Bark(US:BARK)2025-02-05 22:08Revenue and Profitability - Revenue for the three months ended December 31, 2024, was $126,449,000, a slight increase from $125,075,000 in the same period of 2023, representing a growth of 1.1%[16] - Gross profit for the three months ended December 31, 2024, was $79,260,000, compared to $77,244,000 in the prior year, indicating a growth of 2.6%[16] - For the three months ended December 31, 2024, total revenue was $126.4 million, a slight increase from $125.1 million in the same period of 2023[55] - Total revenue for the nine months ended December 31, 2024 was $368.8 million, a slight increase of $72, or 0.0%, compared to $368.7 million in the same period of 2023[152] - Total gross profit increased by $2.7 million, or 1.2%, to $228.6 million for the nine months ended December 31, 2024, with a gross margin of 62.0%[155] Net Loss and Adjusted Metrics - The net loss for the three months ended December 31, 2024, was $11,509,000, compared to a net loss of $10,108,000 for the same period in 2023, representing a decline of 13.9%[16] - Net loss for the nine months ended December 31, 2024, was $26.811 million, an improvement from a net loss of $32.108 million for the same period in 2023, representing a 16.5% reduction[25] - Basic and diluted net loss per share for the three months ended December 31, 2024, was $(0.07), compared to $(0.06) for the same period in 2023, representing a 16.67% increase in loss per share[11] - Adjusted net loss for the three months ended December 31, 2024, was $3.9 million, while for the same period in 2023, it was $8.6 million, indicating a decrease in adjusted net loss of approximately 54.5%[173] - The net loss margin for the three months ended December 31, 2024, was (9.10)%, compared to (8.08)% for the same period in 2023[175] Cash Flow and Liquidity - Cash and cash equivalents decreased to $115,259,000 as of December 31, 2024, down from $125,495,000 as of March 31, 2024, a decline of 8.9%[13] - The company had cash and cash equivalents of approximately $115.3 million as of December 31, 2024, which is expected to be sufficient to fund operations for at least the next 12 months[179] - Free cash flow for the three months ended December 31, 2024, was $(1.96) million, compared to $13.26 million for the same period in 2023, indicating a significant decrease in free cash flow[178] - The company experienced a net decrease in cash and restricted cash of $10.7 million for the nine months ended December 31, 2024, compared to a decrease of $46.6 million in 2023[192] Assets and Liabilities - Total current assets increased to $229,405,000 as of December 31, 2024, up from $221,747,000 as of March 31, 2024, reflecting a growth of 3.0%[13] - Total liabilities rose to $179,154,000 as of December 31, 2024, compared to $159,205,000 as of March 31, 2024, marking an increase of 12.5%[13] - The accumulated deficit increased to $373,668,000 as of December 31, 2024, compared to $346,820,000 as of March 31, 2024, reflecting a growth of 7.7%[13] - The company’s total stockholders' equity decreased to $113,038,000 as of December 31, 2024, down from $139,383,000 as of March 31, 2024, indicating a decline of 18.9%[13] Operating Expenses - Operating expenses for the three months ended December 31, 2024, totaled $91,505,000, slightly up from $91,213,000 in the same period of 2023, indicating an increase of 0.3%[16] - General and administrative expenses decreased by $2.0 million, or 3.0%, primarily due to a reduction in compensation and professional fees[146] - Advertising and marketing expenses increased by $2.3 million, or 9.0%, attributed to increased marketing spend[147] Revenue Segmentation - Direct to Consumer revenue for the nine months ended December 31, 2024, was $315.8 million, down from $327.1 million in 2023, representing a decrease of approximately 3.9%[55] - Total revenue for the Direct to Consumer segment for the three months ended December 31, 2024, was $106.1 million, a decrease of 3.55% from $110.9 million in 2023[102] - Commerce revenue increased by $6.2 million, or 43.5%, driven by sales volume from existing and new customers[141] Debt and Financing Activities - Long-term debt as of December 31, 2024, totaled $42.5 million, an increase from $39.9 million as of March 31, 2024[59] - Net cash used in financing activities was $9.433 million, significantly lower than $47.040 million in the previous year, indicating a decrease of 80.0%[25] - The company had outstanding borrowings of $42.9 million under the note purchase agreement as of December 31, 2024[186] Stock and Equity - The company repurchased 5,225,531 shares of common stock for $8.0 million at an average price of $1.54 during the nine months ended December 31, 2024[73] - The company approved an increase of 8,876,143 shares available for issuance under the 2021 Equity Incentive Plan in April 2023, with 12,036,865 shares available for grant as of December 31, 2024[76] Other Financial Metrics - The company recognized a gain on debt extinguishment of $1.8 million related to the repurchase of $45.0 million of the 2025 Convertible Notes[64] - Other income (expense)—net for the nine months ended December 31, 2024, was $4.758 million, compared to $(217) thousand in the same period of 2023[97] - Interest income decreased by $0.5 million, or 31.4%, due to a reduction in cash in interest-bearing deposit accounts[148] Compliance and Legal Matters - The company expects to comply with financial and non-financial covenants related to its borrowing agreements during the next 12 months[179] - The company is currently involved in litigation related to a putative class action complaint, but it is unable to quantify any potential liability at this time[209]