Wag! Group Co (PET) 2023 Q4 法說會逐字稿

Greetings. Welcome to the Wag! Q4 2023 earnings conference call. (Operator instructions) Please note this conference is being recorded.

問候。歡迎來到瓦格！2023 年第四季財報電話會議。（操作員說明）請注意，本次會議正在錄製中。

I will now turn the conference over to your host, Garrett Smallwood, Chief Executive Officer and Chairman. You may begin.

現在我將會議交給東道主執行長兼董事長加勒特·斯莫伍德 (Garrett Smallwood)。你可以開始了。

Good afternoon, everyone, and thank you for joining 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.

大家下午好，感謝您加入 Wag!'s電話會議討論我們第四季和 2023 年全年財務表現。今天參加電話會議的是執行長兼董事長 Garrett Smallwood； Adam Storm，總裁兼首席產品長；和財務長亞歷克·戴維安 (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 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.

在我們開始之前，請注意今天的評論包含前瞻性陳述。這些前瞻性陳述存在風險和不確定性，並涉及可能導致實際結果與此類陳述明示或暗示的結果有重大差異的因素。對這些風險和不確定性的討論包含在我們今天發布的財報和向 SEC 提交的文件中，包括我們即將發布的截至 2023 年 12 月 31 日的年度 10-K。

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.

我們也提醒您，我們沒有義務更新本次電話會議所包含的資訊。這些陳述僅應被視為估計，並不是未來績效的保證。

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.

此外，在電話會議中，我們也介紹了公認會計準則和非公認會計準則的財務指標。在今天的收益報告中提供了與最直接可比較的公認會計準則財務指標的對帳。這些非公認會計準則衡量標準無意取代我們的公認會計準則結果。

Lastly, you can find our earnings release and earnings presentation posted on the Investor Relations page of our website.

最後，您可以在我們網站的投資者關係頁面上找到我們發布的收益報告和收益介紹。

And with that, I'll now turn the call over to Garrett Smallwood.

現在，我將把電話轉給加勒特·斯莫爾伍德。

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'll 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.

下午好，感謝您今天加入我們討論我們 2023 年第四季和全年的財務業績，並為 2024 財年提供指導。首先，我將簡要概述我們第四季的財務業績，並討論我們的 2024 年計畫。隨後，我們的總裁兼首席產品長 Adam 將分享我們 2024 年及以後的策略計畫和關鍵舉措的最新情況。然後，我們的財務長 Alec 將對我們的第四季度和 2023 年全年業績進行更詳細的分析，討論我們的資本配置優先事項，並分享我們的 2024 年指導。

We're 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.

我們很高興地宣布 Wag 又一個成功的季度！我們的團隊符合我們對收入和調整後 EBITDA 的預期，這導致我們 2023 財年收入範圍的高端和調整後 EBITDA 範圍的中點。該季度營收年增 27% 至 2,170 萬美元，創下季度新紀錄。這一增長是由我們健康業務的成功推動的，而寵物家長對寵物保險和健康產品的需求也推動了這一增長。此外，我們看到 maxbone 在服務領域取得成功的早期跡象，這透過將我們在零售商中的影響力擴展到優質產品類別來驗證我們的長期成長計劃。

Our adjusted EBITDA was breakeven, an increase from a loss of $0.4 million in the same period last year. As we navigated a dynamic macroeconomic landscape, our primary objective centered 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 like premium penetration remained above our 50% target.

我們調整後的 EBITDA 達到損益兩平，比去年同期的 40 萬美元虧損增加。當我們應對動態的宏觀經濟情勢時，我們的主要目標集中在實現成長、利潤和利潤率之間的可持續平衡。第四季度，平台參與者增至60萬，年增38%，保費滲透率仍高於我們50%的目標。

To summarize 2023, this was a year of operational efficiency as we demonstrated adjusted EBITDA profitability for three consecutive quarters, reaching fiscal year adjusted EBITDA profitability significantly ahead of schedule. We did this while growing revenues 53% year over year and reinvesting in the platform.

總而言之，2023 年是營運效率提升的一年，我們連續三個季度實現調整後 EBITDA 獲利能力，大幅提前​​達到財年調整後 EBITDA 獲利能力。我們在實現這一目標的同時，營收年增了 53%，並對平台進行了再投資。

A few highlights for the year include entering the pet food and treat category with our acquisition of Dog Food Advisor and the launch of Cat Food Advisor, deepening our offerings in the wellness category with our exclusive offering of Paw Protect, the only pet insurance product offering instant pay in the US and entering the premium pet essential category with the acquisition of maxbone. We couldn't be more excited about the proprietary technology, breadth of our platform, and deep relationships we have with premium households as we enter into 2024.

今年的一些亮點包括透過收購 Dog Food Advisor 進入寵物食品和零食類別並推出 Cat Food Advisor，透過我們獨家提供的 Paw Protect（唯一的寵物保險產品）深化我們在健康類別的產品在美國推出即時支付，並透過收購Maxbone 進入高端寵物必需品類別。進入 2024 年，我們對專有技術、平台的廣度以及與高端家庭的深厚關係感到無比興奮。

In 2024 and beyond, we are focused on profitable revenue growth and reaching more US households as the all-encompassing trusted partner for premium wellness, service, and products. We will do this by reinvesting free cash flow into growth, which we expect to achieve in the back half of 2024. We believe we are in our early innings on a secular growth trend in the premium wellness, service, and product categories in which we operate.

2024 年及以後，我們將專注於獲利性收入成長，並作為優質健康、服務和產品的全方位值得信賴的合作夥伴惠及更多美國家庭。我們將透過將自由現金流再投資於成長來實現這一目標，我們預計將在 2024 年下半年實現這一目標。我們相信，我們所經營的高端健康、服務和產品類別正處於長期成長趨勢的早期階段。

We are nearly overwhelmed with the opportunities ahead of us, and the resilience and strength of the premium households and service who are showing no signs of slowing down. Accordingly, we are eager to build, innovate, and acquire in order to expand the Wag! platform and deliver for our customers.

我們幾乎對眼前的機會以及優質家庭和服務的彈性和實力感到不知所措，而這些都沒有放緩的跡象。因此，我們渴望建構、創新和收購，以擴大 Wag!平台並為我們的客戶提供服務。

As of today, we are setting a path to reach more than $200 million in revenue by fiscal year 2027, which quantifies the clear demand for our platform. This translates into a year-over-year profitable growth of at least 25% for the next four years. We will do this while maintaining disciplined headcount growth to the use of AI and process automation.

截至今天，我們正在設定 2027 財年實現收入超過 2 億美元的目標，這量化了對我們平台的明確需求。這意味著未來四年利潤年增至少 25%。我們將在實現這一目標的同時，保持人工智慧和流程自動化使用的嚴格員工人數成長。

In summary, the team at Wag! continues to execute against our goals and deliver strong and sustainable growth. Our fourth-quarter and full-year results demonstrate our ability to scale our platform faster and more profitably than anticipated and show the effectiveness of our strategy and business model to become the number one platform for premium US households. Our 2024 guidance, which Alec will outline shortly, demonstrates our commitment to durable year-over-year profitable revenue growth.

