Aterian Issues Letter to Shareholders
Aterian (NASDAQ: ATER) has issued a shareholder letter highlighting its turnaround progress and future outlook. The company has successfully streamlined its operations to six core brands: Squatty Potty, hOmeLabs, PurSteam, Mueller Living, Photo Paper Direct, and Healing Solutions.
Key achievements in 2024 include improved operational efficiency, transition to third-party tech platforms, and expansion to Target+ marketplace. Financial improvements show in Q3 2024 year-to-date results, with an 84% reduction in net loss ($56.3M improvement) and positive adjusted EBITDA in Q2 and Q3. Cash flow from operations reached $2.2M, with $16.1M cash on hand.
For Q4 2024, Aterian expects revenue between $24.2M-$25.0M, with projected cash position of $18M by year-end. Looking ahead to 2025, the company anticipates higher revenue and continued operational improvements, while addressing potential impacts from increased tariffs on Chinese imports through price adjustments and cost management initiatives.
Aterian (NASDAQ: ATER) ha pubblicato una lettera agli azionisti evidenziando i progressi della sua ristrutturazione e le prospettive future. L'azienda ha semplificato con successo le sue operazioni a sei marchi principali: Squatty Potty, hOmeLabs, PurSteam, Mueller Living, Photo Paper Direct e Healing Solutions.
I risultati chiave del 2024 includono un miglioramento dell'efficienza operativa, la transizione a piattaforme tecnologiche di terze parti e l'espansione nel marketplace Target+. I miglioramenti finanziari si riflettono nei risultati del terzo trimestre 2024, con una riduzione dell'84% della perdita netta (un miglioramento di 56,3 milioni di dollari) e un EBITDA rettificato positivo nel secondo e terzo trimestre. Il flusso di cassa dalle operazioni ha raggiunto i 2,2 milioni di dollari, con 16,1 milioni di dollari in cassa.
Per il quarto trimestre del 2024, Aterian prevede ricavi compresi tra 24,2 milioni e 25,0 milioni di dollari, con una posizione di cassa prevista di 18 milioni di dollari entro la fine dell'anno. Guardando al 2025, l'azienda prevede ricavi più elevati e continui miglioramenti operativi, affrontando nel contempo i potenziali impatti derivanti dall'aumento dei dazi sulle importazioni cinesi attraverso adeguamenti dei prezzi e iniziative di gestione dei costi.
Aterian (NASDAQ: ATER) ha emitido una carta a los accionistas destacando su progreso en la reestructuración y las perspectivas futuras. La compañía ha logrado simplificar sus operaciones a seis marcas principales: Squatty Potty, hOmeLabs, PurSteam, Mueller Living, Photo Paper Direct y Healing Solutions.
Los logros clave en 2024 incluyen una mejora en la eficiencia operativa, la transición a plataformas tecnológicas de terceros y la expansión al mercado Target+. Las mejoras financieras se reflejan en los resultados acumulados del tercer trimestre de 2024, con una reducción del 84% en la pérdida neta (una mejora de 56,3 millones de dólares) y un EBITDA ajustado positivo en el segundo y tercer trimestre. El flujo de caja de las operaciones alcanzó los 2,2 millones de dólares, con 16,1 millones de dólares en efectivo disponible.
Para el cuarto trimestre de 2024, Aterian espera ingresos entre 24,2 millones y 25,0 millones de dólares, con una posición de efectivo proyectada de 18 millones de dólares para fin de año. Mirando hacia 2025, la compañía anticipa mayores ingresos y mejoras operativas continuas, mientras aborda los posibles impactos de los aranceles aumentados sobre las importaciones chinas a través de ajustes de precios e iniciativas de gestión de costos.
아테리안 (NASDAQ: ATER)은 주주에게 보낸 서한에서 회생 진행 상황과 미래 전망을 강조했습니다. 이 회사는 Squatty Potty, hOmeLabs, PurSteam, Mueller Living, Photo Paper Direct, Healing Solutions의 6개 핵심 브랜드로 운영을 성공적으로 간소화했습니다.
2024년 주요 성과에는 운영 효율성 향상, 제3자 기술 플랫폼으로의 전환, Target+ 마켓플레이스 확장이 포함됩니다. 재무 개선 사항은 2024년 3분기 누적 결과에서 나타나며, 순손실이 84% 감소했습니다(5,630만 달러 개선)와 2분기 및 3분기 EBITDA 조정이 긍정적입니다. 운영에서 발생한 현금 흐름은 220만 달러에 도달했으며, 손에 쥐고 있는 현금은 1,610만 달러입니다.
