NEW YORK--(BUSINESS WIRE)--BARK, Inc. (“BARK” or the “Company”) (NYSE: BARK), a leading global omnichannel dog brand with the mission to make all dogs happy, announced today its preliminary third quarter fiscal year 2024 revenue ahead of its scheduled presentation at the ICR Conference. Total revenue was approximately $125 million, ahead of the high-end of its previously provided guidance range of $123 million to $119 million. The Company also reported that it delivered its strongest customer acquisition qu ...

Company Announcement - BARK, Inc. announced that Nari Sitaraman will step down as Chief Technology Officer (CTO) effective January 19, 2024, and Eric Picard will take over his responsibilities [1][2] Leadership Transition - Nari Sitaraman has been a significant asset in evolving BARK's technology organization over the past two years, contributing to the expansion of the product portfolio and the launch of the unified platform at BARK.co [2] - Eric Picard, with experience in high-growth technology startups and established companies like Pandora and Microsoft, is expected to continue the evolution of BARK's technology initiatives [2] Company Overview - BARK is dedicated to making dogs happy through a variety of products, services, and content, focusing on a data-driven approach to design dog-specific toys, treats, and meals [3] - Founded in 2011, BARK offers subscription services like BarkBox and BARK Super Chewer, custom product collections through retail partners such as Target and Amazon, and specialized dog food and dental care products [3]

Financial Data and Key Metrics Changes - The company reported total revenue of $123 million for Q2 2024, meeting guidance but reflecting a decline in certain segments [18][10] - Adjusted EBITDA was positive at $1 million, marking the first positive EBITDA quarter since going public [6][24] - Free cash flow was positive at just under $1 million for the quarter, with a trailing 12-month total of approximately $4 million [6][25] Business Line Data and Key Metrics Changes - B2C segment revenue was $104 million, down 11% year-over-year, primarily due to a 9% decline in total orders and a decrease in average order value [18][19] - Toy revenue was $67 million, down 12%, while consumables revenue was $37 million, down 9% [19] - Consumables revenue outside subscription boxes was $5 million, up 20% year-over-year, indicating growth in this category [11][19] Market Data and Key Metrics Changes - The pet industry is facing challenges, with a decline in households with dogs and a 10% decrease in the dog toy industry this fiscal year [9][10] - The company anticipates continued macro challenges affecting discretionary spending, particularly in toys [9][28] Company Strategy and Development Direction - The company is focusing on a consolidated DTC experience, expanding consumables, and increasing retail presence [11][12] - A new website URL (BARK.co) has been launched to improve customer conversion and cross-selling [11] - The company plans to grow the commerce segment to represent around 30% of total revenue over the next four to five years [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging growth environment but expressed confidence in achieving profitability and improving margins [9][16] - The company expects to continue delivering year-over-year improvements in profitability and cash flow generation [31][16] - Future guidance indicates a cautious approach, with total revenue expected to decline between 8% and 11% year-over-year [28] Other Important Information - The company reduced its inventory by $3 million, ending the period with a total balance of $109 million [24] - A significant share repurchase program was executed, with 2.8 million shares bought back at an average cost of $1.49 per share [25][26] - The company paid down $45 million of convertible notes early, improving its net cash position and saving on interest [7][26] Q&A Session Summary Question: Strategies to address macro pressures on discretionary toys - Management noted that customer retention has improved, and they have not needed to deploy discounts, focusing instead on customer acquisition strategies [34][36] Question: Expectations for Q3 and marketing spend - Q3 is expected to be a high-demand quarter with significant marketing investment, impacting profitability [39][40] Question: Insights from national retail partner conversations - Management highlighted strong interest in their new treat line and collaborative relationships with retailers [51][52]

