BARK Reports Second Quarter Fiscal Year 2025 Results

NEW YORK--()--BARK, Inc. (NYSE: BARK) (“BARK” or the “Company”), a leading global omnichannel dog brand with a mission to make all dogs happy, today announced its financial results for the fiscal second quarter ended September 30, 2024.

Key Highlights

  • Total revenue was $126.1 million, ahead of the high-end of the Company's guidance range and a 2.5% increase, year-over-year.
  • Net loss improved 49.1% to $(5.3) million, year-over-year.
  • Adjusted EBITDA was $3.5 million, ahead of the high-end of the Company's guidance range and a $2.5 million improvement, year-over-year.
  • Net cash provided by operating activities was $2.8 million and free cash flow was $1.0 million.

"We delivered our ninth consecutive quarter of year-over-year Adjusted EBITDA growth last quarter, driven in part by a 26% increase in our commerce segment revenue, compared to last year," said Matt Meeker, Chief Executive Officer of BARK. "As I emphasized on our last earnings call, our focus on strengthening our talent and improving our profitability profile has enabled us to channel our energy into driving sustainable, long-term top-line growth. I am pleased to report, the team is tackling this objective aggressively, already laying a strong foundation for the future. Our recent revenue growth is an important first step and many of the key initiatives the team has been focused on are just beginning to be reflected in our results. Overall, we remain enthusiastic about what lies ahead over the coming years."

Key Performance Indicators

 

Three Months Ended
September 30,

 

Six Months Ended
September 30,

 

2024

 

2023

 

2024

 

2023

Total Orders (in thousands)

 

3,270

 

 

 

3,361

 

 

 

6,712

 

 

 

6,921

 

Average Order Value

$

30.91

 

 

$

31.03

 

 

$

30.92

 

 

$

31.24

 

Direct to Consumer Gross Profit (in thousands)(1)

$

65,504

 

 

$

67,679

 

 

$

134,774

 

 

$

137,262

 

Direct to Consumer Gross Margin (1)

 

64.8

%

 

 

64.9

%

 

 

64.9

%

 

 

63.5

%

(1) Direct to Consumer Gross Profit and Direct to Consumer Gross Margin does not include the revenue or cost of goods sold from BARK Air.

Fiscal Second Quarter 2025 Highlights

  • Revenue was $126.1 million, ahead of the Company's guidance range of $123.0 million to $126.0 million, and a 2.5% increase year-over-year, primarily driven by a 25.6% year-over-year increase in the commerce segment.
  • Direct to Consumer (“DTC”) revenue was $102.6 million, a 1.6% decrease year-over-year, primarily driven by fewer total orders in the most recent period.
  • Commerce revenue was $23.5 million, a 25.6% increase year-over-year, aided by growth in both existing and new accounts.
  • Gross profit was $76.1 million, a 0.6% increase year-over-year.
  • Gross margin was 60.4%, as compared to 61.5% in the same period last year. The decrease was driven by a greater mix of commerce revenue in the most recent period. Note, both segments have a similar contribution margin.
  • Advertising and marketing expenses were $18.7 million as compared to $17.8 million in the same period last year.
  • General and administrative ("G&A") expenses were $63.1 million, as compared to $68.9 million last year. This decrease was largely driven by a reduction in headcount and better shipping terms.
  • Net loss was $(5.3) million, as compared to $(10.3) million in the same period in the previous year.
  • Adjusted EBITDA was $3.5 million, a $2.5 million improvement, year-over-year, and ahead of the Company's guidance range of $1.0 million to $3.0 million.
  • Net cash provided by operating activities was $2.8 million. Free cash flow, defined as net cash provided by (used in) operating activities less capital expenditures, was $1.0 million.

Balance Sheet Highlights

  • The Company’s cash and cash equivalents balance as of September 30, 2024 was $115.2 million, and reflects $0.9 million of share repurchases at an average price of $1.67, in the quarter.
  • The Company's inventory balance as of September 30, 2024 was $88.4 million, an increase of $4.3 million compared to March 31, 2024. The increase is largely driven by the Company bringing in additional product ahead of the holiday quarter.

Fiscal Third Quarter and Full Year 2025 Financial Outlook

Based on current market conditions as of November 7, 2024, BARK is providing guidance for revenue and Adjusted EBITDA, which is a Non-GAAP financial measure, as follows.

