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Wag! Group (PET)
NASDAQ:PET
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Wag! Group
(NASDAQ:PET)
37Underperform
Wag! Group (PET) vs. S&P 500 (SPY)
Market Cap
$6.50M
Dividend YieldN/A
Average Volume (3M)364.76K
Price to Earnings (P/E)―
Beta (1Y)1.47
Revenue Growth-15.98%
EPS Growth-11.58%
CountryUS
Employees64
SectorTechnology
Sector Strength40
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.39
Shares Outstanding50,733,820
10 Day Avg. Volume592,343
30 Day Avg. Volume364,765
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.16
Price to Cash Flow (P/CF)-0.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$0.50Price Target Upside354.55% Upside
Rating ConsensusHold
Number of Analyst Covering1
Wag! Group Business Overview & Revenue Model
Company DescriptionWag! Group is a company operating in the pet care industry, primarily focusing on providing on-demand dog walking and pet care services. Through its mobile app, Wag! connects pet owners with professional dog walkers, sitters, and trainers, offering a convenient solution for busy pet owners to ensure their pets receive the care they need. Wag! aims to deliver quality pet care services by leveraging technology to simplify the process of finding trusted care providers.
How the Company Makes MoneyWag! Group generates revenue through a commission-based model, where it takes a percentage of the fees charged by pet care providers who use its platform. Pet owners pay for services such as dog walking, pet sitting, and training, and Wag! retains a portion of these payments as commission. Additionally, the company may offer subscription services that provide pet owners with discounted rates or exclusive access to premium features on the app. Partnerships with pet product companies or brands may also contribute to its revenue, through sponsorships or promotional collaborations.
Wag! Group Financial Statement Overview
Summary
Wag! Group faces significant financial challenges with high leverage, negative equity, and consistent operational losses. While the company has demonstrated strong revenue growth historically, recent declines and persistent net losses pose concerns. The financial instability is further exacerbated by negative cash flows, indicating the need for strategic adjustments to achieve profitability and financial sustainability.Income Statement
Wag! Group has shown some positive revenue growth from 2020 to 2022, but revenue declined significantly in 2023. The Gross Profit Margin is strong at 92.5% for 2024, indicating efficient cost management; however, the company continues to operate at a loss with negative Net Profit Margin (-24.9%), EBIT Margin (-14.7%), and EBITDA Margin (-12.5%). Profitability remains a challenge, as evidenced by the increasing net losses over time.35
Negative
Balance Sheet
The balance sheet highlights significant leverage concerns with negative Stockholders' Equity (-$489,000 in 2024), indicating a deficit. The Debt-to-Equity Ratio is not meaningful due to negative equity, and the Equity Ratio is also negative, underscoring financial instability. Persistent liabilities exceed assets, raising potential risks.25
Negative
Cash Flow
The cash flow statement reflects negative operating cash flows and free cash flows, indicating ongoing cash burn and operational challenges. Free Cash Flow improved slightly from 2023 to 2024 but remains negative (-$8.84M). The Operating Cash Flow to Net Income Ratio is also negative, highlighting inefficiencies in cash generation relative to net income.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 70.51M | 83.92M | 54.87M | 20.08M | 11.97M | Gross Profit |
| 65.22M | 76.65M | 50.84M | 17.30M | 9.21M | EBIT |
| -10.38M | -5.07M | -31.13M | -14.01M | -18.97M | EBITDA |
| -8.83M | -4.69M | -35.01M | -10.14M | -18.76M | Net Income Common Stockholders |
| -17.57M | -13.32M | -38.57M | -6.31M | -18.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 5.63M | 18.32M | 38.97M | 5.40M | 19.41M | Total Assets |
| 29.44M | 46.70M | 52.31M | 16.46M | 23.17M | Total Debt |
| 19.83M | 28.62M | 26.98M | 1.64M | 5.14M | Net Debt |
| 14.20M | 10.29M | -11.99M | -986.00K | 2.09M | Total Liabilities |
| 29.93M | 45.05M | 42.63M | 122.58M | 123.37M | Stockholders Equity |
| -489.00K | 1.65M | 9.68M | -106.11M | -100.19M |
| Cash Flow | Free Cash Flow | |||
| -8.84M | -6.83M | -2.61M | -12.26M | -26.56M | Operating Cash Flow |
| -7.00M | -6.46M | -2.56M | -12.26M | -26.47M | Investing Cash Flow |
| -1.96M | -12.26M | 1.83M | 11.89M | 19.78M | Financing Cash Flow |
| -3.73M | -1.92M | 36.85M | -51.00K | 5.14M |
Wag! Group Technical Analysis
Negative
0.11
Price Trends
0.25
Negative
0.26
Negative
0.64
Negative
Market Momentum
-0.03
Positive
27.81
Positive
3.06
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PET, the sentiment is Negative. The current price of 0.11 is below the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.25, and below the 200-day MA of 0.64, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 27.81 is Positive, neither overbought nor oversold. The STOCH value of 3.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PET.
