Tractive reveals expansion plans after surpassing €100 million in revenue

Tractive, known for its cutting-edge GPS trackers and pet wellness devices, has announced that it has achieved an annual recurring revenue (ARR) of €100 million ($105.3M).

CEO Michael Hurnaus tells GlobalPETS that the company’s total revenue is significantly higher, as ARR excludes hardware sales. “We are proud to share that Tractive has been cashflow-positive almost since year one,” Hurnaus notes, highlighting the brand’s consistent success over the past 12 years.

The company anticipates 35-40% revenue growth in 2025 while adhering to a sustainability strategy without mass layoffs or excessive marketing expenses.

Earlier this year, Tractive received the GlobalPETS Forum Award for its strong industry performance and innovation.

US leads market growth

In the 3.5 years since entering the US market, Tractive reports that the region has surpassed Germany in active customer numbers, establishing itself as the company’s largest and fastest-growing market.

Hurnaus expresses plans to “double down on that growth,” though specific timelines remain undisclosed.

Looking ahead, expansion plans include launching operations in Mexico in early 2025.

However, most of Tractive’s growth is expected to stem from its core markets in Europe and North America.

“There are approximately 400 million cats and dogs in these regions, yet we have only tapped a fraction of that market with our 1.3 million active users,” Hurnaus emphasizes.

Investment strategy

While the company does not plan to seek external funding in the short to mid-term, it intends to rely on self-funding for its research and development initiatives. Investments are primarily focused on advancing hardware to keep pace with innovation and improve customer satisfaction.

“The investments are costly but pay back because customers use the product more and for longer periods,” comments Hurnaus.

Most of Tractive’s capital injections across Europe and North America are increasingly targeting television advertising and social media marketing. Hurnaus explains that the shifted focus is due to product awareness within the health, wellness and GPS tracker category being “very low.”

These investments are targeted at raising product awareness and building demand.