BARK Reports Fourth Quarter and Fiscal Year 2024 Results
BARK reported its Q4 and Fiscal Year 2024 financial results, showing promising improvements. Q4 revenue was $121.5 million, aligning with guidance, and gross margin improved to 62.7%. Net loss reduced by 65.5% to $4.9 million, and adjusted EBITDA was $2.2 million. For the Fiscal Year 2024, BARK achieved $490.2 million in revenue, with a 61.6% gross margin. The net loss improved by 39.8% to $37.0 million. The company announced a $15 million share repurchase program. Despite fewer orders impacting revenue, significant gains in profitability and operational efficiency were highlighted. The outlook for Fiscal Year 2025 predicts flat to 2.0% revenue growth with adjusted EBITDA anticipated between $1.0 million and $5.0 million.
- Q4 revenue at $121.5 million met the guidance range.
- Q4 gross margin improved by 580 basis points year-over-year to 62.7%.
- Net loss in Q4 decreased by 65.5% to $4.9 million.
- Adjusted EBITDA in Q4 improved to $2.2 million, a $5.7 million increase year-over-year.
- Revenue for Fiscal Year 2024 was $490.2 million.
- Fiscal Year 2024 gross margin improved by 410 basis points to 61.6%.
- Net loss for Fiscal Year 2024 decreased by 39.8% to $37.0 million.
- Adjusted EBITDA for Fiscal Year 2024 improved by $20.7 million to $(10.6) million.
- Net cash provided by operating activities was $6.1 million.
- Announcement of a $15 million share repurchase program.
- Secured commitments from Target and PetSmart to carry new product lines.
- Q4 revenue declined by 3.6% year-over-year.
- Direct-to-consumer revenue in Q4 decreased by 5.7% year-over-year.
- Fiscal Year 2024 revenue declined by 8.4% compared to the prior year.
- Fiscal Year 2024 direct-to-consumer revenue saw a 7.5% decrease.
- Commerce revenue for Fiscal Year 2024 decreased by 15.1%.
- Advertising and marketing expenses increased to $79.3 million in Fiscal Year 2024.
- Free cash flow for Fiscal Year 2024 was negative at $(2.8) million.
The financial results for BARK show a mixed performance that could be seen as cautiously optimistic. The revenue of
Notably, the gross margin improvements to
The share repurchase program of
Overall, BARK's financials suggest a company in transition, reducing losses and improving margins, but facing challenges in maintaining revenue growth. The upcoming fiscal year guidance projecting flat to modest revenue growth of
BARK's strategic actions and market presence adjustments are key points to consider. The new product commitments from Target and PetSmart are significant developments, indicating expanding retail distribution. This could open new revenue streams and improve market penetration, offsetting declines in direct consumer sales.
However, the decrease in the average order value and total orders over the year raises questions about customer retention and engagement with core offerings like BarkBox and Super Chewer subscriptions. The company must ensure these new retail ventures do not cannibalize its direct-to-consumer segment but rather complement it.
The increased advertising and marketing expenses are a double-edged sword. While it potentially sets the stage for future growth, it also pressures short-term profitability. The company’s strategy must balance these expenditures with visible returns in customer acquisition and sales growth.
Overall, BARK is positioning itself well within a competitive market but must navigate carefully to balance costs, growth and customer retention.
Board of Directors Authorizes
Fiscal Fourth Quarter 2024 Highlights
-
Delivered revenue of
$121.5 million -
Gross margin improved by 580 basis points year-over-year to
62.7% . -
Net loss improved
65.5% to$(4.9) million -
Adjusted EBITDA was
$2.2 million $5.7 million - Secured commitments from Target and PetSmart to carry the Company's new line of treats in 2,400 doors nationwide.