總而言之，Wag! 的團隊繼續執行我們的目標並實現強勁和可持續的成長。我們的第四季和全年業績證明了我們有能力比預期更快、更有利地擴展我們的平台，並展示了我們成為美國高端家庭第一平台的策略和商業模式的有效性。Alec 很快就會概述我們的 2024 年指導，這表明我們致力於實現持續的同比盈利收入增長。

And with that, I will turn the call over to Adam to review our strategy for 2024.

接下來，我將把電話轉給 Adam，讓他審查我們的 2024 年策略。

Thanks, Garrett. I'm excited to share the three top-level elements of our strategy to drive long-term shareholder value and profitable growth in 2024 and beyond.

謝謝，加勒特。我很高興與大家分享我們推動 2024 年及以後長期股東價值和獲利成長策略的三個頂級要素。

One, best-in-class technology. As a technology company, we're excited to continue building proprietary solutions to capture the hearts and minds of our customers. We'll leverage our technology and best-in-class user experience to innovate on comparison tools for wellness products, matchmaking services for the highly fragmented pet services landscape, and white label solutions for premium partners such as Tractor Supply, Forbes, and Bright Horizons. These proprietary partnerships develop a unique and defensible moat in combination with our offerings that make Wag! a leader in the market.

一、一流的技術。作為一家科技公司，我們很高興能夠繼續建立專有解決方案來贏得客戶的青睞。我們將利用我們的技術和一流的用戶體驗來創新健康產品的比較工具、高度分散的寵物服務領域的配對服務以及為 Tractor Supply、Forbes 和 Bright Horizo​​ns 等優質合作夥伴提供的白標解決方案。這些專有合作夥伴關係與我們的產品相結合，形成了一條獨特且堅固的護城河，使 Wag!市場的領導者。

Two, platform expansion and M&A. As evidenced by our successful acquisitions and seamless integrations of Dog Food Advisor, maxbone, and Furmacy, we'll continue to pursue opportunities to expand the scope of our offerings for our customers. Our technology-first DNA allows us to move swiftly, both on the buy and the integration, increasing the return profile of the deal and delivering value for the customer.

二、平台擴張與併購。正如我們對 Dog Food Advisor、maxbone 和 Furmacy 的成功收購和無縫整合所證明的那樣，我們將繼續尋求機會擴大我們為客戶提供的產品範圍。我們以技術為先的 DNA 使我們能夠在購買和整合方面快速行動，提高交易回報並為客戶創造價值。

We are excited to announce another incredible opportunity in WoofWoofTV, one of the largest social media platforms for pet lovers, which we closed in Q4 2023. WoofWoofTV expands our reach with pet lovers with more than 18 million followers across Facebook, Instagram, TikTok, and more. WoofWoofTV provides a unique media asset that enables Wag! to develop proprietary content for Wag! on-brands and partner brands. Don't hesitate to give them a follow on Instagram or like on Facebook.

我們很高興地宣布 WoofWoofTV 提供了另一個令人難以置信的機會，這是最大的寵物愛好者社交媒體平台之一，我們已於 2023 年第四季度關閉了該平台。WoofWoofTV 擴大了我們在寵物愛好者中的影響力，在 Facebook、Instagram、TikTok 等平台上擁有超過 1800 萬粉絲。WoofWoofTV 提供了獨特的媒體資產，使 Wag!為 Wag! 開發專有內容！自有品牌和合作夥伴品牌。不要猶豫，在 Instagram 上關注他們或在 Facebook 上按讚。

Three, operational efficiency. We believe a hallmark pillar of a successful technology company is the ability to scale revenue without a corresponding increase in headcount. In 2023, we achieved a record $1 million in revenue per employee, which we expect to increase in 2024 and beyond. This was accomplished through intense focus on automation, proprietary marketplace technology that does not require significant customer service or sales headcount, and the inherent scalability of our digital products.

三、運作效率。我們認為，成功的科技公司的一個標誌性支柱是能夠在不相應增加員工人數的情況下擴大收入。2023 年，我們的每位員工收入達到創紀錄的 100 萬美元，我們預計這一數字將在 2024 年及以後增加。這是透過高度關注自動化、不需要大量客戶服務或銷售人員的專有市場技術以及我們數位產品固有的可擴展性來實現的。

As Garrett alluded to, 2023 was our year of efficiency. 2024 will set the foundation for consistent and repeatable growth for this year and beyond. This growth will be achieved by doubling down on our best-in-class technology, broad and accessible platform, seamless M&A, and intense focus on operational efficiency.

正如加勒特所提到的，2023 年是我們的效率年。 2024 年將為今年及以後的持續和可重複成長奠定基礎。這一成長將透過加倍我們一流的技術、廣泛且可訪問的平台、無縫併購以及對營運效率的高度關注來實現。

I will now turn the call over to Alec to discuss our fourth-quarter and full-year financials and 2024 forecast in more detail.

我現在將把電話轉給 Alec，更詳細地討論我們的第四季和全年財務狀況以及 2024 年預測。

Thanks, Adam. We have previously described 2023 as a year of efficiency and optimizing the business for future success, which we continue to define as consistent profitable growth. While executing to this, we have finished 2023 and Q4 strong, which are as follows.

謝謝，亞當。我們之前將 2023 年描述為效率和優化業務以實現未來成功的一年，我們繼續將其定義為持續的獲利成長。在執行這一目標的同時，我們已經強勁地完成了 2023 年和第四季度，具體情況如下。

For the full year 2023, we generated record revenues of $83.9 million, which represents 53% year-over-year growth and is at the top end of our guidance range. Record adjusted EBITDA of $0.7 million, representing the midpoint of our guidance range. And finally, record platform participants with Q4 totaling 600,000 platform participants representing 38% growth from a year ago. The meaningful growth of these three key metrics as compared to last year demonstrate the strength of our business model, strategy, and execution.

2023 年全年，我們的收入達到創紀錄的 8,390 萬美元，年增 53%，處於我們指導範圍的上限。調整後 EBITDA 創歷史新高，達到 70 萬美元，相當於我們指引範圍的中點。最後，平台參與者數量創歷史新高，第四季平台參與者總數達到 60 萬，較去年同期成長 38%。與去年相比，這三個關鍵指標的顯著成長證明了我們業務模式、策略和執行的實力。

The Q4 revenue was $21.7 million, a Q4 quarterly record, representing 27% year-over-year growth. Adjusted EBITDA breakeven. I will note this was slightly lower than our prior guidance, which is a result of post-holiday demand in conjunction with the fact we saw a significant opportunity to lean into sales and marketing in the back half of Q4, primarily in December. The opportunity was too great to not deploy capital and take advantage of the surge in consumer demand, which we expect to be recognized in Q1 2024.

