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 third quarter
ended December 31, 2024.
Key Highlights
- Total revenue was $126.4 million, ahead of the high-end of the
Company's guidance range and a 1.1% increase, year-over-year.
- Commerce revenue was $20.3 million, up 43.5% compared to last
year.
- Gross Margin was 62.7%, up 90 basis points compared to last
year.
- Net loss of $(11.5) million, was $1.4 million greater than the
same period last year primarily related to a $1.8 million gain from
the extinguishment of debt in the year-ago period.
- Adjusted EBITDA was $(1.6) million, within the Company's
guidance range and a $4.9 million improvement, year-over-year.
"We closed 2024 on a high note, exceeding our revenue
expectations and delivering our tenth consecutive year-over-year
improvement in Adjusted EBITDA," said Matt Meeker, Co-Founder and
Chief Executive Officer. "Our focus on building and empowering a
world-class leadership team is starting to deliver results, with
momentum building across the business. In the quarter, we achieved
our strongest new subscription quarter in three years, grew
commerce revenue by 43% year-over-year, and generated $2 million in
revenue from BARK Air—just seven months after launch. Importantly,
we delivered these results while maintaining a disciplined focus on
profitability. We are Adjusted EBITDA positive through the first
three quarters of fiscal 2025 and remain on track to achieve our
first full year of positive Adjusted EBITDA next month. With a
strong foundation and the right team in place, we are taking
decisive steps to position BARK for sustainable growth and
long-term value creation."
Fiscal Third Quarter 2025
Highlights
- Revenue was $126.4 million, ahead of the Company's
guidance range of $123.0 million to $126.0 million, and a 1.1%
increase year-over-year, primarily driven by a 43.5% year-over-year
increase in the commerce segment.
- Direct to Consumer (“DTC”) revenue was $106.1 million, a
4.3% decrease year-over-year, primarily driven by fewer total
orders in the most recent period.
- Commerce revenue was $20.3 million, a 43.5% increase
year-over-year, driven by adding new partners, and expanding shelf
space and SKU counts with existing partners.
- Gross profit was $79.3 million, a 2.6% increase
year-over-year.
- Gross margin was 62.7%, as compared to 61.8% in the same
period last year.
- Advertising and marketing expenses were $27.4 million as
compared to $25.1 million in the same period last year, driven by
an 11% increase in new subscriptions acquired in the quarter.
- General and administrative ("G&A") expenses were
$64.1 million, as compared to $66.1 million last year. This
decrease was largely driven by a reduction in headcount.
- Net loss was $(11.5) million, as compared to $(10.1)
million in the same period in the previous year. The greater net
loss is largely related to a $1.8 million gain from the
extinguishment of debt in the year-ago period.
- Adjusted EBITDA was $(1.6) million, the midpoint of the
Company's guidance range of $(3.0) million to breakeven. Given the
Company's ability to efficiently acquire new subscriptions at a
lower customer acquisition cost, it invested more in marketing
during the quarter.
- Net cash provided by (used in) operating activities was
$(1.4) million. Free cash flow, defined as net cash provided by
(used in) operating activities less capital expenditures, was
$(2.0) million.
Balance Sheet Highlights
- The Company’s cash and cash equivalents balance as of December
31, 2024 was $115.3 million, and reflects $2.8 million of share
repurchases at an average price of $1.69, in the quarter. Fiscal
year-to-date through December, 31 2024, the company has repurchased
$8.0 million of shares at an average price of $1.54.
- The Company's inventory balance as of December 31, 2024 was
$90.4 million, an increase of $6.2 million compared to March 31,
2024. The increase is largely driven by the Company bringing in
additional product in anticipation of stronger sales in fiscal
2026.
Fiscal Fourth Quarter and Full Year
2025 Financial Outlook Based on current market
conditions as of February 5, 2025, 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 fourth quarter of fiscal 2025, the Company expects:
- Total revenue of $121.2 million to $131.2 million, reflecting
year-over-year growth of (0.2)% to 8.0%. This range accounts for
the potential variability in the timing of commerce shipments that
could shift from the fiscal fourth quarter to the first quarter of
fiscal 2026.
- Adjusted EBITDA of $0.9 million to $4.9 million, reflecting a
year-over-year increase of $(1.3) million to $2.7 million. This
range reflects the above items as well as potential variability in
the Company's marketing investment, given recent success in
efficiently adding new subscriptions.
