Revenue Performance - Net revenue decreased by $13.4 million, or 33.9%, to $26.2 million for the three months ended September 30, 2024, compared to $39.7 million for the same period in 2023[145]. - Net revenue decreased by $35.4 million, or 32.2%, during the nine months ended September 30, 2024, to $74.4 million, compared to $109.8 million for the same period in 2023[162]. - Total net revenue for the nine months ended September 30, 2024, was $74.4 million, a decrease from $109.8 million in the prior year, reflecting a reduction in sales across all business categories due to SKU rationalization and soft consumer demand[163]. Cost and Profitability - Gross profit margin improved to 60.3% in September 2024 from 49.4% in September 2023, despite a decrease in net revenue[143]. - Gross profit increased from 49.4% for the three months ended September 30, 2023, to 60.3% for the three months ended September 30, 2024, driven by a change in product mix and reduced liquidation of high-priced excess inventory[148]. - Gross profit margin increased from 48.8% for the nine months ended September 30, 2023, to 61.6% for the same period in 2024, attributed to a favorable product mix and reduced liquidation of high-priced excess inventory[165]. Operating Expenses - Total operating expenses decreased by $8.5 million, or 32.7%, to $17.6 million for the three months ended September 30, 2024[141]. - Sales and distribution expenses decreased to $13.9 million for the three months ended September 30, 2024, from $20.9 million for the same period in 2023, a reduction of 33.5%[149]. - Sales and distribution expenses decreased by 31.5%, from $61.7 million in the nine months ended September 30, 2023, to $42.3 million in 2024, mainly due to lower product sales volume[166]. - General and administrative expenses decreased from $4.3 million for the three months ended September 30, 2023, to $3.6 million for the same period in 2024, a reduction of $0.7 million[154]. - General and administrative expenses decreased by 16.6%, from $16.6 million for the nine months ended September 30, 2023, to $13.8 million in 2024, driven by reductions in depreciation, insurance, and professional fees[171]. Operating Loss - Operating loss increased to $1.7 million for the three months ended September 30, 2024, compared to a loss of $6.5 million in the same period in 2023, reflecting a 73.4% improvement[141]. - The company reported an operating loss of $10.2 million for the nine months ended September 30, 2024, compared to an operating loss of $67.9 million for the same period in 2023, an improvement of 85.0%[158]. Research and Development - Research and development expenses dropped to zero in September 2024, down from $852,000 in September 2023, indicating a strategic shift in technology development[141]. - The company has shifted its technology platform to an integrated third-party model, resulting in a 100% reduction in research and development expenses for the nine months ended September 30, 2024[170]. Cash Flow and Financial Position - Net cash provided by operating activities was $2.2 million for the nine months ended September 30, 2024, a significant improvement from a cash outflow of $8.5 million in the prior year[176][177]. - As of September 30, 2024, the company had unrestricted cash and cash equivalents of $16.1 million and an accumulated deficit of $710.4 million[184]. - The company expects to continue incurring losses and negative cash flows until achieving a scale of profitability, influenced by macroeconomic factors and reduced consumer spending[182][183]. Debt and Credit Facilities - As of September 30, 2024, the outstanding balance on the MidCap credit facility was $6.7 million, with $1.3 million available[202]. - The Company amended its credit facility with MidCap, extending the term to December 2026 and reducing the minimum liquidity financial covenant from $15.0 million to $6.8 million[201]. - The Company extended its credit facility with MidCap, which allows access to $17 million in current commitments, potentially increasing to $30 million[201]. Restructuring and Strategic Changes - The Company recognized restructuring charges of $1.6 million for the year ended December 31, 2023, and $0.6 million for the nine months ended September 30, 2024[196][197]. - The Company completed two restructuring programs in the last 18 months to reduce operating costs and align workforce with streamlined operations[188]. - The Company plans to reduce the number of SKUs sold, focusing on profitable products core to its strategy[187]. Going Concern and Future Outlook - The Company has uncertainties regarding its ability to continue as a going concern, which raises substantial doubt about its operations[190]. - The Company has no firm commitments to secure additional outside capital, which may impact its ability to meet obligations over the next twelve months[186]. Impairment Charges - The company recorded an intangible impairment charge of $16.7 million for the essential oil business during the three months ending March 31, 2023[219]. - An additional intangible impairment charge of $22.8 million was recorded for the Paper and Kitchen appliance businesses during the three months ending June 30, 2023[220]. - For the three months ended December 31, 2023, the company recorded an intangible impairment charge of $0.3 million for the Paper business[221]. - There was no impairment loss on intangibles for the nine months ended September 30, 2024, compared to an impairment loss of $39.4 million in the prior year[172]. - The company continues to monitor actual results versus expectations to assess the need for potential future impairment charges[223].

