BARK - Earnings call transcript Q1 2025

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. My name is Emma, and I will be your conference operator today. At this time, I would like to welcome everyone to BARK's First Quarter Fiscal 2025 Earnings Call. [Operator Instructions] At this time, I'd like to turn the conference over to Mike Mougias, Vice President of Investor Relations.

You may begin.

Michael Mougias

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

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

and Investor the press financial results afternoon release Relations this our on covering company's can a found Additionally, issued be website. was

for over I on could risks subject results future and statements. to management's want it are and you actual information to the following forward-looking uncertainties affect and and remind to of on pass outcomes. outcomes regarding filings of results on The factors the our I could Please some to Before are Matt, future that that current cause expectations based today's differ. to information made statements SEC refer our call

of today's discuss also release. certain will Reconciliation now afternoon's that, this contained And We financial pass measures with press to let non-GAAP on measures over Matt. in me is call. our it financial non-GAAP

Matt Meeker

and the Mike, we building to start, a last good on is Fiscal afternoon, strong XXXX Thanks, year year. off established momentum everyone.

surpassing of we was flow. leaders X high cash this of results a adjusted accelerate quarter the powered from year delivered wins on revenue, of our our EBITDA to our deliver earlier and the quick of this our hired we ability million $XXX.X and range. top momentum positive and first Our are year. by full first to we Last testament end free guidance This quarter, strong progress, remain confident line and

the a with our This just record both I'm margin of for BarkBox high quarter. saw basis given in well. contributions of compared year. gross new is we third Amazon. quarter a we business so performance from consecutive XXX improvement BarkBox more over commerce like was delivered growth point of in is the XX%, side, year-over-year Specifically, saw confident margin seventh this strong beginning on consolidated We're and proud this and executing subscribers last the marketing year-over-year The we X% team revenue consecutive marketplaces strong Amazon. impressive improvement, the our Furthermore, year-over-year growth gross for QX for to

us buy coupled last $X.XX price stock, Finally, supported enabled by reflect growth. this start yet the for shipping million the fulfillment in of BARK's to was quarter. has We the the the growth strong the is million of improvement. $X.X XX% leadership to with and we share the and further we our back line top accelerate $X.X continue back our year-over-year given company. great at buy plan provides expect to quarter, ahead progress, market quarter, per the sheet, top our foundation for G&A to to discussed our to shares of of adjusted improvements, the strong and Last end that range to a a This team I assembled belief value year. negative opportunities Overall, and million seek to X is or roughly guidance balance begin quarter. strong talent current EBITDA the

ever, Just about and more one team right enthusiastic this away. quarter later, than started we're they delivering

but new As acquisition third there's year-over-year much customer for in growth I potential. the we quarter, more said, so achieved consecutive

more to evolving already including our brand working, are approach. started. products. Michael that time customer marketing his is to just It's Parness, fantastic overall brand and we'll promotions put, Michael spend heavily promotional Simply acquisition sophisticated getting of awareness already ads from more approach means time a bottom less CMO, and and about team about our proposition, talking talking our funnel full the funnel, shifting new dollars Our and

flights do off this teams sell BARK and year. of customers in to that dog, we The commerce the end, is reasons. The in lever was some million months our demand to selection epidomy have XX expand booked To and their X a our to like off launch to launched quite BARK toys also our strong offerings literally quarter. We're the best-selling One under more than of incredible. his what team start. near-term to that I'm is response that of and excited CRO, new [ in of following many months. Air ticket other emotional from see acceleration to between Chewy the We're hit excited include I initial growth exciting leadership. BARK grow. to feedback how coming London Overall, share is and recently contributed we toys continue your products for running. side Los quarter and strong with marketplaces business, mentioned customer to have to York, a service over Air Amazon Black we New our new the for Chewy. and the Michael the excited to our we're at experiences less Angeles ] flown expectations, exceeded rest sales. for leadership ground it. consumer To the took date, to has love they customers Look of $X.X that On a BARK Air. variety consumables in the continues the that is

to our people First, it and Millions learned of underlying has happy. company, have BARK. mission incredible products our the all driven docs worldwide for make awareness

