Slide 1: Management Presentation December 2020
Management Presentation December 2020 Exhibit 99.2
Slide 2: Disclaimer (1/2)
Disclaimer (1/2) 183 183 183 173 214 225 25517164 84 149 61 185 227 162 212 82 36 This presentation (this “Presentation”) is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination bet
Slide 3: Disclaimer (2/2)
Disclaimer (2/2) 183 183 183 173 214 225 25517164 84 149 61 185 227 162 212 82 36 Trademarks Northern Star and Barkbox own or have rights to various trademarks, service marks and trade names that they use in connection with the operation of their respective businesses. This presentation may also con
Slide 4: Transaction Overview
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Slide 5: Transaction summary
Transaction summary Transaction Highlights Transaction Parties Barkbox Inc., a Delaware corporation (the “Company” or “BARK”) Northern Star Acquisition Corp., a Delaware corporation (“NSAC”) Northern Star Sponsor LLC (“Sponsor”, and, together with the Company and NSAC, the “Parties”) Transaction Sum
Slide 6: Pro Forma Fully Diluted Ownership; Sources and uses
Pro Forma Fully Diluted Ownership BARK Equity 150.0 74.3% PIPE Investors 20.0 9.9% SPAC Public Shares 25.4 12.6% SPAC Founder Shares 6.4 3.2% Total Fully Diluted Shares Outstanding 201.8 100.0% Pro Forma Valuation ($M) Pro Forma Shares Outstanding (M) 202 Price / Share ($) $10.00 Equity Value $2,018
Slide 7: Introduction to BARK and Northern Star
Henrik Werdelin Co-Founder Introduction to BARK and Northern Star 183 183 183 173 214 225 25517164 84 149 61 185 227 162 212 82 36 Matt Meeker Executive Chairman & Co-Founder John Toth CFO Manish Joneja CEO Jon Ledecky President & COO, Northern Star Joanna Coles CEO & Chairwoman, Northern Star
Slide 8: Who We Are and Who We Serve
Who We Are and Who We Serve 2.
Slide 9: At BARK, we want to make dogs as happy as they make us
At BARK, we want to make dogs as happy as they make us. Because dogs and humans are better together. That's why we're committed to creating the world's best products and experiences to satisfy each individual dog's distinct personality and preferences. We are here to make all dogs happy.
Slide 10: BARK's investment highlights
Big, relatable and growing pet category Digitally-led DTC brand Personalized, data driven subscription experience with strong retention Clear levers for accelerating growth – new products, cross sales, more channels Strong incremental margins, powerful operating leverage Visionary and passionate tea
Slide 11: Currently serving over 1M happy dog subscribers every month
Currently serving over 1M happy dog subscribers every month
Slide 12: Outstanding financial performance
60% Gross Margins $369M Net revenue in FY2021E 65% Net Revenue Growth FY21E/20 Outstanding financial performance
Slide 13: Dogs are a huge, growing and global market
BARK 2018 Dogs are a huge, growing and global market Huge Our industry & total addressable market are huge. Growing The market is growing rapidly, with a variety of thematic tailwinds. Resilient The industry is economically resilient through the cycle. Wide Open There is not a clear and dominant lea
Slide 14: BARK is in the leading position to be The Global Brand for Dogs
BARK is in the leading position to be The Global Brand for Dogs 1.1M Active Subscriptions 6.5M BARK Customers 11M Total Contacts 8.5M Social Media Followers BARK Active Subscriptions (000s)1 1The number of Active Subscriptions is the total number of BarkBox and Super Chewer subscriptions shipped in
Slide 15: BARK's products
Description Launched Core Personalized monthly themed plush toys and treats 2012 Personalized monthly themed super durable toys 2017 New All essentials (beds, leashes/collars, etc.) 2019 Innovative, proprietary dog dental solution Future health and wellness platform 2020 Personalized healthy food bl
Slide 16: Data centric model fueling product innovation
Data centric model fueling product innovation 1.05M Active monthly subscriptions Leading to 150K monthly customized assortments Allows for 250K monthly customer contacts Proprietary attributes collected: Breed Size Age Location Activities Super Chewer, Medium, No Rope, Bulldog BarkBox, Large, No all
Slide 17: Strong brand resonance enables effective and efficient cross-sell
BARK 2018 Source: Google Analytics, internal Company sources 1Includes 7,500 Dunkin Donuts stores in FQ2’21 related to BARK/Dunkin toy promotion Strong brand resonance enables effective and efficient cross-sell Potential TAM per customer increasing ~4x 70+ NPS 8.5M enthusiastic social followers ~170
Slide 18: Cross-promoting new products through Add-to-Box
