BARK Reports Preliminary Third Quarter Fiscal Year 2024 Revenue Ahead of the ICR Conference
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Insights
The preliminary revenue figure of $125 million reported by BARK, Inc. surpassing its own forecast, suggests a robust financial performance for the third quarter of fiscal year 2024. This outperformance is indicative of effective business strategies and could potentially lead to a positive market response, influencing the company's stock valuation. The strong customer acquisition noted, especially without a significant increase in customer acquisition costs, demonstrates efficiency in marketing spend and could signal a healthy customer growth trajectory. However, the reiterated Adjusted EBITDA guidance range of $(5) million to $(8) million, despite higher revenues, implies that profitability is still under pressure, likely due to the increased marketing investments mentioned.
Investors should consider the implications of these numbers in the context of BARK's overall financial health and growth prospects. The revenue growth, if sustained, could improve future profitability, but the current Adjusted EBITDA guidance suggests that the company is still in a growth phase where reinvestment is prioritized over immediate earnings. This strategy is common in growth-oriented companies, particularly in the competitive e-commerce space where customer acquisition and market share expansion are critical.
The reported strongest customer acquisition quarter in two years for BARK, Inc. highlights the company's success in expanding its market presence, particularly for its BarkBox and Super Chewer products. This performance may reflect favorably on the company's brand recognition and product appeal, which are crucial factors in the pet industry's competitive landscape. The pet industry has been on a growth trend, driven by an increase in pet ownership and spending per pet, which could be a tailwind for companies like BARK.
Understanding consumer behavior and the effectiveness of marketing strategies is essential in this sector. BARK's ability to maintain customer acquisition costs in line with the previous year, despite the strongest acquisition quarter, could suggest that the company has a compelling value proposition or that it has optimized its marketing channels and messaging. This could be an important competitive advantage as the company seeks to capture a larger share of the expanding market.
The financial data released by BARK, Inc. provides insight into the company's operational efficiency and market dynamics. The positive revenue surprise indicates that consumer discretionary spending in the pet sector remains strong, which can be an important economic indicator. The pet industry often proves resilient during economic downturns, as consumers prioritize pet-related expenditures. However, BARK's investment in marketing, despite leading to higher revenues, suggests that the company is still working to solidify its position in the market, which can be a costly endeavor in the short term.
The long-term shareholder value mentioned by the CEO implies a strategic focus on sustainable growth rather than short-term earnings. This approach is consistent with economic theories on business cycles and market penetration strategies. While the current Adjusted EBITDA figures may not reflect immediate profitability, the company's investment in customer acquisition could yield greater market share and customer lifetime value, potentially leading to stronger financial performance in the future.
Total Revenue was Approximately
To Announce Third Quarter Fiscal Year 2024 Financial Results on February 7, 2024
“I am excited to share that we achieved one of our strongest customer acquisition quarters since becoming a public company, with customer acquisition costs also remaining efficient relative to prior holiday quarters,” said Matt
The Company is reiterating its previously provided Adjusted EBITDA guidance range of
Matt
The Company also announced today it will report its third quarter fiscal year 2024 financial results after market close on Wednesday, February 7, 2024. Management will host a live conference call and webcast to discuss the Company’s financial results at 4:30 p.m. ET the same day.
The conference call can be accessed by dialing 1-888-330-2120 for
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. We calculate Adjusted EBITDA as net loss, adjusted to exclude: (1) interest income, (2) interest expense (3) depreciation and amortization, (4) stock-based compensation expense, (5) change in fair value of warrants and derivatives, (6) sales and use tax income, (7) non-cash impairment of previously capitalized software, (8) restructuring charges related to reduction in force payment, (9) duplicate headquarters rent expense, and (10) other items.
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’s breed, 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” for purposes of the federal securities laws. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements under the US securities laws. All statements, other than statements of present or historical facts, contained in this press release, regarding the listing of our common stock on the NYSE and expectations, plans and objectives of management are forward-looking statements. Forward-looking statements are typically identified by such words as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook, “estimate,” “will,” “should,” “would” and “could” and other similar words and expressions. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by the forward-looking statements, including, but not limited to: our ability to implement business plans, forecasts, and other expectations; our ability to finance and invest in growth initiatives; the ability to get the stockholder approval to effectuate a reverse stock-split, if necessary; and the other risks disclosed in the Company's quarterly report on Form 10-Q, 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240108656431/en/
Investors:
Michael Mougias
investors@barkbox.com
Media:
Garland Harwood
press@barkbox.com
Source: BARK, Inc.
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