BARK (BARK) Q4 2024 earnings summary

Executive summary

• Achieved significant turnaround over two years, shifting from heavy cash burn and poor unit economics to a solid path to profitability and improved margins through supply chain, product mix, and organizational changes.

• Fiscal 2024 revenue reached $490.2 million, with 89% from direct-to-consumer; gross margin improved to 61.6% year-over-year.

• Net loss narrowed by 39.8% to $(37.0) million for the year; adjusted EBITDA loss improved by $20.7 million to $(10.6) million.

• Introduced new leadership in revenue, marketing, DTC, and people operations to drive future growth and operational excellence.

• Launched BARK Air, a new travel experience for dogs, generating over $1 million in bookings and significant media attention.

Financial highlights

• Fiscal 2024 revenue totaled $490.2 million, down 8.4% year-over-year, outperforming a 10% industry decline.

• Gross margin improved by 600 basis points to 61.6% for the year; Q4 gross margin reached 62.7%, up 580 basis points year-over-year.

• Adjusted EBITDA improved by $47 million over two years, with Q4 adjusted EBITDA of $2.2 million and full-year adjusted EBITDA of -$10.6 million.

• Free cash flow improved by over $190 million to -$2.8 million for the year.

• Cash and equivalents at year-end were $125.5 million; inventory reduced by $40.2 million year-over-year.

Outlook and guidance

• Fiscal 2025 guidance: total revenue of $490–$500 million (flat to up 2% year-over-year), and adjusted EBITDA of $1–$5 million, marking the first expected full year of positive adjusted EBITDA.

• Q1 2025 revenue expected at $113–$116 million, down 3.8–6.3% year-over-year, with adjusted EBITDA loss of $2–$4 million.

• Commerce segment expected to grow 20% in fiscal 2025, with larger growth anticipated in fiscal 2026 and beyond.

• Free cash flow expected to be positive in fiscal 2025, closely tracking EBITDA.