PART I. Financial Information [Financial Statements (Unaudited)](index=4&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) This section presents BARK, Inc.'s unaudited condensed consolidated financial statements for Q3 2023, detailing financial position, operations, equity changes, and cash flows, along with related notes and a subsequent debt repurchase Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2023 | Mar 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $286,618 | $312,353 | | Cash and cash equivalents | $160,541 | $177,911 | | Inventory | $109,391 | $124,336 | | **Total Assets** | **$368,986** | **$400,420** | | **Total Current Liabilities** | $85,962 | $99,601 | | Long-Term Debt | $81,594 | $81,221 | | **Total Liabilities** | **$218,039** | **$229,883** | | **Total Stockholders' Equity** | **$150,947** | **$170,537** | Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Six Months Ended Sep 30, 2023 | Six Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $123,036 | $143,814 | $243,626 | $274,964 | | **Gross Profit** | $75,642 | $80,341 | $148,678 | $156,155 | | **Loss from Operations** | $(11,099) | $(9,146) | $(25,103) | $(29,284) | | **Net Loss** | **$(10,337)** | **$(10,639)** | **$(22,000)** | **$(26,047)** | | **Net Loss per Share** | $(0.06) | $(0.06) | $(0.12) | $(0.15) | - The company operates in two reportable segments: Direct to Consumer (DTC) and Commerce, with DTC revenue at **$216.2 million** and Commerce revenue at **$27.4 million** for the six months ended September 30, 2023[91](index=91&type=chunk)[93](index=93&type=chunk) - Subsequent to quarter end, on November 2, 2023, the company repurchased **$45.0 million** of its outstanding 5.50% Convertible Secured Notes due 2025 for a total cash price of **$44.4 million**[94](index=94&type=chunk)[95](index=95&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses BARK's financial performance, noting decreased revenue due to lower order volumes, improved gross margin, reduced net loss, positive Adjusted EBITDA, and strong liquidity, as the company focuses on profitability [Overview and Key Performance Indicators](index=22&type=section&id=MD%26A_Overview) BARK, an omnichannel dog brand, operates across Toys & Accessories and Consumables, selling DTC via subscriptions and through retail partners, with Total Orders and Average Order Value as key performance indicators Key Performance Indicators | Indicator | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Six Months Ended Sep 30, 2023 | Six Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Total Orders (in thousands) | 3,361 | 3,689 | 6,921 | 7,557 | | Average Order Value | $31.03 | $31.87 | $31.24 | $31.22 | - The company has expanded into larger consumables markets such as kibble, toppers, supplements, and dental products, which is expected to significantly increase its total addressable market[100](index=100&type=chunk) [Results of Operations](index=26&type=section&id=MD%26A_Results_of_Operations) Q2 FY2024 total revenue decreased **14.4%** to **$123.0 million** due to lower order volumes in DTC and Commerce, yet gross profit declined less at **5.8%** due to margin expansion, resulting in a slightly improved net loss Revenue by Segment - Q2 FY2024 vs Q2 FY2023 (in thousands) | Segment | Q2 2023 Revenue | Q2 2022 Revenue | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Direct to Consumer | $104,312 | $117,547 | $(13,235) | (11.3)% | | Commerce | $18,724 | $26,267 | $(7,543) | (28.7)% | | **Total Revenue** | **$123,036** | **$143,814** | **$(20,778)** | **(14.4)%** | Gross Profit by Segment - Q2 FY2024 vs Q2 FY2023 (in thousands) | Segment | Q2 2023 Gross Profit | Q2 2022 Gross Profit | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Direct to Consumer | $67,679 | $71,611 | $(3,932) | (5.5)% | | Commerce | $7,963 | $8,730 | $(767) | (8.8)% | | **Total Gross Profit** | **$75,642** | **$80,341** | **$(4,699)** | **(5.8)%** | - General and administrative expenses decreased by **$5.2 million (7.0%)** in Q2 2023, primarily due to lower shipping and fulfillment costs, reduced compensation expense, and lower consultant fees, partially offset by a **$3.0 million** non-cash impairment charge[131](index=131&type=chunk) - Advertising and marketing expense increased by **$2.5 million (16.2%)** in Q2 2023 due to increased marketing spend[132](index=132&type=chunk) [Non-GAAP Financial Measures](index=32&type=section&id=MD%26A_Non-GAAP) The company utilizes non-GAAP measures like Adjusted Net Loss, Adjusted EBITDA, and Free Cash Flow, reporting improved Q2 2023 Adjusted EBITDA of **$1.0 million** and positive Free Cash Flow of **$0.9 million** Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net loss | $(10,337) | $(10,639) | | Adjustments (Interest, D&A, SBC, etc.) | 11,341 | 8,629 | | **Adjusted EBITDA** | **$1,004** | **$(2,010)** | Reconciliation of Net Loss to Adjusted Net Loss (in thousands) | Line Item | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net loss | $(10,337) | $(10,639) | | Adjustments (SBC, Warrants, Impairment, etc.) | 8,897 | 5,289 | | **Adjusted net loss** | **$(1,440)** | **$(5,350)** | Free