Aterian Reports Fourth Quarter & Full Year 2024 Results

Core Viewpoint - Aterian, Inc. has reported its financial results for the fourth quarter and full year of 2024, highlighting a strategic focus on operational simplification and profitability improvement, with expectations for revenue growth in 2025 driven by new product introductions and enhanced sales channels [2][3]. Financial Performance - For Q4 2024, net revenue was $24.6 million, down from $32.8 million in Q4 2023, primarily due to SKU rationalization and lower inventory liquidation levels [6]. - Gross margin improved to 63.4% from 51.0% year-over-year, reflecting successful SKU rationalization [6]. - Contribution margin rose to 19.4% from (0.8%) in Q4 2023, indicating improved profitability [6]. - Operating loss narrowed to $1.6 million from $8.2 million in Q4 2023, with net loss improving to $1.3 million from $7.7 million [6]. - For the full year 2024, net revenue decreased to $99.0 million from $142.6 million in 2023, with gross margin improving to 62.1% from 49.3% [6][8]. Strategic Initiatives - The company has rationalized its SKUs and focused on six foundational brands, leading to significant improvements in gross and contribution margins [3]. - Aterian reduced its debt by over $4 million and improved its cash flow and working capital profile [3]. - The company plans to introduce new products starting in Q2 2025 and expand its consumer base through enhanced sales channel initiatives [3]. 2025 Outlook - Aterian expects net revenue for 2025 to be between $104 million and $106 million, representing a 5% to 7% increase from 2024 [8]. - Adjusted EBITDA for 2025 is anticipated to be essentially break-even, compared to a loss of $2.1 million in 2024 [9]. - The company is monitoring the impact of tariffs on its operations and has taken steps to mitigate potential negative effects [10]. Share Repurchase Program - The Board of Directors has authorized a share repurchase program of up to $3 million of the company's common stock, effective for two years until March 18, 2027 [11].