BARK - Earnings call 2 2024

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Operator

Ladies and gentlemen, good afternoon. My name is Abby, and I'll be your conference operator today. At this time, I would like to welcome everyone to BARK's Second Quarter Fiscal 2024 Earnings Conference Call. Today's call is being recorded and all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Instructions). (Operator you. Thank now Vice will conference to over And of turn Investor Mougias, President Relations. Mike I the

You may begin.

Michael Mougias

Good afternoon, XXXX Earnings everyone, Fiscal Call. Quarter and welcome to BARK's Second Year

Ibrahim, Co-Founder Joining shortly being is after made of its website CEO Matt the today our in Officer. Meeker, the on a me and conference call. are webcast Zahir available and Chief entirety call webcast Financial Today's be and replay will

found Please release uncertainties covering results Matt, afternoon call, the company's our Matt. measures financial that and the was I results website.Before this to to financial call subject refer is be to I remind to press risks our to financial pass SEC And and you affect following issued of could our pass can this press with expectations now The measures. outcomes. statements. contained are to are with on a forward-looking that actual statements on like over today's could to Relations during release. cause on Investor outcomes based our the current it and and future let for Additionally, some that, certain afternoon's factors non-GAAP non-GAAP it information will results regarding discuss me Also, made and over information on differ. would Reconciliations more in filings we future today's management's

Matt Meeker

Mike, Thanks, everyone. and good afternoon,

first to as we guidance quarter, quarter our of in second marking million, we EBITDA Our quarter adjusted a continue our and make positive $X long-term range EBITDA company. highlight progress significant outlook. our delivered the improving public profitability Last results positive surpassing

to When basis, today We run would if in made.One $X going first a trailing couldn't generate for EBITDA cash positive is cash another we million.On the quarter faced skepticism. year achieved positive here profitability positive I'm also trailing million. within free never cash, our of I came positive EBITDA with XX-month first were free heard on positive we just returned to under to that we which Sitting a of reach delivered flow flow the BARK, one and basis, step consistently. that we've $X period lot cash at positive out EBITDA approximately a next XX-month a of We adjusted us. with we flow, we've thrilled of generation cash us and progress or quarter did free that's do year, so behind what's we

that paid our recent growth stronger early. face by $X confidence our is that without months shared since time, lieu In the in term our a extent profit down the nearly has remaining we've profit an week, BARK from this grow outlook XX time. is waste our taken an of without million to in fact, been indicate I've of long $XX million CEO profitable matter our I role a quote shedding we to our a is decision recent business. come ago. million to of a and believe of revenue approach analyst building improved convertible and conference, Profit earlier interest has as This our profitability profitable has over returning a as Growth This of such notes grown of summarizes a focus, streams we way. a capital on cash meant $X net results structure the a of result.At the saved Overall, note. position over amount

last year, but today our declined pet, peers. now just households on denying can decline million really we also profitable particular, In for we direct-to-consumer Not is the pet that line dogs for that foundation focus that this and returning from growth.With anticipate BARK, with top that to no environment said, in there year. it's However, is by growth another and three challenging.

We the data our especially the the grow continue the Nielsen talk of more strategic $XXX is and we execute in I'll million, be those against in October first, discretionary spend delivered P&L, the let's near moment, challenges, to quarter.Starting for total continue dog our it's toys. our shows initiatives quarter. levels, will are term. profit on about extra challenging, in to regardless are The fiscal efficiency and addition results in last challenging more this the to to a essentially more. down there through but XX% opportunities, of top and to at is to of we delivering reality this toy year. need returning meeting guidance pre-pandemic revenue our industry touch is But macro

subscription continued the a business particularly toy feel side, from DTC our headwinds, macro the customer to acquisition core standpoint. On

tough we've we new progressively rapidly However, despite it encouraging progress seen up May. recently not where want acquisition customer environment. that, be It's a been some as since yet, but improving has in we're to

