Wag! Group Co (PET) 2022 Q4 法說會逐字稿

Good day, and thank you for standing by, and welcome to Wag! fourth quarter 2022 earnings call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. (Operator Instructions)

美好的一天，感謝您的支持，歡迎來到 Wag！ 2022 年第四季度財報電話會議。此時，所有參與者都處於只聽模式。演講者的演講結束後，將進行問答環節。 （操作員說明）

I would now like to hand the conference over to your speaker today, Dawn Francfort, Managing Director at ICR. You may begin.

我現在想把會議交給今天的演講者，ICR 常務董事 Dawn Francfort。你可以開始了。

Good afternoon, everyone, and thank you for joining Wag! conference call to discuss our fourth quarter and full year 2022 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.

大家下午好，感謝您加入 Wag！電話會議討論我們第四季度和 2022 年全年的財務業績。今天的電話會議是首席執行官兼董事長 Garrett Smallwood；總裁兼首席產品官 Adam Storm 和首席財務官 Alec Davidian。

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 are included in our SEC filings.

在我們開始之前，請注意今天的評論包含前瞻性陳述。這些前瞻性陳述受風險和不確定因素的影響，並且涉及可能導致實際結果與此類陳述明示或暗示的結果存在重大差異的因素。我們向美國證券交易委員會提交的文件中包含對這些風險和不確定性的討論。

Also, during the call, we may present both GAAP and non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are available in our earnings release, which we issued today. The earnings release is available on the Investor Relations page of our website and is included as an exhibit in the Form 8-K furnished to the SEC. Lastly, you can find our earnings presentation posted on our IR website and with the SEC.

此外，在電話會議期間，我們可能會同時介紹 GAAP 和非 GAAP 財務指標。我們今天發布的收益報告中提供了與最直接可比的 GAAP 財務指標的調節。收益發布可在我們網站的投資者關係頁面上找到，並作為附件包含在提交給美國證券交易委員會的 8-K 表格中。最後，您可以在我們的 IR 網站和 SEC 上找到我們發布的收益演示文稿。

And with that, let me turn the call over to Garrett.

有了這個，讓我把電話轉給加勒特。

Thanks, Dawn. Good afternoon, everyone, and thank you for joining us to discuss our fourth quarter and full year 2022 performance and strategic priorities for 2023. I'll begin by reflecting on Wag!'s first year as a public company, which was topped off with our best quarter to date. We're building a strong, nondiscretionary consumer branded premium pet care platform that is transforming the pet industry by becoming an all-inclusive trusted partner for the premium pet parents.

謝謝，黎明。大家下午好，感謝您加入我們討論我們 2022 年第四季度和全年的業績以及 2023 年的戰略重點。我首先回顧一下 Wag! 作為上市公司的第一年，它以我們迄今為止最好的季度。我們正在建立一個強大的、非自由支配的消費者品牌優質寵物護理平台，該平台正在通過成為優質寵物父母的包羅萬象的值得信賴的合作夥伴來改變寵物行業。

In 2022, we transformed Wag! from a services business to a premium platform for pet care needs. This inflection is centered around our belief that being busy shouldn't stop you from owning or taking care of your furry family members.

2022年，我們改造了Wag！從服務業務到滿足寵物護理需求的優質平台。這種轉變圍繞著我們的信念，即忙碌不應該阻止您擁有或照顧您毛茸茸的家庭成員。

We saw the guilt and stress that pet parents have in not being able to provide their pets sufficient attention and care. And as such, our mission is simple. We exist to make pet ownership possible for busy people and to bring joy to pets and those who love them, and in 2022, we have made this possible.

我們看到寵物父母因無法為寵物提供足夠的關注和照顧而感到內疚和壓力。因此，我們的任務很簡單。我們的存在是為了讓忙碌的人擁有寵物成為可能，並為寵物和愛寵物的人帶來歡樂，而在 2022 年，我們使這成為可能。

The year was defined by our commitment to healthy and disciplined growth, which we accomplished with our success in the wellness category, increased Wag! Premium penetration, robust partnership momentum, operating efficiency and discipline, and the acquisition of Furmacy.com.

這一年的定義是我們對健康和有紀律的增長的承諾，我們通過在健康類別中取得成功來實現這一目標，增加搖擺！溢價滲透、強勁的合作勢頭、運營效率和紀律，以及對 Furmacy.com 的收購。

Our accomplishments this quarter and for the full year would not be possible without our passionate and hard-working team at Wag!, who've laid the building blocks for long-term success in 2023 and beyond. We couldn't be more excited about what we have accomplished, and we are just getting started.

如果沒有我們充滿激情和勤奮工作的 Wag! 團隊，我們本季度和全年的成就是不可能的，他們為 2023 年及以後的長期成功奠定了基礎。我們對所取得的成就感到無比興奮，而我們才剛剛開始。

To frame the rest of our discussion today, we will review our 2022 financial results and cover our compelling growth strategy that positions us to deliver predictable and sustainable financial performance, while combining all corners of the pet market into our trusted platform. After another exceptional quarter, we are raising our 2023 guidance for both revenue and adjusted EBITDA from what we previously provided in our deal announcement presentation at the beginning of 2022.

為了構建我們今天的其餘討論，我們將回顧我們 2022 年的財務業績，並涵蓋我們引人注目的增長戰略，該戰略使我們能夠提供可預測和可持續的財務業績，同時將寵物市場的各個角落整合到我們值得信賴的平台中。在又一個出色的季度之後，我們提高了 2023 年收入和調整後 EBITDA 的指引，這是我們之前在 2022 年初的交易公告中提供的。

Before turning it over to Adam, President and Chief Product Officer, who will give an update on our strategy and key initiatives for the year, I will give a high-level summary of our fourth quarter and full year 2022 performance. Then Alec, our Chief Financial Officer, will discuss our fourth quarter and full year 2020 results in more detail, our capital allocation priorities, and our guidance for 2023.

在將其交給總裁兼首席產品官 Adam 之前，他將介紹我們今年的戰略和關鍵舉措的最新情況，我將對我們第四季度和 2022 年全年的業績進行高度總結。然後，我們的首席財務官亞力克 (Alec) 將更詳細地討論我們 2020 年第四季度和全年的業績、我們的資本分配優先事項以及我們對 2023 年的指導。

In the fourth quarter, we continued to execute on our disciplined strategy and achieved record revenue of $17 million, up 110% year over year, driving full year revenue growth of over 173% to $54.9 million. Importantly, we continue to invest in our business focusing on our highest ROI assets while being disciplined, delivering fourth quarter adjusted EBITDA loss of approximately $400,000, an improvement from $2.5 million loss the year prior.

第四季度，我們繼續執行嚴格的戰略，實現創紀錄的 1700 萬美元收入，同比增長 110%，推動全年收入增長超過 173% 至 5490 萬美元。重要的是，我們繼續投資我們的業務，專注於我們最高投資回報率的資產，同時遵守紀律，第四季度調整後的 EBITDA 虧損約為 400,000 美元，比去年同期的 250 萬美元虧損有所改善。

Further, we saw healthy platform participants of more than 434,000 and Wag! Premium penetration remained strong in the fourth quarter at 54% as we rolled out $14.99 pricing tests in key markets across the United States, resulting in Wag! Premium price increase for new pet parents to $14.99 from nine $9.99.

此外，我們還看到了超過 434,000 名健康的平台參與者和 Wag！由於我們在美國的主要市場推出了 14.99 美元的定價測試，導致 Wag!，保費滲透率在第四季度保持強勁，達到 54%。新寵物父母的保費價格從 9 美元 9.99 美元上漲至 14.99 美元。

As a reminder, Wag! Premium brand penetration is key to the platform resiliency as we build a deep and repeatable relationship with pet parents, driving strong cross-sell rates and an increased LTV. As we mentioned last quarter, we continue to test Wag! Premium pricing and benefits to maintain our long-term premium penetration target and add value to premium.

提醒一下，Wag！優質品牌滲透是平台彈性的關鍵，因為我們與寵物父母建立了深厚且可重複的關係，推動了強勁的交叉銷售率和更高的 LTV。正如我們上個季度提到的，我們繼續測試 Wag！保費定價和福利，以維持我們的長期保費滲透目標並增加保費的價值。

During the quarter, we saw continued momentum in our wellness business, which is a testament to our ability to transform Wag! into a holistic pet care platform that can meet any and all need the pets and those who love them. As well as strengthen our overnight services business led by great relationships between pet parents and pet caregivers, which drives long duration overnight stays and was accelerated by incremental weather and canceled flights throughout the US, which led to stronger than expected [AOVs].

