |
|||||
Revenues |
$ |
9,666 |
$ |
2,589 |
|
Adjusted EBITDA reconciliation: |
|||||
Net loss |
$ |
(2,350) |
$ |
(2,708) |
|
Add: |
|||||
Interest expense, net |
32 |
5 |
|||
Depreciation and amortization |
152 |
55 |
|||
Share based compensation |
54 |
61 |
|||
Tax expense |
- |
- |
|||
Adjusted EBITDA |
$ |
(2,112) |
$ |
(2,587) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220420005326/en/
Media:
Wag!: Media@wagwalking.com
ICR for Wag!: Wag@icrinc.com
CHW:
info@chwacquisitioncorp.com
Investor Relations:
ICR for Wag!: WagIR@icrinc.com
Source:
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