were challenge, rates the highest public. quarter strong And value While average $XX. retention going at customer since that's our last over our remains a order level at

experience, retail. are selling our priorities spending bring beginning of our moving turning the one, when our we platform, customers and at towards So, new more a to staying laid lot of talked in those strategic and products we about, out three, with longer focus a consumables consolidated they two, onto us.When consumable the we DTC year,

of touch initiatives. made across Let's those progress recent each the we've on

countries On BARK.co, what's over we're direct products, on exceptionally at product our that of XXX and look the consumables were in more just effective we up bring where and products toy generated to recently than commitment ended steam.On co-branded lines, increasing went We more into home expected.Longer Scouts now stores in our the box our partners one ability new and products sold all last begun into of now picking and retail. are retail. their term, a quarter, toys we BARK to pet them domain as commerce progress. million our convert with subscription We've in the Girl we across expand I'm out the meaningfully and This subscription million is included treat mix. just consolidated toys also we U.K. much DTC good Last all simpler are program much last through to our improved at where we URL selling site beyond largely faced revenue partnered we platform. $X to our up online products pilot and up Furthermore, happy well, opportunity revenue. and partner has brand outside revenue headwinds making to larger to Scouts massive strong. for if the those in new and domain.Specifically, partnership is This advent through the we our certain opportunity recently able portfolio, began become an to the expanding category from retail feedback calendar under we is a Having quarter, sales has $XX this channels. toy selling and stores delivered just in experience, Costco versus been year. now also report not initial site expand Treat We BARK.co the cross-sell new first but of customers XX% represents participate to have product them product a our able and and significantly also very revenue only the Girl channels. U.S. This faster

partners approached across our in to month, we share selling been from finally, as our of already I'm we X,XXX doors XXXX. announced received we've first selling in the thrilled retail next a U.S. in our to season.And by other that Advent fact, leading begin last the treats In commitment interested holiday calendar spring retailer over

months. When channel plan our five gross improvements around segment the reaching anticipate the of throughout the discipline and a we've the to CEO, unit I significant have past margin quarter, to retail next several was on introducing down of top healthy momentum is year, the continue for to progress margin progress in one Commerce line. again. a and we four opportunity, revenue recent Last biggest discussed our this we consumables build As gross will and total while returned impact yet tangible And our on opportunities represent to in delivered to over year, this this profitability bringing economics we've made over to the the years.Moving XX% P&L. line our not huge

points margin QX and last XXX XX.X%, than points basis Our a came higher on year. sequential in basis at basis consolidated nearly XXX gross higher

the EBITDA G&A. continue can also healthy In expenses gross enable path to These positive a to that in an And side happening we initiatives our growth fiscal up came deliver and year-over-year And we here improvement shipping market mission we execute expect to on believe versus the point period our in are the reduce and we are two line additional basis better on will at fiscal expect adjusted basis since the peak and short to our we through positive improvements Moreover, as short, happy, relatively we top delivered to continue adjusted be XXX our invest and we very happy.Overall, profile going during all a end, areas though our million of ability exciting XXXX, EBITDA dogs to trend success the expect $X in gross been the improvements margin our margin On to profitability into and in deliver will Overall, we make have to fulfill mission period, points business, of there heavily with well quarter, strategic our we've EBITDA over QX, finally, approximately DTC year-over-year materially in margin to in improve coming of things to profitability. ago. our that basis.Overall, FY this quarter and soon. our priorities quarter. current well fiscal To do years we to XX% sustainable all many don't remain. first holiday more XXX fulfillment priorities QX in fulfill positive make time. last ongoing we as first dogs going expect quarter forward. also XXXX public continue as believe beyond.And where in pleased us

quarter is the will free term.And over position grow strong with with and $XXX free cash bottom cash passing cash first long meaningful structure on with to reduce ending positive believe in our turn just benefits face for over coupled continued clip which to have is challenges DTC and products in environment, in While retail, we efforts anticipate both this to a our with we last expect in a EBITDA we're in a healthy costs, turned XX with to it railing continue the our over million its positive strategy. consumables to This line to business expected cost quarter.And each is Zahir. newer toys that on our hand of and flow we that, to margins our at generation months, I operating line flow deliver and quarter growth, improve leverage and

