Wag! Group Co. (NASDAQ:PET) Q4 2023 Results Conference Call February 14, 2024 4:30 PM ET
Company Participants
Garrett Smallwood - Chief Executive Officer and Chairman
Adam Storm - President and Chief Product Officer
Alec Davidian - Chief Financial Officer
Conference Call Participants
Jeremy Hamblin - Craig-Hallum Capital Group
Matt Koranda - ROTH MKM
Greg Pendy - Chardan
Aria Cole - Cole Capital
Operator
Greetings. Welcome to the Wag! Q4 2023 Earnings Conference Call [Operator Instructions]. Please note this conference is being recorded. I will now turn the conference over to your host, Garrett Smallwood, Chief Executive Officer and Chairman. You may begin.
Unidentified Company Representative
Good afternoon, everyone, and thank you for joining the Wag!'s conference call to discuss our fourth quarter and full year 2023 financial results. On the call today are Garrett Smallwood, Chief Executive Officer and Chairman; Adam Storm, President and Chief Product Officer; and Alec Davidian, Chief Financial Officer.
Before we get started, please note that today's comments include forward-looking statements. These forward-looking statements are subject to risks and uncertainties and involve factors that could cause actual results to differ materially from those expressed or implied by such statements. A discussion of these risks and uncertainties is included in our earnings release today and our filings with the SEC, including our upcoming 10-K for the year ended December 31, 2023. We also remind you that we undertake no obligation to update the information contained on this call. These statements should be considered estimates only and are not a guarantee of future performance. Also, during the call, we present both GAAP and non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are available in today's earnings release. These non-GAAP measures are not intended to be a substitute for our GAAP results. Lastly, you can find our earnings release and earnings presentation posted on the Investor Relations page of our website.
And with that, I'll now turn the call over to Garrett Smallwood.
Garrett Smallwood
Good afternoon. And thank you for joining us today to discuss our financial performance for the fourth quarter and full year 2023 and provide guidance for fiscal year 2024. First, I will provide a brief overview of our financial results for the fourth quarter and discuss our 2024 plans. Following that, Adam, our President and Chief Product Officer, will share updates on our strategic plans and key initiatives for 2024 and beyond. Then Alec, our Chief Financial Officer, will provide a more detailed analysis of our fourth quarter and full year 2023 results, discuss our capital allocation priorities and share our 2024 guidance. We are excited to announce another successful quarter for the Wag! team, in line with our expectations for revenue and adjusted EBITDA, which resulted in the high end of our range for fiscal year 2023 for revenue and midpoint of our range for adjusted EBITDA. During the quarter, revenue grew 27% year-over-year to $21.7 million, which was a new quarterly record. This growth was driven by the success of our wellness business, fueled by pet parent demand for pet insurance and wellness products. In addition, we are seeing early signs of success with Maxbone within services, which validates our longer term growth initiatives by expanding our reach within retailers to the premium product category. Our adjusted EBITDA was breakeven, an increase from a loss of $0.4 million in the same period last year. As we navigated the dynamic macroeconomic landscape, our primary objectives center around achieving a sustainable equilibrium between growth, profit and margin. In the fourth quarter, platform participants increased to $600,000, an increase of 38% year-over-year, and Wag! Premium penetration remained above our 50% target.