在本季度，我們看到健康業務持續增長，這證明了我們有能力改造 Wag!成為一個全方位的寵物護理平台，可以滿足所有需要的寵物和愛寵物的人。以及加強我們的過夜服務業務，由寵物父母和寵物護理人員之間的良好關係帶動，這推動了長時間的過夜住宿，並因美國各地天氣的增加和航班取消而加速，導致 [AOV] 強於預期。

Turning to LTV to CAC. For the fourth quarter, we saw an increase to 7 to 1, demonstrating our operational excellence, efficiency in marketing spend, all of which proved that Wag! is a non-discretionary post pandemic need. During the quarter, we leaned into strategic partnerships where we did not have to invest in traditional marketing channels, which resulted in an organic user acquisition rate of 70%.

轉向 LTV 到 CAC。第四季度，我們看到了 7 比 1 的增長，展示了我們卓越的運營和營銷支出的效率，所有這些都證明了 Wag！是一種非自由裁量的大流行後需求。在本季度，我們傾向於建立戰略合作夥伴關係，無需投資傳統營銷渠道，從而實現了 70% 的有機用戶獲取率。

We continue to pursue partnership opportunities in 2023, such as with Alignment Healthcare or members enrolled in eligible plan that qualifying condition can use Wag! app to receive their covered pet care benefits when they have an upcoming procedure or hospitalized or need support post discharge.

我們將在 2023 年繼續尋求合作機會，例如與 Alignment Healthcare 或參加符合條件的計劃的會員可以使用 Wag！應用程序在他們即將進行手術或住院或出院後需要支持時獲得承保的寵物護理福利。

Moving to the supply side of the marketplace, we continue to believe that Wag! is the best gig in America. We know that dedicated pet caregivers who have chosen to provide their services to us have contributed to our success, which is why we are constantly collecting feedback to ensure that pet caregivers are equipped with the tools they need to not only have a successful service, but a prosperous book of business.

轉向市場的供應方，我們仍然相信 Wag！是美國最好的演出。我們知道，選擇為我們提供服務的敬業寵物護理人員為我們的成功做出了貢獻，這就是為什麼我們不斷收集反饋以確保寵物護理人員配備他們所需的工具，不僅可以提供成功的服務，而且一本生意興隆的書。

By investing into the pet caregiver experience and not only the pet parent experience, we are distinctly positioned to maintain a strong leadership position within the supply side of the market. This is evidenced by continued significant interest in the pet caregiver gig, despite the macro environment. The average price that pet caregivers are paying to join the platform grows from around $41.50 in Q3 to around $53.30 in Q4, and even further from the $29.95 at the start of the year based on real time supply and demand equilibrium. For this reason, we have been able to maintain a negative supply-side CAC.

通過投資於寵物看護者的體驗，而不僅僅是寵物父母的體驗，我們處於明確的定位，可以在市場供應方保持強大的領導地位。儘管宏觀環境不佳，但人們對寵物看護工作的持續濃厚興趣證明了這一點。根據實時供需平衡，寵物護理人員為加入該平台支付的平均價格從第三季度的 41.50 美元左右增長到第四季度的 53.30 美元左右，甚至比年初的 29.95 美元還要高。出於這個原因，我們一直能夠維持負的供應方 CAC。

Before I pass the call over to Adam to discuss our growth initiatives, let me summarize why I'm so bullish about the future for our shareholders and position as a category leader in the pet care industry. One, our 2022 financial results demonstrate the effectiveness of our strategy and the benefits of continued investment in our current product offerings and measured expansion where advantageous, evidenced by our above targeted returns across the business. We continue to be the trusted on-demand digital marketplace for premium pet parents.

在我將電話轉給亞當討論我們的增長計劃之前，讓我總結一下為什麼我如此看好我們股東的未來以及作為寵物護理行業類別領導者的地位。第一，我們 2022 年的財務業績證明了我們戰略的有效性以及對我們當前產品的持續投資的好處以及在有利的情況下進行的可衡量擴張，我們在整個業務中的上述目標回報證明了這一點。我們將繼續成為優質寵物父母值得信賴的按需數字市場。

Two, we have the capability to grow while sustaining impressive operating margin as a result of our performance driven culture, our exceptional talent, the inherent cross-sell capabilities within our platform as well as across markets within the pet industry, and the continued humanization of pets paired with our customer-centric technology. Wag! is an accessible multifaceted platform that is consolidating the fastest-growing secular growth areas within the pet industry.

第二，由於我們的績效驅動文化、我們卓越的人才、我們平台內以及寵物行業內的跨市場固有的交叉銷售能力，以及持續的人性化，我們有能力在保持可觀的營業利潤率的同時實現增長。寵物與我們以客戶為中心的技術相結合。搖擺！是一個可訪問的多方面平台，正在整合寵物行業內增長最快的長期增長領域。

And finally, we are proactively managing and deploying our capital to be accretive for shareholders as seen to the Dog Food Advisor acquisition in January of 2023. All of these factors contribute to my excitement and confidence about the future of Wag!.

最後，我們正在積極管理和部署我們的資本，以增加股東的收益，正如 2023 年 1 月收購 Dog Food Advisor 所見。所有這些因素都讓我對 Wag! 的未來充滿興奮和信心。

And with that, Adam will provide additional color on our strategy.

有了這個，亞當將為我們的戰略增添色彩。

Thanks, Garrett. I will now walk through the five top-level elements of our strategy driving long-term shareholder value and how they evolve going into 2023. One, accelerate growth in existing markets; two, expand premium subscription offerings; three, platform expansion; four, opportunistic M&A; and five, operating scale.

謝謝，加勒特。我現在將介紹我們推動長期股東價值的戰略的五個頂級要素，以及它們在 2023 年將如何演變。第一，加速現有市場的增長；二、擴大高級訂閱服務；三、平台拓展；四、機會型併購；五、經營規模。

We made significant progress in 2022 accelerating growth in existing markets, capitalizing on the slow and steady return to office and post pandemic activities. At 50% return to office per the Kastle back-to-work barometer, we have significant room to run in 2023. We believe the demand for high-quality personalized pet care far exceeds the existing market due to the increases in pet adoption and return to office policies. We plan to continue to grow within existing markets and capture additional share of wallet through the compounding effect of our premium subscription and additional product lines.

我們在 2022 年取得了重大進展，加速了現有市場的增長，利用了緩慢而穩定的複工和大流行後活動。根據 Kastle 重返工作晴雨表，我們有 50% 返回辦公室，我們在 2023 年有很大的運行空間。我們認為，由於寵物收養和返回的增加，對高質量個性化寵物護理的需求遠遠超過現有市場辦公室政策。我們計劃繼續在現有市場中發展，並通過我們的高級訂閱和其他產品線的複合效應獲得更多的錢包份額。

Coming out of the pandemic, there is an influx of new pet parents who will also participate in the return to normal shift and will need to utilize our non-discretionary services. With the continued trend in the humanization of pets, we believe we are entering a secular trend in the pet health and wellness categories.

從大流行中走出來，湧入了新的寵物父母，他們也將參與恢復正常輪班，並且需要利用我們的非全權委託服務。隨著寵物人性化的持續趨勢，我們相信我們正在進入寵物健康和保健類別的長期趨勢。

Led by millennials and Gen Z, many pet parents increasingly consider the needs of their pets not just equally important to those of the rest of the family, but more important. Approximately 70% of US households or about 91 million homes owned a pet as of 2022 and 70 million of those are dog households. Of those, we specifically target the premium pet parent or roughly 15% of households in the current market with a proven propensity towards premiumization across pet categories.

在千禧一代和 Z 世代的帶領下，許多寵物父母越來越認為寵物的需求不僅與家庭其他成員的需求同等重要，而且更為重要。截至 2022 年，大約 70% 的美國家庭或約 9100 萬家庭擁有寵物，其中 7000 萬是養狗的家庭。其中，我們專門針對高端寵物父母或當前市場中大約 15% 的家庭，這些家庭已被證實傾向於跨寵物類別進行高端化。

In 2022, we hit our long-term premium penetration target of 50% due to the success of our second growth driver, expanding premium subscription offerings. We plan to continue testing premium pricing tiers, subscription tiers, and product bundling throughout 2023 to grow revenue and drive additional value to the pet parent.

到 2022 年，由於我們的第二個增長動力成功，即擴大保費訂閱服務，我們實現了 50% 的長期保費滲透率目標。我們計劃在整個 2023 年繼續測試高級定價等級、訂閱等級和產品捆綁，以增加收入並為寵物父母帶來額外價值。

As a result of our testing in Q4, we are raising prices from new premium pet parents to $14.99 per month. As a reminder, Wag! Premium subscribers receive a 10% discount on all services, VIP customer support, and unlimited 24/7 expert pet advice, which drives customer satisfaction and retention, and their willingness to cross-sell to our expanding set of products and services.

