In This Article:
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Net Revenue: $28 million, a decline of 20.6% from $35.3 million in the year-ago quarter.
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Gross Margin: Improved to 60.4% from 42.2% in the year-ago quarter.
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Contribution Margin: Increased to 17.4% from negative 3.6% in the prior year.
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Net Loss: Improved to $3.6 million from a loss of $34.8 million in the year-ago quarter.
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Adjusted EBITDA: Gain of $0.2 million, an improvement from a loss of $8 million in Q2 2023.
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Cash Position: $20.3 million as of June 30, 2024, up from $17.5 million at March 31, 2024.
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Inventory Level: $18.4 million, down from $36.7 million in the year-ago quarter-end.
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Credit Facility Balance: $9.6 million, down from $11.1 million in the prior year period.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Aterian Inc (NASDAQ:ATER) achieved adjusted EBITDA profitability for the first time in 10 quarters, marking a significant financial milestone.
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The company reported a gross margin improvement to 60.4% from 42.2% year-over-year, driven by SKU rationalization and product mix.
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Aterian Inc (NASDAQ:ATER) exceeded its Q2 2024 revenue and profitability guidance, showcasing effective cost-cutting measures and operational efficiency.
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The company has a strong cash position with $20.3 million as of June 30, 2024, up from $17.5 million at the end of the previous quarter.
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Aterian Inc (NASDAQ:ATER) is focusing on organic growth and omnichannel expansion, including launching on new platforms like Mercado Libre and Target Plus.
Negative Points
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Net revenue for Q2 2024 declined by 20.6% year-over-year, primarily due to SKU rationalization efforts.
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The company faces challenges with high container costs and volatile consumer spending due to the inflationary environment.
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Aterian Inc (NASDAQ:ATER) experienced stockouts of some dehumidifier SKUs, impacting sales performance.
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The Seller Fulfilled Prime program changes have been burdensome, affecting logistics and delivery timelines.
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Despite improvements, the company still anticipates an adjusted EBITDA loss for Q3 2024, indicating ongoing financial challenges.
Q & A Highlights
Q: Can you quantify how many new SKUs were introduced during the first half of the year? And what are your plans for the next 6 to 12 months? A: Josh Feldman, CFO: We didn't introduce any new product categories in the first half of the year, only variations of existing categories, totaling about 20, primarily in our Healing Solutions and Squatty Potty brands.