第四季營收為 2,170 萬美元，創第四季季度記錄，年增 27%。調整後 EBITDA 損益平衡。我要指出的是，這略低於我們先前的指導，這是節後需求的結果，加上我們在第四季後半段（主要是 12 月）看到了轉向銷售和行銷的重大機會。這個機會太大了，不能不部署資本並利用消費者需求的激增，我們預計這一點將在 2024 年第一季得到認可。

Delving deeper into the financial results, revenue category results were as follows. Full-year services was $24.4 million, growing 12% year over year; wellness was $52.9 million, growing 60% year over year; and pet food and treats was $6.6 million. Services in 2023 include a nominal amount of e-commerce revenue from the award-winning portfolio of products on maxbone.com.

深入研究財務業績，收入類別結果如下。全年服務收入為 2,440 萬美元，較去年同期成長 12%；健康支出為 5,290 萬美元，年增 60%；寵物食品和零食為 660 萬美元。2023 年的服務包括來自 maxbone.com 屢獲殊榮的產品組合的象徵性電子商務收入。

Looking at the fourth quarter, specifically, services was $6.3 million, growing 7% from a year ago, driven by favorable fitting and boarding mix uptick. Wellness was $13.5 million, growing 21% from a year ago, driven by strong pet insurance and wellness plan demand. And finally, pet food and treats was $1.9 million. As a reminder, pet food and treats is a new revenue category we entered into at the start of 2023, encompassing Dog Food Advisor and Cat Food Advisor, which has grown 40% from Q1 to Q4.

具體來說，第四季的服務收入為 630 萬美元，比去年同期成長 7%，這得益於有利的試衣和寄宿組合的成長。在強勁的寵物保險和健康計畫需求的推動下，健康支出為 1,350 萬美元，比一年前成長 21%。最後，寵物食品和零食為 190 萬美元。提醒一下，寵物食品和零食是我們在 2023 年初進入的新收入類別，包括狗糧顧問和貓糧顧問，從第一季到第四季成長了 40%。

Our expenses annualized as a percentage of revenue illustrate operational excellence and scaling and are as follows. For the full year 2023, cost of revenue, excluding depreciation and amortization, totaled $5.5 million, representing 7% of revenue consistent with last year. In the fourth quarter, cost of revenue totaled $1.8 million, representing 8% of revenue, up from 6% a year ago. The incremental cost in 2023 were driven by maxbone product of wellness-related costs.

我們的年化支出佔收入的百分比說明了營運的卓越性和規模化，具體如下。2023 年全年，不包括折舊和攤提的收入成本總計 550 萬美元，相當於去年收入的 7%。第四季度，收入成本總計 180 萬美元，佔營收的 8%，高於一年前的 6%。2023 年的增量成本是由健康相關成本的 maxbone 產品所驅動的。

Full-year 2023 platform operations and support expense totaled $12.5 million, representing 15% of revenue versus 25% last year. In the fourth quarter, platform operations and support expense totaled $2.8 million, representing 13% of revenue down from 16% a year ago. The 10% absolute percentage point decrease year over year was achieved through the deployment of a highly efficient processes, automation, and software tools throughout 2023.

2023 年全年平台營運和支援費用總計 1,250 萬美元，佔收入的 15%，而去年為 25%。第四季度，平台營運和支援費用總計 280 萬美元，佔營收的 13%，低於去年同期的 16%。透過在 2023 年部署高效流程、自動化和軟體工具，實現了 10% 的絕對百分點同比下降。

For the full year 2023, sales and marketing expense totaled $50.5 million, representing 60% of revenue, down from 64% last year. In the fourth quarter, sales and marketing expense totaled $13.7 million, representing 63% of revenue compared to 62% a year ago. As mentioned earlier, we experienced record consumer demand post-holidays and deployed capital thoughtfully take advantage of the opportunity.

2023 年全年，銷售和行銷費用總計 5,050 萬美元，佔收入的 60%，低於去年的 64%。第四季度，銷售和行銷費用總計 1,370 萬美元，佔營收的 63%，而去年同期為 62%。如前所述，我們在節後經歷了創紀錄的消費者需求，並充分利用這一機會部署了資本。

Full-year G&A expense totaled $19.2 million, representing 23% of revenue, down from 59% last year, which did include one-time cost of going public. Fourth quarter G&A expense totaled $4.7 million, representing 22% of revenue, down from 23% a year ago. This is the outcome of revenue scale, operating leverage, and hiring discipline.

全年管理及行政費用總計 1,920 萬美元，佔營收的 23%，低於去年的 59%，其中確實包括一次性上市成本。第四季管理及行政費用總計 470 萬美元，佔營收的 22%，低於去年同期的 23%。這是收入規模、營運槓桿和招募紀律的結果。

From a balance sheet perspective, we ended the year with $28.3 million in cash, cash equivalents, and accounts receivable. This balance also reflects full cash payment of $1.25 million for WoofWoofTV that closed in December. Becoming adjusted EBITDA positive in the second half of 2023 has significantly reduced cash burn compared to last year.

從資產負債表的角度來看，我們年底的現金、現金等價物和應收帳款為 2,830 萬美元。這筆餘額也反映了 12 月關閉的 WoofWoofTV 的 125 萬美元全額現金支付。2023 年下半年調整後 EBITDA 為正，與去年相比，現金消耗顯著​​減少。

Now looking ahead to our 2024 guidance, a longer-term outlook, we expect to generate the following: revenues of $105 million to $115 million in 2024, which represents growth of 25% to 37% over 2023. Adjusted EBITDA in the range of $2 million to $6 million, representing 177% to 731% over 2023. This guide anticipates 2% to 5% adjusted EBITDA margin, together with positive free cash flow in the second half of 2024.

現在展望我們的 2024 年指引（更長期的前景），我們預計將實現以下目標：2024 年營收達到 1.05 億至 1.15 億美元，比 2023 年成長 25% 至 37%。調整後 EBITDA 在 200 萬美元至 600 萬美元之間，較 2023 年成長 177% 至 731%。本指南預計 2024 年下半年調整後 EBITDA 利潤率為 2% 至 5%，自由現金流為正。

Additionally, on the heels of a strong 2023 and expectations for 2024, we are also announcing that our Board of Directors has authorized a debt paydown of up to $10 million of principal in 2024. If the full $10 million paydown is executed, it would result in $1.6 million of cash interest payment savings on an annual basis, which directly contributes to free cash flow.

