PetMed Express Inc (PETS) Reports Q2 2023 Earnings: Sales Up 9%, Net Loss of $70K
PetMed Express Inc (NASDAQ:PETS) reported Q2 2023 net sales of $71.0 million, a 9% increase YoY, boosted by the recent acquisition of PCRx.
The company reported a net loss of $70 thousand for the quarter, compared to a net income of $2.6 million in the same period last year.
PetMed Express Inc (NASDAQ:PETS) saw a 25% YoY increase in new customers, marking the fourth consecutive quarter of new customer growth.
The company's Board of Directors and management have decided to suspend the quarterly dividend to invest directly in the business with a focus on organic and inorganic growth initiatives.
On October 30, 2023, PetMed Express Inc (NASDAQ:PETS) announced its financial results for the second quarter ended September 30, 2023. The company reported net sales of $71.0 million for the quarter, up 9% from $65.4 million in the same period last year. This increase includes results from the recent acquisition of PCRx.
Financial Performance
PetMed Express Inc (NASDAQ:PETS) reported a net loss of $70 thousand for the quarter, compared to a net income of $2.6 million in the same period last year. The company's Adjusted EBITDA for the current year quarter was $3.2 million, a decrease of 55% from $7.1 million in the same period last year. The decrease was attributed to incremental G&A due to the acquisition as well as strategic investments in PetMeds legacy third party expenses and net advertising expenses partially offset by increased gross profit and other income.
Customer Growth and Business Strategy
The company reported a 25% YoY increase in new customers for the quarter, marking the fourth consecutive quarter of new customer growth. This includes new customers from the PetCareRx acquisition. "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, said Matt Hulett, CEO and President.
Dividend Suspension
The company's Board of Directors and management have decided to suspend the quarterly dividend. This decision will allow the company to invest directly in the business with a focus on organic and inorganic growth initiatives. Discussing the updated capital allocation strategy, Mr. Hulett stated, By suspending the quarterly dividend, we have the opportunity to invest the companys cash flow in projects and initiatives that we believe will yield higher returns. The pet care industry continues to grow and evolve and we believe we have opportunities to take advantage of that growth and drive higher returns to our shareholders.
Financial Statements
As of September 30, 2023, the company's total assets stood at $159.27 million, with total liabilities at $45.6 million. The company's total shareholders' equity was $113.67 million. For the six months ended September 30, 2023, the company used $215 thousand in operating activities, invested $37.996 million in investing activities, and used $12.404 million in financing activities.
Explore the complete 8-K earnings release (here) from PetMed Express Inc for further details.
This article first appeared on GuruFocus.
