$ATER Reports Q4 and FY2022 Financial Results
Mar 9th 2023, 10:16 pm
Analyst Summary: Aterian Inc. announced their financial results for the fourth quarter and full year ended December 31, 2022. The fourth quarter 2022 net revenue was $13.3 million, a decline of 13.5% from the fourth quarter of 2021. Gross margin and contribution margin also declined due to the impact of their strategy of liquidating high cost inventory. However, the company successfully executed on their strategy to cycle through expensive inventory by applying discounts to excess inventory across the board to make room for inventory at a lower cost basis. This is not a weakness in their portfolio, but rather with international shipping rates normalizing, Aterian can restock their inventory at a lower cost basis. As a result of their strong market share position, Aterian remains on track to achieve adjusted EBITDA profitability in the second half of 2023. CEO, Yaniv Sarig, stated, “Today, we reported results that are consistent with our recent commentary about products underperforming due to consumer demand constraints and supply chain disruptions. However, they are also indicative of our commitment to profitability and our willingness to take action to create a stronger foundation for future growth. I’m pleased with the success of our inventory liquidation efforts and am now excited to focus on the opportunities in front of us." The company also reconfirmed its prior guidance of expecting to be Adjusted EBITDA profitable in the second half of 2023. Forward looking statements indicate that the company does not know whether their expectations will prove correct, and they do not undertake any obligation to update, amend, or clarify these statements. The financial measures provided by Aterian include contribution margin, contribution margin as a percentage of net revenue, EBITDA, adjusted EBITDA, and adjusted EBITDA as a percentage of net revenue. These measures are provided to assist investors in understanding their core net operating results on an ongoing basis. However, they should not be considered in isolation or as alternatives to net loss or any other measure of financial performance calculated and prescribed in accordance with GAAP.