Financial Performance - Third quarter 2024 net revenue declined 34.0% to $26.2 million, down from $39.7 million in the same quarter of 2023[2] - Adjusted EBITDA for Q3 2024 was $0.5 million, a significant improvement of 111.0% from a loss of $4.4 million in Q3 2023[2] - Net loss for Q3 2024 was $1.8 million, an improvement of 71.7% from a loss of $6.3 million in Q3 2023[2] - Operating loss for Q3 2024 was $1.7 million, improving 73.4% from a loss of $6.5 million in Q3 2023[2] - Net loss for the nine months ended September 30, 2023, was $66,857 thousand, compared to a net loss of $10,564 thousand for the same period in 2024[12] - The net loss as a percentage of net revenue decreased from (60.9)% in the nine months ended September 30, 2023, to (14.2)% in the same period in 2024[23] Revenue and Profitability - Contribution margin for the three months ended September 30, 2023, was $1,204 thousand, representing 3.0% of net revenue, compared to $4,464 thousand or 17.0% for the same period in 2024[22] - Contribution margin as a percentage of net revenue for the nine months ended September 30, 2023, was 1.8%, compared to 16.4% for the same period in 2024[22] - Gross profit for the nine months ended September 30, 2023, was $53,575 thousand, while for the same period in 2024, it was $45,888 thousand[22] - For the three months ended September 30, 2023, the gross profit was $19,583 thousand, while for the same period in 2024, it increased to $15,828 thousand[26][27] Cash Flow and Assets - Total cash balance as of September 30, 2024, was $16.1 million[2] - Cash used in operating activities for the nine months ended September 30, 2023, was $(8,458) thousand, compared to cash provided of $2,174 thousand for the same period in 2024[12] - Total cash and restricted cash at the end of the year was $30,501 thousand, compared to $18,719 thousand at the end of the previous year[12] - Cash paid for interest during the nine months ended September 30, 2023, was $1,457 thousand, compared to $966 thousand for the same period in 2024[12] - Aterian's total assets decreased from $61.9 million at the end of 2023 to $52.1 million by September 30, 2024[10] - Stockholders' equity declined from $36.0 million at the end of 2023 to $30.6 million by September 30, 2024[10] Future Projections - For Q4 2024, management projects net revenue between $22.5 million and $25.5 million, with adjusted EBITDA expected to be approximately break-even[3] - The company aims for a positive 15% net margin for most products within approximately three months of launch[24] Operational Focus - The company is focused on expanding its e-commerce brands across major online marketplaces, including Amazon and Walmart[6] - The company is focusing on leveraging technology to identify opportunities and improve product margins during the launch phase[23] - The net margin during the launch phase can be as low as approximately negative 35% due to discounts and marketing investments[23] Impairment and Inventory - Impairment loss on intangibles for the nine months ended September 30, 2023, was $39,445 thousand, with no such loss reported for the same period in 2024[12] - The company reported a change in inventory provisions of $213 thousand for the nine months ended September 30, 2023, while it was $(1,653) thousand for the same period in 2024[12] - Borrowings from MidCap credit facilities amounted to $63,978 thousand for the nine months ended September 30, 2023, compared to $44,386 thousand for the same period in 2024[12]

Financial Data and Key Metrics Changes - Net revenue for Q3 2024 declined 34% to $26.2 million from $39.7 million in the year-ago quarter, primarily driven by dehumidifier stockouts and seasonal weather patterns [32] - Adjusted EBITDA improved by 111% to a gain of $0.5 million from an adjusted EBITDA loss of $4.4 million in Q3 2023 [37] - Gross margin for Q3 2024 increased to 60.3% from 49.4% in the year-ago quarter, driven by SKU rationalization and product mix [34] Business Line Data and Key Metrics Changes - Dehumidifier sales in Q3 were slightly short of expectations due to stockouts and weather, but overall performance during the summer season showed a 10% increase compared to the same period last year when adjusted for SKU rationalization [12][32] - Strong performance was noted in the Pursteam brand, particularly from steam mops and steam irons, with marketing efficiencies improving [15] Market Data and Key Metrics Changes - The company continues to derive most of its revenues from Amazon, with a focus on improving product listings and driving outside traffic to Amazon [10][16] - The competitive landscape is expected to be challenging in Q4, with consumers being price-sensitive due to the current inflationary environment [19][20] Company Strategy and Development Direction - The company aims to transition from stabilization to growth in 2025, focusing on omnichannel expansion and organic product launches [21][27] - Aterian plans to leverage its existing brands and explore new product categories while maintaining a cautious approach to avoid overextending [47][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving adjusted EBITDA profitability for the second half of 2024, despite challenges such as higher shipping container costs [20][40] - The company anticipates robust consumer buying during the holiday period but expects consumers to be deal shopping [19][60] Other Important Information - The company has successfully implemented cost-cutting measures, resulting in a significant reduction in operating loss from $6.5 million in Q3 2023 to $1.7 million in Q3 2024 [36] - Cash reserves at the end of Q3 2024 were approximately $16.1 million, down from $20.3 million at the end of Q2 2024, primarily due to payments on the credit facility [38] Q&A Session Summary Question: Confidence in being live on Target ahead of Black Friday - Management indicated minimal obstacles and expects to list at least six SKUs during the holiday period [43] Question: Timeline for additional SKUs on Target and Walmart - Management emphasized a cautious approach to expanding the product portfolio on new channels, focusing on marquee SKUs initially [45] Question: Outlook for next year and potential growth drivers - Management expressed confidence in all core brands, particularly hOmeLabs and Pursteam, as key growth drivers [51] Question: Consumer behavior during the holiday shopping season - Management noted robust sales activity in October and expressed optimism for Black Friday and Cyber Monday [60] Question: Container shipping rates and future cost expectations - Management expects container costs to remain higher than normalized prices through early 2025, impacting margins [64] Question: Fixed cost structure and cost efficiency - Management indicated that the full impact of restructuring will be realized in 2025, leading to a decrease in fixed costs [67] Question: Use of excess capital and M&A priorities - Management stated that M&A would be strategic, focusing on enhancing the product portfolio, while also needing cash for working capital and marketing new products [72]

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].