Fiscal Year 2024 Highlights
-
Revenue was
$490.2 million 89.0% coming from the direct-to-consumer segment. -
Gross margin improved by 410 basis points year-over-year to
61.6% . -
Net loss improved
39.8% to$(37.0) million -
Adjusted EBITDA was
$(10.6) million $20.7 million -
Net cash provided by operating activities was
$6.1 million $(2.8) million
"Fiscal 2024 was a significant year for BARK in that we capped it off with another strong quarter, and we're building momentum entering fiscal 2025," said Matt Meeker, Chief Executive Officer of BARK. "Last quarter, we improved our gross margin by 580 basis points year-over-year and delivered
Meeker continued, "We also rounded out our leadership team this quarter by bringing on four new members, filling key roles we have needed for some time. Given our significant progress over the past 24 months, we believe we are entering fiscal 2025 with a strong foundation that will enable us to meaningfully accelerate growth over the long-term."
Key Performance Indicators
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Three Months Ended
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Twelve Months Ended
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2024 |
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2023 |
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2024 |
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2023 |
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Total Orders (in thousands) |
|
3,499 |
|
|
|
3,617 |
|
|
|
13,924 |
|
|
|
14,888 |
|
Average Order Value |
$ |
31.25 |
|
|
$ |
32.07 |
|
|
$ |
31.34 |
|
|
$ |
31.70 |
|
Direct to Consumer Gross Profit (in thousands) |
$ |
70,803 |
|
|
$ |
68,271 |
|
|
$ |
278,868 |
|
|
$ |
285,328 |
|
Direct to Consumer Gross Margin |
|
64.8 |
% |
|
|
58.9 |
% |
|
|
63.9 |
% |
|
|
60.5 |
% |
Fiscal Fourth Quarter 2024 Highlights
-
Revenue was
$121.5 million 3.6% year-over-year primarily driven by fewer total orders in the most recent period, largely related to the Company carrying fewer BarkBox and Super Chewer subscriptions into the quarter, compared to last year. -
Direct to Consumer (“DTC”) revenue was
$109.3 million 5.7% decrease year-over-year, primarily related to the items discussed above. -
Commerce revenue was
$12.1 million 20.9% increase year-over-year. The increase was primarily timing related in addition to incremental revenue derived from introducing treats into retail. -
Gross profit was
$76.2 million 6.2% increase compared to last year. -
Gross margin was
62.7% , as compared to57.0% in the same period last year. The increase was driven by new contract pricing delivering an improvement in unit cost of goods in the most recent period. -
Advertising and marketing expenses were
$18.8 million $15.4 million -
General and administrative (“G&A”) expenses were
$63.9 million $69.2 million -
Net loss was
$(4.9) million $(14.2) million -
Adjusted EBITDA was
$2.2 million $5.7 million -
Net cash provided by (used in) operating activities was
$(1.0) million $(3.2) million
Fiscal Year 2024 Highlights
-
Revenue was
$490.2 million 8.4% decrease compared to prior year. The decline was primarily driven by lower total orders as the Company carried fewer BarkBox and Super Chewer customers into fiscal 2024. Moreover, our retail partners remained cautious given macroeconomic pressure on more discretionary categories. -
Direct to Consumer ("DTC") revenue was
$436.4 million 7.5% decrease compared to prior year. -
Commerce revenue was
$53.7 million 15.1% decrease compared to prior year. -
Gross profit was
$302.2 million 1.9% decrease compared to prior year. -
Gross margin was
61.6% compared to57.6% in the prior year. -
Advertising and marketing was
$79.3 million $68.8 -
General and administrative ("G&A") was
$268.4 million $303.1 million -
Net loss was
$(37.0) million $(61.5) million -
Adjusted EBITDA was
$(10.6) million 66% improvement as compared to the Company's Adjusted EBITDA loss of$(31.3) -
Net cash provided by (used in) operating activities was
$6.1 million $(2.8) million
Balance Sheet Highlights
-
The Company’s cash and cash equivalents balance as of March 31, 2024 was
$125.5 million $5.8 million $1.8 million $1.12 -
The Company's inventory balance as of March 31, 2024 was
$84.2 million $14.3 million $40.2 million
Share Repurchase Program
The Company today announced that its Board of Directors has authorized the repurchase of up to
Under the share repurchase program, the Company may repurchase up to
Fiscal First Quarter and Full Year 2025 Financial Outlook
Based on current market conditions as of June 3, 2024, BARK is providing guidance for revenue and Adjusted EBITDA, which is a Non-GAAP financial measure, as follows.
