BARK, Inc. reported its financial results for the three and six months ended September 30, 2024, showing a mixed performance compared to the previous fiscal period. Total revenue for the three months was $126.1 million, a 2.5% increase from $123.0 million in the same period of 2023. However, for the six months, revenue decreased slightly to $242.3 million from $243.6 million year-over-year. The growth in the commerce segment, which saw a 25.6% increase in revenue to $23.5 million, was offset by a decline in direct-to-consumer revenue, which fell to $102.6 million, down 1.6% from the prior year.

Gross profit for the three months ended September 30, 2024, was $76.1 million, reflecting a modest increase from $75.6 million in 2023. The gross profit margin for the direct-to-consumer segment decreased slightly to 63.9%, while the commerce segment improved to 45.1%. Total operating expenses decreased by 5.7% to $81.8 million, contributing to a loss from operations of $(5.7) million, a significant improvement from $(11.1) million in the prior year. The net loss before income taxes for the quarter was $(5.3) million, down from $(10.3) million in 2023.

For the six-month period, BARK reported a net loss of $(15.3) million, an improvement from $(22.0) million in the same period last year. The company generated $4.6 million in net cash from operating activities, a turnaround from $(7.9) million in the previous year. Cash and cash equivalents at the end of the reporting period stood at approximately $115.2 million.

Strategically, BARK has focused on expanding its product offerings, particularly in the consumables category, which includes kibble, treats, and dental products. The company has also launched BARK Air, a new service for dog travel, and continues to engage with approximately 200,000 customers monthly. BARK has authorized a total stock repurchase program of $22.5 million, with $11.1 million remaining available for future repurchases as of September 30, 2024.

The company has faced challenges, including increased inbound freight costs and supply chain disruptions, which have been exacerbated by macroeconomic factors. Despite these challenges, BARK remains optimistic about its long-term growth potential, particularly in the consumables market, which is expected to drive future revenue growth.