We are great at cross-promoting new products to active subscriptions through Add-to-Box Growth lever High margin Driven by machine learning Fueled by innovative product offerings Add-to-Box revenue ($ in ‘000s) In becoming THE Dog Brand, ATB is an important initiative to get every BARK customer to b
Slide 19: Our Growth Opportunities
) Our Growth Opportunities ~ we * L,
Slide 20: Expanding TAM via product & channel expansion
Expanding TAM via product & channel expansion BARK has the opportunity to accelerate growth, rapidly expand TAM through new product lines, and do so in proven and fiscally responsible ways Grow initial toys & treats subscription business Expansion of new product categories with ability to cross-sell
Slide 21: The dog food market is expanding
The dog food market is expanding as the modern dog parent seeks more from their food U.S. Dog Food Market Size 5.0% CAGR $19.4B $20.2B 2015 2016 2017 2018 2019 2020 Source: EuroMonitor BARK Eats drives future growth Market overview BARK Eats mixes what’s best for dogs’ health with high service and a
Slide 22: BARK Eats delivers innovation where the most dollars are spent
BARK Eats delivers innovation where the most dollars are spent and innovation is lagging Premium Human Grade Mass Premium Ultra Premium Basic Modern Premium Scientific 74% of dog parents give dry food to their pets, and 57% of dog parents use some type of specialty formulated dog food to address spe
Slide 23: Distribution channels provide leverage to introduce new products
BARK’s distribution channels provide leverage to seamlessly introduce new products BARK’s digitally native brand Deeply aligned with values that consumers care about. Wealth of customer data allows for large-scale personalization. Holistic omni-channel presence creates additional tailwinds Platform
Slide 24: Sales on Amazon are up
Sales on Amazon are up as we fine tune the “boost formula” 1 Company estimate of the retail value of listed dog products for sale on Amazon marketplace Proven Formula Demonstrated Success with Initial Product Launches 2.5X BARK Amazon Sales Growth YoY $4.3B Estimated Amazon Marketplace Spend on Dogs
Slide 25: Financial Highlights
Financial Highlights 4.
Slide 26: Industry-leading momentum
DRAFT Industry-leading momentum ~2x new subscription growth YoY in FY21 to date Record high 94.4% monthly product retention1 in the most recent period Strong gross margin in first half of FY21 of 61.2% Positive Adjusted EBITDA fiscal year to date +179% YoY increase in revenue from new product lines
Slide 27: BarkBox and Super Chewer are attracting high quality subscriptions
BarkBox and Super Chewer are attracting high quality subscriptions... Gross Profit per Subscription Through 8 Months Customer Acquisition Costs Through 8 Months Note: Values are for the periods from April to November of each year.
Slide 28: Long term financial drivers
Long term financial drivers 183 183 183 173 214 225 25517164 84 149 61 185 227 162 212 82 36 Metrics Drivers Revenue Growth New subscriptions and customers New products Omnichannel expansion Gross Margin Mix of revenues Revenue per subscription and average order value Cost efficiency from scale Core
Slide 29: Accelerating growth and operating leverage
Accelerating growth and operating leverage ($USD in Millions) Net revenue ‘18A – ’20A CAGR: 23% ‘20A – ’23E CAGR: 47% Gross Profit Core2 Adjusted EBITDA1 Adjusted EBITDA1 Solid growth driven by strong brand, expansion of new products lines, efficient cross-selling and distribution channels Note: Tim
Slide 30: Summary P&L
Summary P&L 183 183 183 173 214 225 255 171 64 84 149 61 185 227 162 212 82 36
Slide 31: Pet benchmarking
CY2020E – CY2022E Revenue CAGR Pet benchmarking Source: FactSet, Company Filings, and Management Forecasts. Market data as of December 15, 2020 41.2% 22.5% 26.8% 24.5% FV / CY2021E Revenue FV / CY2022E Revenue FV / CY2021E Gross Profit FV / CY2022E Gross Profit Mean: 10.0x Mean: 34.4x Mean: 27.3x Me
Slide 32: BARK's investment highlights
Big, relatable and growing pet category Digitally-led DTC brand Personalized, data driven subscription experience with strong retention Clear levers for accelerating growth – new products, cross sales, more channels Strong incremental margins, powerful operating leverage Visionary and passionate tea
Slide 33: Appendix
Appendix 5.
Slide 34: Our management team and board
Betsy McLaughlin Independent Board Member Manish Joneja CEO Jon Ledecky President & COO, Northern Star Our management team and board Henrik Werdelin Co-Founder Founding partner of Prehype Previous involvement in many startups and corporate incubations Previously an Entrepreneur in Residence at Index
Slide 35: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures 183 183 183 173 214 225 255 171 64 84 149 61 185 227 162 212 82 36