Cash Flow (in thousands) | Line Item | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $2,825 | $(2,138) | | Capital expenditures | $(1,961) | $(9,373) | | **Free cash flow** | **$864** | **$(11,511)** | [Liquidity and Capital Resources](index=36&type=section&id=MD%26A_Liquidity) As of September 30, 2023, the company held **$160.5 million** in cash, sufficient for 12 months, with **$83.5 million** in 2025 Convertible Notes outstanding and improved operating cash flow despite a credit facility expiration - As of September 30, 2023, the company had cash and cash equivalents of approximately **$160.5 million**[164](index=164&type=chunk) - The company's **$35.0 million** secured revolving line of credit with Western Alliance Bank expired on October 31, 2023, with no outstanding borrowings, and the company is evaluating alternative options[170](index=170&type=chunk) Cash Flow Summary - Six Months Ended (in thousands) | Cash Flow Activity | Sep 30, 2023 | Sep 30, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(7,916) | $(19,563) | | Net cash used in investing activities | $(4,933) | $(14,108) | | Net cash (used in) provided by financing activities | $(4,665) | $586 | [Quantitative and Qualitative Disclosures about Market Risk](index=39&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company outlines its minimal exposure to market risks, including interest rate, inflation, and foreign exchange, none of which have materially impacted its business due to specific mitigating factors - The company's primary exposure to interest rate risk was its Western Alliance credit facility, which expired on October 31, 2023, with no outstanding borrowings[182](index=182&type=chunk) - The company does not believe inflation has had a material effect on its business, financial condition, or results of operations[183](index=183&type=chunk) - Foreign exchange risk is not expected to have a material impact as the company operates primarily within the United States and executes most transactions in U.S. dollars[184](index=184&type=chunk) [Controls and Procedures](index=39&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting - The principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures are effective[185](index=185&type=chunk) - There was no change in the Company's internal control over financial reporting during the most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting[185](index=185&type=chunk) PART II. Other Information [Legal Proceedings](index=40&type=section&id=ITEM%201.%20Legal%20Proceedings) The company faces two early-stage legal proceedings: a California class action regarding automatic renewal disclosures and a Delaware shareholder class action challenging the corporate opportunity doctrine renunciation - A class action lawsuit, *Farmer v. BarkBox, Inc.*, alleges the company failed to adequately disclose the automatic renewal of its subscription plans in violation of California law, with an appeal pending after denial of a motion to compel arbitration[187](index=187&type=chunk) - A shareholder class action, *Vernon v. BARK, Inc.*, was filed in Delaware seeking to have the renunciation of the corporate opportunity doctrine in the company's certificate of incorporation declared invalid[188](index=188&type=chunk) [Risk Factors](index=40&type=section&id=ITEM%201A.%20Risk%20Factors) This section details the company's comprehensive risk factors, including strategic, macroeconomic, operational, competitive, technological, regulatory, legal, and financial challenges, alongside its history of losses and stock price volatility - Strategic risks include challenges in acquiring new customers cost-effectively, maintaining high customer engagement, and successfully launching new products in a competitive market[191](index=191&type=chunk)[193](index=193&type=chunk)[197](index=197&type=chunk) - The business is critically reliant on a limited number of suppliers and manufacturers, primarily located in Asia, and on third-party logistics providers, exposing it to supply chain, geopolitical, and shipping risks[204](index=204&type=chunk)[207](index=207&type=chunk) - The company is subject to extensive and evolving laws and regulations regarding data privacy (e.g., CCPA/CPRA), consumer protection, and product safety, which could lead to significant costs and liabilities[223](index=223&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk) - Financial risks include a history of losses, potential inability to achieve or sustain profitability, limitations imposed by debt covenants, and potential for stock price volatility[236](index=236&type=chunk)[239](index=239&type=chunk)[241](index=241&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable for the reporting period - Not applicable[252](index=252&type=chunk) [Defaults Upon Senior Securities](index=55&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities during the period - None[253](index=253&type=chunk) [Mine Safety Disclosures](index=55&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's business - Not applicable[253](index=253&type=chunk) [Other Information](index=55&type=section&id=ITEM%205.