From GlobeNewswire: 2025-03-18 16:06:00

Aterian, Inc. announces financial results for Q4 and full year 2024. Gross margin improved to 63.4% in Q4 from 51.0% in 2023, contributing to net revenue decline to $99.0 million from $142.6 million in 2023. Aterian introduces 2025 guidance with net revenue expected to be between $104 million and $106 million.

Aterian’s CEO, Arturo Rodriguez, credits the team’s success in focusing and stabilizing operations for improved financial performance. Aterian’s decision to rationalize SKUs and focus on foundational brands led to improvements in gross margin and narrowed losses. The company reduced debt by over $4.0 million and improved cash flow.

For fiscal year 2025, Aterian expects net revenue to increase by 5-7% to $104-106 million, driven by new product introductions. Adjusted EBITDA for 2025 is projected to be essentially break-even, reflecting business improvement initiatives. A $3 million share repurchase program has also been authorized by the Board of Directors.

Aterian utilizes non-GAAP measures like Contribution Margin and Adjusted EBITDA to evaluate core operating results. Contribution Margin as a percentage of net revenue increased to 19.4% in Q4 from (0.8%) in 2023. Adjusted EBITDA for Q4 2024 improved to ($86) thousand from ($5.6) million in 2023.

Products at different phases contribute to Aterian’s financial performance. Products in the Launch phase have a net margin of approximately negative 35%. Aterian aims for products to reach the Sustain phase with a target of positive 15% net margin within three months of launch. Liquidate phase involves selling through remaining inventory.

Aterian’s financial statements include a reconciliation of Contribution margin and Adjusted EBITDA to gross profit and net loss, respectively. The company believes these non-GAAP measures provide useful supplemental information for investors to assess operating performance and compare results across periods.



Read more at GlobeNewswire:: Aterian Reports Fourth Quarter & Full Year 2024 Results