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BARK Inc Class A (BARK)
NYSE:BARK
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BARK Inc Class A
(NYSE:BARK)
52Neutral
Positive Factors
Profitability
The business is now on the cusp of both sustained growth and profitability, with significant progress made in cost reduction and diversification.
Revenue Growth
Results represented the tenth consecutive quarter of year-over-year adjusted EBITDA growth, setting a new adjusted EBITDA record.
Subscriber Growth
The company drove an 11% increase in new subscribers due to increased marketing investments and further growth in the commerce segment.
Negative Factors
DTC Revenue Challenges
The core DTC business may need to return to sustainable growth for investor sentiment to improve meaningfully.
Revenue Outlook
DTC revenue is expected to decelerate in Q3, and the total revenue outlook came in modestly below expectations.
BARK Inc Class A (BARK) vs. S&P 500 (SPY)
Market Cap
$244.88M
Dividend YieldN/A
Average Volume (3M)878.72K
Price to Earnings (P/E)―
Beta (1Y)1.43
Revenue Growth-0.90%
EPS Growth30.87%
CountryUS
Employees708
SectorConsumer Cyclical
Sector Strength50
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.18
Shares Outstanding174,914,860
10 Day Avg. Volume741,746
30 Day Avg. Volume878,720
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.66
Price to Cash Flow (P/CF)-44.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.00Price Target Upside114.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
BARK Inc Class A Business Overview & Revenue Model
Company DescriptionBARK Inc Class A (BARK) is a company specializing in products and services tailored for dog owners and their pets. Founded in 2011, BARK is predominantly known for its subscription-based business model, providing curated boxes of dog toys, treats, and other pet-related products under its flagship brand, BarkBox. The company operates within the consumer goods sector, specifically focusing on the pet care segment, and has expanded its offerings to include personalized subscription services, retail products, and health-related pet products.
How the Company Makes MoneyBARK Inc primarily generates revenue through its subscription-based model, where customers subscribe to receive monthly boxes filled with a variety of dog toys, treats, and other items through its BarkBox service. Additionally, the company offers a Super Chewer subscription for dogs that require more durable toys. BARK also sells its products directly through retail partnerships with major retailers and through its e-commerce platform. Furthermore, the company has diversified its revenue streams by introducing health and wellness products for pets, including dental care and supplements. Strategic partnerships with retailers and a strong focus on e-commerce have significantly contributed to BARK's revenue generation.
BARK Inc Class A Financial Statement Overview
Summary
BARK faces financial challenges with declining revenues and negative profitability margins. The balance sheet shows moderate leverage but ongoing cash flow issues highlight areas needing improvement. Efforts to enhance operational efficiency are crucial for financial stability.Income Statement
BARK's income statement reveals a declining revenue trend over the recent years, with TTM revenue at $490.3M, down from $535.3M in 2023. The company has consistently reported negative net income, indicating profitability challenges. Gross profit margin has slightly improved (61.5% TTM), but the negative EBIT and EBITDA margins suggest operational inefficiencies. The revenue growth rate shows a negative trend, indicating market challenges.45
Neutral
Balance Sheet
The balance sheet indicates a stable equity position with a debt-to-equity ratio of 0.76 as of TTM, suggesting moderate leverage. Although the company has managed to decrease its total liabilities, the return on equity remains negative due to continued losses. The equity ratio is at 38.7%, reflecting a balanced capital structure but with ongoing operational challenges.60
Neutral
Cash Flow
Cash flow analysis shows a weak free cash flow position, with negative free cash flow reported in the TTM period. The operating cash flow to net income ratio is positive, reflecting some operational cash generation despite net losses. However, the free cash flow to net income ratio remains unfavorable, indicating cash flow challenges.50
Neutral
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 490.26M | 490.18M | 535.32M | 507.41M | 378.60M | 224.34M | Gross Profit |
| 301.41M | 302.15M | 308.12M | 282.11M | 225.94M | 135.41M | EBIT |
| -34.98M | -45.52M | -63.83M | -94.18M | -20.60M | -26.63M | EBITDA |
| -24.09M | -20.06M | -42.82M | -54.60M | -18.06M | -25.23M | Net Income Common Stockholders |
| -31.71M | -37.01M | -63.58M | -42.42M | -42.58M | -37.37M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 115.26M | 125.50M | 177.91M | 199.40M | 306.62K | 9.68M | Total Assets |
| 292.19M | 298.59M | 400.42M | 434.06M | 254.71M | 64.69M | Total Debt |
| 86.44M | 87.82M | 133.94M | 110.10M | 115.73M | 61.53M | Net Debt |
| -28.82M | -37.68M | -43.97M | -89.30M | 115.42M | 51.85M | Total Liabilities |
| 179.15M | 159.21M | 229.88M | 217.00M | 50.98M | 140.09M | Stockholders Equity |
| 113.04M | 139.38M | 170.54M | 217.06M | 203.74M | -75.40M |
| Cash Flow | Free Cash Flow | ||||
| -4.43M | -2.77M | -16.63M | -193.51M | -24.44M | -24.34M | Operating Cash Flow |
| 2.13M | 6.06M | 4.69M | -172.34M | -19.62M | -19.67M | Investing Cash Flow |
| -6.56M | -8.83M | -21.14M | -21.17M | -4.83M | -4.68M | Financing Cash Flow |
| -12.01M | -49.62M | -2.10M | 355.46M | 54.50M | 22.68M |
BARK Inc Class A Technical Analysis
Negative
1.40
Price Trends
1.70
Negative
1.80
Negative
1.70
Negative
Market Momentum
-0.09
Negative
37.95
Neutral
56.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BARK, the sentiment is Negative. The current price of 1.4 is below the 20-day moving average (MA) of 1.45, below the 50-day MA of 1.70, and below the 200-day MA of 1.70, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 37.95 is Neutral, neither overbought nor oversold. The STOCH value of 56.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BARK.
