BARK Reports Third Quarter Fiscal Year 2024 Results
- Improved gross margin by 210 basis points
- Reduced net loss by 52.5%
- Repurchased $45.0 million of outstanding convertible notes
- Total revenue decreased by 6.9% year-over-year
- Adjusted EBITDA was $(6.4) million
Insights
The reported financial results for BARK, Inc. indicate a mixed performance. Despite a decline in total revenue by 6.9%, the company has seen an increase in consolidated gross margin and a significant improvement in net loss, which is a positive signal for operational efficiency. The company's ability to surpass its revenue guidance and improve gross margin by over 200 basis points year-over-year suggests effective cost management and possibly a favorable shift in product mix or pricing strategies.
Moreover, the improvement in Adjusted EBITDA and generation of free cash flow are indicative of stronger financial health. These factors are essential for sustaining operations and investing in growth initiatives without relying heavily on external financing. The repurchase of convertible notes at a discount also reflects a proactive approach to capital management, potentially reducing future interest expenses and improving the balance sheet. However, investors should be cautious about the downward revision of Adjusted EBITDA guidance for the fiscal full year 2024, which may reflect challenges in scaling operations profitably.
The customer acquisition dynamics reported by BARK are noteworthy. Achieving the strongest customer acquisition quarter in two years is a testament to the company's marketing strategies and the appeal of its products. However, the year-over-year decrease in total orders and the decline in Direct to Consumer revenue suggest that while new customer acquisition is strong, retention or order frequency may be areas of concern. This could imply a need for enhanced customer engagement and loyalty programs.
Furthermore, the company's focus on retail treat partnerships is a strategic move to diversify revenue streams and reduce reliance on direct-to-consumer sales. This could also enhance brand visibility and accessibility. The pet industry is competitive and subject to consumer discretionary spending, so BARK's ability to maintain and grow its customer base while expanding into retail channels could be crucial for long-term growth.
From an economic perspective, BARK's financial performance must be contextualized within the broader economic environment. The company's results reflect resilience amid potential macroeconomic headwinds such as inflation and supply chain disruptions. The increase in gross margin despite these challenges is particularly impressive and may indicate successful negotiations with suppliers or shifts in consumer preferences towards higher-margin products.
The decision to invest more in marketing, given the efficiency in customer acquisition, suggests confidence in the company's growth prospects. However, it also highlights the importance of maintaining a balance between growth and profitability, especially when the broader economic outlook remains uncertain. The company's focus on becoming Adjusted EBITDA positive in the near term aligns with a prudent financial strategy that prioritizes sustainable growth.
Key Highlights
-
Total revenue was
$125.1 million 6.9% decrease compared to the same period last year. -
Consolidated gross margin was
61.8% , a 210 basis point increase compared to the same period last year and a 610 basis point improvement versus the third quarter of fiscal 2022. -
Net loss improved
52.5% to$(10.1) million -
Adjusted EBITDA was
$(6.4) million $6.4 million -
Net cash provided by operating activities was
$15.0 million $13.3 million
"Our results last quarter highlight the significant strides we've made as a public company. We delivered our strongest customer acquisition quarter in two years, surpassed the high-end of our revenue guidance range, and improved our gross margin by over 200 basis points year-over-year," said Matt
Key Performance Indicators
|
Three Months Ended December 31, |
|
Nine Months Ended December 31, |
||||||||||||
|
|
||||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Total Orders (in thousands) |
|
3,504 |
|
|
|
3,721 |
|
|
|
10,425 |
|
|
|
11,278 |
|
Average Order Value |
$ |
31.65 |
|
|
$ |
32.27 |
|
|
$ |
31.38 |
|
|
$ |
31.57 |
|
Direct to Consumer Gross Profit (in thousands) |
$ |
70,801 |
|
|
$ |
74,197 |
|
|
$ |
208,062 |
|
|
$ |
217,057 |
|
Direct to Consumer Gross Margin |
|
63.8 |
% |
|
|
61.8 |
% |
|
|
63.6 |
% |
|
|
61.0 |
% |
Fiscal Third Quarter 2024 Highlights
-
Revenue was
$125.1 million 6.9% 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 last year. -
Direct to Consumer (“DTC”) revenue was
$110.9 million 7.6% decrease year-over-year, primarily related to the items discussed above. -
Commerce revenue was
$14.2 million 0.6% decrease year-over-year. -
Gross profit was
$77.2 million 3.7% decrease compared to last year. -
Gross margin was
61.8% , as compared to59.7% in the same period last year. The increase was driven by new contract pricing delivering a reduction in unit cost of goods in the most recent period. -
Advertising and marketing expenses were
$25.1 million $21.7 million -
General and administrative ("G&A") expenses were
$66.1 million $80.2 million -
Net loss was
$(10.1) million $(21.3) million -
Adjusted EBITDA was
$(6.4) million $6.4 million -
Net cash provided by operating activities was
$15.0 million $13.3 million $12.9 million
"We've been very pleased with our ability to deliver consistent improvements in our profitability profile," said Zahir Ibrahim, Chief Financial Officer of BARK. "There is still work to do, however, we believe the business has reached an inflection point from a profitability standpoint. We expect to be Adjusted EBITDA positive in the fiscal fourth quarter and have solid visibility into bottom line improvements in fiscal 2025."
