PET Earnings Prediction
The chart below shows how PET performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PET sees a +3.37% change in stock price 10 days leading up to the earnings, and a -15.56% change 10 days following the report. On the earnings day itself, the stock moves by +3.02%. This data can give you a slight idea of what to expect for the next quarter's release.
PET Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
13.20M
-39.43%
-29.20%
Gross Margin
84.98%
-7.12%
-4.94%
Operating Margin
-33.12%
1469.67%
935.00%
Net Margin
-47.43%
371.00%
292.96%
EPS
-0.13
-116.67%
116.67%
No Data Available
PET Earnings Analysis
Wag! Group Co. Common Stock Corporation (PET.O) Earnings Conference Call
Positive
Wellness Revenue Surge: 1. Strong Revenue Recovery: Wellness revenue grew 79% month over month in October, indicating a significant rebound from Q3 challenges.
Debt Repayment Strategy: 2. Debt Reduction: The company paid down $5 million in debt during Q3, resulting in a total debt prepayment of $10 million for the year, reducing interest payments by $0.5 million in Q4.
Cost Reduction Strategy: 3. Cost Management Initiatives: The company expects to reduce total annualized operating costs by at least $2 million following the elimination of 9 positions in Q4.
Strong Cash Position: 4. Cash Position: Wag! ended the quarter with $15 million in cash, cash equivalents, and accounts receivable, providing a solid financial foundation.
Q4 Revenue and EBITDA Outlook: 5. Positive Q4 Guidance: The company anticipates Q4 revenue in the range of $15 million to $18 million, with adjusted EBITDA expected to improve to a loss of $0.5 million to a profit of $0.5 million.
Negative
Revenue Decrease Analysis: 1. Revenue Decline: Wag! reported a revenue decrease of 39% year-over-year, falling to $13.2 million in Q3 2024, significantly impacting overall financial performance.
Widened EBITDA Loss: 2. Increased Adjusted EBITDA Loss: The adjusted EBITDA loss widened to $1.9 million, representing a $2.9 million decline compared to the previous year, primarily due to lower revenue.
Customer Acquisition Challenges: 3. High Customer Acquisition Costs: The company experienced accelerated customer acquisition costs due to inefficiencies in marketing spend, particularly in the Wellness segment, which was adversely affected by changes in Google's search algorithms.
Cost-Cutting Measures: 4. Staff Reductions: Wag! announced a reduction of 9 positions in Q4 2024 as part of a strategy to cut costs, indicating challenges in maintaining operational efficiency amid declining revenues.
Debt Reduction Efforts: 5. Debt Management Challenges: Despite paying down $5 million in debt during Q3, the company is still exploring asset sales to address its debt issues, reflecting ongoing financial strain.
PET FAQs
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PET Earning Call Sentiment
Wag! Group Co. (PET) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
PET.O
-1.41%Positive
The earnings call reveals several concerning factors: a significant revenue decline of 39% YoY, increased operational expenses as a percentage of revenue, and a loss in adjusted EBITDA. While debt reduction efforts and future debt strategy are positives, the challenging economic environment and marketing inefficiencies add to the negative sentiment. The Q&A section highlights management's uncertainty regarding SEO impacts and asset sales, further contributing to a negative outlook. Despite some optimism for Q4, the overall sentiment leans negative, suggesting a stock price movement in the -2% to -8% range.