根據我們在第四季度的測試，我們將新的高級寵物父母的價格提高到每月 14.99 美元。提醒一下，Wag！高級訂閱者在所有服務、VIP 客戶支持和無限的 24/7 專家寵物建議上獲得 10% 的折扣，這提高了客戶滿意度和保留率，以及他們交叉銷售我們不斷擴展的產品和服務的意願。

Third, we continue to focus on platform expansion in diversifying the products and services within the platform, including new features such as Browse & Book refined search, which helps pet parents find the perfect match based on pet caregiver specialties; Notes from Pet Caregivers, allowing them to make a more informed decision before requesting a service; and the launch of Super & Ultimate Endorsements, which allow colleagues and existing pet parents to boost a pet caregiver at the beginning of their small business journey to show the pet parent community how great the pet caregiver is.

第三，我們繼續專注於平台擴展，豐富平台內的產品和服務，包括Browse & Book精細搜索等新功能，幫助寵物父母根據寵物護理人員的專業找到完美的匹配；寵物護理人員的註釋，使他們能夠在請求服務之前做出更明智的決定；以及 Super & Ultimate Endorsements 的推出，它允許同事和現有的寵物父母在他們的小企業旅程開始時提升寵物護理人員，以向寵物父母社區展示寵物護理人員有多麼出色。

Importantly, in the fourth quarter, we renewed our partnership with Alignment Healthcare, which provides Alignment Healthcare plan members with Wag! services. We will continue to grow the marketplace business through thoughtful product development and expanding the set of services available through our platform. Wag!'s partnerships add value not only to us, but our pet parents as well, and we plan to build upon those relationships in 2023.

重要的是，在第四季度，我們與 Alignment Healthcare 續簽了合作夥伴關係，後者為 Alignment Healthcare 計劃成員提供 Wag！服務。我們將通過深思熟慮的產品開發和擴展我們平台提供的服務集來繼續發展市場業務。 Wag! 的合作夥伴關係不僅為我們增加了價值，也為我們的寵物父母增加了價值，我們計劃在 2023 年建立這些關係。

Fourth, in 2022 and going forward, we're prioritizing growth through opportunistic M&A. We believe that over time we can enhance the value of Wag! with strategic acquisitions in the pet industry. In the fourth quarter, we acquired Furmacy, Inc., a concierge prescription and compounding service that delivers pet health directly to the pet parent store.

第四，在 2022 年及以後，我們將通過機會性併購優先考慮增長。我們相信，隨著時間的推移，我們可以提升 Wag 的價值！在寵物行業進行戰略收購。在第四季度，我們收購了 Furmacy, Inc.，這是一家禮賓處方和復合服務，可直接向寵物父母商店提供寵物健康。

Additionally, we recently announced Wag! entry into the pet food and treat category by successfully completing the acquisition of Dog Food Advisor in January, which helps busy pet parents (inaudible) decisions about dog food through the website, dogfoodadvisor.com. This is an illustrative example of us building out the premium pet care platform.

此外，我們最近宣布搖擺！通過在 1 月份成功完成對 Dog Food Advisor 的收購，進入寵物食品和零食類別，這有助於忙碌的寵物父母（聽不清）通過網站 dogfoodadvisor.com 做出有關狗糧的決定。這是我們構建優質寵物護理平台的一個說明性示例。

The fifth element of our strategy is operating scale, which I'll briefly touch on and Alec will provide more detail. We are laser focused on our unit economics and fixed cost to operating leverage, which drove operating margin improvements across the board. Our customer acquisition unit economics as seen in our 7 to 1 LTV-CAC ratio continue to outpace our expectations for the quarter and year. Adjusted EBITDA margin improved by 42% in 2022.

我們戰略的第五個要素是經營規模，我將簡要介紹這一點，Alec 將提供更多細節。我們非常專注於我們的單位經濟效益和運營槓桿的固定成本，這推動了運營利潤率的全面提高。從我們 7 比 1 的 LTV-CAC 比率可以看出，我們的客戶獲取單位經濟性繼續超過我們對本季度和年度的預期。調整後的 EBITDA 利潤率在 2022 年提高了 42%。

In 2023, we continue to build our platform by investing in growth levers with a fast payback cycle, low fixed costs, and low OpEx. We'll continue to be disciplined operators and remain laser focused on managing growth, margin, and profit.

2023 年，我們將繼續通過投資回報週期快、固定成本低和運營支出低的增長槓桿來構建我們的平台。我們將繼續成為紀律嚴明的運營商，並繼續專注於管理增長、利潤和利潤。

And with that, let me turn the call over to Alec.

就這樣，讓我把電話轉給亞歷克。

Thank you, Adam, and thank you, everyone, for joining our fourth quarter and full year '22 earnings call. It has been an incredibly exciting and successful year for the Wag! team as we grew the business through a diversified revenue stream, launch new products, and executed with operational excellence. As a result, we finished '22 with all-time record results, significantly ahead of our expectations. I'll walk through our financial numbers by providing an overview of our fourth quarter and full year '22 results, and then an overview of our updated '23 guidance.

感謝亞當，感謝大家參加我們的第四季度和全年 22 財報電話會議。對於 Wag 來說，這是令人難以置信的激動人心和成功的一年！團隊通過多元化的收入來源發展業務，推出新產品，並以卓越的運營執行。結果，我們以創紀錄的成績結束了 22 年，大大超出了我們的預期。我將通過概述我們的第四季度和全年 '22 結果，然後概述我們更新的 '23 指南來介紹我們的財務數據。

Closing out, our outstanding year Q4 '22 was another record quarter with the highest quarterly revenue since inception, totaling $17 million, up approximately 110% from Q4 '21. Adjusted EBITDA loss for the quarter improved to $0.4 million, compared to $2.5 million in Q4 '21.

結束時，我們出色的 22 年第 4 季度是另一個創紀錄的季度，自成立以來季度收入最高，總計 1700 萬美元，比 21 年第 4 季度增長約 110%。本季度調整後的 EBITDA 虧損改善至 40 萬美元，而 21 年第四季度為 250 萬美元。

On a full year basis, full year '22 revenue increased 173% to $54.9 million, compared to $20.1 million in '21, while adjusted EBITDA loss improved to $3.9 million, compared to $9.9 million in '21. Our acceleration is the outcome of pet parent demand, new partnerships, expansion into additional market, testing and bundling Wag! Premium offers, and continued marketing efficiency.

從全年來看，22 年全年收入增長 173% 至 5490 萬美元，而 21 年為 2010 萬美元，而調整後的 EBITDA 虧損則從 21 年的 990 萬美元增加至 390 萬美元。我們的加速是寵物父母需求、新合作夥伴關係、擴展到其他市場、測試和捆綁 Wag! 的結果。優質優惠和持續的營銷效率。

As expected, we saw a shift of pet parent need from walking to sitting and boarding in the fourth quarter in line with the usual seasonal demand mix to inclement weather across the country. We also experienced continued strong demand for wellness services, which contributed to 66% of revenue in Q4 '22, compared to 45% in Q4 '21. Our wellness suite of services include valuable offering such as expert pet advice, wellness plans, pet insurance comparison options, and new in '22, pet prescription on compound medicine via [pharmacy].

正如預期的那樣，我們看到第四季度寵物父母的需求從步行轉變為坐著和寄宿，這與通常的季節性需求組合以及全國各地的惡劣天氣一致。我們還經歷了對健康服務的持續強勁需求，這佔 22 年第四季度收入的 66%，而 21 年第四季度為 45%。我們的健康服務套件包括有價值的服務，例如專家寵物建議、健康計劃、寵物保險比較選項，以及 22 年的新功能，通過 [pharmacy] 的寵物複合藥物處方。

Turning to expenses during the fourth quarter, cost of revenue, excluding depreciation and amortization, was $1 million in Q4 '22 or 6% of revenue, compared to $0.8 million or 10% of revenue in Q4 '21. For the full year cost of revenue, excluding depreciation and amortization, was $4 million or 7% of revenue, compared to $2.8 million or 14% of revenue in '21.

談到第四季度的費用，收入成本（不包括折舊和攤銷）在 22 年第四季度為 100 萬美元，佔收入的 6%，而 21 年第四季度為 80 萬美元，佔收入的 10%。全年收入成本（不包括折舊和攤銷）為 400 萬美元或占收入的 7%，而 21 年為 280 萬美元或占收入的 14%。

The dollar amount increase was a direct result of increased demand driving incremental payment processing fees and background check cost via an increase in pet parent -- pet activity and caregiver applicants. Nevertheless, cost of revenue decreased as a percentage of revenue as our technology scaling initiatives took place.