此外，繼 2023 年的強勁表現和對 2024 年的期望之後，我們也宣布，我們的董事會已授權在 2024 年償還高達 1,000 萬美元本金的債務。如果全額支付 1000 萬美元，每年將節省 160 萬美元的現金利息支付，這直接有助於自由現金流。

Looking beyond 2024, we expect an average of 25% compound revenue growth for the time periods of 2024 through 2027, assuming no meaningful change in the macroeconomic environment, with the expectation of driving towards over $200 million of revenue in 2027.

展望 2024 年後，假設宏觀經濟環境沒有重大變化，我們預期 2024 年至 2027 年期間的平均複合收入成長率將達到 25%，預計 2027 年營收將超過 2 億美元。

In summary, our strong fourth-quarter and annual results illustrate. Firstly, the strong demand and tailwinds within the pet category, which according to Morgan Stanley, is set to grow at a CAGR of 8% over 2022 to 2030, reaching a projected total of $277 billion. Secondly, management's ability to execute and drive disciplined growth, which we have achieved for seven consecutive quarters. And thirdly, confidence in the next stage of Wag!'s journey as a profitable growth company in 2024 and beyond, which we have outlined here today.

總而言之，我們強勁的第四季和年度業績就說明了這一點。首先，寵物類別的強勁需求和推動力，根據摩根士丹利的數據，2022 年至 2030 年寵物類別的複合年增長率將達到 8%，預計總額將達到 2,770 億美元。其次，管理層執行和推動有序成長的能力，我們已經連續七個季度實現了這一目標。第三，對 Wag! 下一階段的信心我們今天在此概述了 2024 年及以後成為一家獲利成長公司的旅程。

And with that, we now welcome Q&A. Operator, can you kindly open it up Q&A?

現在，我們歡迎問答。接線員，您能打開問答嗎？

(Operator instructions) Jeremy Hamblin, Craig-Hallum Capital Group.

（操作員說明）Jeremy Hamblin，Craig-Hallum Capital Group。

Thanks and congratulations on the strong results and guidance. I wanted to start with just asking a little more detail on your FY24 revenue guidance. It implies a 25% to 37% year-over-year growth. Included within that, what's the organic growth rate that's embedded within there? And that's part one.

感謝並祝賀您取得的出色成果和指導。我想先詢問有關您的 2024 財年收入指導的更多細節。這意味著同比增長 25% 至 37%。其中包含的有機成長率是多少？這是第一部分。

And then part two is on the EBITDA portion. Of the deals that you've done, whether it's WoofWoof or maxbone, what is the EBITDA contribution from acquiring those platforms that's embedded within that guidance in terms of -- my assumption would be that they are going to be a drag on EBITDA? Any clarification would be super helpful.

第二部分是 EBITDA 部分。在您完成的交易中，無論是 WoofWoof 還是 maxbone，收購嵌入該指南的這些平台對 EBITDA 的貢獻是多少——我的假設是它們將拖累 EBITDA？任何澄清都會非常有幫助。

Hey, Jeremy. It's Garrett. Great to hear from you. Thanks everyone for being here. So there are two questions, let me make sure I get them right. So in terms of our fiscal-year 2024 guidance on revenue of $105 million to $115 million, that is entirely organic and does not assume any M&A-related growth.

嘿，傑里米。是加勒特。很高興聽到你的消息。感謝大家來到這裡。所以有兩個問題，讓我確保我答對了。因此，就我們 2024 財年收入 1.05 億至 1.15 億美元的指導而言，這完全是有機的，並且不假設任何與併購相關的增長。

Second question related to EBITDA of businesses that we have acquired and integrated to our platform, just taking a step back, generally, we look at businesses that are highly efficient and have the ability to cross-sell or upsell into our existing customer base. It's part of our kind of our M&A thesis. These businesses cannot be exactly efficient on business. They also won't be kind of at scale. Frankly, that's why we acquired them. So I think about them as kind of a neutral effect on both revenue and EBIT.

第二個問題與我們收購並整合到我們平台的企業的 EBITDA 相關，退一步來說，一般來說，我們會關注那些高效且有能力向我們現有客戶群進行交叉銷售或追加銷售的企業。這是我們併購論文的一部分。這些企業的業務效率並不高。它們也不會大規模。坦白說，這就是我們收購它們的原因。因此，我認為它們對收入和息稅前利潤的影響是中性的。

I hope I answered both of your questions, Jeremy.

我希望我回答了你的兩個問題，傑里米。

Yeah, great. That's helpful. And then just in terms of -- one of the things that has been a bit tricky here as we start 2024, weathers had an impact across the country, particularly in January, whether it was kind of storms, freezing temperatures for first few weeks of January. We've also had some torrential rains on the West Coast where you guys have some exposure. I wanted to just get a sense for how that might be impacting your business? And then kind of related to that platform participation, the number of participants that you're seeing here in Q1, and kind of the typical -- a reminder, just the typical seasonality that we should expect?

很好。這很有幫助。然後，就 2024 年伊始，有一件有點棘手的事情來說，天氣對全國都有影響，尤其是 1 月份，無論是暴風雨還是 2024 年頭幾週的冰凍氣溫。一月。我們在西海岸也遭遇了一些暴雨，你們也有一些暴露的地方。我只是想了解這可能會對您的業務產生怎樣的影響？然後與平台參與有關，您在第一季看到的參與者數量，以及典型的——提醒一下，我們應該期待的典型季節性？

Yeah. Hey, Jeremy. Garrett again. Thanks for the question. There's two questions. One, how has kind of weather impacted the business. Taking a step back again, we are very fortunate to have a incredibly diverse platform business at this point. As a reminder, pet parents and households count on us for anything from pet food advice to pet treat advice to purchasing the right insurance or wellness plan in addition to daytime and overnight services. So there's certainly been some impact of weather. Nothing outside of normal, and I think it's already kind of baked in.

是的。嘿，傑里米。又是加勒特。謝謝你的提問。有兩個問題。第一，天氣對業務有何影響。再次退後一步，我們非常幸運目前擁有令人難以置信的多元化平台業務。謹此提醒，寵物父母和家庭除了提供日間和夜間服務外，還依賴我們提供從寵物食品建議、寵物零食建議到購買合適的保險或健康計劃的一切服務。所以肯定是受到了天氣的影響。沒有什麼不正常的，我認為它已經被烙印在裡面了。

One thing I'd add there, Jeremy, is January, I think, some of our strongest start to the year in the history of the business. So we are not seeing a slowdown in the consumer that we service, which is generally the premium household.

傑里米，我要補充的一件事是一月份，我認為這是我們行業歷史上最強勁的一年開局。因此，我們並沒有看到我們服務的消費者（通常是高端家庭）的成長放緩。

I think your second question was around seasonality. Generally, I would expect 2024 to trend similar to 2023 in terms of quarter-over-quarter growth and kind of mix of revenue contribution by different parts of the business. You know, Q1, Q3 versus Q2, Q4 as a function of adoptions and weather and summer and everything else should stay consistent.