For the fiscal full year 2025, the Company expects:
-
Total revenue of
$490 million $500 million 2.0% . -
Adjusted EBITDA of
$1.0 million $5.0 million $11.6 million $15.6 million
For the fiscal first quarter 2025, the Company expects:
-
Total revenue of
$113.0 million $116.0 million -
Adjusted EBITDA of
$(4.0) million $(2.0) million
We do not provide guidance for Net Loss due to the uncertainty and potential variability of certain items, including stock-based compensation expenses and related tax effects, which are the reconciling items between Net Loss and Adjusted EBITDA. Because such items cannot be calculated or predicted without unreasonable efforts, we are unable to provide a reconciliation of Adjusted EBITDA to Net Loss. However, such items could have a significant impact on Net Loss.
The guidance provided above constitutes forward looking statements and actual results may differ materially. Please refer to the “Forward Looking Statements” section below for information on the factors that could cause our actual results to differ materially from these forward looking statements and “Non-GAAP Financial Measures” for additional important information regarding Adjusted EBITDA.
Conference Call Information
A conference call to discuss the Company's fiscal fourth quarter and full year 2024 results will be held today, June 3, 2024, at 4:30 p.m. ET. During the conference call, the Company may make comments concerning business and financial developments, trends and other business or financial matters. The Company's comments, as well as other matters discussed during the conference call, may contain or constitute information that has not been previously disclosed.
The conference call can be accessed by dialing 1-888-330-2120 for
About BARK
BARK is the world’s most dog-centric company, devoted to making dogs happy with the best products, services and content. BARK’s dog-obsessed team applies its unique, data-driven understanding of what makes each dog special to design playstyle-specific toys, wildly satisfying treats, great food for your dog, effective and easy to use dental care, and dog-first experiences that foster the health and happiness of dogs everywhere. Founded in 2011, BARK loyally serves dogs nationwide with themed toys and treats subscriptions, BarkBox and BARK Super Chewer; custom product collections through its retail partner network, including Target and Amazon; its high-quality, nutritious meals made for your breed with BARK Food; and products that meet dogs’ dental needs with BARK Bright®. At BARK, we want to make dogs as happy as they make us because dogs and humans are better together. Sniff around at BARK.co for more information.
Forward Looking Statements
This press release contains forward-looking statements relating to, among other things, the future performance of BARK that are based on the Company’s current expectations, forecasts and assumptions and involve risks and uncertainties. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expect,” “plan,” "anticipate,” “believe,” “estimate,” “predict,” “intend,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology. These statements include, but are not limited to, statements about future operating results, including our strategies, plans, commitments, objectives and goals. Actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Other factors that could cause or contribute to such differences include, but are not limited to, risks relating to the uncertainty of the projected financial information with respect to BARK; the risk that spending on pets may not increase at projected rates; that BARK subscriptions may not increase their spending with BARK; BARK’s ability to continue to convert social media followers and contacts into customers; BARK’s ability to successfully expand its product lines and channel distribution; competition; the uncertain effects of global or macroeconomic events or challenges.
More information about factors that could affect BARK's operating results is included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company's annual report on Form 10-K, copies of which may be obtained by visiting the Company’s Investor Relations website at https://investors.bark.co/ or the SEC’s website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to the Company on the date hereof. The Company assumes no obligation to update such statements.
Definitions of Key Performance Indicators
Total Orders
We define Total Orders as the total number of DTC orders shipped in a given period. These include all orders across all of our product categories, regardless of whether they are purchased on a subscription, auto-ship, or one-off basis.
Average Order Value
Average Order Value (“AOV”) is Direct to Consumer revenue for the period divided by Total Orders for the same period. In prior periods, the Company calculated AOV by dividing DTC revenue by total subscription shipments.
