The chart below shows how ATER performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ATER sees a +16.85% change in stock price 10 days leading up to the earnings, and a +41.09% change 10 days following the report. On the earnings day itself, the stock moves by -4.18%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Quarterly Success Report: We are happy to report another successful quarter as Aterian continues to progress on its journey to being a profitable consumer goods company.
Q3 Revenue and EBITDA Performance: We delivered on our Q3 2024 net revenue and adjusted EBITDA goals, landing with the middle of the range of our net revenue guidance and delivering on the higher end of our adjusted EBITDA guidance.
Product Performance and Cost-Cutting: This performance was driven by a combination of humidifiers from Home Labs and Pursteam steam products during the period and the impact of cost-cutting exercises implemented previously in Q1 of 2024.
Consistent EBITDA Profitability: Once again, we delivered an adjusted EBITDA profitable quarter, which is our second in a row.
EBITDA Performance Improvement: When compared to the same period last year, our adjusted EBITDA performance for Q3 is an improvement of over 100%, even on lower revenue.
Negative
Net Revenue Decline: Net revenue for the third quarter of 2024 declined 34% to $26.2 million from $39.7 million in the year-ago quarter.
Net Revenue Adjustment Analysis: Adjusting for the impact of SKU rationalization, net revenue would have only declined approximately 15%.
Sales Decline Factors: This decline was primarily driven by dehumidifier stockouts and seasonal weather patterns, as well as softness in our kitchen appliance products.
Operating Loss Improvement: Our operating loss of $1.7 million in the third quarter of 2024 improved from a loss of $6.5 million in the year-ago quarter, an improvement of approximately 73.4%.
Net Loss Improvement: Our net loss for the third quarter of 2024 of $1.8 million improved from a loss of $6.3 million in the year-ago quarter, an improvement of approximately 71.7%.
Aterian, Inc. (ATER) Q3 2024 Earnings Call Transcript
ATER.O
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