美元金額的增加是需求增加的直接結果，通過增加寵物父母 - 寵物活動和看護人申請人來推動增量支付處理費用和背景調查成本。然而，隨著我們的技術擴展計劃的實施，收入成本佔收入的百分比有所下降。

Platform operations and support expense was $2.8 million in Q4 '22 or 16% of revenue, compared to $2.6 million or 32% of revenue in Q4 '21. For the full year, platform operations and support expense was $13.8 million or 25% of revenue, compared to $10.3 million or 51% of revenue in '21.

22 年第四季度的平台運營和支持費用為 280 萬美元，佔收入的 16%，而 21 年第四季度為 260 萬美元，佔收入的 32%。全年，平台運營和支持費用為 1380 萬美元，佔收入的 25%，而 21 年為 1030 萬美元，佔收入的 51%。

While there has been an increase in expense in dollar terms year over year driven by personnel-related compensation costs and stock compensation expense as we hire and retain talent, platform operations and support expense have more than halved as a percentage of revenue as a result of operational scale.

雖然由於我們僱用和留住人才，與人員相關的薪酬成本和股票薪酬費用推動了以美元計算的費用同比增加，但由於平台運營和支持費用佔收入的百分比下降了一半以上經營規模。

Sales and marketing expense was $10.5 million in Q4 '22 or 62% of revenue, compared to 65% of revenue in Q4 '21. For the full year, sales and marketing expense was $35.2 million or 64% of revenue, versus $10.2 million or 51% of revenue in '21.

22 年第四季度的銷售和營銷費用為 1050 萬美元，佔收入的 62%，而 21 年第四季度佔收入的 65%。全年，銷售和營銷費用為 3520 萬美元，佔收入的 64%，而 21 年為 1020 萬美元，佔收入的 51%。

The dollar amount increase in sales and marketing expense is driven by partnership activity, cost of new product initiatives and launches, and general marketing spend in order to harness net new pet parents and cross-sell them complementary platform offering via the Wag! ecosystem.

銷售和營銷費用的美元增長是由合作活動、新產品計劃和發布的成本以及一般營銷支出推動的，目的是利用淨新寵物父母並通過 Wag 向他們交叉銷售互補平台產品！生態系統。

G&A expense was $3.9 million in Q4 '22 or 23% of revenue, compared to $2 million or 25% of revenue in Q4 21. For the full year, G&A expense was $32.4 million or 59% of revenue, compared to $7 million or 35% of revenue in '21.

22 年第四季度的 G&A 費用為 390 萬美元，佔收入的 23%，而 21 年第四季度為 200 萬美元，佔收入的 25%。全年，G&A 費用為 3240 萬美元，佔收入的 59%，而 2018 年第四季度為 700 萬美元，佔收入的 25%。 21 年收入的百分比。

Notably, '22 includes approximately $21 million in transaction and integration expenses in connection with the IPO. When excluded for like-for-like comparison, G&A expense represents 21% of revenue in '22, which is a decrease of 14 percentage points year over year.

值得注意的是，'22 包括與 IPO 相關的大約 2100 萬美元的交易和整合費用。如果排除同類比較，G&A 費用佔 22 年收入的 21%，同比下降 14 個百分點。

The dollar amount increase in G&A expense is driven by personnel-related compensation costs and stock compensation expense as we hire to retain key talent, M&A related costs, and public company compliance, including expenses related to the compliance with the rules and regulations of the SEC and NASDAQ via legal, audit, and consulting fees.

G&A 費用的美元數額增加是由與人員相關的補償費用和股票補償費用驅動的，因為我們僱用以保留關鍵人才、併購相關費用和上市公司合規性，包括與遵守 SEC 規則和法規相關的費用和納斯達克通過法律、審計和諮詢費用。

Adjusted EBITDA, which is an important profitability measure that we use internally to manage the business, improved $2 million to an adjusted EBITDA loss of $0.4 million. This compares to an adjusted EBITDA loss of $2.5 million in Q4 '21. Adjusted EBITDA loss for the year improved $3.9 million versus $9.9 million in '21.

調整後的 EBITDA 是我們在內部用於管理業務的重要盈利能力衡量標準，將調整後的 EBITDA 虧損減少 200 萬美元，調整後的 EBITDA 損失為 40 萬美元。相比之下，21 年第四季度調整後的 EBITDA 虧損為 250 萬美元。與 21 年的 990 萬美元相比，當年調整後的 EBITDA 虧損減少了 390 萬美元。

Turning to our balance sheet. We ended the fourth quarter with over $39 million in cash and cash equivalents. This is primarily due to the IPO transaction cash proceeds and financing net of issuance costs that occurred in the third quarter of '22, together with $9.8 million cash received from a forward share purchase agreement in the fourth quarter. Aside from these transactions, the increase was due to cash generated from our business operations.

轉向我們的資產負債表。我們在第四季度結束時擁有超過 3900 萬美元的現金和現金等價物。這主要是由於 22 年第三季度發生的 IPO 交易現金收益和扣除發行成本的融資，以及第四季度從遠期股票購買協議收到的 980 萬美元現金。除這些交易外，增加的原因是我們的業務運營產生的現金。

Our balance sheet remains strong in the context of our operating cash use and puts us in a strong position to comfortably fund our growth objectives, while also maintaining flexibility to pursue strategic M&A when we believe the opportunity aligns with our goals.

我們的資產負債表在我們的運營現金使用情況下保持強勁，使我們處於有利地位，可以輕鬆地為我們的增長目標提供資金，同時在我們認為機會與我們的目標一致時保持靈活性，以進行戰略併購。

I also want to highlight Wag!'s overall headcount deficiency, which is another indication of our operational excellence. Despite the 173% revenue growth we have seen in the past year, we have only grown headcount by 9%, bringing our total headcount at Wag! to 82. Including all the headcount, counting platform operations and support, we reached $0.8 million revenue per employee based on Q4 '22 run rate, well ahead of industry peers.

我還想強調 Wag! 的整體人員不足，這是我們卓越運營的另一個跡象。儘管我們在過去一年看到了 173% 的收入增長，但我們的員工人數只增加了 9%，使我們在 Wag! 的總人數增加了 9%。至 82 人。包括所有員工人數、平台運營和支持在內，根據 22 年第四季度的運行率，我們實現了每名員工 80 萬美元的收入，遠遠領先於行業同行。

We have accomplished this through intense focus on systems automation, proprietary technology, and a robust infrastructure, which enables the platform to scale without additional headcount. We are efficient and remain judicious about hiring and headcount. Our focus remains in employing and empowering the very best people in key positions, which has also come into play with recent acquihire transactions and M&A strategy.

我們通過高度關注系統自動化、專有技術和強大的基礎架構實現了這一目標，這使平台無需額外人員即可擴展。我們效率高，並且在招聘和員工人數方面保持審慎。我們的重點仍然是在關鍵職位上僱用最優秀的人才並為其賦權，這也在最近的收購交易和併購戰略中發揮了作用。

We are building a team of best-in-class builders, doctors, designers, founders, engineers, and pet lovers. Our vision is the special forces as opposed to a broadly talented navy. In addition to building a great business, we are also passionate about building a great company, and that can only be done by fostering a strong culture and dedication towards our customers and our community.

我們正在打造一支由一流的建築商、醫生、設計師、創始人、工程師和寵物愛好者組成的團隊。我們的願景是特種部隊，而不是一支才華橫溢的海軍。除了建立一個偉大的企業，我們還熱衷於建立一個偉大的公司，而這只能通過培養強大的文化和對我們的客戶和社區的奉獻來實現。

In '22, we have already begun to bring focus and accountability to our ESG efforts. We are measuring, managing, and reporting on some of our key diversity, equity, and inclusion metrics and priorities, which we look forward to sharing with you in our upcoming 10-K.

在 22 年，我們已經開始將重點放在我們的 ESG 工作中並承擔責任。我們正在衡量、管理和報告我們的一些關鍵多樣性、公平性和包容性指標和優先事項，我們期待在即將到來的 10-K 中與您分享。

Moving to our guidance for '23. As Garrett mentioned, we are very pleased with the strong performance we saw during the fourth quarter and the year. As a result, we are raising our full year '23 guidance that we previously included in our April '22 investor deck.