我認為你的第二個問題是關於季節性的。一般來說，我預期 2024 年的季度將環比成長和不同業務部門的收入貢獻組合方面的趨勢與 2023 年類似。您知道，第一季、第三季與第二季、第四季作為採用率、天氣和夏季以及其他所有因素的函數應該保持一致。

Got it. And then in terms of the comment particular to the strongest start that you've ever seen, is that being driven like which segment are you seeing that? Is it across all three of your segments, whether it's services bookings or food and treats? Or is that being driven here by wellness and kind of pet adoption maybe being higher than expected?

知道了。然後就您所見過的最強烈的開始的評論而言，這是像您看到的哪個部分一樣受到驅動的嗎？是否涵蓋您的所有三個細分市場，無論是服務預訂還是食品和零食？還是因為健康和寵物收養的原因可能會高於預期？

I certainly think that one's right. I think we've seen just from a macro perspective, more adoptions, more premium adoptions, those premium pet parents need things like premium pet food, early pet insurance, early wellness plans and are starting to think about services. As a reminder, kind of 12, 18 weeks a little bit early for dog walks. You might be meeting a walker for the first time or considering an overnight. But it's not yet a current priority prior to Q2, Q3 thing once you've adopted your pet. That would generally, say the strength mostly in pet food, treats, insurance, wellness, and health.

我當然認為這是對的。我認為我們從宏觀角度看到，更多的收養，更多的優質收養，那些優質寵物父母需要優質寵物食品、早期寵物保險、早期健康計劃等東西，並開始考慮服務。提醒一下，12、18 週遛狗有點早。您可能是第一次見到步行者或考慮過夜。但一旦您收養了寵物，這還不是第二季、第三季之前的當前優先事項。一般來說，主要是指寵物食品、零食、保險、保健和健康方面的優勢。

Got it. Okay. And then last one for me, and I'll hop out of the queue. But in terms of the cost of revenues, obviously going to change from what your prior business model look like, kind of pre food and treats business. But how do we think about scaling that portion of your financial model as you guys move forward? I mean, I think you like your platform operations and support has been pretty remarkable. That was basically flat year over year. On revenue growth, that was up high 20s on a percent. But you're obviously going to see your COGS move higher as you have that food and treat business. But just a sense for what you're expecting on that? And then kind of within the component of your projected growth for this year, what is coming from the food and treats piece of your business?

知道了。好的。然後是我的最後一個，我會跳出隊列。但就收入成本而言，顯然會改變您之前的業務模式，即餐前和零食業務。但是，隨著你們的前進，我們如何考慮擴大你們財務模型的這一部分呢？我的意思是，我認為您喜歡您的平台運營，並且支援非常出色。這與去年同期基本持平。就營收成長而言，增幅高達 20 多個百分點。但隨著食品和零食業務的開展，你顯然會看到你的銷貨成本上升。但只是了解一下您對此的期望嗎？然後，在您今年預計成長的組成部分中，您的食品和零食業務將帶來什麼？

I'll take the cost of revenue line. It was 7% in '23. I'd expect it to be consistent in '24. That's going to be a function. The costs are a function of payment processing fees and background checks, which increase with revenue volume. There will be some scaling. It could come down to 6% as the business does scale, but it will be in that 6% to 7% region.

我將採用收入線成本。23 年為 7%。我預計 24 年會保持一致。這將是一個函數。這些成本是支付處理費和背景調查的函數，隨著收入的增加而增加。會有一些縮放。隨著業務規模的擴大，這一比例可能會下降到 6%，但會在 6% 到 7% 的範圍內。

And then, Jeremy, on the second question, in terms of pet food and treat contribution overall, we really like that category. We really like the space. I think you'll see us continue to lead in there. Alec, what did it grow -- what was 2023 growth for that business?

然後，傑里米，關於第二個問題，就寵物食品和零食貢獻而言，我們真的很喜歡這個類別。我們真的很喜歡這個空間。我想你會看到我們繼續在那裡領先。Alec，它成長了什麼——該業務 2023 年的成長是多少？

From Q1 to Q4, it grew [40%] (inaudible)

從第一季到第四季度，它增長了[40%]（聽不清楚）

So I think we're going to continue, Jeremy. I think generally, the revenue mix in '24 will look something like the revenue mix in '23, just broadly.

所以我想我們會繼續，傑里米。我認為一般來說，24 年的收入組合將與 23 年的收入組合大致相似。

Got it. Super helpful and best wishes this year.

知道了。今年超級有幫助和最美好的祝愿。

Thanks, Jeremy.

謝謝，傑里米。

Jason Helfstein, Oppenheimer.

賈森·赫夫斯坦，奧本海默。

Hey, this is Steve on for Jason. So we just have two questions. First off, how do you see the revenue mix when you reach that $200 million in revenue guidance for '27? And then secondly, how do you think about pricing or fee increases this year, if any? Thank you.

嘿，這是史蒂夫為傑森代言的。所以我們只有兩個問題。首先，當 27 年的收入指引達到 2 億美元時，您如何看待收入組合？其次，您如何看待今年的定價或費用上漲（如果有的話）？謝謝。

Hey, Steve. Great to hear from you, and thanks for being here. 2027 revenue mix, I think we've a lot of competence in all parts of the business, Steve. I certainly think we'll take advantage of the tailwinds we're seeing in the premium pet parent. Premium pet parent certainly seems to be leaning into healthy pet food and treats things like CBD, joint medicine supplements, et cetera, as well as insurance. I think insurance penetration went from 3% to 7% and expected to grow at 8% to 9% CAGR. So I think those would be the two current tailwinds I would call out. Not to say services in a great business and isn't growing nicely, but I think that is certainly been more impacted by the return to office, which has been a little bit slower. So I think we'll see how 2027 plays out as office space resumes, people's kind of mobility resumes, and the premium pet parent continues to stay resilient. But we're confident on all three of our businesses for what it's worth.

嘿，史蒂夫。很高興收到您的來信，感謝您來到這裡。 2027 年的收入組合，我認為我們在業務的各個方面都有很強的能力，史蒂夫。我當然認為我們會利用我們在優質寵物父母身上看到的順風車。優質寵物父母似乎傾向於健康寵物食品，並治療 CBD、關節藥物補充劑等以及保險等。我認為保險滲透率從 3% 上升到 7%，預計複合年增長率將成長 8% 到 9%。所以我認為這將是我目前要指出的兩個有利因素。並不是說一家偉大的企業的服務業成長不佳，但我認為這肯定受到重返辦公室的影響更大，而重返辦公室的速度有點慢。因此，我認為隨著辦公空間的恢復、人們的流動性的恢復以及優質寵物父母繼續保持彈性，我們將看到 2027 年的情況如何。但我們對我們所有三項業務的價值都充滿信心。

Your second question on pricing. Taking 10 steps back, pet caregivers on the Wag! platform set the run rates. So that's pretty nice in terms of how people manage market equilibrium in supply and demand, kind of happens organically, frankly. We don't think we'll do too much experimenting with pricing within the actual services being delivered. That's up related to the pet caregiver. In terms of pricing or things like subscription products, our telehealth product mix, or any of our new product launches, I generally think we are very aware that we have a premium pet parent who's looking for a massive amount of convenience and simplicity in their life, and they want to pay up for that. I think will cause you to flex our muscle on benefiting from price resilience as long as we're delivering the right experience.

