Bark, Inc. · NYSE:BARK
Bark — Northern Star Acquisition — SPAC Merger (May 2021)
45 slides from Bark's SPAC merger presentation, May 18, 2021
Slide 1: Management Presentation May 2021
Exhibit 99.2 Management Presentation May 2021Exhibit 99.2 Management Presentation May 2021
Slide 2: Disclaimer (1/2)
Disclaimer (1/2) 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 between Barkbox Inc. (“Barkbox”) and Northern Star Acquisition Corp.
Slide 3: Disclaimer (2/2)
Disclaimer (2/2) Important Information and Where to Find It This Presentation is being made in respect of the proposed merger transaction involving Northern Star and BARK. Northern Star has filed a registration statement on Form S-4 with the Securities and Exchange Commission (the SEC ), which inclu
Slide 4: 1. Business Overview
1. Business Overview 41. Business Overview 4
Slide 5: Contents
Contents What is the market opportunity? Dogs Dogs Dogs... What makes BARK different? Our Strengths How does BARK capture the opportunity? The Strategy 5Contents What is the market opportunity? Dogs Dogs Dogs... What makes BARK different? Our Strengths How does BARK capture the opportunity? The Stra
Slide 6: What is the market opportunity?
What is the market opportunity? 6What is the market opportunity? 6
Slide 7: The business of making dogs happy is a big opportunity
The business of making dogs happy is a big opportunity: 1. According to Euromonitor International, the size of the global pet care market surpassed $120 billion in 2019, with spending in the U.S. growing to more than $50 billion. 2. The pet industry is mostly dominated by a legacy market approach (C
Slide 8: The relationship with dogs is evolving in real time
The relationship with dogs is evolving in real time. 45% of households 20% prefer working “The human-animal reported increased alongside their pets over bond now, more happiness after spending their co-workers. more time with their pets than ever, plays an during quarantine. 73% are concerned about
Slide 9: The industry's view of a dog's life is trite
The industry’s view of a dogs life is trite 9The industry’s view of a dogs life is trite 9
Slide 10: Enormous opportunity for a vertically-integrated, dog-obsessed brand
This creates an enormous opportunity for a vertically-integrated, dog-obsessed brand to capture the dog space. Enter BARK. 10This creates an enormous opportunity for a vertically-integrated, dog-obsessed brand to capture the dog space. Enter BARK. 10
Slide 11: BARK builds deep lifelong relationships with dogs and their owners
BARK builds deep lifelong relationships with dogs and their owners. We strive to understand their needs and provide ease, fun, zoomies, and a bit of magic to every healthy day. With a data-driven approach, we are tuned into what is important. This allows us to deliver on our mission to make all dogs
Slide 12: What makes BARK different?
What makes BARK different? 12What makes BARK different? 12
Slide 13: BARK is building lifelong relationships
BARK is building lifelong relationships… Fun Food Home Health 13BARK is building lifelong relationships… Fun Food Home Health 13
Slide 14: By being there every step of the way
…by being there every step of the way 14…by being there every step of the way 14
Slide 15: Leverage relationships and data to drive personalization and cross-sell
We leverage relationships and data to drive personalization, cross-sell, and product development BARK’s Key Strengths: 1. Deep customer relationships 2. Personalization at scale 3. Strong platform drives cross-sell 4. All products are designed, developed and branded BARK 5. Omni-channel distribution
Slide 16: BARK Understands Dogs and Their People
1. BARK Understands Dogs and Their People Resulting in Deep Relationships Stacie Grissom Pimm Happy Team Lifestyle quizzes (via mobile | post) Advanced Basic Email Journey Additional toy preferences: Quiz: 14 Hilarious Would You Rather Dog Name Plush Number of Dogs Questions To Test Your Dog Obsessi
Slide 17: Customer Relationship Leads to Personalization at Scale
2. BARK’s Customer Relationship and Resulting Insights Lead to Personalization at Scale Allows for Leading to 1.8M 250K >200K annual Active Subscriptions monthly customer contacts monthly customized assortments Proprietary attributes collected: ● Dog Breed ● Dog Size ● Dog Age ● Location ● Activitie
Slide 18: Strong Platform Generates Higher Upsells and Cross Sells
3. BARK’s Strong Platform, Proprietary Customer Data, and Customer Loyalty Generate Higher Upsells and Cross Sells Add-to-Box Revenue ➔ Growth lever ($ in 000s) 17,520 ➔ High margin ➔ On-site and in-app enhancements ➔ Driven by machine learning 2,363 ➔ Fueled by innovative 1,608 1,230 and exclusive
Slide 19: Vertically Integrated; All Products Designed and Branded BARK
4. BARK is Vertically Integrated; All Products Are Designed, Developed, and Branded BARK Play Food Health Home 19 BARK branded products drive higher gross margins on our sales.4. BARK is Vertically Integrated; All Products Are Designed, Developed, and Branded BARK Play Food Health Home 19 BARK brand
Slide 20: Omni-channel Distribution Creates Selling Opportunities
5. BARK’s Omni-channel Distribution Creates Selling Opportunities and Drives Brand Awareness Bark’s digitally native brand Holistic omni-channel presence creates Collaboration with retail partners additional tailwinds creates new opportunities ✔ Deeply aligned with values that consumers care about✔
Slide 21: BARK's Market Share Opportunity is Enormous
BARK’s Market Share Opportunity is Enormous $120b+ $516m revenue in FY22E Global Market 1 Opportunity $50b+ U.S. Market 1 Opportunity 21 1 Euromonitor International. Displays annual spend for U.S. and Global pet care markets as of 2019.BARK’s Market Share Opportunity is Enormous $120b+ $516m revenue
Slide 22: How do we capture the opportunity?
