Bark(US:BARK)2024-08-07 20:54Financial Performance - Revenue for the three months ended June 30, 2024, was $116,212,000, a decrease of 3.4% compared to $120,591,000 for the same period in 2023[12] - Gross profit for the same period was $73,266,000, slightly up from $73,036,000 year-over-year[12] - Total operating expenses decreased to $83,858,000 from $87,040,000, reflecting a reduction of 3.9%[12] - The net loss for the three months ended June 30, 2024, was $10,039,000, compared to a net loss of $11,663,000 in the prior year, indicating an improvement of 14.0%[12] - The company reported a net loss per common share of $0.06 for the three months ended June 30, 2024, compared to a loss of $0.07 in the same period last year[12] - For the three months ended June 30, 2024, BARK, Inc. reported a net loss of $10,039,000, an improvement from a net loss of $11,663,000 for the same period in 2023, representing a reduction of approximately 14%[19] - The company generated net cash provided by operating activities of $1,792,000 for the three months ended June 30, 2024, compared to a net cash used in operating activities of $10,741,000 in the prior year, indicating a significant turnaround[19] - Adjusted net loss for the same period was $3,985,000, with an adjusted net loss margin of (3.43)%, compared to an adjusted net loss of $9,539,000 and a margin of (7.91)% in 2023[134] - Adjusted EBITDA for the three months ended June 30, 2024, was $(1,796,000), with an adjusted EBITDA margin of (1.55)%, compared to $(7,429,000) and (6.16)% in 2023, indicating a significant reduction in losses[137] Cash and Liquidity - Cash and cash equivalents as of June 30, 2024, were $117,795,000, down from $125,495,000 at the end of the previous quarter[10] - The total cash, cash equivalents, and restricted cash at the end of the period was $126,174,000, down from $169,136,000 a year earlier, representing a decline of approximately 25%[19] - The company expects its cash and cash equivalents will be sufficient to fund operations for at least the next twelve months despite recurring losses since inception[25] - As of June 30, 2024, the company held cash and cash equivalents of approximately $117.8 million, with $24.5 million in a money market account[166] - The company has a revolving line of credit with Western Alliance Bank of up to $35.0 million, with no outstanding borrowings as of June 30, 2024[150][154] Assets and Liabilities - Total assets decreased to $287,735,000 from $298,588,000, a decline of 3.6%[10] - Total liabilities remained relatively stable at $159,675,000 compared to $159,205,000 in the previous quarter[10] - Stockholders' equity decreased to $128,060,000 from $139,383,000, a reduction of 8.1%[10] - The Company had total long-term debt of $40.0 million as of June 30, 2024, compared to $39.9 million as of March 31, 2024[47] Revenue Segments - For the three months ended June 30, 2024, total revenue was $116.2 million, a decrease from $120.6 million for the same period in 2023, with Direct to Consumer revenue at $107.1 million[41] - For the three months ended June 30, 2024, the Direct to Consumer segment generated revenue of $111,887,000, with a gross profit of $69,583,000, resulting in a gross margin of 62.2%[90] - The Commerce segment reported revenue of $8,704,000 and a gross profit of $3,453,000, leading to a gross margin of 39.7%[90] - Direct to Consumer revenue decreased by $4.8 million, or 4.3%, for the three months ended June 30, 2024 compared to the same period in 2023, primarily due to a 3.3% decrease in Total Orders and a 1.6% decrease in Average Order Value (AOV)[117] - Commerce revenue increased by $0.4 million, or 5.2%, for the three months ended June 30, 2024, driven by sales volume from existing and new customers[118] Inventory and Capital Expenditures - Inventory decreased to $2,521,000 from $11,269,000 year-over-year, reflecting a reduction of approximately 78%[19] - Capital expenditures for the three months ended June 30, 2024, were $2,043,000, down from $2,972,000 in the same period of 2023, a decrease of about 31%[19] Operating Expenses - Total general and administrative expenses decreased by $6.0 million, or 8.6%, for the three months ended June 30, 2024, primarily due to lower shipping and fulfillment expenses and reduced headcount[122] - Advertising and marketing expenses increased by $2.8 million, or 16.0%, for the three months ended June 30, 2024, attributed to increased marketing spend[123] Risks and Challenges - The company is facing challenges in acquiring new customers cost-effectively and retaining existing customers, which could impact future growth[177] - The competitive landscape in the dog products and services retail industry is intense, with many competitors having greater resources and market presence, which could impact the company's market share and profitability[193] - Economic downturns and macroeconomic conditions negatively impact consumer discretionary spending, which is crucial for the company's revenue[184] - The company relies on a limited number of suppliers and manufacturers, which poses risks related to supply chain disruptions and potential delays in product delivery[186] - The complexities of omnichannel operations require effective management of inventory and fulfillment processes, with potential adverse effects if not managed properly[189] Legal and Compliance - The company is currently involved in a legal proceeding related to a putative class action complaint, which may have potential implications for its financial condition[171][172] - The company is subject to evolving privacy and data protection regulations, which may complicate compliance and increase operational costs[206] - Product safety regulations could lead to recalls or legal actions, impacting sales and increasing costs associated with customer service and legal expenses[208]