Second, limited the many to recognize traveling are parents with We is real distances BARK a we dogs. their point not pain have accessible for price point dog today. for long solving who, before options Air,

more service is Overall, and lower and business. accessible could quarters parents. received margin service realized tens sheet gross come we and with flights cost the BARK that new has make over our the improvements. of sold more out, for start thrilled delivered of best that and flights and $XX This million destinations. back opportunities with In However, we dog sustained we've We've third, Most of with far quickly to $XXX how hoped can built And of real we've are the year-over-year a demand, can thousands ahead. buying I'm there and for, have of date strong million become are our this outstanding X.X million X of balance a past in after X convertible shares cash has years. time, to we've more consecutive amount. requests

have In freeing it more discuss flow business ever allowing improvement, This is so year-over-year build a the familiarity nimble. team inventory our ago. strong We're travel. for leadership has I'm quarters our from adjusted excited consecutive million of has and burning were years as considering this track history. cash considerable air much more adjusted my balance our strongest delivered to will stronger And growth view, year our in EBITDA today, with momentum accelerating on to to been, only all from feat nearly products channels also and EBITDA quarter. we're and in as other. the working also cash from of $XXX as be grow and consumables it for peak, of further us X first our up Our capital is and each X positive its diversifying just is our future. we There's and $XX we We've million

now that, I the will Zahir. over call to for turn So

Zahir Ibrahim

first results, fiscal begin by by for outlook quarter I'll everyone. providing second quarter an afternoon, of year good overview and followed Matt, and XXXX. our Thanks, full our the

accounts by commerce As year growth business our new and of Matt and mentioned, the in third our expansion new subscriber delivering started we our consumables growing fueled strong growth year-over-year, into note, over a on by consecutive and recent quarter existing retail. X%

the on continue expect profitability, latter term. look ahead. range to to see first segment high on quarter Overall, continue we something we that are our the enabling in significant million the revenue quarter. to note, From was encouraging quarter. business for improvements us generated across DXC in guidance revenue let's and gross results traction in opportunity the Total Additionally, in of detail. exceeding $XXX.X the the perspective, strong path $XXX.X more healthy our we On being observing our million, a end to business, trends the margin our at long capitalize

As in pressured year spending. we saw rates rising discretionary as inflation and you growth interest of subscriber half first the new last in headwinds may recall,

While it's we on declare and front, X past to the are have over too growth tactics. subscriber victory evolve acquisition this soon months, our continuing still new customer been to refine encouraged we by and

to As a result, fiscal return we in expect fiscal extent in growth greater the our a end segment to XXXX. back and XXXX BXC of to

Turning $X.X quarter, a the million to increase last Commerce delivered of segment. to revenue year. X% in compared our We

Chewy. inventory and line Furthermore, our launched of see treat we the in of beginning retail levels, line best-selling new XX toys to our carefully normalize. on introduced on managing quarter, XX X,XXX presence to During we're initial is an Amazon months PetSmart doors, after expanded order patterns our

past over compared we minimum, expect As key growth At expect high-teen in commerce we the P&L. in we've a several beginning to it the segment long-term our to to XXXX we're growth, driver XXXX. a revenue discussed see and segment of be see fiscal our to quarters, reflected commerce fiscal

a points while a by this healthy promising basis, margin. point gross This commerce to basis improvements to incredibly improvement basis XXX to fantastic reflecting XX%, improved is segment front. on in continue our time, On gross addition top execution year-over-year. of by points trends, gross short their DXC margin amount XX.X%, team for of to consolidated In a was the On we in XXX margin a gross deliver we're line basis basis, and margin proud progress XX.X%. XXX improved

improvement calendar the million Shipping we consists a reflects million the Other million carried million in operating to $XX.X out and cost compared primarily improvement overhead headcount and a XXXX. of benefit full fulfillment X $XX year. compared G&A, quarter, expenses was in were last quarter, last primarily year realizing in of the costs to expenses. improvement to reduction $X This Turning year. the $X.X initiatives which

in Lastly, the to marketing million last were increase quarter, total compared $XX.X a $X.X year. expenses million

we've so investment. calls, more are G&A seeing As us to we made enable the long the marketing, as invest margin that improvements on previous discussed returns gross and incremental across justify significant in

recent our we to in continue progress, this intend line. incrementally invest Given to

