Bark, Inc. · NYSE:BARK
Bark — Northern Star Acquisition — SPAC Merger (February 2021)
38 slides from Bark's SPAC merger presentation, Feb 16, 2021
Slide 1: Management Presentation February 2021
Exhibit 99.2 Management Presentation February 2021Exhibit 99.2 Management Presentation February 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: Transaction Overview
01 Transaction Overview 401 Transaction Overview 4
Slide 5: Introduction to BARK and Northern Star
Introduction to BARK and Northern Star BARK Northern Star Manish Joneja Jon Ledecky CEO President & COO, Northern Star Matt Meeker Joanna Coles Executive Chairman CEO & Chairwoman, & Co-Founder Northern Star Henrik Werdelin Co-Founder John Toth CFO 5Introduction to BARK and Northern Star BARK Northe
Slide 6: Transaction summary
Transaction summary Transaction Highlights • Barkbox Inc., a Delaware corporation (the “Company” or “BARK”) Transaction • Northern Star Acquisition Corp., a Delaware corporation (“NSAC”) Parties • Northern Star Sponsor LLC (“Sponsor”, and, together with the Company and NSAC, the “Parties”) Transacti
Slide 7: Sources, uses and ownership
Sources, uses and ownership Sources ($M) Uses ($M) Pro Forma Valuation ($M) SPAC Cash in Trust $254.4 BARK Rollover Equity $1,500.0 Pro Forma Shares Outstanding (M) 202 PIPE Capital 200.0 Cash To Balance Sheet 419.4 Price / Share ($) $10.00 BARK Rollover Equity 1,500.0 Transaction Fees & Expenses 35
Slide 8: BARK's investment highlights
BARK’s investment highlights ü Big, resilient and growing pet category ü Digitally-led DTC brand ü Personalized, data driven subscription experience with strong retention ü Clear levers for accelerating growth – category and product diversification, channel expansion, and cross-sell ü Strong increme
Slide 9: Who We Are and Who We Serve
02 Who We Are and Who We Serve02 Who We Are and Who We Serve
Slide 10: We are here to make all dogs happy
We are here to make all dogs happy. We aspire to be the world’s favorite dog brand. We believe that dogs and humans are better together. We are committed to satisfying each individual dog’s distinct personality and preferences. 10We are here to make all dogs happy. We aspire to be the world’s favori
Slide 11: Currently serving over 1M happy dog subscribers every month
Currently serving over 1M happy dog subscribers every month 11Currently serving over 1M happy dog subscribers every month 11
Slide 12: 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 1.7M 7M Active Subscriptions Customers 11M 8.5M Contacts Social Media Followers 1 Active Subscriptions is the total number of unique product subscriptions with at least one shipment during the last 12 months. Active Subscriptions does n
Slide 13: Reiterate 2021 Outlook: Strong Financial Performance
Reiterate 2021 Outlook: Strong Financial Performance 65% 60% $369M Gross Margins Net revenue in FY2021E Net Revenue Growth FY21E/20 13Reiterate 2021 Outlook: Strong Financial Performance 65% 60% $369M Gross Margins Net revenue in FY2021E Net Revenue Growth FY21E/20 13
Slide 14: Dogs are a huge, growing and global market
Dogs are a huge, growing and global market According to 2019-20 APPA Survey, dogs are the most popular pet in the U.S., with more than 63 million households having a dog as a member of their family. Resilient Wide Open Huge Growing Our industry & total The market is growing rapidly, with The industr
Slide 15: BARK's products
BARK’s products Description Launched • Subscription: we love the subscription model and use it • Subscription product featuring monthly themed across most of our product lines. boxes of premium-quality BARK toys and treats 2012 that are delivered directly to a dog’s home. • BARK Made: 100% of what w
Slide 16: Data centric model fueling product innovation
Data centric model fueling product innovation Leading to Allows for Allows for Leading to 1.1M 250K 150K Monthly subscriptions monthly customer monthly customized shipped contacts assortments Super Chewer, Medium, No Rope, Bulldog Proprietary attributes collected: • Breed • Toy material BarkBox, Lar
Slide 17: Cross-promoting new products through Add-to-Box
We are great at cross-promoting new products to active subscriptions through Add-to-Box Add-to-Box revenue ($ in ‘000s) ü Growth lever ü High margin ü Driven by machine learning ü Fueled by innovative product offerings E In becoming THE Dog Brand, ATB is an important initiative to get every BARK cus
Slide 18: Our Growth Strategies
03 Our Growth Strategies 1803 Our Growth Strategies 18
Slide 19: Expanding TAM via product & channel expansion
Expanding TAM via product & channel expansion Expand into new products Grow subscriptions and Accelerate growth in Amazon Expand retail distribution categories customers with increase in distribution through proprietary channel and leverage for new cross-sell formula products 19Expanding TAM via pro
Slide 20: BARK Eats drives future growth
BARK Eats drives future growth Market overview Opportunity The dog food market is expanding as the modern dog BARK Eats mixes what’s best for dogs’ parent seeks more from their food health with high service and a fun experience U.S. Dog Food Market Size Flavor optimized $24.7B High quality the dog’s
Slide 21: 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 Ultra Premium Modern Premium Scientific Mass Premium Basic Majority $ Spend BARK’s Target Categories 1 74% of dog parents give dry food to their pets. 21 1 APPA, 2019-20 Survey.BARK Eats deli