SUMMIT, N.J., Oct. 28, 2024 (GLOBE NEWSWIRE) -- Aterian, Inc. (Nasdaq: ATER) ("Aterian") announced today that it plans to report its third quarter 2024 financial results after the market close on Monday, November 11, 2024, and plans to host a conference call for investors and interested parties at 5:00 p.m. ET that evening. The conference call will be accessible by telephone and the internet. To access the call, participants from within the U.S. should dial (888) 596-4144 and participants from outside the U ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.0001 par value per share ATER The Nasdaq Stock Market LLC UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Num ...

Financial Data and Key Metrics Changes - Aterian reported a net revenue decline of 20.6% to $28 million from $35.3 million year-over-year, but adjusted EBITDA profitability was achieved for the first time in 10 quarters, with an adjusted EBITDA gain of $0.2 million compared to a loss of $8 million in Q2 2023 [21][25][12] - Gross margin improved year-over-year by over 18 basis points to 60.4%, while contribution margin increased to 17.4% from a negative 3.6% in the prior year [20][23] - The net loss for Q2 2024 was $3.6 million, improving by 89.6% from a loss of $34.8 million in the same quarter last year [25] Business Line Data and Key Metrics Changes - The company focused on SKU rationalization, which impacted top-line revenue but significantly improved core business metrics, with sustained product contribution margin improving to 19.8% from 2.1% year-over-year [22][23] - Launch revenue for Q2 2024 was $0.5 million, compared to $42,000 in Q2 2023, with no new product category launches planned for the quarter [22] Market Data and Key Metrics Changes - Aterian's sales performance benefited from seasonal weather conditions, particularly in dehumidifiers, which were a primary driver of success during the quarter [12][13] - The company expects net revenue for Q3 2024 to be between $25 million and $27 million, representing a 35% decrease from Q3 2023, primarily due to SKU rationalization [27] Company Strategy and Development Direction - The company aims to transition from stabilization to growth in 2025, focusing on omnichannel expansion and organic product launches [16][17] - Aterian plans to continue exploring M&A opportunities but emphasizes that organic growth will be the primary driver of future growth [17][36] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer spending remains cautious due to inflation, and they expect container costs to be higher compared to the previous year [15] - The company is optimistic about achieving adjusted EBITDA profitability in the second half of 2024, despite challenges such as inventory shortages and delivery issues [15][28] Other Important Information - Aterian's cash position improved to approximately $20.3 million as of June 30, 2024, compared to $17.5 million at the end of Q1 2024 [26] - The company has no plans to raise additional equity financing unless for accretive M&A opportunities [28] Q&A Session Summary Question: How many new SKUs were introduced during the first half of the year? - The company introduced no new product categories, only variations of existing categories, totaling about 20 [31] Question: How should seasonality be considered for the second half of the year? - Historically, Q3 has been a higher sales quarter than Q4, and this trend is expected to continue [33] Question: Which brands have the most potential for growth over the next couple of years? - All six brands are seen as having growth potential, with specific opportunities in new categories for brands like Pursteam and hOmeLabs [36] Question: What role does M&A play in the growth strategy? - M&A will be opportunistic and not the primary driver of growth, with a focus on organic growth requiring less investment [37]

Exhibit 99.1 Aterian Reports Second Quarter 2024 Results Second Quarter Net Loss Improved by 89.6% Year Over Year Company Achieved Adjusted EBITDA Profitability SUMMIT, NEW JERSEY, August 8, 2024 – Aterian, Inc. (Nasdaq: ATER) ("Aterian" or the "Company") today announced results for the second quarter ended June 30, 2024. Second Quarter Highlights ● Second quarter 2024 net revenue declined 20.6% to $28.0 million, compared to $35.3 million in the second quarter of 2023, primarily reflecting the impact of our ...

SUMMIT, N.J., July 29, 2024 (GLOBE NEWSWIRE) -- Aterian, Inc. (NASDAQ:ATER) ("Aterian") announced today that it plans to report its second quarter 2024 financial results after the market close on Thursday, August 8, 2024, and plans to host a conference call for investors and interested parties at 5:00 p.m. ET that evening. The conference call will be accessible by telephone and the internet. To access the call, participants from within the U.S. should dial (800) 715-9871 and participants from outside the U. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): June 26, 2024 ATERIAN, INC. (Exact Name of Registrant as Specified in its Charter) | --- | --- | --- | |-------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------- ...