For the fiscal year 2025, the Company is reaffirming its guidance of:

  • Total revenue of $490 million to $500 million, reflecting year-over-year growth of flat to 2.0%.
  • Adjusted EBITDA of $1.0 million to $5.0 million, reflecting a year-over-year improvement of $11.6 million to $15.6 million.

For the fiscal third quarter 2025, the Company expects:

  • Total revenue of $123.0 million to $126.0 million, reflecting year-over-year growth of (1.7)% to 0.7%
  • Adjusted EBITDA of $(3.0) million to breakeven, reflecting a year-over-year improvement of $3.4 million to $6.4 million.

We do not provide guidance for Net Loss due to the uncertainty and potential variability of certain items, including stock-based compensation expenses and related tax effects, which are the reconciling items between Net Loss and Adjusted EBITDA. Because such items cannot be calculated or predicted without unreasonable efforts, we are unable to provide a reconciliation of Adjusted EBITDA to Net Loss. However, such items could have a significant impact on Net Loss.

The guidance provided above constitutes forward looking statements and actual results may differ materially. Please refer to the “Forward Looking Statements” section below for information on the factors that could cause our actual results to differ materially from these forward looking statements and “Non-GAAP Financial Measures” for additional important information regarding Adjusted EBITDA.

Conference Call Information

A conference call to discuss the Company's fiscal second quarter 2025 results will be held today, November 7, 2024, at 4:30 p.m. ET. During the conference call, the Company may make comments concerning business and financial developments, trends and other business or financial matters. The Company's comments, as well as other matters discussed during the conference call, may contain or constitute information that has not been previously disclosed.

The conference call can be accessed by dialing 1-888-596-4144 for U.S. participants and 1-646-968-2525 for international participants. The conference call passcode is 5515653. A live audio webcast of the call will be available at https://investors.bark.co/ and will be archived for 1 year.

About BARK

BARK is the world’s most dog-centric company, devoted to making dogs happy with the best products, services and content. BARK’s dog-obsessed team applies its unique, data-driven understanding of what makes each dog special to design playstyle-specific toys, wildly satisfying treats, great food for your dog, effective and easy to use dental care, and dog-first experiences that foster the health and happiness of dogs everywhere. Founded in 2011, BARK loyally serves dogs nationwide with themed toys and treats subscriptions, BarkBox and BARK Super Chewer; custom product collections through its retail partner network, including Target and Amazon; its high-quality, nutritious meals made for your breed with BARK Food; and products that meet dogs’ dental needs with BARK Bright®. At BARK, we want to make dogs as happy as they make us because dogs and humans are better together. Sniff around at BARK.co for more information.

Forward Looking Statements

This press release contains forward-looking statements relating to, among other things, the future performance of BARK that are based on the Company’s current expectations, forecasts and assumptions and involve risks and uncertainties. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expect,” “plan,” "anticipate,” “believe,” “estimate,” “predict,” “intend,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology. These statements include, but are not limited to, statements about future operating results, including our strategies, plans, commitments, objectives and goals. Actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Other factors that could cause or contribute to such differences include, but are not limited to, risks relating to the uncertainty of the projected financial information with respect to BARK; the risk that spending on pets may not increase at projected rates; that BARK subscriptions may not increase their spending with BARK; BARK’s ability to continue to convert social media followers and contacts into customers; BARK’s ability to successfully expand its product lines and channel distribution; competition; the uncertain effects of global or macroeconomic events or challenges.

More information about factors that could affect BARK's operating results is included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company's quarterly report on Form 10-Q, copies of which may be obtained by visiting the Company’s Investor Relations website at https://investors.bark.co/ or the SEC’s website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to the Company on the date hereof. The Company assumes no obligation to update such statements.

Definitions of Key Performance Indicators

Total Orders

We define Total Orders as the total number of Direct to Consumer orders shipped in a given period. These include all orders across all of our product categories, regardless of whether they are purchased on a subscription, auto-ship, or one-off basis. Total Orders excludes orders from BARK Air.

Average Order Value

Average Order Value (“AOV”) is Direct to Consumer revenue for the period divided by Total Orders for the same period. AOV excludes Direct to Consumer revenue from BARK Air.