Zahir Ibrahim

our the Thanks, of our had a developments, guidance The segment, of Matt, end for a at begin of revenue in that declines of in seeing of the XXXX X% box consumables products, order primarily is the more P&L, mix earlier.From or was we generated the million top of has $XX afternoon, call in results, good total box customer environment subscription the our the X.X% products. I'll FY and in expect generated box an of subscription today's in we from average products. today low followed DTC from driven decline along derived by with which And last consumables $XXX year. was with year-over-year some to fiscal million, majority signs in outlook standpoint, noting retention balance we $XX down shared million the down improvement in million category and the everyone. down which Matt $X.XX worth a a our X%. remainder in orders total on BXC came by at year-over-year and $XXX detail, overview quarter revenue second value. decline biggest is decline our revenue quarter, revenue revenue though our range.Looking revenue in of acquisition versus of XX% Beginning was are standpoint, impact of XXXX. generated while revenue toys Overall, at continue the we we sheet recent as macro XX%, It our

today, box small million revenue So, consumables we which see of derived impacting declines compared And orders $XX going in to commerce roughly year overall are segment. of XX% mix. million revenue revenue Remember, subscription up to we the retail sizable relatively expected distributed revenue If our evenly partners. $X the and down just of We Commerce we This look year. quarter, to this last these between as period year. across our more consumables QX last expect from be holiday-related to our forward pull compared trend was although was that commerce categories is to of good XX% last and we consumables saw generated was a inflated there quarter, QX. to our continue at outside year, last continue revenue recent which revenue, several growth mix generated forward.Turning fiscal we last

result.Moving important expect new the like as lot year-over-year a this And And a year expect noting that across into meaningful are Fiscal like as to so, partners lighter this experiencing said, in worth that do a With this P&L. progress in introducing of segment we therefore, comparisons grow is revenue we result. commerce have our commerce categories headwinds less also the and retail discretionary segment.It are retail made toys. down also products treats XXXX

margin strongest only gross gross Our quarter a XX.X%, public The consolidated other to delivered going fiscal points as gross since our XX% this basis company. was time margins we over improved year. QX margin of public XXX

and on a the while inventory gross impacted new So, we further year forward our to momentum are basis.Total stronger earlier. XX.X%. XXX BXC margin we our XX.X%, economics segment improvements was XXX gross I is today margins mentioned in by pull like-for-like improved commerce points forward in has the going unit basis last building, as Again, bringing basis improved points gross commerce margins to anticipate

from we compared on lower to Fiscal segments in G&A, was versus related million, charge a add-backs, $XX.X margin force.Adjusting cost made down G&A July down these while shipping was nonrecurring XXXX.Moving software primarily than nearly million expect to year, $X other million. $XX.X G&A G&A our million, improvements to Total lower charges million So, our to to improvements $X.X and both reflecting of stemming the previously and the Note, impairment on. of this capitalized $X.X XXXX the in due was year-over-year last volumes, reduction Fiscal expense Regardless, quarter million in in $X.X down costs fulfillment noncash structure. other million included G&A year. a related comps organization apples-to-apples. certain was Within have costs year-over-year $X.X $XX.X million million $X considerable for and we last

in the marketing additional the future.Total of quarter, million opportunities year-over-year declines to these there G&A believe items in are million the deliver While further in improvements up $XX.X line encouraging, was we in last compared are $X.X and year. expense both sales to

