DELRAY BEACH, Fla. - PetMed Express, Inc. (NASDAQ:PETS), a leading company in the digital pet pharmacy space, announced today the appointment of Leah Solivan to its Board of Directors. Solivan, a General Partner at Fuel Capital, is recognized for her extensive experience in scaling technology businesses and her entrepreneurial success, particularly as the founder of TaskRabbit, which she led to acquisition by IKEA in 2017.
The addition of Solivan to the board is seen as a strategic move for PetMed Express as it navigates a "transformational period," according to Leslie C. G. Campbell, Chairman of the Board. Solivan's digital expertise and her history of fostering significant growth in consumer technology are expected to be key assets in guiding the company's strategic direction and boosting its growth trajectory.
President and CEO Sandra Campos expressed enthusiasm for Solivan's consumer-centric vision and her alignment with the company's commitment to pet wellness. Solivan's own experience as a pet owner is anticipated to contribute to her role in expanding the company's market presence and enhancing its technological capabilities.
Solivan, who has been with Fuel Capital since July 2017, brings over two decades of experience to the board. Her notable background includes founding TaskRabbit and leading it through various growth stages, as well as her prior work as a software engineer at IBM (NYSE:IBM). She has been a prominent speaker on entrepreneurship and women in technology and has served on the board of her alma mater, Sweet Briar College.
PetMed Express, founded in 1996, operates through its online retail platforms PetMeds.com and PetCareRx.com, offering a wide range of medications, food products, and supplies for pets, including dogs, cats, and horses. The company emphasizes value and convenience for pet owners, leveraging partnerships in telehealth and insurance.
"In other recent news, PetMed Express reported a 6.6% increase in net sales for the fourth quarter, largely due to the acquisition of PetCareRx. The company is focusing on strategic initiatives including brand consolidation, supply chain improvements, and technology platform upgrades, as outlined by CEO Sandra Campos. Lake Street Capital Markets revised its outlook on PetMed Express, reducing the price target from $9 to $7, while maintaining a Buy rating.
The firm's stance is cautious regarding the company's near-term performance, despite recognizing potential value in PetMed Express's platform and new strategies. Despite underlying challenges, Lake Street maintains a positive outlook on the company's prospects, highlighting its ability to attract new customers and grow recurring revenue streams. PetMed Express is in a strong financial position with $55 million in cash reserves and no debt, providing the necessary capital for its investments.
InvestingPro Insights
Amidst the strategic board appointment, PetMed Express, Inc. (NASDAQ:PETS) presents a mixed financial landscape. According to InvestingPro data, the company holds a market capitalization of $87.77 million. While currently unprofitable with a negative P/E ratio of -12.2, reflecting challenges in the past year, analysts are optimistic about the company's future. They predict PetMed Express will turn profitable this year, which aligns with the company's growth-focused initiatives and the recent bolstering of its board.
An InvestingPro Tip highlights that PetMed Express has maintained dividend payments for 15 consecutive years, which may be seen as a sign of its commitment to shareholder returns. Moreover, the company holds more cash than debt on its balance sheet, indicating a solid financial position that could support its transformational strategies and investments in technology.
Investors may also consider the company's low revenue valuation multiple as a potential indicator of an undervalued stock. This could be particularly relevant for those looking to capitalize on the company's expected net income growth this year. For further insights and analysis, there are additional InvestingPro Tips available for PetMed Express, which can be accessed with a subscription. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover more about the company's financial health and future prospects.
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