On Monday, Bark Inc. shares experienced a significant downturn, plunging as much as 14% during intraday trading, marking company's sharpest decline since November 2023.
The tumble in stock value came as a reaction to the pet supplies company's reaffirmed outlook for its fiscal year, which fell short of Wall Street's expectations.
Bark released preliminary figures for its third-quarter revenue, which stood at approximately $126.4 million, marginally surpassing the $125 million projected by Bloomberg Consensus based on four estimates.
However, the company's preliminary adjusted Ebitda (earnings before interest, taxes, depreciation, and amortization) showed a loss of $1.6 million, which was slightly better than the anticipated loss of $1.63 million.
Despite these preliminary results, the focus for investors was on Bark's reaffirmed revenue forecast for fiscal 2025, which the company estimates to be between $490 million and $500 million.
This projection is in line with the consensus estimate of $496 million. Additionally, Bark's adjusted Ebitda outlook for fiscal 2025 is expected to be in the range of $1.0 million to $5.0 million, compared to the Wall Street estimate of $3.89 million.
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