in months, our balance on us the call.And year, XXXX opportunities believe important some the As we Last discussed to before and quarter, will coming health and period disciplined business in inventory respect with into investment is a made reduce we today's if and XXXX.From our the investment given the QX front year, $X in our all, the million milestone, flow total over top positive moving we a company. are there back delivered by million of of progress not driving a let standpoint, upon adjusted we turn BARK.co invest $XX generated regular we're have quarters and into like will finally, to flow returns.And become of of adequate [pare] $X fiscal reduced the we million. range made seeing cash more progress financial million we ahead the affords our in flow by Regardless, positive inventory adjusted an discussed last $XXX free further all touch to and with public for Fiscal All traffic progress lot this cash that to me areas remain and more this occurrence $X site. Fiscal this and the EBITDA guidance cash This XX our we've opportunity we've during EBITDA of including items. more I as the forward, expect marketing a to quarter we reducing improving the of a of balance first million the from time, over free EBITDA on our our in positive remainder balance the marketing, sheet outlook ending end to of balance quarter. we

particularly have more the average date, past million. of shares we the And at $X.XX believe shareholder in per made quarter XX% return of believe to million in attractive we we to quarter these resulting that run cost of while in approximately expect principal amount quarters average repurchased XX the to X% levels, is Looking and we share. positive we X.X will value business. week. exploring $XX spend therefore, lot months, free the provide our past And that to Sitting back out of from the the last four trading cash that today, long outstanding given a uses we a see create at on convertible significant more in value cash the the cost at profitability three repurchased continue to shares this The that achieved run.On here we of or we standpoint.Moreover, been a have shares value was million are the over an an par capital we have have potential where progress above and flow enough $X.X come. hand notes of our discount than note,

less we in remaining a convertible we will outstanding As which define by and the over increased save $X also the interest our debt $X we approximately cash, million notes. as result, of our cash, million, net life

will we X. accrue cash annual we the December on million sheet of convertible the interest $XX.X related of debt million $XXX of million roughly roughly Following outstanding have balance balance.Note, this and transaction, remaining on to $X

believe around structure balance is will this limited our confidence will result, principal a the a see calendar you be cash and of in transaction our is our outstanding is we share worth buyback stronger year.Okay. million. our percentage of Overall, mentioning future free notes come capital so as is testament a the amount $XX.X convertible And note It capacity of QX, each generation. flow as our

more the channels. guidance impact fiscal for macro Starting to continue products year, turn across third and now full anticipate headwinds Let's DXC toy current we and commerce quarter our full to to the year. the both with discretionary

revenue We As guidance overall X%. toy reflects previous our of a is experiencing X% approach more the $X cautious this and view that result lowering our year standpoint, versus expect million. XX% the foreseeable currently have future.From versus million this, we million the overall total guidance range taking are our that will category loss and top EBITDA positive range. $XX between to previous largely line an and be a of year-over-year guidance flat down we challenging remain to and minus to the revision adjusted of between Again, to now $X our to the expect headwinds down environment for of million full $X

While range is headwinds quarter.This midpoint consistently expect forward.Turning consumables negative come on expect to an holiday million can $XX recorded a and environment plenty of conclusion, in heavily of our moving fiscal $X since turning imply our our QX, beyond. $X adjusted in currently million. economics, we continue we the corner positive $XXX EBITDA adjusted change generating years, guidance $XX million growth Fiscal we million from between a will continue expect our to while At continue trend Fiscal we guidance Fiscal we mark quarter the no positive and momentum the continue XXXX. improvement invest a have we in quarter a this in expect unit on for top public, step business has revenue we million would to the during this improve and Similar back There flow. more total line, From day, the the recorded prior the that which improvements see we adjusted of significant to $X million the we We loss EBITDA denying to loss expect expect year-over-year cash million. anticipate between we standpoint, EBITDA that and adjusted trend negative would improvements Fiscal to EBITDA that free EBITDA $XXX cash and QX. year we last of down we business. reflect slightly, has face the second FY to In in through XXXX. Moreover, our gain And on positive as XXXX end the challenging. XXXX of and been enter is on to

to capitalize However, are categories over new profitability.Overall, the we operator the also consumables very in year-over-year macro expect position I'll continue a we turn healthy on our to promising time. and improve for in confident as trends over solid in we of our Q&A. are toy subside to that, improvements to in headwinds believe to ability the side With business call the deliver

