BARK revenue hits US$116.2 million in Q1 FY25

Adapted from a press release:

BARK, Inc., a global omnichannel dog food and other products brand, announced its financial results for the fiscal first quarter ended June 30, 2024.

Key Highlights

• Total revenue was US$116.2 million, ahead of the high-end of the Company's guidance range.
• Consolidated gross margin was a record 63.0%, a 248 basis point increase year-over-year, and the Company's 7th consecutive quarter of year-over-year gross margin improvement.
• Net cash provided by operating activities was US$1.8 million and free cash flow improved US$13.5 million to US$(0.3) million year-over-year.
• Net loss improved 13.9% to US$(10.0) million, year-over-year.
• Adjusted EBITDA was US$(1.8) million, ahead of the high-end of the Company's guidance range and a US$5.6 million improvement, year-over-year.
• The Company announced its launch at Chewy, with a collection of its best-selling toys.

"Fiscal 2025 is off to a strong start, building on the momentum we established last year. Our first quarter results are a testament to our continued progress, and we remain confident in our ability to deliver revenue growth through the year and achieve our first full year of positive Adjusted EBITDA and free cash flow," said Matt Meeker, Co-Founder and Chief Executive Officer, in a press release. "Last quarter, we delivered year-over-year growth in new subscribers for the third consecutive quarter and recorded a 5% revenue increase in our commerce segment, aided by growth in existing and new accounts, and our consumables expansion into retail. Looking ahead, we anticipate ongoing improvements across the business, supported by a talented management team that is already implementing strategic shifts that we believe will drive long-term growth in revenue and profitability."

 Bark fiscal first quarter 2025 highlights

• Revenue was US$116.2 million, ahead of the Company's guidance range of US$113.0 million to US$116.0 million, and a 3.6% decrease year-over-year primarily driven by fewer total orders in the most recent period, largely related to carrying fewer Barkbox and Super Chewer subscriptions into the quarter, compared to the same period last year. Commerce segment revenue grew by 5.2%, compared to the same period in the previous year.
• Direct to Consumer (“DTC”) revenue was US$107.1 million, a 4.3% decrease year-over-year, primarily related to the items discussed above. The Company achieved year-over-year growth in new customer acquisition for the third consecutive quarter.
• Commerce revenue was US$9.2 million, a 5.2% increase year-over-year, aided by growth in existing and new accounts and the Company's recent consumables expansion into retail.
• Gross profit was US$73.3 million, a 0.3% increase year-over-year.
• Gross margin was a record 63.0%, as compared to 60.6% in the same period last year. The increase was driven by supplier consolidation and improved pricing delivering a reduction in unit cost of goods in the most recent period.
• Advertising and marketing expenses were US$20.4 million as compared to US$17.6 million in the same period last year. The Company invested more in marketing in the period given the ongoing profitability improvements realized throughout the business.
• General and administrative ("G&A") expenses were US$63.4 million, as compared to US$69.4 million year-over-year. This decrease was largely driven by a reduction in headcount and better shipping terms from a new contract.
• Net loss was US$(10.0) million, as compared to US$(11.7) million in the same period in the previous year.
• Adjusted EBITDA was US$(1.8) million, a US$5.6 million improvement, year-over-year, and ahead of the Company's guidance range of US$(4.0) million to US$(2.0) million.
• Net cash provided by operating activities was US$1.8 million. Free cash flow, defined as net cash provided by (used in) operating activities less capital expenditures, was US$(0.3) million, an improvement of US$13.5 million compared to the same period last year.

Balance Sheet Highlights

• The Company’s cash and cash equivalents balance as of June 30, 2024 was US$117.8 million, and reflects US$4.3 million of share repurchases at an average price of US$1.43, in the period.
• The Company's inventory balance as of June 30, 2024 was US$80.4 million, a decrease of US$3.7 million compared to the prior quarter and a US$31.6 million decreased compared to June 30, 2023.