SUMMIT, N.J., May 05, 2025 (GLOBE NEWSWIRE) -- Aterian, Inc. (Nasdaq: ATER) (“Aterian” or the “Company”), a technology-enabled consumer products company, today announced that it will issue its financial results for the first quarter ended March 31, 2025 on Wednesday, May 14, 2025 after the close of the stock market. The Company will host a corresponding conference call at 5:00 p.m. ET that day to discuss the results. Investors interested in participating in the live call can dial: (800) 715-9871 (Domestic)( ...

Core Insights - Interpublic Group has appointed Yaniv Sarig as Global Head of AI Commerce, emphasizing its commitment to enhancing systematic commerce solutions for global brands [1][4] - Sarig's role will focus on leveraging growing consumer interest in generative AI for shopping, with 71% of consumers desiring Gen AI integration in their shopping experiences [2] - The company aims to develop agentic commerce solutions and integrate market-wide data signals from Intelligence Node, acquired in 2024, to strengthen its commerce offerings [2][3] Company Strategy - Sarig will collaborate with agency and technology leaders within Interpublic to create solutions that help clients gain profitable market share in a fragmented omnichannel environment [2] - The strategic hire of Sarig reflects Interpublic's dedication to utilizing AI advancements for commerce innovation, equipping brands with necessary systems and insights [4] - The company plans to combine its agency expertise with advanced AI capabilities to empower brands in managing commerce effectively at scale [4] Leadership Background - Yaniv Sarig co-founded Aterian, a technology-driven consumer goods company, where he led the development of several multimillion-dollar brands [3] - His experience in AI-powered commerce operations is expected to be crucial for Interpublic as it expands its commerce solutions [3] - Sarig's background in leveraging data, automation, and machine learning positions him as a key asset in navigating the complexities of the digital commerce landscape [4] Company Overview - Interpublic is a values-based, data-driven marketing solutions provider with total revenue of $10.7 billion in 2024 [5] - The company encompasses a range of well-known global brands and is part of the S&P 500 [5]

Revenue Generation - In 2023, approximately 88% of the company's revenue was generated through the Amazon sales platform, increasing to 92% in 2024[23] - Sales outside of the U.S. represented approximately 4% of net revenue in 2023 and increased to 6% in 2024[204] Financial Obligations - The outstanding indebtedness under the Credit Facility as of December 31, 2024, was $6.9 million, with an interest rate of Term SOFR plus 5.60%[203] Growth Strategy - The company intends to pursue growth through strategic acquisitions of brands that integrate well with its business model[20] Technology and Operations - The company shifted its technology platform to an integrated third-party model in February 2024, moving away from a fully internally developed model[22] - The company operates primarily through online retail channels, with a focus on e-commerce platforms like Amazon, Walmart, and its own websites[15] - The company does not maintain long-term purchase contracts with suppliers, operating mainly on a purchase order basis, with 39 suppliers in total[26] Workforce - The company has 97 full-time employees and 28 independent contractors as of December 31, 2024[36] Economic Impact - The company does not believe that inflation had a material effect on its business for the years ended December 31, 2023, and 2024[205] Intellectual Property - The company relies on a combination of trade secrets, trademarks, and licensing arrangements to protect its intellectual property, rather than pursuing patents[21]

Financial Data and Key Metrics Changes - Aterian reported net revenue for Q4 2024 at $24.6 million, a decline of 25% from $32.8 million in Q4 2023, primarily due to SKU rationalization and lower liquidation levels of high-cost inventory [42] - Adjusted EBITDA for Q4 2024 was essentially break-even, improving by 98.5% from an adjusted EBITDA loss of $5.6 million in Q4 2023 [47] - The net loss for Q4 2024 was $1.3 million, an improvement of approximately 83.1% from a loss of $7.7 million in the year-ago quarter [46] Business Line Data and Key Metrics Changes - The company streamlined its product portfolio to focus on six foundational brands, which has improved efficiency and ROI [18] - Gross margin for Q4 2024 increased to 63.4% from 51% in the year-ago quarter, driven by SKU rationalization and product mix [43] - Contribution margin for Q4 2024 was 19.4%, a significant improvement from negative 0.8% in the previous year [44] Market Data and Key Metrics Changes - Aterian's revenue is primarily derived from e-commerce marketplaces, with a focus on Amazon, Walmart, and Target Plus [12] - The company plans to expand into new channels and geographies, including further growth in Mercado Libre and brick-and-mortar retail [25][26] Company Strategy and Development Direction - The company aims for net revenue growth of 5% to 7% in 2025, with a focus on channel and geographic expansion, as well as new product launches [22][24] - Aterian is targeting a break-even adjusted EBITDA for 2025, representing a significant improvement from the adjusted EBIT loss of $2.1 million in 2024 [23][52] - The company has initiated a two-year share repurchase program of up to $3 million, reflecting confidence in its long-term prospects [35][56] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to navigate challenges, including tariffs, and emphasized the importance of a diversified supply chain [32][34] - The company expects to see improved leverage and associated profits as growth rates outpace fixed cost investments [30] - Management noted that consumer behavior has remained stable, with no significant softness observed despite broader economic concerns [92] Other Important Information - Aterian's inventory level was reduced to $13.7 million at the end of Q4 2024, down from $20.4 million in the year-ago quarter [48] - The company is working to reduce its reliance on China for sourcing, aiming to decrease the percentage of net revenues from China by 50% by the end of 2026 [32][33] Q&A Session Summary Question: Performance of SKUs added to Target Plus during Black Friday - Management indicated that they are focusing on marquee SKUs for Target Plus and are pleased with the performance of the steam mop [61][65] Question: Guidance for first quarter performance - Management explained that new product launches and channel expansions are expected to drive stronger performance in the second half of the year [71][73] Question: Impact of tariffs on pricing and transaction volume - Management clarified that while tariffs are expected to lead to price increases, they believe they can mitigate some of the costs and still achieve growth targets [76][80] Question: Long-term growth targets and consumer behavior - Management discussed that the three-year growth targets are driven by new product launches and channel expansions, and noted that consumer behavior has not shown significant changes [85][90]