Operator

you. we Instructions). just our first pause a for to We'll Thank the take will Ripps Genuity. with And Q&A moment Canaccord compile (Operator roster. Maria from question

Maria Ripps

First, platform macro there?And little secondly, for have you're pressure a Are else point some bit become pursue the bit offset macro sort you consumers segment with share core more the little you of of expand business. then would Toys you sort sort or of about there, sort impact to to pricing, in of pressures perhaps just strength wallet more something given discounting your segment? that the the the of keep headwinds maybe can a what seeing relationships strategies more at products well? that you maybe could talk of And try you lower-priced business, to you maybe the the to of meaningful as any contributor consumables discretionary maybe some direct facing that the and understanding but toys in on expect

Matt Meeker

for Thanks those you. thank Maria, questions.

macro the the all the that customer this terms to value and pretty we've experiencing strongest When broader is not in or wallet discounts And of and It's is the the in getting is our strongest, that improved I'll for across better new deploy it core we're or progressively signals, that bringing first the quarter has keeping the degree and we're the years for one first, at we're order past decade say, of that make rather better equally. your than them with successful haven't and those And direct-to-consumer those pressure toy $XX, higher how share retention the mentioned, seen that was if our and need or tactics of for there, average last we lifetime those when overall. to both us comes value that's our acquisition. the expanding running playbook line industry, now.So, expanding the the and other experiencing of being them our segments to which year. for and toy learned XX us from likely, as industry share, discounting sticky, businesses seen subscription maybe we've other to this a are the to question year extending indicating pressure retention customer, platform. onto in commerce we customers largely wallet most retailer enticements margin using I it's the improve of in felt over valuable, on value pressure So, that throughout positive over that us on those acquire customer, very very a full new our

expand strategy we in consumable into all and year, to consumable line On sort out expect of with the side, the beginning categories. which work is the of the is put we through, at what we continue

focus feature SKUs that with commerce a the that's have real the treats, news dental and have our retailer we channel. And for good that fiscal beginning in first commitment today a kibble, to national retailer us, meaningful here. For QX treat on toppers is line seven we and

think really the we're to that, formally. there's position ahead. about a quarter the in announce in we're heels of progress. on but not So, We excited more And that it

schedule So, of we're kind that. with right on

different it the channel those it. BARK.co, direct-to-consumer around you the to spring. our track. And We those how is packaging, playing toy develop lead getting different retail time. we We that time. us sales the consumables, our our back from on with hear pitch As the the partners. business of sell products, customer pricing can it's longer always comes that results try things to this are make is and typically we with in right when different consumable role played specifically letting Everything products, we know, We position our our things then sell signals

learning good and progress to partners. on in retail our making in those our we're and sales BARK.co in So, categories

Operator

our Markets. take next will Meyers Capital Ryan with question Street from we And Lake

Ryan Meyers

for one First me.

So, it EBITDA like you sounds said QX profitable. will be

kind what just expect I calls, in of profitability walk the see last of back So here adjusted of in expected you kind to through I we remember EBITDA me if think couple Because in QX? color the second half as of of Just Is into any the of kind that on season? head the spend year. seasonally high we would there be marketing just of sort kind some holiday helpful.

Zahir Ibrahim

on the Ryan, so head. that you've hit them yes,

also marketing well as a to from perspective, subs invest us So is high seasonally performance to overall the And we just quarter. a drive demand QX new as for site.