BARK, Inc.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands)

 

 

Three Months Ended

 

Six Months Ended

 

September 30,

 

September 30,

 

September 30,

 

September 30,

 

2024

 

2023

 

2024

 

2023

REVENUE

$

126,111

 

 

$

123,036

 

 

$

242,323

 

 

$

243,626

 

COST OF REVENUE

 

49,999

 

 

 

47,394

 

 

 

92,945

 

 

 

94,948

 

Gross profit

 

76,112

 

 

 

75,642

 

 

 

149,378

 

 

 

148,678

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

General and administrative

 

63,143

 

 

 

68,931

 

 

 

126,567

 

 

 

138,352

 

Advertising and marketing

 

18,665

 

 

 

17,810

 

 

 

39,096

 

 

 

35,429

 

Total operating expenses

 

81,808

 

 

 

86,741

 

 

 

165,663

 

 

 

173,781

 

LOSS FROM OPERATIONS

 

(5,696

)

 

 

(11,099

)

 

 

(16,285

)

 

 

(25,103

)

INTEREST INCOME

 

1,353

 

 

 

1,996

 

 

 

2,832

 

 

 

4,133

 

INTEREST EXPENSE

 

(687

)

 

 

(1,366

)

 

 

(1,398

)

 

 

(2,745

)

OTHER (EXPENSE) INCOME—NET

 

(233

)

 

 

132

 

 

 

(451

)

 

 

1,715

 

NET LOSS BEFORE INCOME TAXES

 

(5,263

)

 

 

(10,337

)

 

 

(15,302

)

 

 

(22,000

)

PROVISION FOR INCOME TAXES

 

 

 

 

 

 

 

 

 

 

 

NET LOSS AND COMPREHENSIVE LOSS

$

(5,263

)

 

$

(10,337

)

 

$

(15,302

)

 

$

(22,000

)

DISAGGREGATED REVENUE

(In thousands)

 

 

Three Months Ended

 

Six Months Ended

 

September 30,

 

September 30,

 

2024

 

2023

 

2024

 

2023

Revenue

 

 

 

 

 

 

 

Direct to Consumer:

 

 

 

 

 

 

 

Toys & Accessories(1)

$

66,882

 

$

67,149

 

$

137,451

 

$

139,251

Consumables(1)

 

34,197

 

 

37,163

 

 

70,101

 

 

76,947

Other(2)

 

1,520

 

 

 

$

2,106

 

$

Total Direct to Consumer

$

102,599

 

$

104,312

 

$

209,658

 

$

216,198

Commerce

 

23,512

 

 

18,724

 

 

32,665

 

 

27,428

Revenue

$

126,111

 

$

123,036

 

$

242,323

 

$

243,626

(1)

The allocation between Toys & Accessories and Consumables includes estimates and was determined utilizing data on stand-alone selling prices that the Company charges for similar offerings, and also reflects historical pricing practices.

 

(2)

Other Direct to Consumer revenue derived from the BARK Air.

GROSS PROFIT BY SEGMENT

(In thousands)

 

 

Three Months Ended
September 30,

 

Six Months Ended
September 30,

 

2024

 

2023

 

2024

 

2023

Direct to Consumer:(1)

 

 

 

 

 

 

 

Revenue

$

102,599

 

$

104,312

 

$

209,658

 

$

216,198

Cost of revenue

 

37,083

 

 

36,633

 

 

75,134

 

 

78,936

Gross profit

 

65,516

 

 

67,679

 

 

134,524

 

 

137,262

Commerce:

 

 

 

 

 

 

 

Revenue

 

23,512

 

 

18,724

 

 

32,665

 

 

27,428

Cost of revenue

 

12,916

 

 

10,761

 

 

17,811

 

 

16,012

Gross profit

 

10,596

 

 

7,963

 

 

14,854

 

 

11,416

Consolidated:

 

 

 

 

 

 

 

Revenue

 

126,111

 

 

123,036

 

 

242,323

 

 

243,626

Cost of revenue

 

49,999

 

 

47,394

 

 

92,945

 

 

94,948

Gross profit

$

76,112

 

$

75,642

 

$

149,378

 

$

148,678

(1)

Direct to Consumer segment gross profit include revenue and cost of revenue from BARK Air.