轉到我們的 23 年指南。正如加勒特所提到的，我們對第四季度和全年的強勁表現感到非常滿意。因此，我們正在提高我們之前包含在 22 年 4 月投資者平台中的 23 年全年指導。

For the full year '23, we now expect total revenue in the range of $75 million to $77 million, an increase of 37% to 40% year over year and a 7% improvement versus our prior forecast at the midpoint of the range. This forecast builds on our strong results in '22 while retaining an appropriate level of conservatism as we continue to face a very dynamic backdrop.

對於 23 年全年，我們現在預計總收入在 7500 萬美元至 7700 萬美元之間，同比增長 37% 至 40%，比我們之前在該範圍中點的預測提高 7%。這一預測建立在我們在 22 年取得的強勁業績的基礎上，同時在我們繼續面對非常動態的背景時保持適當的保守主義水平。

Adjusted EBITDA loss in the range of $0 million to $2 million, a 91% improvement versus our prior forecast at the midpoint of the range. This range contains multiple levers, including sales and marketing spend, product development and expansion, and pricing power.

調整後的 EBITDA 損失在 000 萬美元至 200 萬美元之間，比我們之前在該範圍中點的預測提高了 91%。該範圍包含多個槓桿，包括銷售和營銷支出、產品開發和擴展以及定價能力。

Our financial guidance includes the following assumptions. The White House plans to terminate on May 11, both the public and -- public health and national emergencies declared in response to COVID pandemic as stated on January 30, '23. Continued trend in return to office as measured by the Kastle back-to-work meter.

我們的財務指導包括以下假設。白宮計劃於 5 月 11 日終止 23 年 1 月 30 日宣布的針對 COVID 大流行而宣布的公共和公共衛生和國家緊急情況。根據 Kastle 重返工作表衡量的重返辦公室的持續趨勢。

The accretive impact from the acquisition of Dog Food Advisor in January '23, which we expect will contribute $3 million of revenue and $1.5 million of positive adjusted EBITDA in '23. Continued acceleration in wellness, including new ventures, expansion into additional markets, testing and bundling of Wag Premium offers, and improved marketing efficiency.

23 年 1 月收購 Dog Food Advisor 的增值影響，我們預計這將在 23 年貢獻 300 萬美元的收入和 150 萬美元的正調整 EBITDA。健康領域的持續加速發展，包括新企業、向更多市場的擴張、Wag Premium 產品的測試和捆綁，以及提高營銷效率。

In summary, as illustrated by our strong Q4 '22 and full year '22 results, we have been, and are currently, experiencing demand in the face of a very dynamic backdrop. Our ability to execute on that demand, achieve results above our previously announced plan, focus on operational excellence, and integrate and operate well-thought-out enterprises through M&A, is a testament to our business strategy for '22 and for the future.

總而言之，正如我們強勁的 22 年第四季度和 22 年全年業績所示，面對非常動態的背景，我們已經並且目前正在經歷需求。我們有能力執行該需求，取得超出我們先前宣布的計劃的結果，專注於卓越運營，並通過併購整合和運營經過深思熟慮的企業，這證明了我們 22 世紀和未來的業務戰略。

And with that, we now welcome Q&A.

因此，我們現在歡迎問答。

(Operator Instructions) Tom White, D.A. Davidson & Company.

（操作員說明）Tom White，D.A.戴維森公司。

Great. Thanks, guys, for taking my questions. Nice results in the quarter. A couple of questions, if I could. I guess, just first on Wag! Premium penetration. I think you've exceeded kind of that long-term target you first talked about. So I guess, when you guys refer to testing and bundling, is that more about sort of extracting maximum revenue from this group of premium pet parents, if you will, that have already signed up and that are willing to accept the price increases? Or is it more about introducing new bundles to maybe maximize the penetration and come up with offerings that appeal to a broader swath of pet parents? And then I have a quick follow-up.

偉大的。謝謝你們回答我的問題。本季度業績不錯。幾個問題，如果可以的話。我想，只是首先在 Wag 上！溢價滲透。我認為你已經超出了你第一次談到的那個長期目標。所以我想，當你們提到測試和捆綁時，更多的是從這群已經註冊並願意接受價格上漲的優質寵物父母那裡獲取最大收入嗎？或者更多的是引入新的捆綁包以最大化滲透率並提供吸引更廣泛寵物父母的產品？然後我有一個快速跟進。

Hey, Tom. Thanks for the question. Yeah. So I would say the primary motivation at the $14.99 price point is funding the (technical difficulty) to price ultimately, the right price for the current bundle of Wag! Premium. That said, we're going to continue to test price and different bundling combinations that might be priced lower or higher. $14.99 was just the optimal, given the current benefits.

嘿，湯姆。謝謝你的問題。是的。所以我想說 14.99 美元價格點的主要動機是資助（技術困難）最終定價，當前 Wag 捆綁包的正確價格！優質的。也就是說，我們將繼續測試價格和可能定價更低或更高的不同捆綁組合。考慮到當前的收益，14.99 美元是最優的。

Okay. Great. And then, Garrett, I was hoping maybe you give us an update on the overnight stay part of your business. I think you touched on it briefly in the prepared remarks, but curious how that's been performing? Obviously, a lot of the earnings results we've heard from the OTAs and stuff suggest that consumer travel, that recovery has been very robust.

好的。偉大的。然後，加勒特，我希望你能向我們介紹一下你業務中的過夜住宿部分的最新情況。我想你在準備好的評論中簡要提到了它，但好奇它的表現如何？顯然，我們從 OTA 和其他方面聽到的很多收益結果表明，消費者旅行的複蘇非常強勁。

But just curious how do you guys think about overnight stay as a compelling opportunity, maybe an opportunity for you guys to increase your share there? I know it's not been a -- historically, necessarily a huge part of -- a huge focus of you guys. But I saw that Browse & Book feature, which would maybe seem to appeal to pet parents who are contemplating a longer stay. Maybe just comment on that opportunity around overnight stays.

但很好奇你們如何看待過夜是一個令人信服的機會，也許是你們增加在那裡的份額的機會？我知道這不是——從歷史上看，不一定是——你們的一個巨大關注點。但我看到了“瀏覽和預訂”功能，這似乎對考慮長期逗留的寵物父母很有吸引力。也許只是對過夜的機會發表評論。

Absolutely. And again, thanks, Tom. Great to hear from you. Taking a step back, look, we aim to be the premium pet platform for the premium pet parent, right? So that means solving their needs whether it's overnight care, and that's sitting and boarding. Drop-ins, which, as a reminder, we launched 20, 30, and 60 minute drop-ins in totality across the US in 2022, which are really great for cats and non-dog, even sometimes senior pups.

絕對地。再次感謝湯姆。很高興聽到你的消息。退一步看，我們的目標是成為優質寵物父母的優質寵物平台，對吧？因此，這意味著要解決他們的需求，無論是夜間護理，還是坐著和寄宿。 Drop-ins，作為提醒，我們在 2022 年在美國推出了 20、30 和 60 分鐘的 drop-ins，這對貓和非狗來說真的很棒，有時甚至是老年幼犬。

So we really do like the overnight business. I think you saw with Browse & Book, which is a great mention, which is gated behind premium in some cases as a way for pet parents to discover great local pros in their neighborhoods and actually message them ahead of submitting a request (technical difficulty) bag, as well as our Wag! Neighborhood Network pages.

所以我們真的很喜歡隔夜生意。我想你看到了 Browse & Book，這是一個很好的提及，在某些情況下，它被限制在 premium 之後，作為寵物父母在他們的社區發現優秀的本地專業人士並在提交請求之前實際向他們發送消息的一種方式（技術難度）包，還有我們的 Wag！鄰里網絡頁面。

So we're going to continue to build tools to enable great sitting and (technical difficulty) business, and (technical difficulty) to it in the last few minutes was certainly a healthy sitting and boarding time for the business as it usually is in Q4, particularly driven by incremental travel, longer stays, and unfortunately, due to a lot of just functional flight cancellations, believe or not. I think you all saw the Southwest news. So yeah, it's such a great feat and I think we'll continue to lean in.

因此，我們將繼續構建工具以實現良好的坐姿和（技術難度）業務，並且（技術難度）在最後幾分鐘對企業來說肯定是一個健康的坐姿和登機時間，因為它通常在第四季度，特別是由於增量旅行、更長的停留時間以及不幸的是，由於大量功能性航班取消，信不信由你。我想你們都看到了西南新聞。所以，是的，這是一個偉大的壯舉，我認為我們會繼續努力。

Great. Thank you.

偉大的。謝謝。

Matt Koranda, Roth MKM.

