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Aterian(ATER) - 2024 Q3 - Quarterly Results
ATERAterian(ATER)2024-11-12 11:30

Financial Performance - Third quarter 2024 net revenue declined 34.0% to 26.2million,downfrom26.2 million, down from 39.7 million in the same quarter of 2023[2] - Adjusted EBITDA for Q3 2024 was 0.5million,asignificantimprovementof111.00.5 million, a significant improvement of 111.0% from a loss of 4.4 million in Q3 2023[2] - Net loss for Q3 2024 was 1.8million,animprovementof71.71.8 million, an improvement of 71.7% from a loss of 6.3 million in Q3 2023[2] - Operating loss for Q3 2024 was 1.7million,improving73.41.7 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 66,857thousand,comparedtoanetlossof66,857 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 1,204thousand,representing3.01,204 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 53,575thousand,whileforthesameperiodin2024,itwas53,575 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 19,583thousand,whileforthesameperiodin2024,itincreasedto19,583 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 16.1million[2]−CashusedinoperatingactivitiesfortheninemonthsendedSeptember30,2023,was16.1 million[2] - Cash used in operating activities for the nine months ended September 30, 2023, was (8,458) thousand, compared to cash provided of 2,174thousandforthesameperiodin2024[12]−Totalcashandrestrictedcashattheendoftheyearwas2,174 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 18,719thousandattheendofthepreviousyear[12]−CashpaidforinterestduringtheninemonthsendedSeptember30,2023,was18,719 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 966thousandforthesameperiodin2024[12]−Aterian′stotalassetsdecreasedfrom966 thousand for the same period in 2024[12] - Aterian's total assets decreased from 61.9 million at the end of 2023 to 52.1millionbySeptember30,2024[10]−Stockholders′equitydeclinedfrom52.1 million by September 30, 2024[10] - Stockholders' equity declined from 36.0 million at the end of 2023 to 30.6millionbySeptember30,2024[10]FutureProjections−ForQ42024,managementprojectsnetrevenuebetween30.6 million by September 30, 2024[10] Future Projections - For Q4 2024, management projects net revenue between 22.5 million and 25.5million,withadjustedEBITDAexpectedtobeapproximatelybreak−even[3]−Thecompanyaimsforapositive1525.5 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 213thousandfortheninemonthsendedSeptember30,2023,whileitwas213 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 63,978thousandfortheninemonthsendedSeptember30,2023,comparedto63,978 thousand for the nine months ended September 30, 2023, compared to 44,386 thousand for the same period in 2024[12]