BARK, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

 

 

September 30,

 

March 31,

 

2024

 

2024

ASSETS

 

 

 

CURRENT ASSETS:

 

 

 

Cash and cash equivalents

$

115,243

 

 

$

125,495

 

Accounts receivable—net

 

16,901

 

 

 

7,696

 

Prepaid expenses and other current assets

 

11,070

 

 

 

4,379

 

Inventory

 

88,435

 

 

 

84,177

 

Total current assets

 

231,649

 

 

 

221,747

 

PROPERTY AND EQUIPMENT—NET

 

23,425

 

 

 

25,540

 

INTANGIBLE ASSETS—NET

 

8,010

 

 

 

11,921

 

OPERATING LEASE RIGHT-OF-USE ASSETS

 

30,268

 

 

 

32,793

 

OTHER NONCURRENT ASSETS

 

8,220

 

 

 

6,587

 

TOTAL ASSETS

$

301,572

 

 

$

298,588

 

LIABILITIES, AND STOCKHOLDERS’ EQUITY

 

 

 

CURRENT LIABILITIES:

 

 

 

Accounts payable

$

33,701

 

 

$

13,737

 

Operating lease liabilities, current

 

5,541

 

 

 

5,294

 

Accrued and other current liabilities

 

33,209

 

 

 

30,490

 

Deferred revenue

 

23,436

 

 

 

25,957

 

Total current liabilities

 

95,887

 

 

 

75,478

 

LONG-TERM DEBT

 

40,128

 

 

 

39,926

 

OPERATING LEASE LIABILITIES

 

39,765

 

 

 

42,599

 

OTHER LONG-TERM LIABILITIES

 

2,236

 

 

 

1,202

 

Total liabilities

 

178,016

 

 

 

159,205

 

COMMITMENTS AND CONTINGENCIES (Note 8)

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

Common stock, par value $0.0001 per share—500,000,000 shares authorized; 182,674,940 and 180,176,725 shares issued

 

1

 

 

 

1

 

Treasury stock, at cost, 8,186,449 and 4,643,589 shares, respectively

 

(11,409

)

 

 

(6,225

)

Additional paid-in capital

 

497,139

 

 

 

492,427

 

Accumulated deficit

 

(362,175

)

 

 

(346,820

)

Total stockholders’ equity

 

123,556

 

 

 

139,383

 

TOTAL LIABILITIES, AND STOCKHOLDERS’ EQUITY

$

301,572

 

 

$

298,588

 

BARK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

 

 

Six Months Ended

 

September 30,

 

September 30,

 

2024

 

2023

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

Net loss

$

(15,302

)

 

$

(22,000

)

Adjustments to reconcile net loss to cash used in operating activities:

 

 

 

Depreciation & amortization

 

5,679

 

 

 

5,941

 

Impairment of assets

 

2,142

 

 

 

2,970

 

Non-cash lease expense

 

2,524

 

 

 

2,120

 

Loss on disposal of assets

 

 

 

 

72

 

Amortization of deferred financing fees and debt discount

 

202

 

 

 

374

 

Bad debt expense

 

 

 

 

34

 

Stock-based compensation expense

 

5,898

 

 

 

6,914

 

Provision for inventory obsolescence

 

1,355

 

 

 

879

 

Change in fair value of warrant liabilities and derivatives

 

913

 

 

 

(1,434

)

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(9,205

)

 

 

(5,869

)

Inventory

 

(5,613

)

 

 

14,065

 

Prepaid expenses and other current assets

 

(499

)

 

 

(988

)

Other noncurrent assets

 

(1,336

)

 

 

(125

)

Accounts payable and accrued expenses

 

22,905

 

 

 

(6,426

)

Deferred revenue

 

(2,521

)

 

 

(3,431

)

Proceeds from tenant improvement allowances

 

 

 

 

 

Operating lease liabilities

 

(2,587

)

 

 

(1,800

)

Other liabilities

 

11

 

 

 

788

 

Net cash provided by (used in) operating activities

 

4,566

 

 

 

(7,916

)

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

Capital expenditures

 

(3,851

)

 

 

(4,933

)

Net cash used in investing activities

 

(3,851

)

 

 

(4,933

)

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

Payment of finance lease obligations

 

