What happened
Shares of Bark (BARK -3.11%) surged higher on Tuesday, adding as much as 31%. As of 3:16 p.m. ET, the stock was still up 29.4%.
The catalyst that sent the pet-focused omni-channel retailer soaring was better-than-expected preliminary results and news that one of the company's founders would be returning to the helm.
So what
In a regulatory filing on Tuesday, Bark announced that Co-Founder and Executive Chair Matt Meeker would resume the role of CEO, effective immediately. Incumbent CEO Manish Joneja resigned in order to "remain closer to his family" but will serve as an advisor to the company through April "to ensure a smooth transition."
Image source: Getty Images.
Meeker previously served as the company's CEO for nine years since its founding in 2011. "I am eager to resume the role of Chief Executive Officer and build on the momentum that Manish and the talented team at BARK have achieved," Meeker said. "I believe that the next few years will be transformative for Bark as we leverage our scale and brand to grow our footprint in areas like food and health initiatives that I am passionate about personally."
Bark also released preliminary results for its fiscal 2022 third quarter (ended Dec. 31, 2021). Revenue of $140 million jumped 33.1% year over year, beating the high end of management's forecast of $137 million to $139 million. The results also exceeded analysts' consensus estimates, which were calling for revenue of $137.3 million. The company plans to release its full results sometime in February.
Now what
Bark provides a monthly subscription service for dog owners via its Barkbox, which contains a curated selection of toys, treats, and other goodies.
Since the company went public last year, the stock has been on a perilous plunge, losing more than 70% of its value. Today's stock price move shows that investors are hoping that with Meeker at the helm, Bark will become an investor's best friend.
