Wag! Group Co. (NASDAQ:PET): When Will It Breakeven?

Wag! Group Co. (NASDAQ:PET) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Wag! Group Co. develops and supports a proprietary marketplace technology platform available as a website and mobile app that enables independent pet caregivers to connect with pet parents. The US$50m market-cap company posted a loss in its most recent financial year of US$13m and a latest trailing-twelve-month loss of US$14m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Wag! Group will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Wag! Group

Consensus from 6 of the American Consumer Services analysts is that Wag! Group is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$1.6m in 2026. So, the company is predicted to breakeven approximately 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 78%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Wag! Group given that this is a high-level summary, however, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one issue worth mentioning. Wag! Group currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are key fundamentals of Wag! Group which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Wag! Group, take a look at Wag! Group's company page on Simply Wall St. We've also put together a list of relevant factors you should further examine:

1. Valuation: What is Wag! Group worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Wag! Group is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Wag! Group’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com