BARK Inc Class A Risk Analysis
BARK Inc Class A disclosed 48 risk factors in its most recent earnings report. BARK Inc Class A reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BARK Inc Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $73.04B | 29.84 | 50.91% | 1.10% | 8.33% | 7.70% | |
73 Outperform | $13.31B | 35.77 | 101.78% | ― | 6.40% | 891.13% | |
61 Neutral | $4.11B | 90.47 | 4.67% | ― | 27.16% | ― | |
59 Neutral | $12.26B | 11.12 | -0.55% | 3.78% | 1.42% | -20.63% | |
59 Neutral | $1.54B | ― | -3.07% | ― | 15.97% | 78.77% | |
52 Neutral | $244.88M | ― | -24.64% | ― | -0.90% | 30.87% | |
45 Neutral | $815.97M | ― | -8.86% | ― | 1.30% | 91.08% |
* Consumer Cyclical Sector Average
Performance Comparison
BARK
BARK Inc Class A
1.40
0.17
13.82%
FRPT
Freshpet
84.39
-31.46
-27.16%
ZTS
Zoetis
163.11
-2.15
-1.30%
TRUP
Trupanion
36.25
8.86
32.35%
CHWY
Chewy
32.17
16.08
99.94%
WOOF
Petco Health and Wellness Company
2.96
0.88
42.31%
BARK Inc Class A Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -28.57% | Next Earnings Date: May 28, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook, with significant improvements in EBITDA, strong growth in the Commerce segment, and successful international expansion. However, there are challenges in the D2C segment with revenue decline and uncertainties in quarterly commerce revenue timing.Highlights
Record EBITDA Improvement
BARK delivered its 10th consecutive quarter of year-over-year adjusted EBITDA improvement, with a $4.9 million improvement compared to last year. The company is on track to achieve its first full year of adjusted EBITDA profitability.
Commerce Segment Growth
The Commerce segment delivered $20.3 million in revenue, representing a 43% increase year-over-year and up 27% year-to-date. This growth was driven by new partnerships and increased shelf space.
D2C New Subscriptions Increase
The direct-to-consumer segment achieved its highest quarter for new subscriptions in three years, up 11% year-over-year at a lower acquisition cost.
Successful Platform Transition
Early results from transitioning all paid media traffic to the new Shopify platform were positive, with 43% of checkouts using Shop Pay, a feature not available on legacy platforms.
Gross Margin Improvement
Consolidated gross margin improved to 63%, up 90 basis points compared to last year, enabling more efficient investment in top-line growth.
International Expansion
BARK expanded its presence internationally, including launching on Amazon Europe and entering markets like Fressnapf in Europe and Pets at Home in the UK.
Lowlights
D2C Revenue Decline
The direct-to-consumer segment declined 4% compared to last year, with challenges including shipping delays impacting retention.
Uncertainty in Commerce Segment Timing
The timing of retailer shipments in the Commerce segment creates variability, impacting quarterly revenue visibility.
Free Cash Flow Concerns
Free cash flow for the quarter was negative $2 million and negative $1.2 million year-to-date, with expectations to be around breakeven for the full year.
Company Guidance
During BARK's third-quarter fiscal year 2025 earnings call, the company reported surpassing revenue expectations and achieving a $4.9 million year-over-year improvement in adjusted EBITDA, marking the 10th consecutive quarter of such improvements. BARK's direct-to-consumer segment saw an 11% year-over-year increase in new subscriptions at a lower acquisition cost, while the Commerce segment's revenue grew by 43% due to new partnerships and expanded shelf space. BARK Air generated $2 million in revenue, with positive gross profit seven months post-launch. The company transitioned its paid media traffic to a new Shopify platform, leading to better conversion rates, with 43% of checkouts via Shop Pay. BARK aims for its first EBITDA-positive year, projecting mid- to high-single-digit top-line growth in fiscal year 2026, driven by continued improvements in gross margins and strategic partnerships with companies like Chewy and Amazon.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.