Wag! posts 53% revenue increase in 2023

Wag! ended 2023 as a “record-breaking year,” posting revenue of $83.9 million (€78.1M) compared to $54.9 million (€51.1M) in 2022.

Wellness revenue stood at $52.9 million (€49.2M), followed by services at $24.4 million (€22.7M), and pet food and treats at $6.6 million (€6.1M).

“The compounding of our bets in services, wellness and pet food and treats are enabling us to differentiate Wag! for long-term, profitable growth, and we’re thrilled to enter 2024 stronger than ever,” comments CEO and Chairman Garrett Smallwood.

The last quarter generated $21.7 million (€20.2M) in revenue, a 27% jump from the same period in 2022 when the company hit $17 million (€15.8M). Net loss for the period was $3.5 million (€3.2M), compared to $5.8 million (€5.4M) in Q4 2022.

Recent acquisition

The results were released just a few days after Wag! announced it acquired social media platform WoofWoofTV in a strategic move to enhance its network channel, marking the company’s entrance into the distributed media space. 

The social media channel for pets has an audience of 800 million across Instagram and Facebook, 5 million on YouTube, and 25 million on Snapchat, which will allow Wag! to market its diverse suite of premium pet brands and services.

Wag!’s CEO says that in addition to the organic reach the acquisition brings, it also marks a “significant leap forward” in the company’s mission to enrich the lives of pets and their owners by building out a trusted suite of recognized products and services.

“As we continue to diversify our offerings, this signals Wag!’s commitment to not only providing access to premium care for pets but also celebrating their joy through engaging content,” Smallwood notes.

The pet care company will optimize the pet channel’s organic reach to its 18 million followers.

Apart from the WoofWoofTV acquisition, Q4 2023 also witnessed a 38% increase in platform participants, from 434,000 in 2022 to 600,000 in 2023.

Wag! Also entered a new employer-sponsored distribution channel by offering the inclusion of pet care solutions in employee benefit packages.

$200 million by 2027

For the upcoming year, the San Francisco-headquartered company aims to reach between $105 to $115 million (€97.8 to €10.7M) in revenue, targeting 25–37% growth.

In 2024, Wag! also expects an accelerated path to free cash flow as its board approved a $10 million (€9.3M) debt paydown.

The company hopes for a 25% compound annual growth rate (CAGR) from 2024 through 2027, driving it to a $200 million (€186.3M) revenue goal by 2027.