%20Other%20Information) The company discloses no Rule 10b5-1 trading plan adoptions or terminations by directors/officers, and reports a post-quarter repurchase of **$45.0 million** of its 2025 Convertible Notes - During the reporting period, no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5–1 trading arrangement[254](index=254&type=chunk) - On November 2, 2023, the Company repurchased **$45.0 million** of its 5.50% Convertible Secured Notes due 2025 for a total cash purchase price of **$44.4 million**[254](index=254&type=chunk)[255](index=255&type=chunk) [Exhibits](index=55&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Notes Purchase Agreement, Officer Certifications, and XBRL financial data - A list of filed exhibits is provided, including the Notes Purchase Agreement (10.1), Officer Certifications (31.1, 31.2, 31.3, 32.1, 32.2, 32.3), and XBRL data files (101 series)[257](index=257&type=chunk)[260](index=260&type=chunk)

BARK, Inc. (NYSE:BARK) Q1 2024 Results Conference Call August 8, 2023 4:30 PM ET Company Participants Mike Mougias - VP, IR Matt Meeker - Co-Founder, CEO Zahir Ibrahim - CFO Conference Call Participants Maria Ripps - Canaccord Ryan Meyers - Lake Street Capital Markets Ygal Arounian - Citi Max Rakhlenko - TD Cowen Operator Good morning, good afternoon, and good evening. My name is Robert McArthur, I'll be your conference operator today. At this time, I'd like to welcome everyone to BARK's Fiscal First Quar ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39691 BARK, INC. (Exact name of registrant as specified in its charter) Delaware 85-1872418 (State or Other Jurisdiction of Incorp ...

Financial Data and Key Metrics Changes - The company reported a total revenue of $126 million for Q4 2023, exceeding guidance by $5 million, and a full-year revenue of just over $535 million, representing a 5.5% increase compared to fiscal 2022 [14][27] - The company achieved free cash flow positivity for the second consecutive quarter, ending Q4 with $178 million in cash, an increase of $14 million sequentially, and reduced cash burn from $194 million in fiscal 2022 to just $17 million in fiscal 2023 [7][33] - Adjusted EBITDA loss improved nearly 50% to negative $31 million for the full year, compared to a loss of $58 million in fiscal 2022 [18][33] Business Line Data and Key Metrics Changes - Direct-to-Consumer (DTC) revenue decreased slightly by 1.5% in Q4, while commerce revenue declined by 9.3% for the quarter; however, DTC revenue increased by 5.3% for the full year [27][28] - Toy revenue increased by 5% to $371 million in fiscal 2023, while consumables revenue grew by 7.2% to $164 million, driven mainly by food and dental products [15][29] - The average order value (AOV) increased by $2.11 year-over-year to $31.70 for the full year, with Q4 AOV at $32.70, reflecting improved cross-selling capabilities [8][26] Market Data and Key Metrics Changes - The company anticipates softness in retail sales in the first half of fiscal 2024 as retailers manage existing inventory, but expects revenue to accelerate in the second half, particularly in Q4 [27][35] - The company is focusing on expanding its consumables business, which currently has virtually no retail presence, and expects significant growth as it introduces treats and dental products to retail partners [10][22] Company Strategy and Development Direction - The company aims to grow its Direct-to-Consumer e-commerce and subscription business, consumables, and services as key pillars for future growth [9][10] - The company has updated its KPIs to reflect a more accurate representation of its business model, moving away from a subscription-only focus to include one-off purchases [12] - The company plans to leverage its strong brand and customer relationships to expand into services, viewing this as a long-term growth opportunity [10][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving breakeven adjusted EBITDA for fiscal 2024, with expectations for gross margin improvement of 200 to 300 basis points [18][20] - The management highlighted the importance of transitioning from profitability to growth mode, with a focus on expanding the consumables business and improving customer lifetime value [37][59] - Management noted that the stock price does not currently reflect the company's progress and long-term potential, emphasizing the undervaluation given the company's revenue and cash position [22] Other Important Information - The company reduced its annual G&A expenses by $12 million through cost