(112

)

 

 

(106

)

Proceeds from the exercise of stock options

 

293

 

 

 

94

 

Proceeds from issuance of common stock under ESPP

 

193

 

 

 

286

 

Tax payments related to the issuance of common stock

 

(1,620

)

 

 

(819

)

Excise tax from stock repurchases

 

(52

)

 

 

 

Payments to repurchase common stock

 

(5,184

)

 

 

(4,120

)

Net cash used in financing activities

 

(6,482

)

 

 

(4,665

)

 

 

 

 

Effect of exchange rate changes on cash

 

(53

)

 

 

55

 

 

 

 

 

NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

 

(5,820

)

 

 

(17,459

)

CASH, CASH EQUIVALENTS AND RESTRICTED CASH—BEGINNING OF PERIOD

 

130,704

 

 

 

183,068

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH—END OF PERIOD

$

124,884

 

 

$

165,609

 

 

 

 

 

RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH:

 

 

 

Cash and cash equivalents

 

115,243

 

 

 

160,541

 

Restricted cash - prepaid expenses and other current assets, other noncurrent assets

 

9,641

 

 

 

5,068

 

Total cash, cash equivalents and restricted cash

$

124,884

 

 

$

165,609

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

 

 

 

Purchases of property and equipment included in accounts payable and accrued liabilities

$

 

 

$

11

 

Cash paid for interest

$

75

 

 

$

75

 

Non-GAAP Financial Measures

We report our financial results in accordance with U.S. GAAP. However, management believes that Adjusted Net Income (Loss), Adjusted Net Income (Loss) Margin, Adjusted Net Income (Loss) Per Common Share, Adjusted EBITDA, Adjusted EBITDA Margin, and Free Cash Flow, all non-GAAP financial measures (together the “Non-GAAP Measures”), provide investors with additional useful information in evaluating our performance.

We calculate Adjusted Net Income (Loss) as net loss, adjusted to exclude: (1) stock-based compensation expense, (2) change in fair value of warrants and derivatives, (3) sales and use tax income, (4) restructuring charges related to reduction in force payment, (5) litigation expenses, (6) warehouse restructuring costs, (7) non-cash impairment of previously capitalized software, (8) technology modernization costs, and (9) other items (as defined below).

We calculate Adjusted Net Income (Loss) Margin by dividing Adjusted Net Income (Loss) for the period by Revenue for the period.

We calculate Adjusted Net Income (Loss) Per Common Share by dividing Adjusted Net Income (Loss) for the period by weighted average common shares used to compute net loss per share attributable to common stockholders for the period.

We calculate Adjusted EBITDA as net loss, adjusted to exclude: (1) interest income, (2) interest expense, (3) depreciation and amortization, (4) stock-based compensation expense, (5) change in fair value of warrants and derivatives, (6) capitalized cloud computing amortization, (7) sales and use tax income, (8) restructuring charges related to reduction in force payment, (9) litigation expenses, (10) warehouse restructuring costs, (11) non-cash impairment of previously capitalized software, (12) technology modernization costs, and (13) other items (as defined below).

We calculate Adjusted EBITDA Margin by dividing Adjusted EBITDA for the period by revenue for the period.

We calculate Free Cash Flow as net cash provided by (used in) operating activities less capital expenditures.

The Non-GAAP Measures are financial measures that are not required by, or presented in accordance with U.S. GAAP. We believe that the Non-GAAP Measures, when taken together with our financial results presented in accordance with U.S. GAAP, provides meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of the Non-GAAP Measures are helpful to our investors as they are measures used by management in assessing the health of our business, determining incentive compensation and evaluating our operating performance, as well as for internal planning and forecasting purposes.

The Non-GAAP Measures are presented for supplemental informational purposes only, have limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with U.S. GAAP. Some of the limitations of the Non-GAAP Measures include that (1) the measures do not properly reflect capital commitments to be paid in the future, (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA and Adjusted EBITDA Margin do not reflect these capital expenditures, (3) Adjusted EBITDA and Adjusted EBITDA Margin do not consider the impact of stock-based compensation expense, which is an ongoing expense for our company, (4) Adjusted EBITDA and Adjusted EBITDA Margin do not reflect other non-operating expenses, including interest expense. In addition, our use of the Non-GAAP Measures may not be comparable to similarly titled measures of other companies because they may not calculate the Non-GAAP Measures in the same manner, limiting their usefulness as a comparative measure. Because of these limitations, when evaluating our performance, you should consider the Non-GAAP Measures alongside other financial measures, including our net income (loss) and other results stated in accordance with U.S. GAAP, and (5) Free cash flow does not represent the total residual cash flow available for discretionary purposes and does not reflect our future contractual commitments.