Wag! Group Risk Analysis
Wag! Group disclosed 50 risk factors in its most recent earnings report. Wag! Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Wag! Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.81T | 30.97 | 24.29% | ― | 10.99% | 91.61% | |
73 Outperform | $13.93B | 35.05 | 101.78% | ― | 6.40% | 891.13% | |
63 Neutral | $841.71M | 47.11 | 5.08% | ― | 8.33% | 436.49% | |
59 Neutral | $1.49B | ― | -3.07% | ― | 15.97% | 78.77% | |
58 Neutral | $74.57M | 328.04 | 0.36% | ― | -10.82% | ― | |
57 Neutral | $18.57B | 9.42 | -13.42% | 2.72% | 5.01% | -23.43% | |
37 Underperform | $6.50M | ― | -3036.82% | ― | -15.98% | -11.58% |
* Technology Sector Average
Performance Comparison
PET
Wag! Group
0.11
-2.05
-94.91%
AMZN
Amazon
171.00
-14.19
-7.66%
PETS
Petmed Express
3.51
-1.12
-24.19%
TRUP
Trupanion
34.34
8.44
32.59%
CHWY
Chewy
31.52
14.70
87.40%
FVRR
Fiverr International
22.20
2.46
12.46%
Wag! Group Earnings Call Summary
Earnings Call Date: Mar 24, 2025 | % Change Since: -56.00% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook, with several positive developments such as new partnerships and improved efficiency through AI integration. However, these were balanced by significant challenges like revenue decline and increased costs in 2024. The guidance for 2025 suggests cautious optimism with expected revenue growth.Highlights
New Major Distribution Partners
Signed three new major distribution partners expected to accelerate demand within the Insurance Comparison business, with meaningful impact projected to begin materializing in Q2 2025.
Platform Participants and Revenue Growth
Q4 2024 metrics showed platform participants, revenue, and adjusted EBITDA up over 17% sequentially quarter-over-quarter.
Integration of AI for Efficiency
Continued integration of AI for content creation and process optimization, resulting in increased efficiencies across operations.
Positive Outlook for 2025
Guidance for 2025 projects revenue in the range of $84 million to $88 million and adjusted EBITDA in the range of $2 million to $4 million.
Lowlights
Decline in Full-Year Revenue
2024 full-year revenues were $70.5 million, down 16% from $83.9 million in 2023, affected by challenges such as Google search trends in Q3.
Adjusted EBITDA Loss
Full-year adjusted EBITDA loss was $1.1 million, a decline from a $0.7 million profit in the previous year.
Cost Management Challenges
General and administrative expenses slightly exceeded the historical range, driven by fixed costs which impacted overall financial performance.
Company Guidance
In the fourth quarter and full year 2024 earnings call for Wag!, the company provided guidance for 2025, anticipating revenue between $84 million and $88 million, and adjusted EBITDA in the range of $2 million to $4 million. The company attributed expected revenue growth primarily to its wellness segment, bolstered by new partnerships, and to a lesser extent, its services segment. In Q4 2024, platform participants increased by over 17% sequentially, with revenues reaching $15.4 million. Despite a full-year revenue decline to $70.5 million, down 16% from the previous year, the company managed to control costs, reducing total expenses by over $10 million year-over-year. The call also highlighted Wag!'s strategic use of AI to enhance operational efficiencies and its commitment to disciplined execution in navigating market dynamics.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.