PetMeds sees double-digit growth boost by recent acquisition

This is an 11% year-over-year (YoY) increase compared to the $58.9 million (€55.4M) reached in Q3 2022. 

The Florida-based company attributed this increase in the third quarter of its fiscal year (FY) 2024 to the acquisition of e-commerce player PetCareRx earlier in 2023, which also offset the decline in PetMeds’s legacy sales—its sales history, excluding the revenue generated by the new acquisition. 

Net loss in the 3 months to December 2023 stood at $2 million (€1.9M) compared to a net loss of $212,000 (€199,247) for the same quarter in 2022. PetMeds attributed this decrease to incremental general and administrative (G&A) expenses, in part due to the acquisition of PetCareRx as well as strategic G&A investments.  

Autoship and PetPlus Membership accounted for 52% of the company’s total revenue, up from 42% during the same period last year.

PetMeds also reported a “strong” balance sheet with $49.4 million (€46.4M) of cash and no debt as of 31 December 2023. 

Positive forecast?

According to a report by stock analysis publication Simply Wall St, as of 15 April 2024, PetMeds is forecast to grow its earnings and revenue by 109.1% and 7.1% per annum, respectively. 

However, compared to past earnings performance, PetMeds’ earnings have been declining at an average annual rate of -35.7%, and revenue is declining at an average rate of 1.8% per year. 

The report adds that the company is currently not profitable, with losses widening over the last 5 years at a rate of 35.7% per year. However, it suggests that the online pet pharmacy player may become profitable over the next 3 years.