CORRECTED-Dog-related products maker Bark's Q1 revenue beats expectations

Overview

• Bark Inc fiscal Q1 revenue falls 11.5% yr/yr, beats analyst expectations, per LSEG data

• Adjusted EBITDA for fiscal Q1 improves by $1.9 mln, reflecting positive operational changes

• Commerce revenue rises 49.5% yr/yr, driven by strong retail partnerships

Outlook

• BARK expects Q2 revenue between $102 mln and $105 mln

• Company anticipates Q2 adjusted EBITDA between $(2) mln and $2 mln

• BARK not providing full-year guidance due to tariff uncertainties

Result Drivers

• REVENUE DECLINE - Revenue fell 11.5% year-over-year due to fewer total orders and subscriptions carried into the quarter

• COMMERCE GROWTH - Commerce revenue increased by 49.5% year-over-year, driven by strong growth at Costco, Amazon, Chewy, and TJX

• GROSS MARGIN IMPROVEMENT - Direct-to-consumer gross margin rose by 250 basis points to 67.0%, attributed to a shift towards higher-value Super Chewer customers

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"

• Wall Street's median 12-month price target for Bark Inc is $2.00, about 57.3% above its August 6 closing price of $0.85

Press Release: ID:nBw6JH9Y4a