2023-08-09 06:46:19 ET
BARK ( NYSE: BARK ) slipped in early trading on Wednesday after reporting revenue fell 8% year-over-year in FQ1 to $120.6M to fall broadly in-line with the low-end of the company's guidance range, but miss the consensus estimate of $121.6M. Direct to consumer revenue was down 5% during the quarter, while commerce revenue was off 32%.
Gross profit was $73.0M vs. $75.8M a year ago. Gross margin was 60.6% of sales vs. 57.8% a year ago. The increase was driven by a $0.82 increase in average order value coupled with a reduction in unit cost of goods in the most recent period. Adjusted EBITDA was -$7.4M, which was a $5.6M improvement compared to last year and $3.1M ahead of the mid-point of the company's guidance range. BARK ( BARK ) said it benefited from certain timing related items in the most recent quarter. EPS was -$0.05 vs. -$0.08 consensus.
On the balance sheet, BARK ( BARK ) ended the quarter with a cash position of $163.9M and inventory balance of $112.5M.
CEO update: "The strategic actions we took in fiscal 2023 to improve our unit economics and strengthen the long-term financial health of the business are beginning to bear fruit. These efforts, coupled with our continued expansion into exciting new categories like consumables and the encouraging progress of our unified platform made us a stronger and more dynamic company as we entered fiscal 2024."
Looking ahead, BARK ( BARK ) sees FY24 revenue growth of 0% to -5%, which equates to about $508.5M to $535.2M vs. $522.7M consensus.Adjusted EBITDA of -$8M to $2M is anticipated for the full year.
Shares of BARK were down 2.08% in premarket trading on Wednesday.
More on BARK ( BARK ) :
- BARK earnings call transcript
- Growth metrics on BARK
- Valuation metrics on BARK
- Seeking Alpha's Quant Rating for BARK
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BARK falls after revenue drops 8% in FQ1 from a year ago