It’s Time to Let Original Bark Out of the Doghouse, Already

Did you ever get the impression that you bit off more than you can chew? That’s probably how some investors in The Original Bark Company (NYSE:BARK) are feeling right about now, as the price performance of BARK stock hasn’t been particularly impressive in 2021.

Just to provide some background, Original Bark is the parent company behind the BarkBox dog-centered subscription service.  It’s a business that’s been around since 2012, and now has a whopping 1.8 million active subscribers.

That’s a veritable army of dog lovers. Yet, BARK stock has been in the doghouse since its debut more than half a year ago.

Is this because the company can’t capitalize on its canine-focused product offerings? Actually, a deep dive into the fiscal data will reveal that the bears are, indeed, barking up the wrong tree.

A Closer Look at BARK Stock

Let’s rewind the clock to December of 2020. That’s when shell company Northern Star Acquisition revealed that it would bring Bark to the market through a reverse merger.

Prior to the switch-over to BARK stock, Northern Star Acquisition traded under the ticker symbol STIC.

As you might recall, special purpose acquisition companies (SPAC’s) were all the rage in late 2020 and early 2021. The general SPAC mania probably contributed to the initial fervor over this particular stock.

With a burst of enthusiasm, STIC/BARK stock shot up to a 52-week high of $19.54 on Dec. 24, 2020, just a few days after the stock’s public debut.

However, that turned out to be the crest of the wave. The share price slid quickly, though some loyal investors held on and the SPAC merger was finally completed in early June of 2021.

You might think that event would have given the BARK stock price a bump, but no such luck. By early September of 2021, the shares were trading below $9.

Unique Value Proposition

Okay, so the stock’s price action has been pretty dismal. Are there reasons to believe that the market is wrong about this company?

The answer is definitely yes. As it turns out, Original Bark’s first-quarter 2022 fiscal results paint a picture of a business in hyper-growth mode.

Believe it or not, the company’s quarterly subscription shipments increased 52.4% year-over-year, to 3.6 million.

This shows that people’s passion for pampering their pets hasn’t slowed down at all.

Yet, as Original Bark CEO Manish Joneja explains, his company’s products and services aren’t all designed to lavish dogs with fancy treats:

“We continue to believe our unique value proposition—from our world-class Happy and Creative teams to our machine learning capabilities—will have a halo effect on our newer, less discretionary categories such as health and food.”

What a concept: machine learning in the service of canine-product subscription services. Now, I think I’ve heard everything.

Thinking Outside the Box

Admittedly, it requires an open mind to invest in BARK stock. After all, this is an unusual company.

Perhaps a few more stats will convince you. During 2022’s first fiscal quarter, Original Bark generated $117.6 million in revenues, marking a 57.2% year-over-year increase .

Furthermore, the company reported Add-to-Box revenues of $7 million, a massive 173.5% increase compared to 2021’s first fiscal quarter.

Thus, it’s crystal clear that Original Bark is able to translate subscription shipment growth into revenue generation.

Who could have known that this outside-the-box business model could be so lucrative?

Well, I suppose that BARK stock’s early investors might have known it.

It’s a shame that many of them got in at an unfavorable price – but in light of Original Bark’s outstanding revenue stats, a comeback might be in store.

The Bottom Line

At the crossroads of e-commerce, subscription-based sales, dog-centered goods and machine learning, stands The Original Bark Company.

As the name implies, this company is truly original. Its investors should embrace out-of-the-box thinking – and be able to tolerate unfavorable share-price moves.

It’s not psychologically easy to buy BARK stock when the price keeps falling. Yet, I invite you to check the fiscal stats and decide for yourself whether this dog will, sooner or later, have its day.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.