$XXX,XXX adjusted a minus quarter cash quarter which year, of the flow improvement Moving million, in $X.X quarter price free largely just We at a a X which million million total last year-over-year. at neutral notable for EBITDA was shares ended improvement in on. was Total an Furthermore, QX the $X.X reflects loss million, quarter to with was outflow, $XXX repurchasing the $XX.X $X.XX. cash compared of average million. the of

profile continue business' to future and opportunistically cash we flow shares levels. repurchase at the projections, profitability these plan Given to

million have Board $XX.X our from repurchases, Following QX most authorization. remaining recent we our

quarter. the continues quarter improve. in ended capital $XX of a to balance situation working We million inventory our $X the Additionally, an with million, reduction

for our we anticipate holiday sequentially quarter. the in As the quarter, to prepare second we grow inventory

our we fiscal expect trend to we continue levels. Overall, top current end opportunities half the developments of second likely line promising exciting XXXX, margin However, and below see to it from several will downward its in ongoing the year we and full free quarter reaffirming mind, we and improvements. for year. that we guidance in full Starting cash in second our year, the call let's guidance are flow QX provided With the the during June. discuss with

million, ability confidence to from optimistic numerous $XXX pragmatic ahead, the representing our year While X%. give maintain ranging million just Nevertheless, to X the we we in targets. we be the year. to reasons be between to there given QX $XXX our believe revenue results anticipate outlook it's for flat quarter reiterate, growth strong the year-over-year opportunities into achieve to are total and our about fiscal current To are increased

compared the adjusted the year. represents at which $X EBITDA, to a $X $XX.X For to previous of improvement we midpoint million a range million million, expect

expect embarked we achieve and cash flow a the XX-year to for history. year, EBITDA Additionally, first adjusted free profitability full

$X to range For declines. $XXX of infrastructure. quarter revenue on we an million. million albeit anticipate growth, profitable after will marking On quarter, $XXX consecutive midpoint the range profit adjusted guidance in further we year-over-year $X compared represents X.X% a The growth total We quarters year as important believe progresses, year-over-year turnaround of second much and between the revenue X year. growth EBITDA more last a see basis, million of an million the to $X expect million the we

margin the to and commerce taking The will placement. higher the to holiday commerce result, a our in secondary greater XX%. This expect mix quarter. for opportunities QX product impact gross will heavier around we second gross retailers margin in index currently as with channel And be with consolidated quarter

However, continue expect margin seeing for similar gross consolidated In conclusion, trends the across FY to to full year, we 'XX. the we business. promising are

current quarter. growth to in the expect to We return revenue

we driving on and have each Our improving $XX profile passing Collectively, growth approximately turn over this We and our value. committed plans execute shareholder operator enhancing profitability sustainable, us million to and balance opportunistically opportunity long-term cash affords to the Q&A. will that, remain our shares. the growth with call net the ample repurchase for I is on With quarter, of profitable sheet. to

Operator

you. Thank

the comes first from Canaccord. today line of question Ripps Our Maria with

Maria Ripps

just and But pulling softness you maybe about wanted to sort if have given seems outlook on than concerns And some QX, were time? weeks? better for recessionary we seen pressure been you reemerging fiscal could sort macro have you back spend whether could into given already you've a more backdrop. much your recent results that maybe like been the category I come maybe enter QX maybe consumer changes in First, expected. that good much broader about of of in prolonged in talk of under do in ask It any and how consumers period behavior so discretionary far think pretty demand

Matt Meeker

past those have the execution environment past, goods. better, and on for of close they a on And room have QX discretionary growth continued business. that the improvement some to spend. And time. going quarters. macro steady on We side against the I've through that, is And over marketing manage discretionary of that we back showing And But particular been counter about keep as category, obviously execute and that that. in the mentioned, as pulling few that to lot in it's the on the tabs and especially here been you been comes in it we've when the to talked that's

that trend It's execution if July that this space quarter, And second as another well. our we start to in grow think acquisition you're category even talking of continue this the pressure in or expect that I So the the growth. quarter up the reflection is see year-over-year about, ourselves we that The headwind that. it's seeing consecutive that saw in retail to quarter subscriber third then new outperforming we of year. we're as And business to direct-to-consumer the well. with half of

announced which in We that our I now, up mentioned, picking we're venue selling steam another just to As be. for products Amazon. we're is with great Chewy

environment flow back then I discretionary goods and with execution should our lot a say, goes EBITDA or positive If to Winter momentum have there's positive, all when So the of of that. macro much to back in going there. the to in when, better growing, our our we're turns generation, margins, cash categories addition strong gross

So it's we've those as out. it's those we've for face in But us place the stretch it a to in better. on good us getting time headwinds of execute of doing got really, pieces and only help ride here, that been

