Rover shares were down more than 15% in after-hours trading after the company reported its fourth quarter earnings, which beat estimates with $38 million in revenue and net income of $0.19 per share.
Its full-year guidance for 2022 ($160-to-$180 million in revenue) came in below expectations.
The company said the pandemic “has persisted longer than we had originally anticipated and continues to bring some level of uncertainty in the near and medium term.” Rover has dealt with a recent uptick in cancellations due to the ongoing pandemic.
Even so, the fourth quarter of 2021 was the company’s largest revenue quarter ever, and an increase of 41% compared to the same time period in 2019 (before the pandemic began).
Seattle-based Rover went public in August through a SPAC merger. Much like other companies that completed deals during the SPAC craze last year, Rover’s stock has fallen substantially, losing more than half its value. It was trading at $4/share Monday.
Rover’s business was hit hard when the pandemic began, but rebounded thanks in part to rising pet adoption rates and increased spending on pets.
Its marketplace connects pet owners with service providers who can board, walk, or otherwise care for their pets, often when they’re at the office or on a trip.
The company inked a deal with Petco last month.
Rover also announced Monday that CFO Tracy Knox will retire in December. She’ll step down in August and remain an advisor through the end of this year. Charlie Wickers, vice president of finance, will replace her.
Knox joined Rover in 2017 following stints with Rightside, A Place for Mom, UIEvolution, and drugstore.com.