Balance Sheet Highlights
-
The Company’s cash and cash equivalents balance as of December 31, 2023 was
$131.3 million $45.0 million -
The Company's inventory balance as of December 31, 2023 was
$98.5 million $10.9 million $46.8 million
Partial Repurchase of 2025 Convertible Notes
As announced last quarter, the Company repurchased
Fiscal Fourth Quarter and Full Year 2024 Financial Outlook
Based on current market conditions as of February 7, 2024, BARK is providing updated guidance for revenue and Adjusted EBITDA, which is a Non-GAAP financial measure, as follows.
For the fiscal full year 2024, the Company expects:
- Total revenue growth of (8)% to (9)% year-over-year, revised from its prior guidance of (8)% to (11)%. The Company is increasing the low-end of its revenue range due to its stronger-than-expected third quarter results.
-
Adjusted EBITDA of
$(9.8) million $(11.8) million $(6.0) million $(12.0) million
For the fiscal fourth quarter 2024, the Company expects:
-
Total revenue of
$118.4 $123.8 million -
Adjusted EBITDA of
$1.0 million $3.0 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 third quarter 2024 results will be held today, February 7, 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’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 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 the COVID-19 pandemic or other 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 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.
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.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS (In thousands) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
REVENUE |
$ |
125,075 |
|
|
$ |
134,334 |
|
|
$ |
368,700 |
|
|
$ |
409,298 |
|
COST OF REVENUE |
|
47,831 |
|
|
|
54,144 |
|
|
|
142,779 |
|
|
|
172,952 |
|
Gross profit |
|
77,244 |
|
|
|
80,190 |
|
|
|
225,921 |
|
|
|
236,346 |
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
||||||||
General and administrative |
|
66,119 |
|
|
|
80,192 |
|
|
|
204,467 |
|
|
|
233,937 |
|
Advertising and marketing |
|
25,094 |
|
|
|
21,747 |
|
|
|
60,523 |
|
|
|
53,441 |
|
Total operating expenses |
|
91,213 |
|
|
|
101,939 |
|
|
|
264,990 |
|
|
|
287,378 |
|
LOSS FROM OPERATIONS |
|
(13,969 |
) |
|
|
(21,749 |
) |
|
|
(39,069 |
) |
|
|
(51,032 |
) |
INTEREST INCOME |
|
1,718 |
|
|
|
78 |
|
|
|
5,851 |
|
|
|
78 |
|
INTEREST EXPENSE |
|
(902 |
) |
|
|
(1,344 |
) |
|
|
(3,648 |
) |
|
|
(4,073 |
) |
OTHER INCOME—NET |
|
3,045 |
|
|
|
1,745 |
|
|
|
4,758 |
|
|
|
7,710 |
|
NET LOSS BEFORE INCOME TAXES |
|
(10,108 |
) |
|
|
(21,270 |
) |
|
|
(32,108 |
) |
|
|
(47,317 |
) |
PROVISION FOR INCOME TAXES |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
NET LOSS AND COMPREHENSIVE LOSS |
$ |
(10,108 |
) |
|
$ |
(21,270 |
) |
|
$ |
(32,108 |
) |
|
$ |
(47,317 |
) |
DISAGGREGATED REVENUE (In thousands) |
|||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
December 31, |
|
December 31, |
||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Revenue |
|
|
|
|
|
|
|
||||
Direct to Consumer: |
|
|
|
|
|
|
|
||||
Toys & Accessories(1) |
$ |
71,183 |
|
$ |
78,383 |
|
$ |
210,433 |
|
$ |
232,396 |
Consumables(1) |
|
39,720 |
|
|
41,692 |
|
|
116,666 |
|
|
123,622 |
Total Direct to Consumer |
$ |
110,903 |
|