The following table presents a reconciliation of Adjusted Net Income (Loss) to Net loss, the most directly comparable financial measure stated in accordance with U.S. GAAP, and the calculation of net loss margin, Adjusted Net Income (Loss) Margin and Adjusted Net Income (Loss) Per Common Share for the periods presented:

Adjusted Net Income (Loss)

 

Three Months Ended
September 30,

 

Six Months Ended
September 30,

 

2024

 

2023

 

2024

 

2023

 

(in thousands, except per share data)

Net Loss

$

(5,263

)

 

$

(10,337

)

 

$

(15,302

)

 

$

(22,000

)

Stock compensation expense

 

2,957

 

 

 

3,689

 

 

 

5,898

 

 

 

6,914

 

Change in fair value of warrants and derivatives

 

521

 

 

 

(130

)

 

 

913

 

 

 

(1,434

)

Sales and use tax income (1)

 

(246

)

 

 

(68

)

 

 

(1,549

)

 

 

(137

)

Restructuring

 

731

 

 

 

1,442

 

 

 

1,504

 

 

 

1,543

 

Litigation expenses (2)

 

251

 

 

 

 

 

 

638

 

 

 

 

Warehouse restructuring costs

 

359

 

 

 

161

 

 

 

899

 

 

 

161

 

Impairment of assets

 

1,344

 

 

 

2,970

 

 

 

2,142

 

 

 

2,970

 

Technology Modernization (3)

 

498

 

 

 

 

 

 

1,206

 

 

 

 

Other items (4)

 

107

 

 

 

833

 

 

 

925

 

 

 

1,002

 

Adjusted net income (loss)

$

1,259

 

 

$

(1,440

)

 

$

(2,726

)

 

$

(10,981

)

Net income (loss) margin

 

(4.17

)%

 

 

(8.40

)%

 

 

(6.31

)%

 

 

(9.03

)%

Adjusted net income (loss) margin

 

1.00

%

 

 

(1.17

)%

 

 

(1.12

)%

 

 

(4.51

)%

 

 

 

 

 

 

 

 

Adjusted net income (loss) per common share - basic and diluted

$

0.01

 

 

$

(0.01

)

 

$

(0.02

)

 

$

(0.06

)

Weighted average common shares used to compute adjusted net income (loss) per share attributable to common stockholders - basic and diluted

 

175,063,942

 

 

 

176,975,883

 

 

 

175,311,379

 

 

 

177,150,161

 

The following table presents a reconciliation of Adjusted EBITDA to net loss, the most directly comparable financial measure stated in accordance with U.S. GAAP, and the calculation of net loss margin and Adjusted EBITDA margin for the periods presented:

Adjusted EBITDA

 

Three Months Ended
September 30,

 

Six Months Ended
September 30,

 

2024

 

2023

 

2024

 

2023

 

(in thousands)

 

(in thousands)

Net Loss

$

(5,263

)

 

$

(10,337

)

 

$

(15,302

)

 

$

(22,000

)

Interest income

 

(1,353

)

 

 

(1,996

)

 

 

(2,832

)

 

 

(4,133

)

Interest expense

 

687

 

 

 

1,366

 

 

 

1,398

 

 

 

2,745

 

Depreciation and amortization expense

 

2,800

 

 

 

3,074

 

 

 

5,679

 

 

 

5,941

 

Stock compensation expense

 

2,957

 

 

 

3,689

 

 

 

5,898

 

 

 

6,914

 

Change in fair value of warrants and derivatives

 

521

 

 

 

(130

)

 

 

913

 

 

 

(1,434

)

Cloud computing amortization

 

93

 

 

 

 

 

 

172

 

 

 

 

Sales and use tax income (1)

 

(246

)

 

 

(68

)

 

 

(1,549

)

 

 