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 third quarter 2025 results will be held today,
February 5, 2025, 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/events-and-presentations/ 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. We use
Total Orders as an indicator of customer interest and demand.
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.
We use AOV to provide insight into customer spending patterns.
Key Performance
Indicators
Three Months Ended
December 31,
Nine Months Ended December
31,
2024
2023
2024
2023
Total Orders (in thousands)
3,332
3,504
10,044
10,425
Average Order Value
$
31.25
$
31.65
$
31.03
$
31.38
Direct to Consumer Gross Profit (in
thousands)(1)
$
70,154
$
70,801
$
204,927
$
208,062
Direct to Consumer Gross Margin (1)
67.4
%
63.8
%
65.7
%
63.6
%
(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.
BARK, Inc.
CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands)
Three Months Ended
Nine Months Ended
December 31,
December 31,
December 31,
December 31,
2024
2023
2024
2023
REVENUE
$
126,449
$
125,075
$
368,772
$
368,700
COST OF REVENUE
47,189
47,831
140,134
142,779
Gross profit
79,260
77,244
228,638
225,921
OPERATING EXPENSES:
General and administrative
64,141
66,119
190,709
204,467
Advertising and marketing
27,364
25,094
66,460
60,523
Total operating expenses
91,505
91,213
257,169
264,990
LOSS FROM OPERATIONS
(12,245
)
(13,969
)
(28,531
)
(39,069
)
INTEREST INCOME
1,179
1,718
4,011
5,851
INTEREST EXPENSE
(677
)
(902
)
(2,074
)
(3,648
)
OTHER INCOME (EXPENSE)—NET
234
3,045
(217
)
4,758
NET LOSS BEFORE INCOME TAXES
(11,509
)
(10,108
)
(26,811
)
(32,108
)
PROVISION FOR INCOME TAXES
—
—
—
—
NET LOSS AND COMPREHENSIVE LOSS
$
(11,509
)
$
(10,108
)
$
(26,811
)
$
(32,108
)
DISAGGREGATED REVENUE
(In thousands)
Three Months Ended
Nine Months Ended
December 31,
December 31,
2024
2023
2024
2023
Revenue
Direct to Consumer:
Toys & Accessories(1)
$
64,348
$
71,183
$
201,799
$
210,433
Consumables(1)
39,808
39,720
109,909
116,666
Other(2)
1,963
—
4,069
—
Total Direct to Consumer
$
106,119
$
110,903
$
315,777
$
327,099
Commerce
20,330
14,172
52,995
41,601
Revenue
$
126,449
$
125,075
$
368,772
$
368,700
(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
Nine Months Ended
December 31,
December 31,
2024
2023
2024
2023
Direct to Consumer:(1)
Revenue
$
106,119
$
110,903
$
315,777
$
327,099
Cost of revenue
35,796
40,102
110,930
119,037
Gross profit
70,323
70,801
204,847
208,062
Commerce:
Revenue
20,330
14,172
52,995
41,601
Cost of revenue
11,393
7,729
29,204
23,742
Gross profit
8,937
6,443
23,791
17,859
Consolidated:
Revenue
126,449
125,075
368,772
368,700
Cost of revenue
47,189
47,831
140,134
142,779
Gross profit
$
79,260
$
77,244
$
228,638
$
225,921
(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)
December 31,
March 31,
2024
2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
115,259
$
125,495
Accounts receivable—net
11,415
7,696
Prepaid expenses and other current
assets
12,371
4,379
Inventory
90,360
84,177
Total current assets
229,405
221,747
PROPERTY AND EQUIPMENT—NET
22,070
25,540
INTANGIBLE ASSETS—NET
7,428
11,921
OPERATING LEASE RIGHT-OF-USE ASSETS
29,283
32,793
OTHER NONCURRENT ASSETS
4,006
6,587
TOTAL ASSETS
$
292,192
$
298,588
LIABILITIES, AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES:
Accounts payable
$
27,086
$
13,737
Operating lease liabilities, current
5,668
5,294
Accrued and other current liabilities
41,795
30,490
Deferred revenue
23,524
25,957
Current portion of long-term debt
42,461
—
Total current liabilities
140,534
75,478
LONG-TERM DEBT
—
39,926
OPERATING LEASE LIABILITIES
38,306
42,599
OTHER LONG-TERM LIABILITIES
314
1,202
Total liabilities
179,154
159,205
COMMITMENTS AND CONTINGENCIES (Note 8)
STOCKHOLDERS’ EQUITY:
