Bark Inc. (NYSE: BARK), a pet-centric retail company, was one of the more impressive movers on the New York Stock Exchange (NYSE) yesterday after it soared more than 24%. This will come as welcome news for investors, with the firm having lost roughly two-thirds of its value since going public via SPAC last June.
Two main reasons underpinned Bark's sudden change in fortunes. The first was the announcement that co-founder and former CEO Matt Meeker will be returning to his role only 16 months after stepping down. He will replace Manish Joneja, who joined from Amazon following Meeker's initial departure in September 2020.
The returning executive was quick to praise his outgoing colleague by stating that he is "eager to resume the role of Chief Executive Officer and build on the momentum that Manish and the talented team at Bark have achieved."
The second reason behind Bark's notable rise is the release of preliminary results for its fiscal 2022 third quarter. The company reported revenue growth of 33.1% year-over-year (YoY), with the $140 million made surpassing high-end internal forecasts of $137 million. A full earnings report is unlikely to be available before February, but these preliminary figures were enough to inspire investors to back the company.
Bark has a lot of work to do before it can be considered a truly promising addition to investor portfolios. Its huge fall-off in value since its public debut should be of concern to any potential investors. Much will be expected of Matt Meeker as he looks to guide the company to new heights in 2022.
Preliminary revenue and growth figures appear to be pointing in the right direction, however, and the company's offerings are certainly novel. People will always be willing to spend money on their pets, and the subscription service offered by Bark ensures a host of new toys and treats for our furry friends each month.
If the company can continue to grow, and develop consistent profitability for its investors, it could be one to watch in 2022.
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