(137

)

Restructuring

 

731

 

 

 

1,442

 

 

 

1,504

 

 

 

1,543

 

Litigation expenses (2)

 

251

 

 

 

 

 

 

638

 

 

 

 

Warehouse restructuring costs

 

359

 

 

 

161

 

 

 

899

 

 

 

161

 

Impairment of assets

 

1,344

 

 

 

2,970

 

 

 

2,142

 

 

 

2,970

 

Technology Modernization (3)

 

498

 

 

 

 

 

 

1,206

 

 

 

 

Other items (4)

 

107

 

 

 

833

 

 

 

925

 

 

 

1,002

 

Adjusted EBITDA

$

3,486

 

 

$

1,004

 

 

$

1,691

 

 

$

(6,428

)

Net loss margin

 

(4.17

)%

 

 

(8.40

)%

 

 

(6.31

)%

 

 

(9.03

)%

Adjusted EBITDA margin

 

2.76

%

 

 

0.82

%

 

 

0.70

%

 

 

(2.64

)%

(1)

 

Sales and use tax expense relates to recording a liability for sales and use tax we did not collect from our customers. Historically, we had collected state or local sales, use, or other similar taxes in certain jurisdictions in which we only had physical presence. On June 21, 2018, the U.S. Supreme Court decided, in South Dakota v. Wayfair, Inc., that state and local jurisdictions may, at least in certain circumstances, enforce a sales and use tax collection obligation on remote vendors that have no physical presence in such jurisdiction. A number of states have positioned themselves to require sales and use tax collection by remote vendors and/or by online marketplaces. The details and effective dates of these collection requirements vary from state to state and accordingly, we recorded a liability in those periods in which we created economic nexus based on each state’s requirements. Accordingly, we now collect, remit, and report sales tax in all states that impose a sales tax. Subsequently, as certain of these liabilities are waived by tax authorities or the applicable statute of limitations expires, the related accrued liability is reversed.

 

 

 

(2)

 

Litigation expenses related to a shareholder class action complaint, see Item 1. Legal Proceedings in the Company's quarterly report on Form 10-Q.

 

 

 

(3)

 

Includes consulting fees related to technology transformation activities, and payroll costs for employees that dedicate significant time to this project. We believe that these costs are discrete and non-recurring in nature, as they relate to a one-time unification of our product offerings on our new commerce platform. As such, they are not normal, recurring operating expenses and are not reflective of ongoing trends in the cost of doing business.

 

 

 

(4)

 

For the three months ended September 30, 2024, other items is comprised of executive transition costs including recruiting costs of less than $0.1 million, costs associated with the share repurchase program of less than $0.1 million, and duplicate headquarters rent of less than $0.1 million. For the three months ended September 30, 2023, other items is comprised of executive transition costs including recruiting costs of $0.4 million and non-recurring retention payments to management of $0.4 million. For the six months ended September 30, 2024, other items is comprised of executive transition costs including recruiting costs of $0.4 million, non-recurring retention payments to management of $0.2 million, costs associated with the share repurchase program of $0.2 million, and duplicate headquarters rent of less than $0.1 million. For the six months ended September 30, 2023, other items is comprised of non-recurring retention payments to management of $0.6 million, executive transition costs including recruiting costs of $0.4 million, and duplicate headquarters rent of less than $0.1 million.

The following table presents a reconciliation of Free Cash Flow to Net cash used in operating activities, the most directly comparable financial measure prepared in accordance with U.S. GAAP, for each of the periods indicated:

Free Cash Flow

 

Three Months Ended
September 30,

 

Six Months Ended
September 30,

 

2024

 

2023

 

2024

 

2023

Free cash flow reconciliation:

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

$

2,773

 

 

$

2,825

 

 

$

4,566

 

 

$

(7,916

)

Capital expenditures

 

(1,807

)

 

 

(1,961

)

 

 

(3,851

)

 

 

(4,933

)

Free cash flow

$

966

 

 

$

864

 

 

$

715

 

 

$

(12,849

)

 

Contacts

Investors:
Michael Mougias
investors@barkbox.com

Media:
Garland Harwood
press@barkbox.com

Contacts

Investors:
Michael Mougias
investors@barkbox.com

Media:
Garland Harwood
press@barkbox.com