Mad Paws Unleashes $5.25m Brand Campaign Amid Q3 EBITDA Growth
Mad Paws Holdings Limited reported a resilient Q3 FY25 with an 8% rise in Group Cash EBITDA despite a 6% dip in operating revenue, driven by marketplace strength and a major new brand campaign.
- Group operating revenue at $6.1 million, down 6% year-on-year
- Group Cash EBITDA improves 8% to negative $0.4 million
- Marketplace segment EBITDA up 32% with 36% margin
- Launched first above-the-line brand campaign with $5.25 million investment
- Operational enhancements drive higher conversion, pricing, and retention
Q3 FY25 Financial Snapshot
Mad Paws Holdings Limited, Australia's leading pet services marketplace, released its Q3 FY25 results showing a mixed but encouraging financial performance. Group operating revenue declined 6% year-on-year to $6.1 million, though this figure was flat when excluding weaker segments Waggly and Sash. More notably, Group Cash EBITDA improved by 8% to a negative $0.4 million, reflecting operational efficiencies and marketplace growth.
The marketplace segment was a standout performer, with operating revenue rising 5% year-on-year and cash EBITDA surging 32% to $0.7 million, achieving a robust 36% EBITDA margin. This resilience came despite the shifting Easter holiday calendar, which impacted revenue recognition timing.
Strategic Marketing Investment
In a bold move to accelerate brand awareness and customer acquisition, Mad Paws launched its first above-the-line (ATL) brand campaign titled "Press Paws." This $5.25 million investment, in partnership with Seven West Media, includes $1.25 million in cash and $4 million in media spend across TV, social media, and digital platforms such as Meta, TikTok, Google, and YouTube.
The campaign creatively highlights the challenges and joys of pet ownership, positioning Mad Paws as the trusted solution for pet sitting and care. Early results show a 10% increase in weekly marketplace site sessions during Q3 and a 5% uplift in brand awareness, signaling effective top-of-funnel engagement.
Operational and Product Enhancements
Mad Paws continued to refine its marketplace and ecommerce platforms with product improvements that enhanced user experience and conversion rates. Key initiatives included a seasonal pricing feature that boosted sitter prices by 14%, improved search functionality, and a new shortlisting feature for sitters, all contributing to a 22% uplift in paid bookings during the March-April period.
On the ecommerce front, operational efficiencies such as expanded customer service automation and AI-powered prescription tools supported a 28.3% year-on-year growth in medication product spend in March. The AutoShip subscription program also gained traction, with sales up 24.3% year-on-year, underpinning Mad Paws’ strategy to drive recurring revenue and customer lifetime value.
Strategic Outlook and Growth Priorities
Looking ahead to FY25, Mad Paws is focused on sustainable growth by scaling marketplace efficiency, commercializing its rich pet profile data, expanding private label products, and leveraging new marketing channels. The company aims to improve sitter and owner retention through its mobile app and cross-sell opportunities, while also exploring international expansion and data monetization in the longer term.
Mad Paws’ integrated approach, combining marketplace leadership with ecommerce offerings, positions it well to capitalize on the resilient and growing Australian pet care market, which continues to benefit from strong pet humanization and premiumization trends.
Bottom Line?
Mad Paws’ strategic marketing push and operational gains set the stage for a pivotal FY25 as it seeks to convert brand momentum into sustained profitability.
Questions in the middle?
- How will the $5.25 million ATL campaign translate into long-term customer acquisition and revenue growth?
- What impact will the ongoing marketplace and ecommerce product enhancements have on customer retention and lifetime value?
- How aggressively will Mad Paws pursue international expansion and data commercialization in the near term?