2024년 4분기 동안 아테리안은 수익을 2,420만 달러에서 2,500만 달러 사이로 예상하며, 연말까지 1,800만 달러의 현금 잔고를 예상하고 있습니다. 2025년을 바라보며, 이 회사는 더 높은 수익과 지속적인 운영 개선을 예상하며, 중국 수입에 대한 증가된 관세의 잠재적 영향을 가격 조정 및 비용 관리 이니셔티브를 통해 해결할 계획입니다.
Aterian (NASDAQ: ATER) a publié une lettre aux actionnaires soulignant ses progrès en matière de redressement et ses perspectives d'avenir. L'entreprise a réussi à rationaliser ses opérations à six marques principales : Squatty Potty, hOmeLabs, PurSteam, Mueller Living, Photo Paper Direct et Healing Solutions.
Les principales réalisations de 2024 incluent une efficacité opérationnelle améliorée, la transition vers des plateformes technologiques tierces et l'expansion sur le marché Target+. Les améliorations financières se reflètent dans les résultats cumulés du troisième trimestre 2024, avec une réduction de 84 % de la perte nette (une amélioration de 56,3 millions de dollars) et un EBITDA ajusté positif au deuxième et troisième trimestre. Le flux de trésorerie provenant des opérations a atteint 2,2 millions de dollars, avec 16,1 millions de dollars de liquidités disponibles.
Pour le quatrième trimestre 2024, Aterian prévoit des revenus compris entre 24,2 millions et 25,0 millions de dollars, avec une position de trésorerie projetée de 18 millions de dollars d'ici la fin de l'année. En regardant vers 2025, l'entreprise anticipe des revenus plus élevés et des améliorations opérationnelles continues, tout en abordant les impacts potentiels des augmentations de tarifs sur les importations chinoises grâce à des ajustements de prix et des initiatives de gestion des coûts.
Aterian (NASDAQ: ATER) hat einen Brief an die Aktionäre veröffentlicht, in dem der Fortschritt bei der Umstrukturierung und die zukünftigen Aussichten hervorgehoben werden. Das Unternehmen hat seine Abläufe erfolgreich auf sechs Kernmarken rationalisiert: Squatty Potty, hOmeLabs, PurSteam, Mueller Living, Photo Paper Direct und Healing Solutions.
Zu den wichtigsten Erfolgen im Jahr 2024 gehören verbesserte Betriebseffizienz, der Übergang zu Drittanbieter-Technologieplattformen und die Expansion in den Target+-Marktplatz. Finanzielle Verbesserungen zeigen sich in den kumulierten Ergebnissen des dritten Quartals 2024, mit einer Reduzierung des Nettoverlusts um 84 % (eine Verbesserung von 56,3 Millionen Dollar) sowie einem positiven bereinigten EBITDA im zweiten und dritten Quartal. Der Cashflow aus dem operativen Geschäft erreichte 2,2 Millionen Dollar, mit 16,1 Millionen Dollar Bargeld.
Für das vierte Quartal 2024 erwartet Aterian einen Umsatz zwischen 24,2 Millionen und 25,0 Millionen Dollar, mit einer prognostizierten Bargeldposition von 18 Millionen Dollar zum Jahresende. Für 2025 erwartet das Unternehmen höhere Umsätze und fortlaufende betriebliche Verbesserungen, während es potenzielle Auswirkungen durch erhöhte Zölle auf chinesische Importe durch Preisanpassungen und Kostenmanagement-Initiativen adressiert.
- 84% reduction in net loss compared to previous year
- Positive adjusted EBITDA in Q2 and Q3 2024
- Improved cash flow from operations by $10.6M year-over-year
- Expected Q4 2024 revenue of $24.2M-$25.0M at higher end of guidance
- Projected cash position improvement to $18M by end of 2024
- Successful expansion to Target+ marketplace
- Potential impact from increased tariffs on Chinese imports
- Dependency on price adjustments to offset tariff impacts
- Credit facility balance expected to increase to $6.9M by end of 2024
Insights
The shareholder letter reveals a compelling turnaround story for Aterian, with several critical developments that signal a potential inflection point in the company's trajectory:
The financial metrics show remarkable improvement, with the standout being an
The strategic consolidation to six core brands represents a important pivot from a scattered portfolio approach to a focused, efficient operation. This rationalization, combined with the shift to third-party technology platforms, should significantly reduce operational complexity and fixed costs - a critical move for a company with a sub-
The improvement in working capital management is particularly noteworthy. The projected cash position of
The expansion onto Target's invitation-only marketplace platform is strategically significant, diversifying revenue streams beyond Amazon and Walmart while validating the quality of Aterian's brands. This omnichannel approach, combined with planned organic product launches in 2025, creates multiple growth vectors while reducing platform dependency risk.
