Bark ( NYSE: BARK ) shares fell 25% on Friday after the pet supplies company cut its revenue guidance for fiscal 2023 that also fell short of Wall Street estimates.
For the full year of fiscal 2023, the company now expects total revenue of $530M compared to $556M previously. Bloomberg revenue estimate for the year is $555.75M. Adjusted EBITDA is still seen at negative $31M, reflecting a 47% improvement over fiscal 2022.
Management noted, "While we saw strong revenue acceleration in our food and dental product lines last quarter, we did see some softness in our toy product line as new additions came in lighter. {...} Our full-year guidance implies year-over-year growth of approximately 5%, as compared to our previous guidance of roughly 10%. In our view, this is a reflection of the broader macro backdrop as many consumers remain cautious and are currently favoring less discretionary spend."
The company is also executing a cost reduction initiative that will lead to 126 job cuts and curtailing its use of certain third-party vendors, consultants, and other contractors. The program is expected to generate ~$12M of annual cost savings, effective immediately.
In third quarter , Bark's ( BARK ) net losses widened to $21.3M from $13.2M in the previous year. Revenue fell 5% Y/Y to $134.3M, largely due to commerce revenue shifting from the third quarter to the second quarter of fiscal 2023.
Free cash flow was ~$331K, marking the company's first quarter of positive free cash flow since going public in June 2021.
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Bark lowers outlook amid cautious macro backdrop