Aterian Reports Third Quarter 2024 Results

Core Insights - Aterian, Inc. reported a significant improvement in its financial performance for the third quarter of 2024, with a net loss reduction of 71.7% year-over-year and an adjusted EBITDA profit for the second consecutive quarter, marking a $4.9 million improvement year-over-year [1][2]. Financial Performance - Third quarter 2024 net revenue decreased by 34.0% to $26.2 million, down from $39.7 million in the same quarter of 2023, primarily due to a reduced product portfolio from SKU rationalization efforts [2]. - Gross margin for the third quarter of 2024 improved to 60.3%, compared to 49.4% in the third quarter of 2023, attributed to SKU rationalization and reduced liquidation of high-cost inventory [2]. - Contribution margin increased to 17.0% from 3.0% year-over-year, reflecting the positive impact of SKU rationalization [2]. - Operating loss for the third quarter of 2024 was ($1.7) million, an improvement from a loss of ($6.5) million in the same quarter of 2023, representing a 73.4% improvement [2]. - The net loss for the third quarter of 2024 was ($1.8) million, improved from a ($6.3) million loss in the third quarter of 2023 [2]. - Adjusted EBITDA for the third quarter of 2024 improved to $0.5 million from a loss of ($4.4) million in the third quarter of 2023, reflecting an improvement of 111.0% [2]. Cash Position - As of September 30, 2024, Aterian had a total cash balance of $16.1 million [2]. Fourth Quarter Outlook - Management projects fourth quarter 2024 net revenue to be between $22.5 million and $25.5 million, with adjusted EBITDA expected to be approximately break-even [3]. Company Overview - Aterian, Inc. is a technology-enabled consumer products company focused on building and acquiring leading e-commerce brands across various categories, including home and kitchen appliances, health and wellness, and air quality devices [6].