Wag Labs, Inc, likely to go public via a special purpose acquisition company (SPAC merger) with CHW Acquisition Corp (NASDAQ: CHWA), reported first-quarter FY22 results and reiterated FY22 and FY23 guidance.
The American pet services marketplace company powered a mobile-first technology platform that enabled on-demand and scheduled dog walking, training, and other pet care services.
What Happened? Wag Labs' Q1 revenue grew by 273% Y/Y to $9.7 million. The gross bookings rose 141% Y/Y to $17.5 million.
Wag Labs' net loss improved to $(2.4) million from $(2.7) million a year ago. Adjusted EBITDA loss improved to $(2.1) million from $(2.6) million.
Wag Labs reiterated FY22 revenue guidance of $41.8 million, gross booking guidance of $93.4 million, and adjusted EBITDA loss guidance of $(15.6) million.
Wag Labs reiterated FY23 revenue guidance of $71 million, gross booking guidance of $163.5 million, and adjusted EBITDA loss guidance of $(10.7) million.
Why Does It Matter? CEO Garrett Smallwood stated: "With more than 23 million pet parents adopting a new pet during the pandemic, the market potential for Wag! users continues to grow. We are relentlessly focused on a balance of growth, margin, and profit and are encouraged by the return-to-office trend we are seeing across the country."
Wag Labs increased active Pet Parent Wag! Premium penetration from 33% to 48% Y/Y.
As of Q1'22, Wag Labs saw its Pet Parent multi-service attach rate increase to 26% from 20% in October 2021. It improved the take rate to 55% in Q1.
Wag Labs reached a total of 325,012 Platform Participants in Q1 and also launched Browse & Book in combination with Wag! Premium.
Wag Labs streamlined the Wag! Pet Parent sign-up and pet profile experience.
Price Action: CHWA shares closed lower by 2.76% at $9.88 on Tuesday.
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