reduction initiatives, with $10 million expected to flow into fiscal 2024 [17][30] - The company expects to maintain a cash balance exceeding $180 million by year-end, despite anticipated negative free cash flow in the first half of fiscal 2024 [36] Q&A Session Summary Question: Long-term mix of subscriptions versus standalone purchases - Management indicated that while subscriptions remain significant, there is a growing trend towards one-off purchases, particularly for consumables, reflecting customer demand for flexibility [39][40][41] Question: Growth opportunities in services - Management discussed the potential for expanding into services, leveraging their brand and customer data to create new offerings that enhance the customer experience [42][43] Question: Breakdown of consumable customers - The majority of consumable customers are existing BARK customers, with recent efforts focused on cross-selling and increasing conversion rates [46][47] Question: Adjusted EBITDA guidance and revenue trajectory - Management explained that Q1 revenue is expected to be softer due to retail inventory issues, but anticipates improved performance in the second half of the year [49][50][51] Question: Expanded assortment in retail - Management confirmed that treats are the primary focus for retail expansion, with dental products also being prioritized for introduction [61][62]

Financial Performance - Total revenue for fiscal 2023 was approximately $348 million, with a 4.3% increase compared to fiscal 2022[16] - Direct-to-consumer (DTC) business represented 88.2% of total revenue, while commerce business accounted for 11.8%[14] - Cross-selling revenue reached $41 million, up 35% compared to the prior year[15] Market Insights - The U.S. pet products market was valued at approximately $137 billion in 2022, reflecting an increase of over $13 billion, or nearly 11%, from 2021[12] - E-commerce sales of pet products accounted for an estimated 36% in 2022, projected to rise to 45% by 2026[12] Product Development and Strategy - BARK's consumables category is expected to drive significant future growth, with plans to introduce treats in retail by the end of fiscal 2024[26] - The company is unifying its brand under the bark.co domain to enhance customer experience and cross-selling capabilities[27] - BARK products are sold in over 40,000 retail doors, including major retailers like Target and Walmart[14] Operational Insights - At the end of fiscal 2023, BARK employed approximately 900 full-time and part-time employees[29] - The company utilizes global third-party logistics providers for warehousing and distribution, managing inventory levels through demand forecasting[37] Financial Position - As of March 31, 2023, the company had cash and cash equivalents of approximately $177.9 million, consisting of bank deposits and money market accounts[242] - The company has no outstanding borrowings under the Credit Facility as of March 31, 2023, indicating a strong liquidity position[243] Risk Management - The company does not believe inflation has had a material effect on its business, but acknowledges potential risks if costs rise significantly[244] - The company operates primarily within the United States and executes most transactions in U.S. dollars, limiting foreign exchange risk[245] Corporate Culture and Values - The company emphasizes a culture of inclusiveness and diversity, focusing on recruitment, continuous learning, and employee resource groups[33] - The company is committed to fair employee compensation, regularly reviewing equity grants for parity across gender and race[34] Relationships and Compliance - The company maintains long-standing relationships with a diverse base of manufacturers, ensuring compliance with specifications and applicable laws[36] Competitive Landscape - The dog products industry is highly competitive, with key factors including product selection, customer service, and brand loyalty[41] Intellectual Property - The company believes its intellectual property, including trademarks and domain names, significantly contributes to its brand recognition and market success[40]

BARK, Inc. (NYSE:BARK) Q3 2023 Earnings Conference Call February 3, 2023 4:30 PM ET Company Participants Mike Mougias - Vice President of Investor Relations Matt Meeker - Co-Founder and Chief Executive Officer Zahir Ibrahim - Chief Financial Officer Conference Call Participants Maria Ripps - Canaccord Genuity Corey Grady - Jefferies Ryan Meyers - Lake Street Capital Markets Ygal Arounian - Citigroup Operator Good afternoon. Thank you for attending today's BARK's Third Quarter Fiscal 2023 Earnings Call. My n ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39691 BARK, INC. (Exact name of registrant as specified in its charter) Delaware 85-1872418 (State or Other Jurisdiction of In ...