$ |
120,075 |
|
$ |
327,099 |
|
$ |
356,018 |
Commerce |
|
14,172 |
|
|
14,259 |
|
|
41,601 |
|
|
53,280 |
Revenue |
$ |
125,075 |
|
$ |
134,334 |
|
$ |
368,700 |
|
$ |
409,298 |
(1) |
The allocation between Toys & Accessories and Consumables includes estimates and was determined utilizing data on stand-alone selling prices that the Company charges for similar offerings, and also reflects historical pricing practices. The three and nine months ended December 31, 2022 disaggregated revenue information for Direct to Consumer revenue has been reclassified to conform with the current presentation to allocate revenue between Toys & Accessories and Consumables. |
GROSS PROFIT BY SEGMENT (In thousands) |
|||||||||||
|
Three Months Ended December 31, |
|
Nine Months Ended December 31, |
||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Direct to Consumer: |
|
|
|
|
|
|
|
||||
Revenue |
$ |
110,903 |
|
$ |
120,075 |
|
$ |
327,099 |
|
$ |
356,018 |
Cost of revenue |
|
40,102 |
|
|
45,878 |
|
|
119,037 |
|
|
138,961 |
Gross profit |
|
70,801 |
|
|
74,197 |
|
|
208,062 |
|
|
217,057 |
Commerce: |
|
|
|
|
|
|
|
||||
Revenue |
|
14,172 |
|
|
14,259 |
|
|
41,601 |
|
|
53,280 |
Cost of revenue |
|
7,729 |
|
|
8,266 |
|
|
23,742 |
|
|
33,991 |
Gross profit |
|
6,443 |
|
|
5,993 |
|
|
17,859 |
|
|
19,289 |
Consolidated: |
|
|
|
|
|
|
|
||||
Revenue |
|
125,075 |
|
|
134,334 |
|
|
368,700 |
|
|
409,298 |
Cost of revenue |
|
47,831 |
|
|
54,144 |
|
|
142,779 |
|
|
172,952 |
Gross profit |
$ |
77,244 |
|
$ |
80,190 |
|
$ |
225,921 |
|
$ |
236,346 |
BARK, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) |
|||||||
|
December 31, |
|
March 31, |
||||
|
2023 |
|
2023 |
||||
ASSETS |
|
|
|
||||
CURRENT ASSETS: |
|
|
|
||||
Cash and cash equivalents |
$ |
131,284 |
|
|
$ |
177,911 |
|
Accounts receivable—net |
|
6,458 |
|
|
|
6,554 |
|
Prepaid expenses and other current assets |
|
4,430 |
|
|
|
3,552 |
|
Inventory |
|
98,471 |
|
|
|
124,336 |
|
Total current assets |
|
240,643 |
|
|
|
312,353 |
|
PROPERTY AND EQUIPMENT—NET |
|
27,214 |
|
|
|
39,851 |
|
INTANGIBLE ASSETS—NET |
|
11,786 |
|
|
|
4,090 |
|
OPERATING LEASE RIGHT-OF-USE ASSETS |
|
33,772 |
|
|
|
36,892 |
|
OTHER NONCURRENT ASSETS |
|
7,215 |
|
|
|
7,234 |
|
TOTAL ASSETS |
$ |
320,630 |
|
|
$ |
400,420 |
|
LIABILITIES, AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
CURRENT LIABILITIES: |
|
|
|
||||
Accounts payable |
$ |
25,586 |
|
|
$ |
34,370 |
|
Operating lease liabilities, current |
|
4,425 |
|
|
|
5,484 |
|
Accrued and other current liabilities |
|
31,951 |
|
|
|
31,975 |
|
Deferred revenue |
|
29,018 |
|
|
|
27,772 |
|
Total current liabilities |
|
90,980 |
|
|
|
99,601 |
|
LONG-TERM DEBT |
|
39,826 |
|
|
|
81,221 |
|
OPERATING LEASE LIABILITIES |
|
44,778 |
|
|
|
47,240 |
|
OTHER LONG-TERM LIABILITIES |
|
700 |
|
|
|
1,821 |
|
Total liabilities |
|
176,284 |
|
|
|
229,883 |
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
||||
STOCKHOLDERS’ EQUITY: |
|
|
|
||||
Common stock, par value |
|
1 |
|
|
|
1 |
|
Treasury stock, at cost, 2,767,684 and no shares, respectively |
|
(4,120 |
) |
|
|
— |
|
Additional paid-in capital |
|
490,421 |
|
|
|
480,370 |
|
Accumulated deficit |
|
(341,956 |
) |
|
|
(309,834 |
) |
Total stockholders’ equity |
|
144,346 |