How do we capture the opportunity? 22How do we capture the opportunity? 22
Slide 23: Strategic moves to capture The Dog Company opportunity
Strategic moves to capture The Dog Company opportunity 1 2 Expand food, home and Continue to grow toy and health product services treat subscriptions 3 4 Enhance cross-selling Reach new dogs opportunities and their people 23Strategic moves to capture The Dog Company opportunity 1 2 Expand food, home
Slide 24: 1. Expand New Product Services
1. Expand New Product Services ➔ Currently available via ➔ Currently available via ➔ Currently ready to ship to Amazon marketplaces and subscription, and at CVS, ~20 markets BarkShop.com PetCo, and PetSmart➔ Plans to ship nationwide ➔ Additional product ➔ Additional product by end of calendar 2021 o
Slide 25: 2. Continue to Grow Toy & Treat Subscriptions
2. Continue to Grow Toy & Treat Subscriptions Acquire new customers through unique and innovative dog-centric products Develop customer Use learnings about relationship via customer needs and Happy Team contacts wants to personalize and strong platform product offerings Retain existing customers as
Slide 26: 3. Enhance Multiple Cross-selling Opportunities
3. Enhance Multiple Cross-selling Opportunities ➔ Utilize data-centric model to $29.25 $28.98 drive margin accretive cross- $28.34 $28.18 selling opportunities $27.77 ➔ Enhancements of add-to-box $26.39 $26.63 $26.32 (ATB) feature both on site and in app ➔ BARK Eats trial in Ohio with existing custo
Slide 27: 4. Reach New Dogs and Their People
4. Reach New Dogs and Their People ➔ Serve dogs of all ages, from puppies to seniors. ➔ Reach new human demographics, in more rural and suburban areas. ➔ Be everywhere people and their dogs shop; continue the expansion of retail distribution, online marketplaces, and brand partnerships. 274. Reach N
Slide 28: Looking ahead
Looking ahead Through our pending merger with Northern Star, BARK expects to have the capital and resources necessary to accelerate our key strategic initiatives and further our position as the leading brand for dogs in the rapidly growing pet industry worldwide. 28Looking ahead Through our pending
Slide 29: Transaction Timeline
Transaction Timeline TUESDAY, FRIDAY, SHORTLY AFTER… MAY 11 MAY 28 Registration Statement Shareholder vote ... Our ticker will change declared effective by SEC from STIC to BARK on NYSE! The Registration Statement is Stockholders of record as of April Northern Star Acquisition Corp. available on BAR
Slide 30: 3030
3030
Slide 31: 2. Financial Highlights
2. Financial Highlights 312. Financial Highlights 31
Slide 32: Q4 and FY 2021
Q4 and FY 2021 Earnings Update (In thousands, unless otherwise stated) 1 1 Q4’2021 YoY Growth FY2021 YoY Growth Revenue $112,208 79.0% $378,604 68.8% Net Loss $(7,058) 71.1% $(31,391) 0.0% Net Loss Margin (6.3%) (8.3%) 2 Adj. EBITDA $182 121.7% $(7,854) 55.9% 3 Adj. EBITDA Margin 0.2% (2.1%) FY21 Re
Slide 33: Momentum Across Key Metrics
Momentum Across Key Metrics (In thousands, except CAC metrics and Average Order Value) 1 1 Q4’2021 YoY Growth FY2021 YoY Growth Subscription Shipments 3,463 70.3% 11,619 52.5% Average Monthly 5.40% - 5.90% - Subscription Churn Active Subscriptions 1,826 51.3% 1,826 51.3% New Subscriptions 264 72.5%
Slide 34: Accelerating growth and operating leverage