馬特·科蘭達 (Matt Koranda)、羅斯·MKM。

Hey, guys, good afternoon. Just curious if you could maybe touch on platform participation trends and the number of platform participants quarter over quarter. Anything you saw in terms of churn as you raise price with the $14.99 tier? Maybe if you could also just clarify when that was implemented and how far along you are in terms of that implementation on the tiered pricing?

嘿，伙計們，下午好。只是好奇您是否可以談談平台參與趨勢和平台參與者的季度數量。當您以 14.99 美元的等級提高價格時，您是否看到任何關於客戶流失的情況？也許你也可以澄清一下它是什麼時候實施的，以及你在分層定價的實施方面走了多遠？

Yeah. So the way to think about it -- and again, great, thanks for the question, Matt. Appreciate the time. Taking a step back, usually, we expect to see some degree of what we call, seasonality, in Q4 as a function of the services business, transitioning from what we call, high-frequency services, things like daytime walking and drop-ins to longer duration overnight stays or drop-ins. And that's certainly what we saw in this quarter. And we'll probably -- I don't know for sure; we'll see what the trend looks like this year, but I'm assuming that it will be a consistent trend in our business.

是的。所以思考它的方式——再一次，太好了，謝謝你的問題，馬特。珍惜時光。退後一步，通常，我們希望在第四季度看到某種程度的我們所說的季節性，作為服務業務的一個功能，從我們所說的高頻服務，如白天步行和臨時服務轉變為持續時間更長的過夜住宿或臨時住所。這肯定是我們在本季度看到的。我們可能會——我不確定；我們會看到今年的趨勢如何，但我假設這將是我們業務的一貫趨勢。

We raised premium pricing throughout Q4 only for net new subs. So it did not affect existing subscribers, it's really important to [couple out]. And what that means is premium trends should stay pretty resilient as a result. And what we're really doing, to Adam's point earlier, is focused on making sure we're maximizing the value we provide and the price we can then capture from net new pet parents. And we've discovered that that adds actually about 50% higher, especially on a monthly basis. So it didn't affect existing subscribers, it only affects net new subs. I'll pause [if you have any other questions]?

我們在整個第四季度僅針對淨新用戶提高了溢價。所以它不會影響現有的訂閱者，[耦合]真的很重要。這意味著高端趨勢應該因此保持相當的彈性。根據 Adam 之前的觀點，我們真正在做的是確保我們提供的價值最大化，然後我們可以從淨新寵物父母那裡獲得的價格。我們發現這實際上增加了大約 50%，尤其是按月計算。所以它不會影響現有訂閱者，只會影響淨新訂閱者。我會暫停 [如果您有任何其他問題]？

Okay. That's very helpful clarification there. So thanks for that, Garrett. And then I guess just in terms of the '23 outlook, wanted to see if you guys could clarify or help us understand services versus wellness and the outlook there? It was helpful to have Dog Food Advisor broken out, so appreciate that. But just any further breakdown of the services versus wellness growth outlook?

好的。這是非常有幫助的澄清。所以謝謝你，加勒特。然後我想就 23 年的前景而言，想看看你們是否可以澄清或幫助我們理解服務與健康以及那裡的前景？讓狗糧顧問脫穎而出很有幫助，非常感謝。但服務與健康增長前景的進一步細分？

And then any help on just sort of the contribution from pharmacy as well, and I noticed that wasn't necessarily in the -- broken out, either. So just help on that would be great.

然後任何幫助也只是來自藥房的貢獻，我注意到這也不一定是 - 爆發，要么。因此，只要對此提供幫助就太好了。

Yeah, a lot of great questions. I'll do my best to parse on that. So I think Q4 is probably a pretty healthy indicator of future mix frankly. We're really excited about the wellness business. We have great leadership there, a phenomenal team in place, and just generally, incredible things happening there as you can see in Q4. Again, we're leaning at all parts of the business. And what we're really trying to do is just maximize our ability to recycle capital efficiently in our tight timescale. And so wellness has demonstrated.

是的，很多很好的問題。我會盡力對此進行解析。因此，坦率地說，我認為第四季度可能是未來組合的一個非常健康的指標。我們對健康業務感到非常興奮。我們在那裡有很好的領導，一支出色的團隊，總的來說，正如你在第四季度所看到的那樣，那裡發生了令人難以置信的事情。同樣，我們正在關注業務的所有部分。而我們真正想做的只是最大限度地提高我們在緊迫的時間範圍內有效回收資本的能力。因此，健康已經得到證明。

First, if you really think about it as an optionality, something we're excited to test to get integrated, we think has a real future potential within the business. But again, that is a California specific pharmacy and compounding business that's working directly with vet clinics and pet parents. You'll see us, in Q4, we experimented with some customer offers. We're scaling into more vet clinics and building new relationships. You'll probably continue to see us do that. But it's not a material part of the wellness's revenue today.

首先，如果你真的認為它是一種可選性，我們很高興測試它以實現集成，我們認為它在業務中具有真正的未來潛力。但同樣，這是一家加州特定的藥房和復合企業，直接與獸醫診所和寵物父母合作。你會看到我們，在第四季度，我們嘗試了一些客戶優惠。我們正在擴大到更多的獸醫診所並建立新的關係。您可能會繼續看到我們這樣做。但它並不是今天健康收入的重要組成部分。

Okay. Very helpful. I'll jump back in queue, guys. Thanks.

好的。很有幫助。伙計們，我會跳回到隊列中。謝謝。

Jeremy Hamblin, Craig-Hallum.

傑里米·漢布林、克雷格-哈勒姆。

Thanks, and congrats on the momentum in the business. I wanted to just first talk about seasonality a little bit in terms of platform participation in Q4 versus typical expectation you have to start the year. Certainly, getting some great indicators with the Kastle return-to-work barometer that you are getting more and more people back in the office. Wanted to get a sense for how you expect that to impact your business? I'm assuming that's more for the services segment. But also wanted to get a sense for what you are seeing on your wellness platform and whether or not growth there is being driven more by engagement on the insurance marketplace or if that's coming a little bit more from the other portions of that segment?

謝謝，並祝賀業務的發展勢頭。我想先從第四季度的平台參與度與你必須在年初開始的典型預期來談談季節性。當然，通過 Kastle 重返工作晴雨表獲得一些很好的指標，表明越來越多的人回到辦公室。想了解您期望這將如何影響您的業務？我假設這對服務部門來說更多。但也想了解您在健康平台上看到的內容，以及保險市場的參與是否更多地推動了增長，或者是否更多地來自該細分市場的其他部分？

I'll take this one. Jeremy, always treat. [And so hopefully, everyone sees what I did there].

我要這個。傑里米，總是請客。 [希望每個人都能看到我在那裡做了什麼]。

Okay. In terms of seasonality, again, I think we generally expect Q4 to be a unique time period for the business, where our services platform participants specifically transition from high-frequency daytime to more overnight. I don't think that will be unique to this year or anything else.

好的。就季節性而言，我認為我們通常預計第四季度將是業務的獨特時間段，我們的服務平台參與者特別從高頻白天過渡到更晚的時間。我不認為這將是今年或其他任何事情所獨有的。

I would say that yeah, the Kastle back-to-work barometer is a great indication. We mentioned that a few times in the past about how services are (technical difficulty) pet parents are thinking about their pets. As people return to office, they start thinking about more than just leaving their pet, they think about (technical difficulty), their pet's wellbeing, talking to the vet, maybe buying insurance, maybe needing their pets RX, and things delivered instead of picking it up, (technical difficulty). And certainly, we think that Kastle and the go-forward trend is the reason why we updated guidance, frankly, from our original forecast. And I think you're seeing it with Amazon, Disney, and everyone else.

我會說是的，Kastle 重返工作晴雨表是一個很好的指標。我們過去曾多次提到寵物父母對寵物的服務（技術難度）是如何考慮的。當人們回到辦公室時，他們開始考慮的不僅僅是離開他們的寵物，他們考慮的是（技術困難）、他們寵物的健康、與獸醫交談、可能購買保險、可能需要他們的寵物 RX，以及交付的東西而不是挑選它起來，（技術難度）。當然，我們認為 Kastle 和前進趨勢是我們更新指南的原因，坦率地說，我們最初的預測。我認為你正在亞馬遜、迪士尼和其他所有人身上看到它。

Okay. So that's first question. I think the second one was wellness growth. We're talking about all facets of wellness, frankly. We love the ability for pet parents to communicate directly with pet experts. We love that they can compare insurance quotes, we love that they can look through reviews for great pet insurance companies. There's a ton of great value adds in our wellness category.

