Wag! Announces Record Fourth Quarter and Full Year 2021 Results, Beats Initial Revenue and EBITDA Guidance
Wag! reported a 238% revenue increase year-over-year in Q4 2021, reaching $8.1 million. Gross bookings surged by 141% to $16.6 million. The company improved its net loss to $(2.7) million from $(4.1) million and adjusted EBITDA loss narrowed to $(2.5) million. For FY 2021, revenue rose 68% to $20.1 million, with net loss improving to $(6.3) million.
Wag! reaffirmed guidance for 2022 and 2023, anticipating revenue of $41.8 million and $71.0 million respectively, alongside a business combination with CHW Acquisition Corporation.
- Revenue for Q4 2021 increased 238% year-over-year to $8.1 million.
- Gross bookings rose 141% to $16.6 million in Q4 2021.
- Net loss improved to $(2.7) million in Q4 2021, compared to $(4.1) million in Q4 2020.
- Adjusted EBITDA loss narrowed to $(2.5) million in Q4 2021 from $(4.0) million in Q4 2020.
- Full-year 2021 revenue increased 68% to $20.1 million.
- Full-year 2021 net loss improved to $(6.3) million from $(18.8) million in 2020.
- The service take rate increased to 42% in 2021 from 34% in 2020.
- Despite improved metrics, Wag! still reported a net loss for Q4 2021 and FY 2021.
Wag!’s Fourth Quarter Beat Drives Outperformance Ahead of Planned Business Combination with
Revenue Increased
Reaffirms Fiscal 2022 and 2023 Outlook
Fourth Quarter 2021 Highlights:
-
Gross Bookings increased
141% to , compared to$16.6 million in the fourth quarter of 2020.$6.9 million -
Revenue increased
238% to , compared to$8.1 million in the fourth quarter of 2020.$2.4 million -
Net loss improved to
from$(2.7) million in the fourth quarter of 2020.$(4.1) million -
Adjusted EBITDA improved to a loss of
from a loss of$(2.5) million in the fourth quarter of 2020.$(4.0) million
Full-Year 2021 Highlights:
-
Gross Bookings increased
35% to , compared to$47.4 million in 2020.$35.0 million -
Revenue increased
68% to , compared to$20.1 million in 2020.$12.0 million -
Net loss improved to
from$(6.3) million in 2020.$(18.8) million -
Adjusted EBITDA improved to a loss of
from a loss of$(6.4) million in 2020.$(18.5) million
Recent Business Highlights:
-
Launched on-demand and pre-scheduled Deluxe Drop-Ins, a 60 minute pet drop-in, in
December 2021 . - As part of its efforts to enhance its Wag! Premium benefits, Wag! launched 24/7 Live Expert Advice.
- Launched Lifetime Wag! Premium membership.
-
Improved the service take rate to
42% in 2021, compared to34% in 2020, driven by the strength of the platform and operational excellence. -
Rapidly recovered out of the pandemic, with 2021 gross bookings up
35% from 2020 levels. -
On
February 3, 2022 , Wag! announced plans to become listed through a business combination with$350 million CHW Acquisition Corporation .
Outlook
Wag! is reaffirming its guidance for each of the years 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, stock-based compensation expense, and 2020 restructuring 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.
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 approximately 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 11.7 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
Consolidated Statements of Operations |
|||||
|
|
Year Ended |
|||
|
|
2021 |
|
|
2020 |
($ in thousands, except percentages) |
|
|
|
|
|
Revenues |
$ |
20,082 |
|
$ |
11,970 |
Costs and expenses: |
|
|
|
|
|
Cost of revenues, excluding depreciation and amortization |
|
2,777 |
|
|
2,756 |
Platform operations and support |
|
10,265 |
|
|
13,282 |
Sales and marketing |
|
10,221 |
|
|
3,140 |
General and administrative |
|
6,956 |
|
|
11,550 |
Depreciation and amortization |
|
388 |
|
|
213 |
Total costs and expenses |
|
30,607 |
|
|
30,941 |
Gain on forgiveness of PPP loan |
|
3,482 |
|
|
- |
Interest (expense) income, net |
|
(61) |
|
|
145 |
Loss before income taxes |
|
(7,104) |
|
|
(18,826) |
Income tax expense |
|
793 |
|
|
(13) |
Net loss |
$ |
(6,311) |
|
$ |
(18,839) |
Net loss per share, basic and diluted |
|
(1.07) |
|
|
(3.35) |
Weighted average shares, basic and diluted |
|
5,908,062 |
|
|
5,623,515 |
Adjusted EBITDA Reconciliation |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
Quarter Ended |
|||||||
($ in thousands, except percentages) |
|
2021 |
|
|
2020 |
|
2021 |
|
2020 |
||
Revenues |
$ |
20,082 |
|
$ |
11,970 |
|
$ |
8,101 |
|
$ |
2,387 |
Adjusted EBITDA reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
(6,311) |
|
|
(18,839) |
|
|
(2,724) |
|
|
(4,101) |
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
Interest expense (income) |
|
61 |
|
|
(145) |
|
|
56 |
|
|
12 |
Depreciation and amortization |
|
388 |
|
|
213 |
|
|
156 |
|
|
32 |
Share based compensation |
|
222 |
|
|
285 |
|
|
39 |
|
|
71 |
Tax expense |
|
(793) |
|
|
13 |
|
|
0 |
|
|
3 |
Adjusted EBITDA |
$ |
(6,433) |
|
$ |
(18,473) |
|
$ |
(2,473) |
|
$ |
(3,983) |
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220310006026/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:
FAQ
What were Wag!'s revenue figures for Q4 2021?
What is the outlook for Wag! in FY 2022?
When is the business combination with CHW Acquisition Corp expected to close?
What were the adjusted EBITDA figures for Wag! in Q4 2021?