Maria Ripps

of drivers how driving maybe And different are maybe I are techniques Matt, deploying this? some you continued sort the that what acquisition you sort the of my this behind on quarter? some you're And it of is in question, forward? that going key but touched guess sustainable second strength new customer can about And talk of

Matt Meeker

because there well, on in sustainable going there. a few I Very as are said, things

part better direct-to-consumer great side, that the -- subscribe This some creative so more the tell. customer rather using there's well definitely On And not been you offering the tools with acquisition new getting the of and or so new sort artificial driven. stories move generate too subscriber the that some tell have from Ironically, up tactics, products of because is and of steam side of only buy being the way us artificial on efficiently. new is purchase. to that's giving with do We've some why or side to to intelligence gift a our of intelligence promotion is to impression more it. would what's creative away ironically, should promotionally customers gone far we're That's to picking variety going and that incentive.

better you're that balance story giving by that And conversion starting the a of matching and you're the So lot the efficient up creative, offers. that telling stories promotional to we're more the about product as to then of better occasionally telling more it, creative, products.

it, the side than the Amazon in the like his said, channels On leveraging as on and leadership great Black we have you on but commerce and of more Chewy team business, I from much touched past, the side. retail Michael

a just now. role months into have So lot again, and been Michael are Parness Michael building. of things that happening Black, X in good motion the And

gather just more. momentum some So even that should

Operator

question next Street. comes the Meyers with Your of from line Ryan Lake

Ryan Meyers

QX? on gross you said around going weighted can it the be First for the about you I margin think Maybe bit to so retail. what little XX% a in or here. with heavily towards just touch you was said one me more

kind lower why out kind of us a Just of to walk that margin. dynamics of remind us that and business the be shakes through bit little

Zahir Ibrahim

Sure.

So margin we're gross of quarters seeing now X growth. straight

So the product improvements that's some freight costs that well driven improvement on DXC time. in commerce over lot both both channel consumables a over that our and of been side in costs, It's toys the in as in window. improvement by and period and

There's We dynamics continue of a lot expect opportunities QX, secondary holiday call a year. the for of buying. I of said, the there's as the all for, that on course placements. the during number of of to

for So placements that offshore of within could center the gondolas in placement in-line be retail certain store or customers.

commerce to is year And a what mix heavier us going for full see a you'd so basis. weighted than be QX on

mid-XXs. is the around on the commerce in mid-XXs. margin the Our DXC is channel

you that gross index on impact higher when So margin. will your mix to a commerce, slightly

why called gross margin. that's So out we

and shipping perspective. to thing and fulfillment the is is though, serve, a the from lower cost remember, channel to important The commerce marketing

at both channels. margin it's very on look level, at when contribution the similar So you profitability

Ryan Meyers

maybe thinking that, through you believe has I launch, don't know for us but developed. products that kind obviously been guys just I you for the chewy a guys congrats of obviously, while to around them but about Chewy selling how been have then on walk previously. and a And while, around were

So how products out? there? And then how maybe that you and walk maybe toys we play developed of outside of sort just expect us expect kind business to of expanded that see could through to

Matt Meeker

time very, XX Chewy so. years a Yes. going long known obviously or very We've for back

years. the until So platform talking his back then both more very, and got companies And Black they've came on selling into selling there. never earlier and couple relationships it's past Chewy very of year. then way with really young products working clicked over place are this about recently in, Michael about we our commercial team great their And experience and

So I over taking it think strong those relationship a from steps they our in the building getting last helped line and us and side really there.

We're and heading get where to get just their is all a And partner start. fantastic so full So over the course far. including and selling everything, to on over be great we there. we're off the this running. site a consumables off year that we're of They've to catalog our been can

lot great a it's upside, So of lot potential. a a of there's have coming. think They and business, long start. obviously time built big fantastic a We

So to partnered be we're thrilled with them.