你的第二個問題是關於定價的。退後 10 步，寵物護理人員開始搖擺！平台設定運行率。因此，就人們如何管理供需市場平衡而言，這非常好，坦白說，這是有機發生的。我們認為我們不會在實際提供的服務中對定價進行太多試驗。這與寵物護理人員有關。在定價或訂閱產品、我們的遠距醫療產品組合或任何新產品發布等方面，我通常認為我們非常清楚我們有一位優質寵物父母，他們正在尋找生活中的大量便利和簡單，他們想為此付出代價。我認為只要我們提供正確的體驗，您就會充分發揮我們的力量，從價格彈性中受益。

Great. Thank you very much.

偉大的。非常感謝。

Thanks, Dave.

謝謝，戴夫。

Matt Koranda, Roth MKM.

馬特·科蘭達，羅斯·MKM。

Hey, guys. Good afternoon. Just wanted to clarify the '24 guide. It sounded like you said sort of ratable compared to '23 in terms of mix between services, wellness, and food and treats. But just want to give the opportunity to maybe expound upon relative growth rates between those three categories?

大家好。午安.只是想澄清 '24 指南。聽起來你所說的與 23 年相比，在服務、健康、食物和款待之間的組合方面有點可評價。但只是想提供一個機會來闡述這三個類別之間的相對成長率？

Yeah. I think in '23 -- Matt, [I meant not] ignoring you. Good to see you, good to talk to you after seeing you. It's actually good to hear from you. In terms of '23, you saw our wellness group of businesses, which is purchasing penetrance, purchasing loan plans, getting advice from advisors, et cetera, grow pretty tremendously. And I think that's a function of a phenomenal product and phenomenal marketplace. And to consumer demand was just kind of unbound, frankly. I think we'll continually and aggressively in that business. It hyper efficient. It's a great marketplace of amazing product experience if you haven't tried it. Not just pet food and treats and services growth is less important, but I think you will continue to see us lean very aggressively into wellness, and services and pet food and treats will follow.

是的。我想在 23 年——馬特，[我的意思不是]忽視你。很高興見到你，很高興見到你後與你交談。很高興收到你的來信。就 23 年而言，您看到我們的健康業務部門（購買滲透率、購買貸款計劃、獲取顧問建議等）增長相當驚人。我認為這是非凡產品和非凡市場的角色。坦白說，消費者的需求是不受約束的。我認為我們將繼續積極地從事這項業務。它非常有效率。如果您還沒有嘗試過，那麼這是一個提供令人驚嘆的產品體驗的絕佳市場。不僅寵物食品、零食和服務的成長不再那麼重要，而且我認為您將繼續看到我們非常積極地向健康傾斜，服務、寵物食品和零食也將隨之而來。

Okay. That helps. And then just in terms of the, I guess, the pull through to the EBITDA outlook. When you guys talk about sort of the margin improvement that's expected year over year, I guess I would have expected with the level of revenue growth that you're projecting? So you may see a little bit more leverage. Are we reinvesting somewhere in the P&L, maybe just talk about sort of where we're leaning in? I would imagine sales and marketing is going to be a bigger line item this year. But maybe just talk about the puts and takes around where we're reinvesting dollars on the P&L in '24?

好的。這有幫助。然後，我想，就 EBITDA 前景而言。當你們談論預計逐年提高的利潤率時，我想我會預期到你們預測的收入成長水準？所以你可能會看到更多的槓桿。我們是否在損益表中的某個地方進行再投資，也許只是談論我們所傾向於的地方？我想今年銷售和行銷將成為一個更大的項目。但也許只是談談我們在 24 年將美元再投資到損益表上的看跌期權和看跌期權？

That's right. Yeah, great question. We actually published in our management presentation available on wag.co, slide 15, which provides kind of illustrative platform participant growth in consolidated P&L, reflective of kind of different examples of quarterly platform participants, both at 1 million and 1.5 million platform participants along with consistent growth in sales and marketing spend, along with operating expenses. And the float is pretty, we believe pretty compelling.

這是正確的。是的，很好的問題。實際上，我們在wag.co 上提供的管理簡報中發布了第15 張投影片，其中提供了一種說明性平台參與者在合併損益表中的成長情況，反映了季度平台參與者的不同範例，包括100 萬和150 萬平台參與者以及銷售和行銷支出以及營運支出持續成長。而且浮動很漂亮，我們相信非常引人注目。

To answer your question, though, we do expect in 2024 just a function of what we're seeing in the marketplace that will continue to reinvest profits back into growth. I think we've seen it and kind of other comps, $200 million to $250 million of revenue got really bit of scale. I expect similar for us a little bit earlier, $150 million to $200 million, but we're just seeing a tremendous amount of demand. We have a great product people love, and we really want to take advantage of that. So the mandate from us is continue to be really efficient and thoughtful and judicious on managing gross profit margin, but more growth, I think, in the foreseeable future.

不過，為了回答你的問題，我們確實預計到 2024 年，我們在市場上看到的情況將繼續將利潤重新投資到成長中。我想我們已經看到了它和其他一些比較，2 億到 2.5 億美元的收入確實有一定的規模。我預計我們的情況會更早一些，即 1.5 億至 2 億美元，但我們只是看到了巨大的需求。我們擁有人們喜愛的出色產品，我們真的很想利用它。因此，我們的任務是繼續在管理毛利率方面保持真正高效、深思熟慮和明智的態度，但我認為，在可預見的未來，將會出現更多成長。

Okay. Got you. Just last one, the projecting second-half free cash flow positive, I guess. And then you mentioned some debt paydown plans or authorization for $10 million paydown. Maybe, Alec, if you want to just cover sort of the thought process behind the level of paydown that we're targeting. If we're kind of hitting that sustainable projected free cash flow level in the second half, why not pay more down and just save on the higher cost of debt there? Maybe just talk about the rationale there would be helpful.

好的。明白你了。我猜，最後一項是預計下半年自由現金流為正。然後你提到了一些債務償還計劃或 1000 萬美元償還授權。也許，亞歷克，如果你只想介紹我們目標還款水平背後的思考過程。如果我們在下半年達到可持續的預期自由現金流水平，為什麼不支付更多首付並節省較高的債務成本呢？也許只是談談其中的原理會有幫助。

Yeah, that's a great question, Matt. We're thinking through paydown across the rest of the year. We will most likely staggered through the year, but it depends on the ultimately the level of performance through the different quarters. So you quite possibly seeing us paying down a bigger chunk to begin with to your point. And then as free cash flow gets later in the year topping up to remaining amounts.

