Wag! Group Co (PET) 2025 Q1 法說會逐字稿

Good morning. Welcome to the Wag! Q1 2025 earnings conference call.

早安.歡迎來到 Wag！2025 年第一季財報電話會議。

(Operator Instructions)

（操作員指示）

As a reminder, this conference is being recorded.

提醒一下，本次會議正在錄製中。

I'll now introduce your host, Greg Robles with Investor Relations. Thank you. You may begin.

現在我將介紹主持人、投資人關係部門的 Greg Robles。謝謝。你可以開始了。

Good morning everyone and thank you for joining WAG's conference call to discuss our first quarter 2025 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.

大家早安，感謝您參加 WAG 的電話會議討論我們的 2025 年第一季財務業績。參加今天電話會議的有執行長兼董事長 Garrett Smallwood、總裁兼首席產品長 Adam Storm 和財務長 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 filings with the SEC.

在我們開始之前，請注意今天的評論包括前瞻性陳述。這些前瞻性陳述受風險和不確定性的影響，並涉及可能導致實際結果與此類陳述表達或暗示的結果有重大差異的因素。我們向美國證券交易委員會提交的文件中包含了對這些風險和不確定性的討論。

We also remind you that we undertake no obligation to update the information contained on this call. These statements should be considered estimates only and are not a guarantee of future performance. Also, during the call, we present both GAAP and non-gap financial measures. Reconciliations to the most directly comparable GAAP financial measures are available in our earnings release which we issue today.

我們也提醒您，我們不承擔更新此通話中包含的資訊的義務。這些陳述僅應被視為估計，並不保證未來的表現。此外，在電話會議中，我們展示了 GAAP 和非差距財務指標。我們今天發布的收益報告中提供了與最直接可比較的 GAAP 財務指標的對帳表。

The earnings release is available on the Investor Relations page of our website and is included in exhibit and Form 8-K furnished to the SEC. These non-GAAP measures are not intended to be a substitute for our GAAP results.

收益報告可在我們網站的投資者關係頁面上查閱，並包含在提交給美國證券交易委員會的附件和 8-K 表中。這些非公認會計準則 (non-GAAP) 指標並非旨在取代我們的公認會計準則 (GAAP) 結果。

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 (Garrett Smallwood)。

Good morning and thank you for joining us today to discuss our financial performance for the first quarter of 2025.

早安，感謝您今天加入我們，討論我們 2025 年第一季的財務表現。

First, I'll provide business updates and an overview of our results. Following that, Adam, our President and Chief Product Officer, will share brief updates on our strategic priorities. Then Alec, our Chief Financial Officer, will provide a more detailed analysis of our first quarter 2025 results and discuss our guidance for 2025.

首先，我將提供業務更新和我們的業績概述。隨後，我們的總裁兼首席產品長亞當 (Adam) 將簡要介紹我們的策略重點。然後，我們的財務長亞歷克 (Alec) 將對我們 2025 年第一季的業績進行更詳細的分析，並討論我們對 2025 年的指導。

We began the year in line with and slightly ahead of our expectations from a profitability standpoint, despite a year-over-year decline in revenue. Through discipline, cost management and operational efficiencies, we delivered improved adjusted EBITDA, demonstrating our continued ability to adapt and execute in the current environment. Sales and marketing expenses declined slightly sequentially in 34% year over year, reflecting disciplined, cost control, and a more efficient customer acquisition strategy through channel diversification.

儘管營收年減，但從獲利角度來看，我們今年的業績符合甚至略高於我們的預期。透過紀律、成本管理和營運效率，我們實現了更好的調整後 EBITDA，證明了我們在當前環境下持續適應和執行的能力。銷售和行銷費用環比小幅下降 34%，同比下降，反映出嚴格的成本控制以及透過管道多樣化實施的更有效的客戶獲取策略。

We're continuing to see the benefits from the operational improvements we implemented throughout last year, including the streamlining of headcount, automation, and the deeper integration of AI to our core workflows.

