Bark(BARK)2024-08-07 20:02Revenue and Financial Performance - Total revenue for Q1 FY2025 was $116.2 million, exceeding the high-end of the Company's guidance range[2][6] - Direct to Consumer revenue decreased by 4.3% to $107.1 million, while Commerce revenue grew by 5.2% to $9.2 million[6] - For FY2025, the Company reaffirmed its revenue guidance of $490 million to $500 million, reflecting flat to 2.0% year-over-year growth[8] - Q2 FY2025 revenue is expected to be $123.0 million to $126.0 million, with Adjusted EBITDA of $1.0 million to $3.0 million[9] Profitability and Margins - Consolidated gross margin reached a record 63.0%, a 248 basis point increase year-over-year[2][6] - Adjusted EBITDA was $(1.8) million, a $5.6 million improvement year-over-year and ahead of guidance[2][6] - Adjusted EBITDA margin improved from (7.91)% to (3.43)%[33] - Adjusted EBITDA improved to $(1.796) million for the three months ended June 30, 2024, from $(7.429) million in the same period in 2023, reflecting a significant improvement in operational efficiency[34] - Adjusted EBITDA margin improved to (1.55)% for the three months ended June 30, 2024, from (6.16)% in the same period in 2023[34] Net Loss and Adjusted Net Loss - Net loss improved by 13.9% to $(10.0) million year-over-year[2][6] - Net loss improved from $(11.663) million to $(10.039) million[22] - Adjusted net loss improved from $(9.539) million to $(3.985) million[31] - Adjusted net loss margin improved from (7.91)% to (3.43)%[31] - Net loss for the three months ended June 30, 2024, was $10.039 million, compared to $11.663 million in the same period in 2023, showing a reduction in net loss[34] - Net loss margin decreased to (8.64)% for the three months ended June 30, 2024, from (9.67)% in the same period in 2023[34] Cash Flow and Capital Expenditures - The Company's cash and cash equivalents balance as of June 30, 2024 was $117.8 million, with $4.3 million spent on share repurchases[7] - Cash and cash equivalents decreased from $125.495 million to $117.795 million[21] - Net cash provided by operating activities improved from $(10.741) million to $1.792 million[22] - Capital expenditures decreased from $(2.972) million to $(2.043) million[22] - Free cash flow was $(251) thousand for the three months ended June 30, 2024, compared to $(13.713) million in the same period in 2023, indicating a substantial improvement in cash flow management[38] - Capital expenditures decreased to $2.043 million for the three months ended June 30, 2024, from $2.972 million in the same period in 2023[38] Inventory and Accounts Receivable - Inventory balance decreased by $31.6 million year-over-year to $80.4 million[7] - Inventory increased from $80.428 million to $84.177 million[21] - Accounts receivable decreased from $7.696 million to $7.058 million[21] Stock-Based Compensation and Other Expenses - Stock-based compensation expense decreased from $3.225 million to $2.941 million[31] - Technology Modernization costs for the three months ended June 30, 2024, were $707 thousand, related to a one-time unification of product offerings on the new commerce platform[35] - Litigation expenses for the three months ended June 30, 2024, were $387 thousand, related to a shareholder class action complaint[35] - Other items for the three months ended June 30, 2024, included $0.2 million in non-recurring retention payments to management and $0.4 million in executive transition costs[36] Sales and Use Tax - Sales and use tax income for the three months ended June 30, 2024, was $(1.303) million, reflecting changes in tax collection obligations following the South Dakota v. Wayfair, Inc. decision[34]