是的，這是一個很好的問題，馬特。我們正在考慮今年剩餘時間的還款計畫。我們很可能會在這一年中錯開，但這取決於不同季度的最終表現水準。因此，您很可能會看到我們首先支付更大的金額來達到您的觀點。然後，隨著自由現金流在今年稍後達到剩餘金額。

Okay. Makes sense. I'll jump back in queue, guys. Thank you.

好的。說得通。我會插回隊列，夥計們。謝謝。

Greg Pendy, Chardan.

格雷格·彭迪，查丹。

Hey, guys. Thanks for taking my question. Just a quick one. I guess within the guidance and the EBITDA guidance, can you talk about how you're thinking about the Bright Horizons deal? Is that something that you're going to be putting some dollars behind and hopefully that will gradually roll out? And then also is that built -- what were you thinking in terms of your guidance?

大家好。感謝您提出我的問題。只是快一點。我想在指南和 EBITDA 指南中，您能談談您對 Bright Horizo​​ns 交易的看法嗎？您是否會為此投入一些資金並希望逐漸推出？然後也是建立起來的──你在指導方面是怎麼想的？

Yeah. Hey, Greg. Great to talk to you. Thanks for being here. In terms of Bright Horizons, this is a refresher. Bright Horizons is a public company, general BFM. They offer daycare and childcare, I believe, ages 6 months to 7 years across the US. Phenomenal business model from all everything I can understand. And we've partnered with them to offer pet care via their distributed kind of employer-sponsored channels. It really marks our entrance in the correspondent channel. So we really like this part of this deal because it unlocks a great audience, think about as major employers across the US brands like Salesforce, et cetera, and a great branded Bright Horizons. And we're kind of able to piggyback and provide a great experience to their customers.

是的。嘿，格雷格。很高興與你交談。感謝您來到這裡。就《光明地平線》而言，這是一次回顧。Bright Horizo​​ns 是一家上市公司，簡稱 BFM。我相信，他們在美國各地為 6 個月至 7 歲的兒童提供日托和托兒服務。從我能理解的一切來看，這是非凡的商業模式。我們與他們合作，透過他們的分散式雇主贊助管道提供寵物護理。這確實標誌著我們進入了通訊頻道。因此，我們真的很喜歡這筆交易的這一部分，因為它釋放了大批受眾，被認為是 Salesforce 等美國品牌的主要雇主，以及一個偉大的品牌 Bright Horizo​​ns。我們能夠為他們的客戶提供良好的體驗。

These things generally have a ramp time. I think you're alluding to. It takes time to roll out to an employer and then go out to the employees and figure out how to actually use it and figure out to actually benefit from it actually put it to work. So it probably is more of a back-half '24, '25 thing than it is first-half 2024 thing, frankly. But it's not to say we are already seeing some early signs of promise. And we're not really excited about the partnership, but probably more of a back-half slash 2025 win for us as it's rolled out.

這些東西通常都有一個斜坡時間。我想你是在暗示。向雇主推廣，然後向員工了解如何實際使用它，並弄清楚如何真正從中受益，真正將其投入使用，需要時間。因此，坦白說，這可能更多是 24 年、25 年下半年的事情，而不是 2024 年上半年的事情。但這並不是說我們已經看到了一些希望的早期跡象。我們對這種合作關係並不是很興奮，但隨著合作關係的推出，可能更多的是我們在 2025 年取得的勝利。

Got it. And then just one, final one. Just on the return to office trends, I think you mentioned that it was a little bit sluggish in the fourth quarter, and you called out boarding on top of it. So just kind of wondering, in the fourth quarter, did you see maybe some of the hybrid workers choosing to work remotely more often given the holidays or just kind of anything notable to kind of call out on that? And how do you think about that in light of the revenue guidance for 2024?

知道了。然後就只剩下最後一首了。就重返辦公室趨勢而言，我想您提到第四季度有點低迷，除此之外您還提到了登機。因此，我想知道，在第四季度，您是否看到一些混合型員工在假期期間選擇更頻繁地遠距工作，或者有什麼值得注意的事情？根據 2024 年的收入指導，您如何看待這一點？

Yeah. I think what we saw throughout '23, frankly, was a really trepidatious employer and employee. Meaning, like no real push or incentive to go back the office. I think we've generally hovered around 48% to 50% throughout the year across the major markets. And that's a few days a week. We're not assuming some massive step change there. We certainly think the macro pressure and the layoffs we're seeing, especially across larger companies may accelerate the return to office and kind of the dependency then on Wag! daytime services. So we're not necessarily pending it in. But just in terms of migrating, we really -- it wasn't any sort of step change that year. I think we saw kind of a slower employer than maybe we had originally thought to push people back to office, but didn't really change the pattern or use case. I think people still depend on us while they're stuck in meetings all day, people still dependent as well around the weekends, people still dependent on weather traveling. And enter into 2024, I think we might see some level of improvement that you expect to be at the 85%. It probably gets to 55% or 60% by the end of the year is my guess.

是的。坦白說，我認為我們在整個 23 年看到的是一個非常令人恐懼的雇主和員工。意思是，沒有真正的推動或激勵回到辦公室。我認為全年主要市場的成長率普遍徘徊在 48% 至 50% 左右。那是一週的幾天。我們不會假設那裡會發生一些巨大的變化。我們當然認為我們所看到的宏觀壓力和裁員，尤其是大公司的裁員，可能會加速員工重返辦公室，並產生對 Wag 的依賴！日間服務。所以我們不一定要等待它。但就遷移而言，我們確實──那一年並沒有任何形式的階梯變化。我認為我們看到了一個比我們最初想像的更慢的雇主將人們推回辦公室的速度，但並沒有真正改變模式或用例。我認為人們在整天開會時仍然依賴我們，在周末人們仍然依賴我們，人們仍然依賴天氣旅行。進入 2024 年，我認為我們可能會看到您期望的 85% 的某種程度的改善。我猜測到今年年底可能會達到 55% 或 60%。

Got it. Thanks a lot.

知道了。多謝。

[Aria Cole], Cole Capital.

[Aria Cole]，科爾資本。

Thank you very much. That was fine. I thought that was an excellent pronunciation of my name. Quick question, can you hear me?

非常感謝。那很好。我認為這是我名字的一個很好的發音。快速提問，你聽得到我說話嗎？

Yeah. Hey, Aria.

是的。嘿，阿麗亞。

Thank you for taking my two questions. I'm sure when you do financial analysis, you look at comparisons other companies. As you well know, Rover had been public. When they reached $110 million of sales a number of years ago, they were reporting EBITDA margins of 11%. And if you hit the guidance you're suggesting here for 2024, you'll be $110 million in the and middle range as well, reporting about 4% EBITDA margin. So the question really is, what is different about the mix of your business, the two businesses that your margins are going to be lower. Is there something, some structural reason for why your margins are lower versus theirs because of what you offer? Or is it a function of you're just investing more money in sales and marketing to drive future growth?

