Bark, Inc. · NYSE:BARK
Bark — SPAC Merger (May 2021)
42 slides from Bark's SPAC merger presentation, May 2021
Slide 1: Management Presentation
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 incl
Slide 4: Business Overview
1. 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 5
Slide 6: What is the market opportunity?
What 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 reported increased 20% prefer working alongside their pets over “The human-animal happiness after spending their co-workers. bond now, more more time with their pets during quarantine. 73% are concerned about than ever, plays an
Slide 9: The industry's view of a dog's life is trite
The 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. 10
Slide 11: Our mission to make all dogs happy
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? 12
Slide 13: BARK is building lifelong relationships
BARK 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
Slide 15: BARK's Key Strengths
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) Basic Advanced Email Journey Additional toy preferences: Quiz: 14 Hilarious "Would You Rather" Dog Name Number of Dogs Plush Questions To Test Your Dog Obses
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 annual Active Subscriptions 250K monthly customer contacts >200K 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) ➔ High margin 17,520 ➔ On-site and in-app enhancements ➔ Driven by machine learning ➔ Fueled by innovative 1,608 2,363 1,230 and exclusive
Slide 19: BARK is Vertically Integrated
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.
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 Opportunity1 $50b+ U.S. Market Opportunity1 21 1 Euromonitor International. Displays annual spend for U.S. and Global pet care markets as of 2019.
Slide 22: How do we capture the opportunity?
How 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 23
Slide 24: 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
Slide 25: Continue to Grow Toy & Treat Subscriptions
2. Continue to Grow Toy & Treat Subscriptions Acquire new customers through unique and innovative dog-centric products Use learnings about Develop customer customer needs and relationship via wants to personalize Happy Team contacts product offerings and strong platform Retain existing customers as
Slide 26: 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 $26.63 $26.39 (ATB) feature both on site and $26.32 in app ➔ BARK Eats trial in Ohio with existing custo
Slide 27: 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. 27
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. 28
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: hs ait Ny Bins
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Slide 31: Financial Highlights
2. Financial Highlights 31
Slide 32: Q4 and FY 2021 Earnings Update
Q4 and FY 2021 Earnings Update (In thousands, unless otherwise stated) Q4’20211 YoY Growth FY20211 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%) Adj. EBITDA2 $182 121.7% $(7,854) 55.9% Adj. EBITDA Margin3 0.2% (2.1%) FY21 Revenu
Slide 33: Momentum Across Key Metrics
Momentum Across Key Metrics (In thousands, except CAC metrics and Average Order Value) Q4’20211 YoY Growth FY20211 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% 1,
Slide 34: Accelerating growth and operating leverage
Accelerating growth and operating leverage (In millions) Net Revenue Adjusted EBITDA1 $706 $706 $523 $516 $379 $(8) $224 $(17) $(18) $(16) $191 $149 $(26) $(31) FY2018A FY2019A FY2020A FY2021A FY2022E FY2022E FY2023E FY2023E FY2018A FY2019A FY2020A FY2021A FY2022E FY2023E Adj. EBITDA Margin (11.6)%
Slide 35: Looking forward to Q1'22 and FY22
Looking forward to Q1’22 and FY22 Q1’22 FY22 Note:. 1See 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 3.4x 3.2x 4.4x 12.2x 5.8x STIC CHWY FRPT TRUP STIC CHWY FRPT TRUP FV / CY2022E Revenue FV / CY2022E Gross Profit 12.6x Median: 8.1x 27.
Slide 37: Appendix
3. 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 LTV:CAC1 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 e
Slide 42: Thanks!
Thanks!