BARK Inc Reports Fiscal First Quarter 2025 Financial Results
Intellectia.AI2024-08-08
BARK, Inc. Reports Fiscal First Quarter 2025 Financial Results
BARK, Inc. (NYSE:BARK) ("BARK" or the "Company"), a leading global omnichannel dog brand, has announced its financial results for the fiscal first quarter that ended on June 30, 2024.
Key Financial Metrics
| Metric | Q1 FY2025 | Q1 FY2024 | Q4 FY2024 | Consensus Estimates | YoY Change | QoQ Change |
|---|---|---|---|---|---|---|
| Total Revenue | $116.2M | $120.5M | $118.7M | $114.28M | -3.6% | -2.1% |
| EPS | $(0.03) | $(0.03) | $(0.04) | $(0.03) | - | +25% |
| Adjusted EBITDA | $(1.8)M | $(7.4)M | $(3.0)M | $(3.0)M | +75.7% | +40% |
Interpretation: BARK's total revenue for Q1 FY2025 surpassed consensus estimates, coming in at $116.2M. Despite a year-over-year decline of 3.6% and a quarter-over-quarter decrease of 2.1%, the company's EPS met Wall Street expectations at $(0.03). Notably, Adjusted EBITDA showed significant improvement, narrowing to $(1.8)M from $(7.4)M YOY and $(3.0)M QOQ, indicating effective cost management and operational efficiencies.
Revenue by Segment
Revenue Performance Across Major Segments
| Segment | Q1 FY2025 | Q1 FY2024 | YoY Change |
|---|---|---|---|
| Direct to Consumer | $107.1M | $111.8M | -4.3% |
| Commerce | $9.2M | $8.7M | +5.2% |
| Gross Margin % | 63.0% | 60.6% | +2.4% (248 bps) |
Interpretation: The Direct-to-Consumer (DTC) segment saw a 4.3% year-over-year decline, attributed primarily to fewer total orders and fewer subscriptions. In contrast, the Commerce segment grew by 5.2%, driven by the expansion into retail consumables and an increase in both existing and new accounts. The Gross Margin hit a record 63.0%, thanks to supplier consolidation and improved pricing strategies.
Comments from Company Officers
Matt Meeker, Co-Founder and CEO, stated, "Fiscal 2025 is off to a strong start, building on the momentum we established last year. Our first quarter results are a testament to our continued progress, and we remain confident in our ability to deliver revenue growth through the year and achieve our first full year of positive Adjusted EBITDA and free cash flow."
Dividends and Share Repurchase Program
BARK has repurchased $4.3 million worth of shares at an average price of $1.43 per share during the quarter.
Forward Guidance
For the fiscal year 2025, BARK reaffirms its expectations: - Total Revenue: $490 million to $500 million - Adjusted EBITDA: $1.0 million to $5.0 million
For the fiscal second quarter 2025, BARK anticipates: - Total Revenue: $123.0 million to $126.0 million - Adjusted EBITDA: $1.0 million to $3.0 million
Stock Price Movement
Post earnings release, BARK's stock experienced a decline of approximately 4.38%.
BARK's earnings release showcases progress in financial performance despite a slight decline in revenue. The company's strategic shifts, effective cost management, and retail expansion are driving positive trajectories in profitability metrics. Anticipated improvements in revenue and EBITDA suggest a positive outlook for the fiscal year ahead.
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