Slide 22: Grow subscriber base
Grow subscriber base ü Word of Mouth and non-paid referrals ü BARK’s data-driven approach towards marketing and social media ü Innovative content marketing ü Increased customer retention with diversified products serving dogs of all ages Word of Mouth – High NPS Score 1 Active Subscriptions is the t
Slide 23: Strong brand resonance enables effective and efficient cross-sell
Strong brand resonance enables effective and efficient cross-sell • 70+ NPS • 8.5M enthusiastic social followers • 23,000 retail outlets carrying BARK 1 products Potential TAM per customer increasing ~4x Source: Google Analytics, internal Company sources 23 1 Includes 7,500 Dunkin Donuts stores in F
Slide 24: BARK's distribution channels provide leverage to introduce new products
BARK’s distribution channels provide leverage to seamlessly introduce new products Holistic omni-channel presence Collaboration with retail partners creates additional tailwinds creates new opportunities ü Platform to drive brand awareness and product discovery. ü focused on strong retail and market
Slide 25: Financial Highlights
04 Financial Highlights 2504 Financial Highlights 25
Slide 26: Financial Highlights
Financial Highlights (1) Figures presented are estimates for the third fiscal quarter of 2021. (2) Refer to “Use of Non-GAAP Financial Measures” below for the definition of Adjusted EBITDA and Adjusted EBITDA margin and the reconciliation to the most comparable GAAP measure included herein. • Revenu
Slide 27: Accelerating growth and operating leverage
Accelerating growth and operating leverage ($USD in Millions) Net revenue Gross Profit $1,035 $1,035 $706 $413 $646 $3 $60 416 $516 $221 $ 367 $ 367 $369 $137 $224 $224 $191 $1 $10 918 $148 $1 $8 483 FY2018A FY2019A FY2020A FY2021E FY2022E FY2023E FY2018A FY2019A FY2020A FY2021E FY2022E FY2023E 1 Co
Slide 28: Strong Subscription Unit Economics
Strong Subscription Unit Economics 1 LTV:CAC Illustrative Example Metric Definition Calculation Result 2 Average Life Time Implied by 1/monthly Churn 1/6.2% 16.1 months ✖ Avg. Revenue per Subscription x Monthly Value $29.00 x 60% $17.40 Gross Margin = LTV Life Time x Value 16.1 x $17.40 $280.14 ➗ DT
Slide 29: Direct Trade-off between profit and growth
Direct Trade-off between profit and growth. Illustrative example continued Variance Forecast Actual $'s or #'s % CAC $60.40 $60.40 $0.00 0% New Subs 200,000 220,000 20,000 10% Media Spend $12,080,000 $13,288,000 $1,208,000 10% Est. Future Revenue, incremental $9,354,839 7.7x Est. Future Gross Profit
Slide 30: Strong Path to Profitability
Strong Path to Profitability • Media Spend drives growth and Adjusted EBITDA (in millions, except for Adjusted EBITDA margin) leads profitability Nine Months Ended (4) December 31 , • Reducing the number of new 2020 2019 subscribers acquired or the cost of Net loss $ (23.54) $ (27.24) Interest expen
Slide 31: Summary P&L
Summary P&L Sin 0005 FYI8A FYI9A FY20A FY2E FY22E FY23E] rt 224,335 ‘369,232 515757 706,044 YoYGowth 549% 287% 172% 640% 397% 369% coss osa27 24326 28 wana 24sa2 292906 Grove Profit 367 107.15, 35,414 corey 24 43,338 Gross Margin % 562% st i ‘Gta 70094 10446 115902 165003 236043 oasis Morkating 3376
Slide 32: Long term financial drivers
Long term financial drivers Metrics Drivers • Expand into new products categories • Grow subscriptions and customers Revenue Growth • Cross-sell new products • Grow retail and e-commerce business • Segment and product mix will drive gross margin over time • Management of revenue per subscription and
Slide 33: BARK's investment highlights
BARK’s investment highlights ü Big, relatable and growing pet category ü Digitally-led DTC brand ü Personalized, data driven subscription experience with strong retention ü Clear levers for accelerating growth – new products, cross sales, more channels ü Strong incremental margins, powerful operatin
Slide 34: Pet benchmarking
Pet benchmarking CY2020E – CY2022E Revenue CAGR 41.2% 22.6% 30.3% 23.5% FV / CY2022E Revenue FV / CY2022E Gross Profit 30.9x 13.4x 28.9x Mean: 26.0x Mean: 7.8x 18.1x 5.2x 4.8x 4.1x 7.0x Source: FactSet, Company Filings, and Management Forecasts. Market data as of February 12, 2021 34Pet benchmarking
Slide 35: Appendix
05 Appendix 3505 Appendix 35
Slide 36: Our management team and board
Our management team and board Expected Board of Directors Matt Meeker • Co-founded Meetup in 2002 • Currently a Venture Partner at Resolute VC Executive Chairman • Board member or advisor to multiple early stage companies • Previously an Entrepreneur in Residence at DogPatch Labs Matt Meeker & Co-Fo
Slide 37: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Cons olida te d $ in 000's FY18 FY19 FY2 0 Net Income ($ 21,126) ($ 37,082) ($ 31,367) Interest 936 2,595 5,421 Income Tax 1 (0) - Depreciation & Amortization 321 505 1, 3 97 Stock Com pensation 2,455 5,095 1, 8 17 Econom ic Sales Tax Nexus 12 9 2,962 5,
Slide 38: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA (in millions, except for Adjusted EBITDA margin) (1) Figures presented are unaudited. Figures for nine months ended December 31, 2020 are projected estimates. (2) Adjusted EBITDA Margin: Adjusted EBITDA Margin is calculated as Adjusted EBITDA for the period divided
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