Aterian, Inc. ( (ATER) ) has released its Q3 earnings. Here is a breakdown of the information Aterian, Inc. presented to its investors.
Aterian, Inc. is a technology-enabled consumer products company that focuses on building and acquiring leading e-commerce brands across various categories such as home appliances, health and wellness, and air quality devices, primarily selling through major online marketplaces like Amazon and Walmart.
In its latest earnings report, Aterian, Inc. showcased significant improvements in its financial performance for the third quarter of 2024, despite facing a decline in net revenue. The company highlighted a substantial reduction in net loss and achieved positive adjusted EBITDA for the second consecutive quarter.
The third quarter of 2024 saw Aterian’s net revenue decrease by 34% to $26.2 million, attributed to SKU rationalization efforts. However, the company’s gross margin improved notably to 60.3% from 49.4% a year ago. Aterian also reported a considerable improvement in its net loss, which decreased by 71.7% to $1.8 million. The adjusted EBITDA turned positive, reaching $0.5 million, marking an improvement of $4.9 million compared to the previous year.
Operating losses were significantly reduced by 73.4% to $1.7 million, demonstrating effective cost management and strategic decisions. The company ended the quarter with a total cash balance of $16.1 million, indicating a stable financial position moving forward.
Looking ahead, Aterian’s management projects the fourth quarter of 2024 to have net revenue between $22.5 million and $25.5 million with adjusted EBITDA expected to be approximately break-even, reflecting cautious optimism towards future growth and profitability.