Financial Performance - Aterian, Inc. provided an update on its expected net revenues and cash position for Q4 2024, with preliminary results discussed in a letter to shareholders[4] - The company highlighted its achievements in 2024, indicating a focus on growth and operational improvements[4] - Aterian, Inc. shared expectations for 2025, suggesting a strategic outlook for future performance[4]

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].

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 liquidation levels of high-cost inventory [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][7]. Strategic Initiatives - The company has rationalized its SKUs and focused on six foundational brands, which has led 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 aims to access a broader 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]. - On a pro forma basis, accounting for discontinued SKUs, the expected revenue growth is projected to be between 9% and 12% [8]. - The company anticipates Adjusted EBITDA to be essentially break-even in 2025, compared to a loss of $2.1 million in 2024 [9]. 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].

Core Viewpoint - Aterian, Inc. has announced a share repurchase program of up to $3.0 million, reflecting confidence in the company's future and commitment to shareholders [1][2] Group 1: Share Repurchase Program - The share repurchase program will last for two years, ending on March 18, 2027 [1] - The program is authorized for up to $3.0 million of common stock [1] - The company plans to purchase shares through various means, including open market transactions and block purchases, in accordance with federal securities laws [2] Group 2: Management's Perspective - The CEO emphasized that the decision reflects confidence in Aterian's future and the belief that the stock is undervalued [2] - Aterian has made substantial progress in positioning itself for sustainable growth starting in 2025 [2] - The company aims to balance capital allocation strategies with returning capital to shareholders through the repurchase plan [2] Group 3: Company Overview - Aterian, Inc. is a technology-enabled consumer products company focused on building and acquiring e-commerce brands [3] - The company operates in multiple categories, including home and kitchen appliances, health and wellness, and air quality devices [3] - Aterian sells products across major online marketplaces, including Amazon, Walmart, and Target, as well as through its own direct-to-consumer websites [3]

Core Viewpoint - Aterian, Inc. will release its financial results for Q4 and the full year of 2024 on March 18, 2025, followed by a conference call to discuss the results [1]. Company Overview - Aterian, Inc. is a technology-enabled consumer products company that focuses on building and acquiring leading e-commerce brands across various categories, including home and kitchen appliances, health and wellness, and air quality devices [2]. - The company sells products primarily through major online marketplaces such as Amazon, Walmart, and Target in the U.S., as well as its own direct-to-consumer websites [2]. - Key brands under Aterian include Squatty Potty, hOmeLabs, Mueller Living, PurSteam, Healing Solutions, and Photo Paper Direct [2].

Core Viewpoint - Aterian, Inc. is undergoing a significant transformation aimed at stabilizing operations and positioning for sustainable growth in 2025, following a comprehensive reassessment of its business model and strategic initiatives [2][3][11]. Business Model and Strategy - Over the past 18 months, Aterian has evaluated its brand portfolio, marketing strategies, inventory management, and supply chain to implement a turnaround strategy [2]. - The company streamlined its product portfolio to six foundational brands, enhancing efficiency and cost savings by transitioning to a third-party tech platform [4]. - Aterian is committed to an omnichannel sales approach, expanding its presence on platforms like Target+, Amazon, and Walmart, while modernizing its brand websites [6]. Financial Performance - In the third quarter of 2024, Aterian reported a significant improvement in financial metrics, narrowing its net loss by $56.3 million, or 84%, compared to the same period in 2023 [7]. - Cash flow from operations improved to $2.2 million, a $10.6 million increase from the previous year, with cash on hand at $16.1 million as of September 30, 2024 [8]. - For the fourth quarter of 2024, Aterian expects net revenue between $24.2 million and $25.0 million, indicating a positive trend towards breakeven adjusted EBITDA [9]. Future Outlook - Aterian anticipates evolving into a growth company in 2025, driven by omnichannel expansion, organic product launches, and prudent capital allocation strategies [11]. - The company is taking a conservative approach to its 2025 expectations, considering potential impacts from increased tariffs on imports and planning to adjust pricing and manage costs accordingly [12][13]. - Aterian aims to maintain a strong balance sheet to adapt to trade policy uncertainties while focusing on long-term growth and profitability [13].