BARK Inc Class A (BARK) AI Stock Analysis

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BARK Inc Class A

(NYSE:BARK)

50Neutral

BARK's overall stock score reflects its financial challenges and bearish technical indicators, which weigh heavily on the company's prospects. Despite positive earnings call highlights, including EBITDA improvements and strategic growth in the Commerce segment, the persistent financial struggles and valuation issues contribute to a cautious outlook.

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.

Subscriber Growth

The company drove an 11% increase in new subscribers due to increased marketing investments in addition to further growth in the commerce segment.

Negative Factors

DTC Revenue

DTC revenue declined mid-single digits in F3Q and has yet to fully stabilize.

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

$211.65M

Dividend YieldN/A

Average Volume (3M)773.38K

Price to Earnings (P/E)―

Beta (1Y)1.16

Revenue Growth-0.90%

EPS Growth30.87%

CountryUS

Employees708

SectorConsumer Cyclical

Sector Strength56

IndustrySpecialty Retail

Share Statistics

EPS (TTM)-0.18

Shares Outstanding174,914,860

10 Day Avg. Volume702,344

30 Day Avg. Volume773,376

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

$2.75

Price Target Upside129.17% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

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

Neutral

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.

Balance Sheet

Neutral

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.

Cash Flow

Neutral

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.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
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

Technical Analysis Sentiment

Negative

Last Price1.20

Price Trends

50DMA

1.49

Negative

100DMA

1.75

Negative

200DMA

1.68

Negative

Market Momentum

MACD

-0.08

Positive

RSI

33.53

Neutral

STOCH

17.34

Positive

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 1.2 is below the 20-day moving average (MA) of 1.32, below the 50-day MA of 1.49, and below the 200-day MA of 1.68, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 33.53 is Neutral, neither overbought nor oversold. The STOCH value of 17.34 is Positive, 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHWY	76 Outperform	$14.90B	39.34	101.78%	―	6.40%	891.13%
Sector *	60 Neutral	$6.78B	11.63	3.24%	4.20%	2.36%	-21.91%
BARK	50 Neutral	$211.65M	―	-24.64%	―	-0.90%	30.87%
WOOF	50 Neutral	$862.51M	―	-8.86%	―	-2.22%	92.17%
BYON	43 Neutral	$231.88M	―	-99.18%	―	-10.64%	18.47%
CHPT	40 Underperform	$274.05M	―	-121.64%	―	-17.68%	46.68%
BQ	38 Underperform	$20.68M	―	-22.65%	―	―	―

* Consumer Cyclical Sector Average

Performance Comparison

BARK

BARK Inc Class A

1.21

0.14

13.08%

BYON

Beyond Inc

4.21

-17.01

-80.16%

CHWY

Chewy

36.03

20.65

134.27%

CHPT

ChargePoint Holdings

0.66

-0.60

-47.62%

Boqii Holding

2.20

-0.62

-21.99%

WOOF

Petco Health and Wellness Company

3.16

1.65

109.27%

BARK Inc Class A Earnings Call Summary

Earnings Call Date: Feb 5, 2025 | % Change Since: -38.78% | 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.