|
|
|
170,537 |
|
TOTAL LIABILITIES, AND STOCKHOLDERS’ EQUITY |
$ |
320,630 |
|
|
$ |
400,420 |
|
BARK, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) |
|||||||
|
Nine Months Ended |
||||||
|
December 31, |
|
December 31, |
||||
|
2023 |
|
2022 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
||||
Net loss |
$ |
(32,108 |
) |
|
$ |
(47,317 |
) |
Adjustments to reconcile net loss to cash used in operating activities: |
|
|
|
||||
Depreciation & amortization |
|
8,899 |
|
|
|
6,508 |
|
Impairment of assets |
|
3,079 |
|
|
|
1,661 |
|
Amortization of right-of-use assets |
|
3,120 |
|
|
|
3,754 |
|
Loss on disposal of assets |
|
72 |
|
|
|
— |
|
Amortization of deferred financing fees and debt discount |
|
478 |
|
|
|
494 |
|
Bad debt expense |
|
34 |
|
|
|
803 |
|
Stock-based compensation expense |
|
10,510 |
|
|
|
11,876 |
|
Provision for inventory obsolescence reserve |
|
888 |
|
|
|
(2,486 |
) |
Gain on extinguishment of debt |
|
(1,828 |
) |
|
|
— |
|
Change in fair value of warrant liabilities and derivatives |
|
(2,216 |
) |
|
|
(6,523 |
) |
Paid in kind interest on convertible notes |
|
2,119 |
|
|
|
4,354 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
63 |
|
|
|
4,365 |
|
Inventory |
|
24,975 |
|
|
|
10,333 |
|
Prepaid expenses and other current assets |
|
(1,123 |
) |
|
|
(222 |
) |
Other noncurrent assets |
|
— |
|
|
|
155 |
|
Accounts payable and accrued expenses |
|
(4,894 |
) |
|
|
(5,339 |
) |
Deferred revenue |
|
1,247 |
|
|
|
1,367 |
|
Proceeds from tenant improvement allowances |
|
— |
|
|
|
6,177 |
|
Operating lease liabilities |
|
(3,522 |
) |
|
|
(2,307 |
) |
Other liabilities |
|
(2,687 |
) |
|
|
(2,139 |
) |
Net cash provided by (used in) operating activities |
|
7,106 |
|
|
|
(14,486 |
) |
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||||
Capital expenditures |
|
(6,699 |
) |
|
|
(18,854 |
) |
Net cash used in investing activities |
|
(6,699 |
) |
|
|
(18,854 |
) |
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
||||
Payment of finance lease obligations |
|
(161 |
) |
|
|
(2,326 |
) |
Proceeds from the exercise of stock options |
|
105 |
|
|
|
980 |
|
Proceeds from issuance of common stock under ESPP |
|
489 |
|
|
|
145 |
|
Tax payments related to the issuance of common stock |
|
(1,011 |
) |
|
|
(649 |
) |
Excise tax from stock repurchases |
|
(42 |
) |
|
|
— |
|
Payments to repurchase common stock |
|
(4,120 |
) |
|
|
— |
|
Payments of long-term debt |
|
(42,300 |
) |
|
|
— |
|
Net cash used in financing activities |
|
(47,040 |
) |
|
|
(1,850 |
) |
|
|
|
|
||||
Effect of exchange rate changes on cash |
|
(14 |
) |
|
|
(18 |
) |
|
|
|
|
||||
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
|
(46,647 |
) |
|
|
(35,208 |
) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—BEGINNING OF PERIOD |
|
183,068 |
|
|
|
201,679 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—END OF PERIOD |
$ |
136,421 |
|
|
$ |
166,471 |
|
|
|
|
|
||||
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH: |
|
|
|
||||
Cash and cash equivalents |
|
131,284 |
|
|
|
164,181 |
|
Restricted cash - Other noncurrent assets |
|
5,137 |
|
|
|
2,290 |
|
Total cash, cash equivalents and restricted cash |
$ |
136,421 |
|
|
$ |
166,471 |
|
|
|
|
|
||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