Accelerating growth and operating leverage (In millions) Net Revenue 1 Adjusted EBITDA $706 $706 $523 $516 $(8) $379 $379 $224 $(16) $224 $(17) $(18) $191 $191 $149 $149 $(26) $(31) FY2018A FY2019A FY2020A FY2021A FY2022E FY2023E FY FY2 20 01 18 8A A FY FY2 20 01 19 9A A FY FY2 20 02 20 0A A FY FY2
Slide 35: Looking forward to Q1'22 and FY22
Looking forward to Q1’22 and FY22 Q1’22 FY22 1 Note:. See Non-GAAP reconciliation included in the Appendix 35Looking forward to Q1’22 and FY22 Q1’22 FY22 1 Note:. See Non-GAAP reconciliation included in the Appendix 35
Slide 36: Pet Benchmarking
Pet Benchmarking CY2020A – CY2022E Revenue CAGR 39.2% 23.5% 33.9% 30.0% FV / CY2021E Revenue FV / CY2021E Gross Profit 16.6x Median: 10.5x Median: 33.2x 38.4x 28.0x 4.4x 12.2x 3.4x 3.2x 5.8x STIC CHWY FRPT TRUP STIC CHWY FRPT TRUP FV / CY2022E Revenue FV / CY2022E Gross Profit 12.6x Median: 8.1x Med
Slide 37: 3. Appendix
3. Appendix 373. Appendix 37
Slide 38: Key Performance Indicators
Key Performance Indicators Key Performance Indicator Definition Subscription Shipments BARK defines Subscription Shipments as the total number of subscription product shipments shipped in a given period. Subscription Shipments does not include gift subscriptions or one-time subscription shipments. A
Slide 39: Key Performance Indicators
Key Performance Indicators Key Performance Indicator Definition Direct to Consumer Direct to Consumer revenue consists of product sales through our monthly subscription boxes (Toys (“DTC”) Revenue and Treats Subscriptions, BARK Bright, and BARK Eats), as well as sales through our website, BarkShop.c
Slide 40: Strong Subscription Unit Economics
Strong Subscription Unit Economics 1 LTV:CAC Illustrative Example Inputs Definition Calculation Result (Q4 FY21) Average Life Time 1 / Average Monthly Subscription Shipment Churn 1 / 5.4% 18.5 months Average Value Average Order Value x DTC Gross Margin % $29.25 x 62.5% $18.28 LTV Average Life Time x
Slide 41: Modeling Methodology for BARK's Direct to Consumer Revenue
Modeling Methodology for BARK’s Direct to Consumer Revenue KPI Driven Modeling Methodology: Calculation Q3 FY21 Q4 FY21 Subscription Shipments last Quarter (in 000s) A 2 ,675 3 ,113 100% - Average Monthly Subscription Shipment Churn this Quarter B 93.5% 94.6% Subscription Shipments this Quarter from
Slide 42: Summary P&L
Summary P&L (In thousands) FY18A FY19A FY20A FY21A FY22E FY23E Net Revenue $148,805 $191,441 $224,335 $378,604 $515,757 $706,044 YOY growth 54.9% 28.7% 17.2% 68.8% 36.2% 36.9% COGS 65,127 84,326 88,921 152,664 214,332 292,906 Gross Profit 83,678 107,115 135,414 225,940 301,424 413,138 Gross Margin %
Slide 43: Revenue Breakdown
Revenue Breakdown (In thousands) Fiscal Year Ended: March 31, 2021 March 31, 2020 Direct to Consumer Revenue $333,970 $204,151 Cost of Revenue 128,044 79,171 Gross Profit 205,926 124,960 Commerce Revenue 44,634 20,184 Cost of Revenue 24,620 9,730 Gross Profit 20,014 10,454 Consolidated Revenue 378,6
Slide 44: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA (In thousands, except for Adjusted EBITDA margin) Fiscal Year Ended: March 31, 2021 March 31, 2020 Net loss $(31,391) $(31,367) Interest expense 10,923 5,421 Depreciation and amortization expense 2,405 1,397 Stock compensation expense 6,522 1,817 Change in fair valu
Slide 45: Thanks!
Thanks! 45Thanks! 45