好的。這是第一個問題。我認為第二個是健康成長。坦率地說，我們談論的是健康的方方面面。我們喜歡寵物父母直接與寵物專家交流的能力。我們喜歡他們可以比較保險報價，我們喜歡他們可以瀏覽優秀寵物保險公司的評論。我們的健康類別中有大量附加值。

But I generally think the two plays you'll see us really doubling down this year are going to continue to be pet parent's ability to compare and read and review pet insurance options. That seems to be a no-brainer in terms of the value it provides to pet parents. And two is their ability to shop and receive compound RX and other prescription meds directly at the doorstep from their vet in a really simple way. But those two things seem to be a great lever for us and the things that pet parents really want to drive forward.

但我總的來說認為你會看到我們今年真正翻倍的兩部劇將繼續成為寵物父母比較、閱讀和審查寵物保險選項的能力。就它為寵物父母提供的價值而言，這似乎是顯而易見的。二是他們能夠以非常簡單的方式直接在獸醫家門口購買和接收復合 RX 和其他處方藥。但這兩件事似乎對我們來說是一個很好的槓桿，也是寵物父母真正想要推動的事情。

Okay. Got it. And then there was a notable -- regarding your employee headcount, you have seen a little bit of a step-up here in your G&A cost. And so I wanted to get a sense for what we saw here in Q4, if that's more of a new baseline? You brought in obviously some people from transactions, Furmacy, you're going to add in some -- possibly some staff from DFA acquisition as well. But just wanted to get a sense for where your baseline is on that. If Q4 is somewhat reflected or if there is anything unique specific to that step up in your G&A?

好的。知道了。然後有一個值得注意的 - 關於你的員工人數，你已經看到你的 G＆A 成本有所增加。所以我想了解一下我們在第四季度在這裡看到的情況，如果這更像是一個新的基線？你顯然從交易中引進了一些人，Furmacy，你將添加一些 - 可能還有一些來自 DFA 收購的員工。但只是想了解您的基線在哪裡。 Q4 是否有所反映，或者您的 G&A 中是否有任何特定於該步驟的獨特之處？

No, I think Q4 is probably a helpful baseline. And look, I think in the way we think about the business, Jeremy, at this point in 2023 is just where do we -- where are we going to be investing incremental dollars to maximize output. I think that's functionally our job, obviously. But really, it's headcount, sales and marketing, possibly M&A. But I think Q4 is a pretty good indication of G&A trends. There might be other opportunities that would be surprising, and I would share with you if that was more M&A or things like that, but I don't expect that. No surprises. So again, I think Q4 is a good baseline for the future.

不，我認為第四季度可能是一個有用的基線。看，我認為我們考慮業務的方式，傑里米，在 2023 年的這個時候，我們將在哪裡 - 我們將在哪裡投資增量美元以最大化產出。我認為這顯然是我們的工作。但實際上，這是員工人數、銷售和營銷，可能還有併購。但我認為第四季度很好地表明了 G&A 趨勢。可能還有其他令人驚訝的機會，如果那是更多的併購或類似的事情，我會與你分享，但我不希望那樣。沒有驚喜。因此，我再次認為第四季度是未來的一個很好的基線。

Okay. And then last one for me. In terms of what you're seeing from key competition, whether it's the kind of dollars being spent to attract new customers or whether it's competition for the existing set, what are you seeing out there from some of your peers? You had a slight step down in your CAC in the quarter or your LTV to CAC. Do you have -- is that more a reflection of the value is slightly [stepped] down or more that the cost to acquire customers is up a little bit?

好的。然後最後一個給我。就您從主要競爭中看到的情況而言，無論是用於吸引新客戶的資金類型，還是對現有產品的競爭，您從一些同行那裡看到了什麼？您在本季度的 CAC 或 LTV 到 CAC 略有下降。您是否有 - 是更多地反映了價值略有下降，還是更多地反映了獲取客戶的成本有所上升？

It was more our willingness to participate knowing where we were. And so again, I think I originally said was we want to target 3 to 1, we're -- 6, 7 to 1. I think the trend is really good in terms of LTV to CAC. We're recycling these customers really quickly and they're paying themselves back really quickly and efficiently.

更多的是我們願意參與，知道我們在哪裡。再一次，我想我最初說的是我們想要 3 比 1 的目標，我們是 - 6、7 比 1。我認為就 LTV 到 CAC 而言，趨勢非常好。我們正在快速回收這些客戶，他們正在快速有效地回報自己。

I can't speak a ton for our competitors. I think generally last year, Jeremy, we said that we think this year there will be a huge opportunity to be really thoughtful about marketing. We thought this would be a [cooling] of D2C companies and brands, who will have to pull back pretty significantly as interest rates rose, as the networks functionally change, whether that was Facebook or Apple, and we're seeing that.

我不能為我們的競爭對手多說。我認為去年，傑里米，我們說過，我們認為今年將有一個巨大的機會來真正深思熟慮營銷。我們認為這將是 D2C 公司和品牌的 [降溫]，隨著利率上升，網絡功能發生變化，無論是 Facebook 還是 Apple，他們都將不得不大幅撤退，我們正在看到這一點。

We're really good at marketing, frankly, we're really good at partnerships. We're really good at -- really just building relationships with customers, and we'll continue to do that. If anything, we've seen it be a bit less. I wouldn't say competitive, but a bit less noise in the marketplace. And again, we're just going to be really disciplined with the dollars we allocate.

我們真的很擅長營銷，坦率地說，我們真的很擅長合作。我們真的很擅長——真的只是與客戶建立關係，我們將繼續這樣做。如果有的話，我們已經看到它少了一點。我不會說有競爭力，但市場上的噪音會少一些。再一次，我們將真正嚴格地分配我們分配的美元。

Got it. Last one. We didn't talk as much on this call on your pet caregivers and you've experimented in terms of the fee charged to join the platform. Is that reflecting that you feel like you're getting closer to finding that right price point to have PCGs join the platform? Or any color you can share on that. Thanks.

知道了。最後一個。在這次電話會議上，我們沒有過多地談論您的寵物護理人員，並且您已經在加入該平台的費用方面進行了試驗。這是否反映出您覺得您越來越接近找到讓 PCG 加入該平台的合適價格點？或者你可以分享的任何顏色。謝謝。

Yeah, it's really going to be continued. We're not done, to answer your question, Jeremy. We're really focused on the equilibrium in the market clearing price. It's the best gig in America, I think, right? I think the whole team thinks that. And so we're really -- we're focused on the market clearing price to become a pet caregiver in the Wag! ecosystem. And I think we'll continue to test different mechanisms to make sure the best caregivers are getting the best gigs and are rewarded accordingly. So work is far from done there.

是的，它真的會繼續下去。傑里米，我們還沒有回答你的問題。我們真正關注的是市場清算價格的均衡。我認為這是美國最好的演出，對吧？我認為整個團隊都這麼認為。所以我們真的 - 我們專注於市場清算價格，成為 Wag 的寵物護理人員！生態系統。而且我認為我們將繼續測試不同的機制，以確保最好的護理人員得到最好的工作並得到相應的獎勵。所以那裡的工作還遠未完成。

Thanks, guys. Best wishes.

多謝你們。最好的祝愿。

Jason Helfstein, Oppenheimer.

傑森赫爾夫斯坦，奧本海默。

Hey, Garrett and team. I'll ask two questions. One, Garrett, can you talk philosophically about marketing versus cash flow? Now that you've clearly shown -- to your point, you're good at marketing, you've got very nice leverage in the business over the past year, how are you thinking about leaning into marketing now going forward relative to cash flow, is it maintain breakeven cash flow and just keep leaning in to marketing? So that's -- and Garrett maybe speak on a multiyear basis, right, just beyond '23.

嘿，加勒特和團隊。我會問兩個問題。第一，加勒特，你能從哲學上談談營銷與現金流嗎？現在你已經清楚地表明——就你的觀點而言，你擅長營銷，在過去的一年裡你在業務中有很好的影響力，你如何考慮相對於現金流向前發展的營銷，它是否保持盈虧平衡現金流並繼續傾向於營銷？這就是 - 加勒特可能會在多年的基礎上發言，對，就在 23 歲之後。

And then question number two, we've seen geographically different patterns with the return to work, right, with any of the East Coast returning more than the West Coast. Can you talk about maybe like what you're seeing? And if to the extent you've already seen good data from the East Coast and the West Coast is taking longer to return to work, how you potentially can extrapolate that and how you factor that into '23 guidance?

