Recurrent orders bolster PetMeds’ revenue in the last quarter

American online pet pharmaceutical firm PetMeds has released its Q2 2024 earnings, which concluded on September 30, highlighting 9% growth with $71 million (€66.6M) in revenue, up from $65.4 million (€61.3M) during the same quarter in 2022.  

Furthermore, the company noted a slight incline in gross profit, going from $18.5 million (€17.3M) in Q2 2022 to $20.1 million (€18.8M) this year. 

However, operating costs were higher this year, meaning a net loss of $70,000 (€65,680) during the quarter compared to a net income of $2.6 million (€2.4M) last year.

Dividend suspension

Management and the Board of Directors have chosen to suspend the quarterly dividend payout. “By suspending the quarterly dividend, we have the opportunity to invest the company’s cash flow in projects and initiatives that we believe will yield higher returns,” explains Matt Hulett, CEO and President.

Hulett expressed confidence that through this decision, they have the opportunity to “take advantage of that growth and drive higher returns to our shareholders.”

Autoship 

New customer growth has shown strong developments with 25% year-over-year growth and reorder growth of 4%. 

“We are excited to see the business continue to positively evolve into a recurring revenue business driven by our AutoShip & Save and PetPlus programs, which represented 51% of revenue during the quarter, up from 39% at the same time last year,” says Hulett.

The Florida-headquartered firm stressed that some of its new customer base follows the acquisition of PetCareRx earlier in the year.

In a recent interview with GlobalPETS, PetMeds CEO Matt Hulett stressed that its acquisition of PetcareRx put the business back in the game.