我們繼續看到去年實施的營運改善帶來的好處，包括精簡員工人數、自動化以及將人工智慧更深入地融入我們的核心工作流程。

At the same time, we also made progress on the strategic partnership front. As previewed last quarter, all three of our major distribution partners we secured went live at the end of Q1 and are expected to drive meaningful impact within our insurance comparison business beginning in Q2. We're excited about the value these partners bring, especially in an environment where we are consciously reducing market expense.

同時，我們在策略夥伴關係方面也取得了進展。正如上個季度所預測的那樣，我們獲得的所有三個主要分銷合作夥伴均在第一季末上線，預計將從第二季開始對我們的保險比較業務產生重大影響。我們對這些合作夥伴帶來的價值感到非常興奮，特別是在我們有意識地降低市場費用的環境下。

Looking ahead, we're well positioned to accelerate growth through the 2nd quarter, supported by strong business trends through April and early May. We remain committed to evaluating all strategic options and will continue to provide updates as appropriate.

展望未來，在 4 月和 5 月初強勁的業務趨勢的支持下，我們已準備好在第二季加速成長。我們將繼續致力於評估所有戰略選擇，並將繼續提供適當的更新。

With that, I will turn the call over to Adam to review our strategic priorities for 2025.

接下來，我將把電話交給亞當，讓他回顧我們 2025 年的策略重點。

Thanks, Garrett. As we continue to operate with discipline and focus, the underlying fundamentals of our business remain strong. In the services ecosystem, we're seeing steady demand as more pet parents return to the office, and we remain focused on driving additional value to customers through product innovation and cross-sell opportunities.

謝謝，加勒特。由於我們繼續嚴格而專注地運營，我們業務的基本面依然強勁。在服務生態系統中，隨著越來越多的寵物主人重返辦公室，我們看到了穩定的需求，我們仍然專注於透過產品創新和交叉銷售機會為客戶創造更多價值。

Within Wellness, the three major distribution partners that Garrett mentioned will enhance our marketing positioning and allow us to scale more efficiently, which is especially important as we maintain reduced marketing spent.

在 Wellness 領域，加勒特提到的三大分銷合作夥伴將增強我們的行銷定位，並使我們能夠更有效地擴大規模，這對於我們保持降低行銷支出來說尤其重要。

At the same time, as more users engage with our platform, we're constantly exploring new ways to deliver more value and deepen engagement across our portfolio. We're optimistic about the momentum that we've seen in early Q2 and remain focused on disciplined execution while growing efficiently.

同時，隨著越來越多的用戶參與我們的平台，我們也不斷探索新的方式來提供更多的價值並深化我們產品組合的參與。我們對第二季初看到的勢頭感到樂觀，並將繼續專注於嚴格執行，同時實現高效成長。

I will now turn the call over to Alec to discuss our financial performance in more detail.

現在我將把電話轉給亞歷克，讓他更詳細地討論我們的財務表現。

Thanks, Adam. As Garrett mentioned, our Q1 results reflect our focus on operating efficiency and the initial innings of scaling new opportunities and partners to achieve improved profitability and growth in 2025.

謝謝，亞當。正如加勒特所提到的，我們的第一季業績反映了我們對營運效率的關注，以及擴大新機會和合作夥伴的初始階段，以實現 2025 年獲利能力和成長的提高。

In the first quarter, we had 472,000 platform participants in the WAG ecosystem, a sequential quarter-over-quarter growth of 6%, revenue and adjusted EBITDA loss was $15.2 million and $1.2 million respectively, both declining slightly versus Q4.

第一季度，WAG 生態系統擁有 47.2 萬個平台參與者，較上季成長 6%，營收和調整後 EBITDA 虧損分別為 1,520 萬美元和 120 萬美元，均較第四季略有下降。

From a revenue category results perspective, first quarter services was $4.9 million, well this was $9.2 million, and pet food and treats was $1.1 million. Total cost and expenses for the first quarter were down 25% year over year by over $6 million. Specifically, cost of revenue was $1.4 million in Q1, which came in at 10% of revenue just outside of our historic 7% to 9% range.