Common stock, par value $0.0001 per
share—500,000,000 shares authorized; 183,965,936 and 180,176,725
shares issued
1
1
Treasury stock, at cost, 9,869,120 and
4,643,589 shares, respectively
(14,248
)
(6,225
)
Additional paid-in capital
500,953
492,427
Accumulated deficit
(373,668
)
(346,820
)
Total stockholders’ equity
113,038
139,383
TOTAL LIABILITIES, AND STOCKHOLDERS’
EQUITY
$
292,192
$
298,588
BARK, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
Nine Months Ended
December 31,
December 31,
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(26,811
)
$
(32,108
)
Adjustments to reconcile net loss to cash
provided by operating activities:
Depreciation & amortization
8,383
8,899
Impairment of assets
2,142
3,079
Non-cash lease expense
3,510
3,120
Loss on disposal of assets
—
72
Amortization of deferred financing fees
and debt discount
299
478
Bad debt expense
—
34
Stock-based compensation expense
9,771
10,510
Provision for inventory obsolescence
1,072
888
Gain on extinguishment of debt
—
(1,828
)
Change in fair value of warrant
liabilities and derivatives
652
(2,216
)
Paid in kind interest on convertible
notes
2,235
2,119
Changes in operating assets and
liabilities:
Accounts receivable
(3,719
)
63
Inventory
(7,255
)
24,975
Prepaid expenses and other current
assets
(2,105
)
(1,123
)
Other noncurrent assets
(1,733
)
—
Accounts payable and accrued expenses
26,696
(4,894
)
Deferred revenue
(2,433
)
1,247
Proceeds from tenant improvement
allowances
—
—
Operating lease liabilities
(3,919
)
(3,522
)
Other liabilities
(3,606
)
(2,687
)
Net cash provided by operating
activities
3,179
7,106
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(4,428
)
(6,699
)
Net cash used in investing activities
(4,428
)
(6,699
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of finance lease obligations
(165
)
(161
)
Proceeds from the exercise of stock
options
554
105
Proceeds from issuance of common stock
under ESPP
425
489
Tax payments related to the issuance of
common stock
(2,181
)
(1,011
)
Excise tax from stock repurchases
(43
)
(42
)
Payments to repurchase common stock
(8,023
)
(4,120
)
Payments of long-term debt
—
(42,300
)
Net cash used in financing activities
(9,433
)
(47,040
)
Effect of exchange rate changes on
cash
(37
)
(14
)
NET DECREASE IN CASH, CASH EQUIVALENTS AND
RESTRICTED CASH
(10,719
)
(46,647
)
CASH, CASH EQUIVALENTS AND RESTRICTED
CASH—BEGINNING OF PERIOD
130,704
183,068
CASH, CASH EQUIVALENTS AND RESTRICTED
CASH—END OF PERIOD
$
119,985
$
136,421
RECONCILIATION OF CASH, CASH EQUIVALENTS
AND RESTRICTED CASH:
Cash and cash equivalents
115,259
131,284
Restricted cash - prepaid expenses and
other current assets, other noncurrent assets
4,726
5,137
Total cash, cash equivalents and
restricted cash
$
119,985
$
136,421
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:
Purchases of property and equipment
included in accounts payable and accrued liabilities
$
189
$
38
Cash paid for interest
$
88
$
2,237
Non-GAAP Financial Measures
We report our financial results in accordance with U.S. GAAP.
However, management believes that Adjusted Net Loss, Adjusted Net
Loss Margin, Adjusted Net 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 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 payments, (5)
litigation expenses (consisting of legal and related fees for a
specific proceeding that is outside of our ordinary course of
business), (6) warehouse restructuring costs, (7) non-cash
impairment of previously capitalized software and cloud computing
implementation costs, (8) technology modernization costs, (9) gain
on extinguishment of debt, and (10) other items (as defined
below).
We calculate Adjusted Net Loss Margin by dividing Adjusted Net
Loss for the period by Revenue for the period.
