Aterian Inc Reports Second Quarter 2024 Financial Results
Intellectia.AI1970-01-01
Aterian, Inc. Reports Second Quarter 2024 Financial Results
SUMMIT, N.J., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Aterian, Inc. (NASDAQ: ATER) today announced its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimate | Performance vs. Estimate |
|---|---|---|---|---|---|
| Total Revenue | $28.0M | $35.3M | -20.6% | $23.94M | Above Estimate (+16.9%) |
| Net Loss | ($3.6M) | ($34.8M) | +89.6% | Not provided | Not applicable |
| Adjusted EBITDA | $0.2M | ($8.0M) | +102.0% | Not provided | Not applicable |
Aterian reported a significant reduction in its net loss, marking an 89.6% improvement year-over-year. The company's total revenue for the second quarter of 2024 was $28.0 million, which, although reflecting a 20.6% decrease from the same quarter last year, surpassed the consensus estimate of $23.94 million by 16.9%. The improvement in gross margin and contribution margin suggests positive effects from SKU rationalization efforts.
Segment Revenue Performance
| Segment and Metric | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Total Revenue | $28.0M | $35.3M | -20.6% |
| Gross Margin | 60.4% | 42.2% | +18.2pp |
| Contribution Margin | 17.4% | (3.6)% | +21.0pp |
The second quarter of 2024 showed better gross and contribution margins compared to the same period last year. SKU rationalization efforts clearly benefited these margins by reducing high-cost inventory liquidation and optimizing product offerings.
Operational Data
- Total Cash Balance: $20.3 million as of June 30, 2024.
Comments from Company Officers
No specific comments from the company's officers were provided in the report.
Dividends or Share Repo Program
There were no announcements made regarding dividends or share repurchase programs in the report.
Forward Guidance
For the third quarter of 2024, Aterian management projects net revenue between $25.0 million and $27.0 million, with adjusted EBITDA expected to range from $0.0 million to $0.6 million. The company maintains its outlook for achieving adjusted EBITDA profitability for the second half of 2024.
Stock Price Movement
Following the earnings release, Aterian’s stock experienced a significant uptick, with an after-event percentage change of 8.93%.
In summary, despite the decline in revenue, Aterian Inc. demonstrated substantial improvements in key profitability metrics, driven by strategic SKU rationalization. The market responded positively, as evidenced by the stock price movement post-earnings announcement. The management's guidance for continued profitability on an adjusted EBITDA basis in the latter half of 2024 signals a cautiously optimistic outlook.
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