Strong retention rate with active subscriptions: Almost across all BARK’s product lines, monthly subscription model as its core and the first launched feature has always been its main revenue source. With an average 7% monthly increase in active subscription, BARK serves more than 1.7 million active subscriptions as of the end of 2020. Among existing subscribers, 95% record-high retention rate is the key to the company’s sustainability.
Data-driven platform: as the number of active subscriptions surges, BARK upgraded its data-driven platform to support the accurately and efficiently collection of client base information.
Innovative product offerings: Along huge success of its two main core services, Barkbox launched several additional service, expanding into adjacencies that include pet wellness and health foods. Product diversification and cross sell are foreseen to contribute to its add-on revenue.
Consumer acquisition cost : The significant decrease in CAC from $56.97 in 2019 to $46.45 in 2020 was largely due to a shift away from discounts in favor of social media spend.
Net revenue: strategic expansion of its product offerings, along with rapidly increasing of brand recognition, grew its revenue by 78% to an estimated $105 million as compared to the third fiscal quarter 2020.
Gross profit margin: gross profits has skyrocketed by 30% during COVID and is estimated to be tripled in 2023. BARK’s current gross margins are in the 60% range, providing significant operating leverage as the economies of scale.