We calculate Adjusted Net Loss Per Common Share by dividing
Adjusted Net 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 payments, (9)
litigation expenses (consisting of legal and related fees for a
specific proceeding that is outside of our ordinary course of
business), (10) warehouse restructuring costs, (11) non-cash
impairment of previously capitalized software and cloud computing
implementation costs, (12) technology modernization costs, (13)
gain on extinguishment of debt, and (14) 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
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 Loss Margin and Adjusted Net Loss Per
Common Share for the periods presented:
Adjusted Net Loss
Three Months Ended
December 31,
Nine Months Ended
December 31,
2024
2023
2024
2023
(in thousands, except per
share data)
Net Loss
$
(11,509
)
$
(10,108
)
$
(26,811
)
$
(32,108
)
Stock compensation expense
3,873
3,596
9,771
10,510
Change in fair value of warrants and
derivatives
(261
)
(782
)
652
(2,216
)
Sales and use tax income (1)
(450
)
(18
)
(1,999
)
(155
)
Restructuring
924
—
2,624
1,543
Litigation expenses (2)
468
95
1,106
95
Warehouse restructuring costs
2,391
—
3,289
161
Impairment of assets
—
109
2,142
3,079
Technology modernization (3)
545
—
1,750
—
Gain on extinguishment of debt
—
(1,828
)
—
(1,828
)
Other items (4)
88
381
827
1,384
Adjusted net loss
$
(3,931
)
$
(8,555
)
$
(6,649
)
$
(19,535
)
Net loss margin
(9.10
)%
(8.08
)%
(7.27
)%
(8.71
)%
Adjusted net loss margin
(3.11
)%
(6.84
)%
(1.80
)%
(5.30
)%
Adjusted net loss per common share - basic
and diluted
$
(0.02
)
$
(0.05
)
$
(0.04
)
$
(0.11
)
Weighted average common shares used to
compute adjusted net loss per share attributable to common
stockholders - basic and diluted
175,589,759
175,540,096
175,404,510
176,611,729
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
December 31,
Nine Months Ended
December 31,
2024
2023
2024
2023
(in thousands)
(in thousands)
Net Loss
$
(11,509
)
$
(10,108
)
$
(26,811
)
$
(32,108
)
Interest income
(1,179
)
(1,718
)
(4,011
)
(5,851
)
Interest expense
677
902
2,074
3,648
Depreciation and amortization expense
2,704
2,958
8,383
8,899
Stock compensation expense
3,873
3,596
9,771
10,510
Change in fair value of warrants and
derivatives
(261
)
(782
)
652
(2,216
)
Cloud computing amortization
174
—
346
—
Sales and use tax income (1)
(450
)
(18
)
(1,999
)
(155
)
Restructuring
924
—
2,624
1,543
Litigation expenses (2)
468
95
1,106
95
Warehouse restructuring costs
2,391
—
3,289
161
Impairment of assets
—
109
2,142
3,079
Technology modernization (3)
545
—
1,750
—
Gain on extinguishment of debt
—
(1,828
)
—
(1,828
)
Other items (4)
88
381
827
1,384
Adjusted EBITDA
$
(1,555
)
$
(6,413
)
$
143
$
(12,839
)
Net loss margin
(9.10
)%
(8.08
)%
(7.27
)%
(8.71
)%
Adjusted EBITDA margin
(1.23
)%
(5.13
)%
0.04
%
(3.48
)%
(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 December 31,
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 December 31, 2023, other items is
comprised of non-recurring retention payments of $0.4 million, and
duplicate headquarters rent of less than $0.1 million. For the nine
months ended December 31, 2024, other items is comprised of
executive transition costs including recruiting costs of $0.5
million, costs associated with the share repurchase program of $0.3
million, and duplicate headquarters rent of less than $0.1 million.
For the nine months ended December 31, 2023, other items is
comprised of non-recurring retention payments of $0.9 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
December 31,
Nine Months Ended
December 31,
2024
2023
2024
2023
Free cash flow reconciliation:
Net cash provided by (used in) operating
activities
$
(1,387
)
$
15,022
$
3,179
$
7,106
Capital expenditures
(577
)
(1,766
)
(4,428
)
(6,699
)
Free cash flow
$
(1,964
)
$
13,256
$
(1,249
)
$
407
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250205721491/en/
Investors: Michael Mougias investors@barkbox.com
Media: Garland Harwood press@barkbox.com
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