And highest one from so, it's from also that profitability. highest our perspective. a of And a quarters quarter but revenue the it's perspective, the impacts marketing

to at is minus minus X%. for X% guidance you If range look at QX, EBITDA our

If better we'll be you of midpoint that, about QX than take at $X million the year. us last

getting play what we side. into traction from you but the have lines about in of in we'll feel new I'd great the as able as on contracts the we perspective the continued to of right some think of coming consumable business in posted EBITDA the a So, improvement direction.And QX, profitability gross measures we positive and like post a QX, is that moving be because traction, margin along expect

line of items So, the QX. to other post we'll through performance have EBIT margin strong positive stronger equally some performance, in

Ryan Meyers

gave the to the to guys if back think last quarter growth FY the And today. for high updated XXXX. you we single then double-digit Got it. commentary Obviously, you that guys revenue low guidance about

potentially and XXXX? think quarter that how guys that to we relates commentary how last the about FY gave should Just wondering you

Zahir Ibrahim

Yes.

from I an step of improvements the the So, Matt we for shared, a moment deliver think FXXXX you believe line to environment, overall. a perspective. you line, look just growth with that just it's When in and at while top some at regardless land where look we'll challenging back the profitability we of continue comments category

on land quarters, grown that's over So, side we'll next the we'll has of in of some And the DTC pet a two that units XXXX discretionary plans the taken toy side. lot impact. particularly customer's categories seeing not from relation result, we for a about is the price the more know months. what impacting food it's recognizing inflation. by A growth, some And the in from the terms the it's us, where the category for of the wallet, past next of see of driving to but the as Fiscal over as a greater retailers And we're growth on share volume XX quarter and is or driven then well. QX consumables year of high for timing category.So, impacting is a it's perspective

the top growth next But those and trending two a over year. line we free the the from and cash we're So doing. how sense of a for of just is categories flow couple perspective better good it at things give where feel next nevertheless, will us quarters, about profitability how

Operator

with next from And we will Arounian our take Ygal Citigroup. question

Ygal Arounian

May. comments you made I the better want that improving to they're about since acquisition improving -- customer dig into

it's seeing the rest you're given macro. as the the acquisition, of for strong is lower is So, retention the better year outlook customer as The been.

some know tie maybe retail answer. two so But to coming together. so, just too, the whole tie of I wanted maybe that's just those this maybe is the help from And channel those two. can things I

Matt Meeker

like we've Yes. Thanks I is to the some in Maria, question. time. right, retention for saying like quite strong. was strongest And you're And the seen that just

acquisition customer is that it we greatest that so face. is challenge new the And

very We improvements have consistent since made May.

back, today improvement things difficult faster making platform the say, current Ruby that expensive. the on I'd holds we're of us platform tech to One on, debt. XX carries that at optimize. from our Barkbox.com incredibly of years It's is It's Rails

for current exactly it, a the modern more say, main about at driver difficult improvements is the it and revenue. makes our modern. we excited consumables foreseeable us of there. we drive that a platform where deal we and have going BARK.co, do first And a be have to So our to major with that's that.But move we're why like I'd flexibility keep tremendous But for talked retailer future, about, conversion to to really

lifetime point. taking those place with is, we we We that progress very modern greater lift customers platform product at that call more the where BARKBright.com. optimizations One that or call that go where consolidation out BARK.co. progress the a with expect in our associated do we you are and on effectively is like, we to day for over onto there the more you reached to new future. we of out almost great selling at in were hourly, as value a our more lower a we within at got continue make didn't is We've We and you we've updates that cost those go platform. have the making now and with and we those context, that BARKBright.com, thing light and acquisition, stopped new a a orders can dental BARK.co moved for able customers see to if expect to effort for

in achieved we've of we actions and with and pretty the good are BarkBox take once Super the where terms that progress. we'll So, Chewer, about we're feeling same

Ygal Arounian

Okay.

here being follow-up, structure. the I ambitions converts the about ask understand and just very to clean capital up guess want I'll to the the down, maybe For clearly converts

getting macro Given the is visibility. less more challenging, there's environment probably

visibility. kind You less quarter. EBITDA of free profitability back is still in But or again cash are fourth targeting flow there

here your fair balance amount do cash a spent to You of this.