謝謝你回答我的兩個問題。我確信當您進行財務分析時，您會查看與其他公司的比較。眾所周知，羅孚已經上市了。幾年前，當他們的銷售額達到 1.1 億美元時，他們報告的 EBITDA 利潤率為 11%。如果您達到此處建議的 2024 年指導，您的收入也將達到 1.1 億美元，即 EBITDA 利潤率約為 4%。所以問題其實是，你的業務組合有什麼不同，這兩個業務的利潤率會更低。是否有某種結構性原因導致您的利潤因您提供的產品而低於他們？還是您只是在銷售和行銷方面投入更多資金以推動未來成長？

Yeah. Hi, Aria. It's Garrett again. Thanks for being here. I'm not sure if Rover was a public company when they were doing $110 million. But I can certainly say that when you are a public company, you are burdened by additional costs, which probably takes EBITDA margins down. As a reminder, it is not cheap being public in terms of both headcount, compliance, regulation, just generally best practices. So I would add that in there, it's probably actually a multi-percentage point impact to our fully loaded EBIT margin. A second part of that is I think we're probably in a different stage as we think about future growth. I think we're really investing in durable, long-term growth, maybe a bit differently than maybe they were. The third point I would add is there is the management presentation we published that gets a sense of kind of EBITDA margin scale along with our gross -- sorry -- free cash flow scale, which was just published. I think that gives us, everyone a better idea kind of how we look as we get to a higher platform participant numbers.

是的。嗨，阿麗亞。又是加勒特。感謝您來到這裡。我不確定 Rover 在營業額達到 1.1 億美元時是否是一家上市公司。但我可以肯定地說，當你是一家上市公司時，你會承受額外的成本，這可能會降低 EBITDA 利潤率。提醒一下，無論是在員工數量、合規性、監管方面，還是一般的最佳實踐方面，公開上市並不便宜。所以我想補充一點，這實際上可能對我們滿載的息稅前利潤率產生多個百分點的影響。第二部分是，我認為在考慮未來成長時，我們可能處於不同的階段。我認為我們確實是在投資於持久、長期的成長，也許與以前的情況有些不同。我要補充的第三點是我們發布的管理層演示文稿，其中了解了 EBITDA 利潤率規模以及我們剛剛發布的毛——抱歉——自由現金流量規模。我認為這讓我們每個人都能更了解當我們獲得更高的平台參與者數量時我們的樣子。

Got it. Thank you. And then just a follow-up question. Just looking at the quarterly seasonality of your business. As you look at 2023 of the year just finished, the number of platform participants actually did not rise between March '24 (sic - "March '23") and December '24 (sic - "December '23"). But then in 2022, it had more of a sequential quarterly rise during the year. What I'm trying to understand is going forward, how should we think about the seasonality of your business? Is it a business that can grow the number of participants every three months versus the prior three months? Or is there a real seasonality in the business where the business has the most participants early in the year and it plateaus there?

知道了。謝謝。然後是一個後續問題。只需查看您業務的季度季節性即可。看看剛結束的2023 年，平台參與者的數量實際上在24 年3 月（原文如此- “3 月'23”）和24 月12 月（原文如此- “12 月23 日”）之間沒有增加。但到了 2022 年，這一數字在這一年中出現了更多的環比季度成長。我想了解的是，未來我們該如何考慮您業務的季節性？與前三個月相比，該企業是否可以每三個月增加參與者人數？或者，該業務是否存在真正的季節性，即該業務在年初擁有最多的參與者，然後就趨於穩定？

Yeah. I certainly think that there is some level of seasonality in the business in Q1 and Q3, primarily. Q1, Q3 are more sitting and boardings occur in the services business, a significant number of pet insurance plans, Wellness plans and vet communications happen as a function of new pet adoptions, and a few other unique marketplace dynamics. But I would say '23 is going to look a little bit different than 2024 as we're really going to be reinvesting in growth in 2024, whereas maybe a little more prudent '23 to reach adjusted EBITDA profitability. So we expect quarterly participants to grow year on year. Maybe not always quarter on quarter, but certainly year on year.

是的。我當然認為第一季和第三季的業務主要存在一定程度的季節性。第一季和第三季度，服務業務中出現了更多的坐席和寄宿，大量寵物保險計劃、健康計劃和獸醫溝通隨著新寵物收養以及其他一些獨特的市場動態而出現。但我想說，「23」看起來與 2024 年會有點不同，因為我們確實會在 2024 年對成長進行再投資，而「23」可能會更加謹慎，以實現調整後的 EBITDA 獲利能力。因此，我們預計季度參與者將同比增長。也許並不總是逐季度，但肯定是逐年。

Last thing, Aria, is can you please send me an email with your Rover numbers? The last numbers I have are $97 million in revenue with '21 at minus $9 million of EBIT. So if you have something different, I'd love to see it.

最後一件事，Aria，您能給我發一封包含您的 Rover 號碼的電子郵件嗎？我得到的最新數據是 21 年的收入為 9,700 萬美元，息稅前利潤為負 900 萬美元。所以如果你有什麼不同的東西，我很樂意看到。

Okay, no problem. Again, thank you very much, and best of luck in the year ahead.

好的沒問題。再次非常感謝您，祝福您來年一切順利。

Thank you, Aria.

謝謝你，阿麗亞。

Thank you. We have reached the end of the question-and-answer session. I'll now turn the call back over to Garrett Smallwood for closing remarks.

謝謝。我們的問答環節已經結束。現在，我將把電話轉回給加勒特·斯莫爾伍德 (Garrett Smallwood)，讓他發表結束語。

Yeah, thank you, everyone, for being here. We're extremely excited for 2024 and the years to follow. Again, I've said this for three or four times now, we have updated our management presentation available, wag.co under Investor. I think it's under Press Releases in presentations. Please give it a look. I think it answers the majority of questions you may have as you think about the business, of the customers, and us as management. And we look forward to keeping in touch for a great year. Thanks, everyone.

是的，謝謝大家來到這裡。我們對 2024 年以及接下來的幾年感到非常興奮。再說一次，我已經說過三四次了，我們已經更新了我們的管理演示文稿，可在投資者下的 wag.co 上找到。我認為它位於演示文稿中的新聞稿下。請看一下。我認為它回答了您在考慮業務、客戶以及我們管理層時可能遇到的大多數問題。我們期待在美好的一年裡保持聯繫。感謝大家。

And this concludes today's conference, and you may disconnect your line at this time. Thank you for your participation.

今天的會議到此結束，此時您可以掛斷電話了。感謝您的參與。