Operator

Your next Jefferies. the Gajrawala question Kaumil comes of from with line

Kaumil Gajrawala

A couple guess average growth, of number or subscriber still it looks is orders one first of the questions. great. like But I orders again, down.

in if curious that what of just be we aware should anything doing you're to figure that? try maybe reverse there's to and that So

Matt Meeker

subscriber subscriptions it. the compound. time to What It's is reverse terms doing we're growth you're just take of the in what seeing to

to has flattish overall, that fiscal be first DXC to expect to And X up these quarter current last in this so made then QX. but quarter. But fiscal the in, we're next but not that not we've expect saw we turn grow for in in the year-over-year, really our what of XXXX. begin we to start revenue we to yet declines And that half the quarters seen

Kaumil Gajrawala

And cool. congrats very on the launch, Chewy

site look I toys think I in on know consumables on think I we you least with how hinted are might And at have at the sure. starting believe there or you do but back, it, for side, that? might a have toy your like differentiate yourself you at if it well? as I it's hinted didn't

Matt Meeker

do we differentiate The toys consumables anywhere. really No there. And ourselves are yet. how

is to say, and the we I in challenge that think a have right part knowing platform and, ourselves assets products. the marketing I making video, of descriptions sure would of best that around position great great our how photography,

it, reputation part great Another is of obviously, great products and and ratings. having high

up the And with our being into so we product have development in tune and to back customer. that

our have that we who product giving million-plus month fortunate are are feed and We we about us every into products, X our feedback customers development. that

other we've together. X thing now together be now that giant is have should side, put product with Michael much and or Michael development done most over a joined since product So that The those companies. closer we've advantage the marketing bringing toy

to put Michael making every brand living that that So toy. of an not just another just product brand Parness and we the sure being the out expression is up and

on development product brand where is, go we and executing really mindset And then do awareness marketing and the out them of the a from we the there, hopefully, So really, reputation already it comes that it elevates through basics product. -- well. gets platform I'll with every call behind

Kaumil Gajrawala

don't you to CNBC but earnings, were I got busy Shopify. know prepping out for shut And you from on probably

and can yet? the it And I the platforms happening. in on we to consolidated we transition talk to have as the year? about various coming technology then look transition margins you Maybe should impact Have that forward? perhaps -- go are just So you the bit there a guess is what

Matt Meeker

there our continue ad over a spend. We're and of customers we bit some transition active not but to little there, yet, our of

So the we place. pieces in have, let's say, technical

at We could if move today, want QX. don't we sooner, do pick disrupt is line one the be is everyone with the to we're like -- probably realistic season. definitely to most But do to still to we're but that getting happen holiday is time it. we getting up thing for we it fiscal What parity our feel So wanted to could. and business we

QX. fiscal So in likely it's

Operator

Your next Citi. question Arounian comes from line the of with Ygal

Maksim Rakhlenko

color out treats commerce you've differently? of maybe drove know on specifically commerce, and I what then the maybe don't before, guess any wanted the going I add some Ygal. some in just Max doing if Amazon the just just partnership on called And -- the curious more there if on -- maybe you're strength anything I but for and side. now. seeing expectations? how for you been not other you're -- if expectations I'm talking maybe stores, that's sure can going talks I that roll out? a then X you're to time there other I right assuming you're for you're provide in, know trending, just talking think, how maybe line on stores what with and to those just are but

Matt Meeker

quickly. the comment Matt This of I'll it. Yes. is on Amazon side

For him, Amazon, of elevating in to talent like with and strong the strength there. some understanding and pointing really some performance new past that leadership, real in performance our platform Black bringing with great coming again, Michael there lives

of is of the just basic the platform. Some and blocking that tackling

And months is is into really his Some marketing. better what's here. only there some of X of his tenure encouraging it and tenure we're team's

around fantastic And they're using so laying we today. because is some the it there have elevation we're products, seeing

order for for start So channel have specifically create opportunity sales to think really the volumes, properly and product we we accelerate. when or we the that environment that to I

And what as So going on comes the down talent. as simple to. it's chime to second. here is it in That's then

Zahir Ibrahim

Sure.

in our so doing The that any with Early we our forward. So they're launched run, we the launched we can performance our -- that we're into Obviously, going days. happy to elevate promotions partners continuing with character from we're feedback consumables we're terms made. shopper target and the marketing, that of in is we've how everything learnings treats. we obviously start just the retail, take PetSmart of retail on with

We've So offerings some secure of already seasonal we're for distribution managed to holiday work continuing the in on within major to that. those windows. further retailers

positive a really signal. that's So

that's be retail, broadly. in opportunity There's and distribution further fiscal with sizable in next doors to think expect us on year, I QX and this you'd terms more within think Chewy then see retail. And to year you into going resets Amazon consumables when impact for a products. particularly quickly, which dental next as fairly just and expand about the would about of fiscal QX more thinking really our [indiscernible]

Operator

This you concludes Thank today's conference for attending. call.

disconnect. now may You

BARK (BARK) 7 Aug 242025 Q1 Earnings call transcript