|
|
|
||||
Purchases of property and equipment included in accounts payable and accrued liabilities |
$ |
38 |
|
|
$ |
342 |
|
Cash paid for interest |
$ |
2,237 |
|
|
$ |
275 |
|
NON-CASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
||||
Establishment of operating lease |
$ |
— |
|
|
$ |
24,576 |
|
Lease modification and termination |
$ |
— |
|
|
$ |
3,532 |
|
Non-GAAP Financial Measures
We report our financial results in accordance with
We calculate Adjusted Net Loss as net loss, adjusted to exclude: (1) stock-based compensation expense, (2) change in fair value of warrants and derivatives, (3) sales and use tax income, (4) non-cash impairment of previously capitalized software and prepaid software licenses, (5) restructuring charges related to reduction in force payment (6) duplicate headquarters rent expense, (7) gain on extinguishment of debt, and (8) other items (as defined below).
We calculate Adjusted Net Loss Margin by dividing Adjusted Net Loss for the period by Revenue for the period.
We calculate Adjusted Net Loss Per Common Share by dividing Adjusted Net Loss for the period by weighted average common shares used to compute net loss per share attributable to common stockholders for the period.
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, (10) gain on extinguishment of debt, and (11) other items (as defined below).
We calculate Adjusted EBITDA Margin by dividing Adjusted EBITDA for the period by revenue for the period.
We calculate Free Cash Flow as net cash provided by (used in) operating activities less capital expenditures.
The Non-GAAP Measures are financial measures that are not required by, or presented in accordance with
The Non-GAAP Measures are presented for supplemental informational purposes only, have limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with
The following table presents a reconciliation of Adjusted Net Loss to Net loss, the most directly comparable financial measure stated in accordance with
Adjusted Net Loss
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
(in thousands, except per share data) |
||||||||||||||
Net loss |
$ |
(10,108 |
) |
|
$ |
(21,270 |
) |
|
$ |
(32,108 |
) |
|
$ |
(47,317 |
) |
Stock-based compensation expense |
|
3,596 |
|
|
|
3,681 |
|
|
|
10,510 |
|
|
|
11,876 |
|
Change in fair value of warrants and derivatives |
|
(782 |
) |
|
|
(1,564 |
) |
|
|
(2,216 |
) |
|
|
(6,523 |
) |
Sales and use tax income (1) |
|
(18 |
) |
|
|
(63 |
) |
|
|
(155 |
) |
|
|
(294 |
) |
Impairment of assets |
|
109 |
|
|
|
1,452 |
|
|
|
3,079 |
|
|
|
1,452 |
|
Restructuring |
|
— |
|
|
|
— |
|
|
|
1,543 |
|
|
|
— |
|
Duplicate headquarters rent |
|
24 |
|
|
|
512 |
|
|
|
70 |
|
|
|
1,718 |
|
Gain on extinguishment of debt |
|
(1,828 |
) |
|
|
— |
|
|
|
(1,828 |
) |
|
|
— |
|
Other items (2) |
|
452 |
|
|
|
470 |
|
|
|
1,570 |
|
|
|
520 |
|
Adjusted net loss |
$ |
(8,555 |
) |
|
$ |
(16,782 |
) |
|
$ |
(19,535 |
) |
|
$ |
(38,568 |
) |
Net loss margin |
|
(8.08 |
)% |
|
|
(15.83 |
)% |
|
|
(8.71 |
)% |
|
|
(11.56 |
)% |
Adjusted net loss margin |
|
(6.84 |
)% |
|
|
(12.49 |
)% |
|
|
(5.30 |
)% |
|
|
(9.42 |
)% |
|
|
|
|
|
|
|
|
||||||||
Adjusted net loss per common share - basic and diluted |
$ |