從收入類別結果來看，第一季服務收入為 490 萬美元，今年為 920 萬美元，寵物食品和零食收入為 110 萬美元。第一季的總成本和費用年減 25%，下降超過 600 萬美元。具體來說，第一季的收入成本為 140 萬美元，佔營收的 10%，略高於我們歷史上 7% 至 9% 的範圍。

Platform operations and support expenses $2.5 million in Q1 or 17% of revenue, which is modestly above our historic 13% to 15% range. We continue to thoughtfully invest in AI and other technologies to optimize our processes and systems and are seeing increased efficiencies with every passing quarter.

第一季平台營運和支援費用為 250 萬美元，佔收入的 17%，略高於我們歷史上的 13% 至 15% 的範圍。我們繼續深思熟慮地投資人工智慧和其他技術，以優化我們的流程和系統，並且每個季度的效率都在提高。

Delta marketing expense was $10.4 million in Q1, which is within our historic 60% to 70% range. We are continuing to thoughtfully approach customer acquisition and taking steps to expand scale in a strategic manner. G&A expense was $4 million in Q1, which is within our historic 20% to 26% range, driven by the fixed cost nature of G&A.

達美航空第一季的行銷費用為 1,040 萬美元，處於我們歷史的 60% 至 70% 範圍內。我們將繼續認真對待客戶獲取問題，並採取措施以策略性方式擴大規模。第一季的 G&A 費用為 400 萬美元，處於我們歷史的 20% 至 26% 範圍內，這是由 G&A 的固定成本性質所驅動的。

From a balance sheet perspective, we ended the first quarter with $11.7 million in cash and cash equivalent and accounts receivable. As the Board continues its strategic review, the board is evaluating potential options that could be accretive to our balance sheet and allow us to reduce our debt balance.

從資產負債表的角度來看，第一季末我們的現金、現金等價物和應收帳款為 1,170 萬美元。隨著董事會繼續進行策略審查，董事會正在評估可能增加我們的資產負債表並允許我們減少債務餘額的潛在選擇。

Looking ahead to our 2025 guidance, we continue to expect to generate the following. Revenue in the range of $84 million to $88 million and adjusted EBITDA in the range of $2 million to $4 million.

展望 2025 年的指導方針，我們仍期望實現以下目標。營收在 8,400 萬美元至 8,800 萬美元之間，調整後 EBITDA 在 200 萬美元至 400 萬美元之間。

In closing, I want to reiterate that we remain focused on executing our strategy while continuing to assess opportunities that drive shareholder value. We will continue to provide updates when appropriate and we'll continue to act in the best interest of our shareholders.

最後，我想重申，我們將繼續專注於執行我們的策略，同時繼續評估推動股東價值的機會。我們將在適當的時候繼續提供最新信息，並將繼續以股東的最大利益為出發點採取行動。

And with that, I will now turn the call back to the operator.

說完這些，我現在將電話轉回給接線生。

(Operator Instructions)

（操作員指示）

And we have no further questions at this time, I would like to turn it back to Mr. Garrett Smallwood for closing remarks.

現在我們沒有其他問題了，我想請加勒特·斯莫爾伍德先生作最後發言。

Thank you, everyone, and thank you so much to our wonderful Wag! employees who are working so hard each and every day to deliver to our shareholders, our customers, and our end users.

謝謝大家，也非常感謝我們出色的 Wag！我們的每一位員工都辛勤工作，為我們的股東、客戶和最終用戶提供服務。

And with that, we'll let you go. Thanks so much.

這樣，我們就放你走了。非常感謝。

Thank you for and ladies and gentlemen. This concludes today's conference call. You may now disconnect.

謝謝各位女士、先生們。今天的電話會議到此結束。您現在可以斷開連線。