how maybe see closer maturity want balance? something Is the was remaining on to you what to longer, a why right you time it? the So then just little But bit about hang thoughts to the can now now that happens? kind your just think and of And macro. do just challenging to given get

Zahir Ibrahim

Sure.

of positive side business. have that So, cash posted And we after to mature balance like as to to well the capital $X we was got courses of about seeing amount excess on years' a the a terms flow, and positive and us next excess time allowed on of strong were on million look in our discount profitability of to about of us sat able level to X% line we're year, cash that And flow we go-forward anyway. the cash of position. quarter the will third we've the we on now.The the balance to confidence, the be $X going note be And cash this and talked of saving here that, achieve sight get We free of really $XXX in felt We've the to at good things that before. our flexibility going interest that we couple we've it the save sheet. the of EBITDA, other And And out it last down. well. on be gives were on second with that in quarter will in signaled paid fair quarter four cash over discount, balance close able the more million million as still free we're sheet. we of the

that So the economics and performing confident with paydown the did.And will very we Rakhlenko from the health felt that we our now performance, TD at about take cash given final financial business, we we're of Max taking the flow question Cowen. our unit

Maksim Rakhlenko

relationships and you learnings first, retail the national to gives partner confidence grow So conversations the from speak additional the it with you to down that road? can

Matt Meeker

and both as you partner with in conversations, especially every retail U.S., of the pet. much So, into pretty -- moved treats the in as we got we've relationships know, major out

you on we across all toy XX,XXX them the partnerships names And with doors. have side. good the So, know there

quote aisle. past a So treats, BARK sharing especially that tree design we of a pull the a been the spec push is to of a in months. XX to XX than I'm to has somewhat was for love over with bring the interest use fun we'd more there you

took we with spec we spring proud the in, and reaction. a And developed hit we're product line our So, seemed in going that that thrilled that that were in of earlier It thrilled the this and of treats results. with way. to the we seriously. We year. out to took stand toys the sold this were is We pretty believe right on. big we And or approach first

of and And collaborative their them our these and are partners, would how we retailers our as been because want learnings I categories. and treat it's always listening new say might feedback it's enter we to -- direct-to-consumer with so, relationships to sharing we new

in So, the I'd you say it's just I'm a very asking question good hope partnership. the there. were it spirit answering I

Maksim Rakhlenko

absolutely. helpful. profile your long-term change that your as think Yes, the you improve be mix margin, channel as evolve? to gross can continues does what then to continue That's you And

Zahir Ibrahim

Yes.

mean, I gross a we've year. done course of during of So, the nice improving job margins this

the of a expect balance now, XXXX. that Right that through into benefit we continue to of the contracts the flow of going the to business, starting side we're on We and that's lot through Fiscal seeing of our toy the year the P&L. renegotiated

into consumables go see Fiscal we'll XXXX, well. QX in new and we As the the benefits into contracts kicking of as

has channel you will that margins improve And DXC XX, basis, say? has low profiles, margins margin XXs. So a around XXs. respective mix Commerce our look on in channel shall we current then as at the

the be we'll before, looking said we've particularly channel. as so, commerce consumables, And within grow to

channels they're similar channel gross contribution commerce margin on perspective at both serve BXC. to relative at And because the consolidated the bring not key actually, from will is fulfillment so And the margins. gross to and gross focus you down at marketing a very just when is and to mix overall look shipping cost margins on lower the level, our But at margin a XX%. level lower here around commerce the two that being

So, between two mix indifferent channels growth isn't necessarily -- in the and the driving not the gross ultimately we're margin driver.

Operator

for today's we thank ladies And conference gentlemen, call, your participation. concludes and and you this

may now disconnect. You

BARK (BARK) 8 Nov 232024 Q2 Earnings call transcript