(0.05 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.22 |
) |
Weighted average common shares used to compute adjusted net loss per share attributable to common stockholders - basic and diluted |
|
175,540,096 |
|
|
|
177,672,036 |
|
|
|
176,611,729 |
|
|
|
176,546,378 |
|
Weighted average common shares used to compute adjusted net loss per share attributable to common stockholders - diluted |
|
175,540,096 |
|
|
|
177,672,036 |
|
|
|
176,611,729 |
|
|
|
176,546,378 |
|
The following table presents a reconciliation of Adjusted EBITDA to net loss, the most directly comparable financial measure stated in accordance with
Adjusted EBITDA
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
(in thousands) |
|
(in thousands) |
||||||||||||
Net loss |
$ |
(10,108 |
) |
|
$ |
(21,270 |
) |
|
$ |
(32,108 |
) |
|
$ |
(47,317 |
) |
Interest income |
|
(1,718 |
) |
|
|
(78 |
) |
|
|
(5,851 |
) |
|
|
(78 |
) |
Interest expense |
|
902 |
|
|
|
1,344 |
|
|
|
3,648 |
|
|
|
4,073 |
|
Depreciation and amortization expense |
|
2,958 |
|
|
|
2,700 |
|
|
|
8,899 |
|
|
|
6,508 |
|
Stock-based compensation expense |
|
3,596 |
|
|
|
3,681 |
|
|
|
10,510 |
|
|
|
11,876 |
|
Change in fair value of warrants and derivatives |
|
(782 |
) |
|
|
(1,564 |
) |
|
|
(2,216 |
) |
|
|
(6,523 |
) |
Sales and use tax income (1) |
|
(18 |
) |
|
|
(63 |
) |
|
|
(155 |
) |
|
|
(294 |
) |
Impairment of assets |
|
109 |
|
|
|
1,452 |
|
|
|
3,079 |
|
|
|
1,452 |
|
Restructuring |
|
— |
|
|
|
— |
|
|
|
1,543 |
|
|
|
— |
|
Duplicate headquarters rent |
|
24 |
|
|
|
512 |
|
|
|
70 |
|
|
|
1,718 |
|
Gain on extinguishment of debt |
|
(1,828 |
) |
|
|
— |
|
|
|
(1,828 |
) |
|
|
— |
|
Other items (2) |
|
452 |
|
|
|
470 |
|
|
|
1,570 |
|
|
|
520 |
|
Adjusted EBITDA |
$ |
(6,413 |
) |
|
$ |
(12,816 |
) |
|
$ |
(12,839 |
) |
|
$ |
(28,065 |
) |
Net loss margin |
|
(8.08 |
)% |
|
|
(15.83 |
)% |
|
|
(8.71 |
)% |
|
|
(11.56 |
)% |
Adjusted EBITDA margin |
|
(5.13 |
)% |
|
|
(9.54 |
)% |
|
|
(3.48 |
)% |
|
|
(6.86 |
)% |
(1) |
Sales and use tax expense relates to recording a liability for sales and use tax we did not collect from our customers. Historically, we had collected state or local sales, use, or other similar taxes in certain jurisdictions in which we only had physical presence. On June 21, 2018, the |
|
|
|
|
(2) |
For the three months ended December 31, 2023, other items is primarily comprised of the expense related to non-recurring retention payments to management of |
The following table presents a reconciliation of Free Cash Flow to Net cash used in operating activities, the most directly comparable financial measure prepared in accordance with
Free Cash Flow
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Free cash flow reconciliation: |
|
|
|
|
|
|
|
||||||||
Net cash provided by (used in) operating activities |
$ |
15,022 |
|
|
$ |
5,077 |
|
|
$ |
7,106 |
|
|
$ |
(14,486 |
) |
Capital expenditures |
|
(1,766 |
) |
|
|
(4,746 |
) |
|
|
(6,699 |
) |
|
|
(18,854 |
) |
Free cash flow |
$ |
13,256 |
|
|
$ |
331 |
|
|
$ |
407 |
|
|
$ |
(33,340 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240207223411/en/
Investors:
Michael Mougias
investors@barkbox.com
Media:
Garland Harwood
press@barkbox.com
Source: BARK, Inc.
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