BARK, Inc. |
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CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS |
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(In thousands) |
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|
Three Months Ended |
|
Fiscal Year Ended |
||||||||||||
|
March 31, |
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March 31, |
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March 31, |
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March 31, |
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2024 |
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2023 |
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2024 |
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2023 |
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REVENUE |
$ |
121,483 |
|
|
$ |
126,017 |
|
|
$ |
490,184 |
|
|
$ |
535,315 |
|
COST OF REVENUE |
|
45,255 |
|
|
|
54,248 |
|
|
|
188,032 |
|
|
|
227,200 |
|
Gross profit |
|
76,228 |
|
|
|
71,769 |
|
|
|
302,152 |
|
|
|
308,115 |
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
||||||||
General and administrative |
|
63,919 |
|
|
|
69,203 |
|
|
|
268,390 |
|
|
|
303,139 |
|
Advertising and marketing |
|
18,760 |
|
|
|
15,365 |
|
|
|
79,282 |
|
|
|
68,807 |
|
Total operating expenses |
|
82,679 |
|
|
|
84,568 |
|
|
|
347,672 |
|
|
|
371,946 |
|
LOSS FROM OPERATIONS |
|
(6,451 |
) |
|
|
(12,799 |
) |
|
|
(45,520 |
) |
|
|
(63,831 |
) |
INTEREST INCOME |
|
1,682 |
|
|
|
978 |
|
|
|
7,533 |
|
|
|
1,056 |
|
INTEREST EXPENSE |
|
(704 |
) |
|
|
(1,355 |
) |
|
|
(4,351 |
) |
|
|
(5,428 |
) |
OTHER INCOME (EXPENSE)—NET |
|
570 |
|
|
|
(1,026 |
) |
|
|
5,328 |
|
|
|
6,684 |
|
NET LOSS BEFORE INCOME TAXES |
|
(4,903 |
) |
|
|
(14,202 |
) |
|
|
(37,010 |
) |
|
|
(61,519 |
) |
PROVISION FOR INCOME TAXES |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
NET LOSS AND COMPREHENSIVE LOSS |
$ |
(4,903 |
) |
|
$ |
(14,202 |
) |
|
$ |
(37,010 |
) |
|
$ |
(61,519 |
) |
|
|
|
|
|
|
|
|
||||||||
DISAGGREGATED REVENUE |
||||||||
(In thousands) |
||||||||
|
Fiscal Year Ended |
|||||||
|
March 31, |
|||||||
|
2024 |
|
2023 |
|
2022 |
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Revenue |
|
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FAQ
What were BARK's Q4 2024 revenue and gross margin?
BARK's Q4 2024 revenue was $121.5 million, and the gross margin improved to 62.7%.
How did BARK's net loss change in Q4 2024?
BARK's net loss in Q4 2024 improved by 65.5% to $4.9 million.
What was BARK's revenue for Fiscal Year 2024?
BARK reported a revenue of $490.2 million for Fiscal Year 2024.
How did BARK's adjusted EBITDA perform in Fiscal Year 2024?
BARK's adjusted EBITDA improved to $(10.6) million in Fiscal Year 2024, a $20.7 million improvement.
What is the value of BARK's share repurchase program announced in 2024?
BARK announced a $15 million share repurchase program in 2024.
What are BARK's revenue expectations for Fiscal Year 2025?
BARK expects revenue between $490 million and $500 million for Fiscal Year 2025, reflecting flat to 2.0% growth.
How did BARK's advertising and marketing expenses change in Fiscal Year 2024?
BARK's advertising and marketing expenses increased to $79.3 million in Fiscal Year 2024.
What was BARK's free cash flow for Fiscal Year 2024?
BARK reported a free cash flow of $(2.8) million for Fiscal Year 2024.
BARK, Inc.
NYSE:BARKBARK RankingsBARK Latest NewsBARK Stock Data
288.01M
175.62M
24.62%
41.64%
7.89%
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United States of America
NEW YORK
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