然後是第二個問題，我們已經看到恢復工作的地域不同模式，對，東海岸的任何一個都比西海岸返回更多。你能談談你所看到的嗎？如果你已經看到東海岸和西海岸的良好數據需要更長的時間才能恢復工作，你如何推斷它以及你如何將其納入 23 年指南？

Yeah. Hey, Jason. Again, thanks for the time. Great to hear from you. Always fun to hear your voice. Look, I think this market is a very dynamic one. And so we have been intensely focused on getting to scale, one, that was the most important part. Remember, a couple of quarters ago, I think we said we were pretty early, and I think we're getting to a point of real revenue scale, hopefully happen in the back half of this year.

是的。嘿，傑森。再次感謝您的寶貴時間。很高興聽到你的消息。聽到你的聲音總是很有趣。看，我認為這個市場是一個非常有活力的市場。因此，我們一直專注於擴大規模，這是最重要的部分。請記住，幾個季度前，我認為我們說我們還很早，我認為我們正在達到實際收入規模的地步，希望在今年下半年發生。

And so what we're then focused on is just making sure we're investing incremental dollars profitably into the platform. So I don't think this business is in a position anytime soon to be just pumping out dollars functionally, there's too much opportunity ahead. We're really going to continue to lean in thoughtfully. But I don't think that's going to be at a significant cost basis to our shareholders. So I've answered your first one.

因此，我們接下來關注的只是確保我們在平台上投入可盈利的增量資金。所以我認為這項業務不會很快就在功能上抽出美元，未來有太多機會。我們真的會繼續深思熟慮。但我認為這不會對我們的股東造成重大成本影響。所以我已經回答了你的第一個問題。

The second one in terms of geography, look, the Kastle back-to-work barometer is a great indication for what you're seeing with pet parent trends generally. And as you think about it, I think we were at 50%-ish earlier this month or in January. But the biggest markets are lagging the average, LA, SF, New York City, et cetera. So pretty far behind if you look at Florida, parts of Florida, and Texas, they're way more open.

第二個在地理方面，看，Kastle 重返工作晴雨表很好地表明了你所看到的寵物父母趨勢。正如你所想的那樣，我認為我們在本月早些時候或 1 月達到了 50% 左右。但最大的市場落後於平均水平，如洛杉磯、舊金山、紐約市等。如果你看看佛羅里達州、佛羅里達州的部分地區和得克薩斯州，就會遠遠落後，它們要開放得多。

So we think there's kind of outsized room to return to normal in the upside case. And I don't think we're certainly planning for that, but that would be certainly where the opportunity would be, is in these larger markets, which are significantly lagging if they were to have a real return to normal, that'd be great. So I think that the trend is generally similar to what you're seeing on back to office in terms of capital.

因此，我們認為在上行情況下有很大的空間可以恢復正常。而且我不認為我們肯定會為此做計劃，但這肯定是機會所在，在這些更大的市場中，如果他們要真正恢復正常，這些市場就會明顯滯後，那就是偉大的。所以我認為，就資本而言，這種趨勢與你在辦公室看到的情況大體相似。

Thank you.

謝謝。

Brian Dobson, Chardan Capital Markets.

Chardan 資本市場的 Brian Dobson。

Hey, thanks so much for taking my question. So I guess to return to the subscription service, it's pretty impressive that you see pricing power in that monthly product. I suppose, what kind of lifetime value are you seeing with your current subscribers? And do you think you'll experience the same retention rate at that higher pricing level?

嘿，非常感謝你提出我的問題。所以我想回到訂閱服務，令人印象深刻的是，您看到該月度產品的定價能力。我想，您認為當前訂閱者的生命週期價值是多少？你認為你會在更高的定價水平上體驗到相同的保留率嗎？

Yeah. So we've been really thoughtful -- and again, great to hear from you, Brian. We've been really thoughtful about premium from the start. One thing I would remind us, Brian, is that we are significantly ahead of where we thought we'd be with Premium penetration. I think our long-term goal was something like 50%, we got there a couple of years early.

是的。所以我們真的很周到——再一次，很高興收到你的來信，布賴恩。我們從一開始就非常考慮溢價。布賴恩，我要提醒我們的一件事是，我們的高級滲透率遠遠超過了我們認為的水平。我認為我們的長期目標大約是 50%，我們提前幾年達到了目標。

And I think there's a couple of reasons for that. One is we've added so much value to that subscription since we started that it's just -- we're really just catching up in terms of pricing. And two is we're really rapidly experimenting with the benefit that you get as a Wag! Premium pet parent. And it's just a really delightful experience.

我認為這有幾個原因。一是自從我們開始以來，我們已經為該訂閱增加了很多價值——我們真的只是在定價方面迎頭趕上。第二，我們正在快速試驗您作為 Wag 獲得的好處！高級寵物父母。這是一次非常愉快的體驗。

So I think the best way to think about LTV and dollars captured for the pet parent is revenue into platform participants and what we've been capturing. But you saw, I think in the LTV graphs we published in our deck last year, each cohort of pet parents outperforming the previous. That's generally our goal as operators and builders and engineers and product aficionados, is really just to increase the dollars we capture from the pet parents that are participating.

因此，我認為考慮 LTV 和為寵物父母獲取的美元的最佳方式是平台參與者的收入以及我們一直在獲取的收入。但是你看到了，我認為在我們去年發布的 LTV 圖表中，每一組寵物父母的表現都優於前一組。作為運營商、建設者、工程師和產品愛好者，這通常是我們的目標，實際上只是為了增加我們從參與的寵物父母那裡獲得的收入。

So I don't think we would do this if we thought it was going to be a drag coefficient, frankly. If anything, we actually think it's going to be a tailwind. Did I answer your question?

所以坦率地說，如果我們認為這將是一個阻力係數，我認為我們不會這樣做。如果有的話，我們實際上認為這將是順風。我回答你的問題了嗎？

Yeah, absolutely. And then I guess turning over to Dog Food Advisor, it's great to see that accrete in year one. I guess what are some of the cross-selling -- what is the cross-selling avenue that you're most excited about when you're looking into like, call it 2023 and 2024?

是的，絕對。然後我想轉向狗糧顧問，很高興看到第一年的增長。我想有哪些交叉銷售 - 當您研究時，您最興奮的交叉銷售途徑是什麼，稱之為 2023 年和 2024 年？

Yeah. Thank you. We love that business, and huge shout-out to the founder, Dr. Mike Sagman, who built it over the last 14 years. He's just done a tremendous job. And we're really excited about taking on an opportunity to continue to serve millions of pet parents who were looking for great real recommendations on pet food.

是的。謝謝。我們熱愛這項業務，並向在過去 14 年中創建它的創始人 Mike Sagman 博士大聲疾呼。他剛剛做了一件了不起的工作。我們真的很高興有機會繼續為數百萬尋求寵物食品真實推薦的寵物父母提供服務。

So first and foremost, if you think about pet parents, every single person who owns a pet has one thing in common, they got to feed it. And so the idea that we now have Dog Food Advisor, which we believe is really the premium number one pet food recommendation engine on the web, we could tie that really nicely into our own ecosystem. We can get really intelligent offers in front of our own services pet parents. Pet parents might be buying pet insurance at the right time. People are talking to a vet through the platform. There's a lot of levers in terms of how we get thoughtful about personalized recommendations.

所以首先，如果你想到寵物父母，每個擁有寵物的人都有一個共同點，那就是他們必須餵養牠。因此，我們現在擁有 Dog Food Advisor 的想法，我們相信它確實是網絡上排名第一的高級寵物食品推薦引擎，我們可以將其很好地融入我們自己的生態系統。我們可以在我們自己的服務寵物父母面前獲得真正智能的報價。寵物父母可能會在正確的時間購買寵物保險。人們正在通過該平台與獸醫交談。就我們如何考慮個性化推薦而言，有很多槓桿。

And then two, on the other side of things, when you're thinking about food and you're purchasing food maybe for the first time, there's a bunch of levers then to go back and upsell things like services or finding the perfect pet insurance plan. So we just have a lot of great synergies. We're not going to rush it. You know these things are sensitive, you got to do it right, especially at this scale and age. But we're very, very excited about having something that's so evergreen for the parents.

然後兩個，另一方面，當你考慮食物並且你可能是第一次購買食物時，有很多槓桿然後可以回去追加銷售諸如服務或尋找完美的寵物保險之類的東西計劃。所以我們有很多很好的協同作用。我們不會倉促行事。你知道這些事情很敏感，你必須做對，尤其是在這個規模和年齡。但我們非常、非常興奮能擁有對父母來說如此經久不衰的東西。

Great. Thanks. And congratulations on a very good quarter.

偉大的。謝謝。祝賀一個非常好的季度。

And thank you. And I'm showing no further questions. This concludes today's conference call. Thank you for participating. You may now disconnect.

謝謝你。我沒有再提出任何問題。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。