Wag! posts steep declines for 2024 but shows slight signs of recovery in Q4
The on-demand dog-walking service has expanded to include various health and wellness services, but growth hasn’t been consistent.
Wag! Group posted $15.4 million (€14.3M) in revenue in the fourth quarter of 2024, a 29% decline from the same period in 2023, when the company brought in $21.7 million (€20.1M).
It’s a steep decline for the company, but there was an improvement in its Q3 numbers when it posted a 39% year-on-year (YoY) revenue decrease. The drop came mainly from the company’s wellness segment, though all sectors experienced a shrink.
The 2024 Q4 revenue was comprised of $5.3 million (€4.9M) in services revenue (down 16% YoY), $8.9 million (€8.3M) in wellness revenue (down 34% YoY) and $1.2 million (€1.1M) in pet food and treats revenue (down 37% YoY).
Q4 net loss was $4.8 million (€4.5M) compared to $3.5 million (€3.2M) during the same period in 2023. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was a loss of $1 million (€930,000), though the company noted in its report that this is an over 17% improvement to Q3’s loss.
Yearly overview
Revenue decreased 16% to $70.5 million (€65.4M) YoY from January to December 2024.
The net loss was $17.6 million (€16.3M), a greater decline than in 2023. This fell within the company’s guidance, which was lowered during the year. Its original guidance for 2024 was to see revenue of $105 million (€97.3M) to $115 million (€106.6M).
The company blamed the declines largely on Google search changes, which led to a drop in internet traffic for Wag!’s services in Q3. Those search numbers stabilized in Q4.
2025 outlook
At an earnings call, executives say numbers were expected to turn around in 2025. They also state that new distribution partnerships could help drive business growth.
“Wellness has normalized since Q3, and we have signed 3 new major distribution partners that we believe will accelerate demand within our Insurance Comparison business,” CEO Garrett Smallwood says. While he declined to share details of the partnerships, he says they would “drive meaningful impact as they go live through Q1 and begin materializing in Q2.”
Smallwood adds that expansion in the wellness sector was expected to drive growth during the year, with some value also added by services. Workers returning to offices is a tailwind for the company, which benefits from owners needing to outsource pet care.
For the 2025 financial year, the company expects revenues between $84 million (€77.9M) and $88 million (€81.6M) and positive adjusted EBITDA between $2 million (€1.9M) and $4 million (€3.7M).