Wag! Group Co. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in revenue, with total revenues for the three months amounting to $13.2 million, down 39.4% from $21.8 million in the same period of 2023. For the nine months ended September 30, 2024, revenues totaled $55.1 million, an 11.5% decrease from $62.2 million year-over-year. The revenue drop was attributed to declines in service revenue, wellness revenue, and pet food and treats revenue, alongside a 42% decrease in platform participants impacting revenue-per-action conversion.
Despite a reduction in total costs and expenses, which fell to $17.6 million for the three months (down 20.8% from $22.3 million in Q3 2023), the company reported a net loss of $6.3 million for the quarter, an increase of 185.2% compared to a loss of $2.2 million in the prior year. For the nine-month period, the net loss was $12.8 million, up 29.5% from $9.9 million in 2023. The loss per share for the quarter was $(0.13), compared to $(0.06) in Q3 2023.
Wag! Group's financial position showed a decrease in cash and cash equivalents, which fell to $8.4 million from $18.3 million at the end of 2023. Total current assets also decreased significantly to $18.3 million from $31.8 million. Current liabilities surged to $29.6 million, up from $18.4 million, contributing to an accumulated deficit that increased to $(174.5 million).
Strategically, the company completed a registered public offering in July 2024, generating net proceeds of approximately $8.6 million. Additionally, Wag! Group has been active in acquisitions, including the purchase of Dog Food Advisor and MaxBone, which expanded its product offerings in the pet supplies market. However, the company is also facing challenges, including a potential delisting from Nasdaq due to its stock price falling below the minimum bid requirement.
Wag! Group's management is currently seeking to refinance its Financing Agreement, which is due in August 2025, amid ongoing discussions regarding its operational and financial strategies. The company continues to navigate a complex market environment while addressing internal control weaknesses identified in its financial reporting processes.
About Wag! Group Co.
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