However, investors should monitor several key factors:
- The impact of potential increased tariffs on Chinese imports and the effectiveness of planned mitigation strategies
- The execution of organic product launches, particularly in H2 2025
- The sustainability of margin improvements as the company shifts from stabilization to growth mode
- The success of price adjustment strategies in maintaining profitability while remaining competitive
SUMMIT, N.J., Feb. 20, 2025 (GLOBE NEWSWIRE) -- Aterian, Inc. (Nasdaq: ATER) (“Aterian” or the “Company”), a technology-enabled consumer products company, today issued the following letter to shareholders from Arturo Rodriguez, Chief Executive Officer, and the Company’s Board of Directors.
Dear Fellow Shareholders:
While this is our first time writing to you directly, you are always at the forefront of our minds.
Over the past 18 months, our team has undertaken a comprehensive reassessment of nearly every facet of Aterian’s business model as part of our turnaround strategy. This deep evaluation of our brand portfolio, marketing strategies, inventory management, marketplace operations, supply chain, and overall fixed costs laid the foundation for the strategic initiatives we have implemented. By successfully executing these changes, we have focused, simplified, and stabilized the Company, positioning Aterian to drive long-term shareholder value.
Although there is still work to be done, we believe that 2025 marks the start of a new and promising chapter for Aterian as we pivot from stabilizing our operations towards sustainable growth.
2024: A Year of Achievement
2024 was a year of achievement as we delivered on many of our key objectives which we announced in late 2023. We streamlined our product portfolio to six highly regarded foundational brands—Squatty Potty, hOmeLabs, PurSteam, Mueller Living, Photo Paper Direct, and Healing Solutions—that deliver quality, affordable products to consumers. We also simplified our go-to-market and marketing strategies, improved efficiencies in our marketplace account structures and our supply chain and transitioned from an internally developed tech platform to a best-in-class third-party model, thereby increasing our efficiency, nimbleness, and cost savings. Additionally, we improved our working capital profile by completing our inventory rightsizing and renegotiating and extending our credit facility.
In late 2024, we launched several new products under our PurSteam and Mueller Living brands, marking an exciting return to our product development efforts. Organic product launches remain an important component of our growth strategy, and we expect to continue these efforts throughout 2025, with a focus on the second half of the year.
We also continue to deliver on our commitment to implementing an omnichannel sales approach to reach new consumers and remain competitive in the ever-evolving e-commerce landscape. In the fourth quarter of 2024, we began selling products from our hOmeLabs, PurSteam, and Mueller Living brands on Target+, the invitation-only online marketplace of Target Corporation, while expanding product offerings of Squatty Potty on Target+. This complements our established marketplace strength on Amazon.com, Walmart.com, and Mercado Libre in Mexico, as well as our direct-to-consumer websites. We also recently refreshed our PurSteam and Mueller Living websites, modernizing them to match the recent updates of those brands.
Our Efforts are Yielding Tangible Results
Our progress was evident in our third quarter 2024 year to date financial results. When compared to the same nine-month period in 2023, we generated significant improvements in gross margin and contribution margin, and narrowed our net loss by
We also reported positive adjusted EBITDA for both the second and third quarters of 2024.
At September 30, 2024, our cash flow from operations was
Fourth Quarter 2024 Preliminary Results
This momentum carried into the final quarter of the year. For the fourth quarter of 2024, we now expect to report net revenue between
We expect that our cash position at December 31, 2024 will improve to approximately
Full Year 2025: From Stability to Growth
Looking ahead to 2025, we are confident that Aterian will evolve into a growth company, driven by our omnichannel expansion initiatives, organic product launches, and a commitment to prudent capital allocation strategies. In comparison to 2024, we expect to produce higher revenue, along with continuing improvements in operating efficiencies and adjusted EBITDA. More importantly, we believe that our efforts to date have placed us firmly on the path to producing these results on a sustainable basis.
We believe we have taken a conservative approach in our expectations for 2025 by considering both the potential impact of increased tariffs on Chinese imports, and to a lesser extent, those from Canada, as well as the proactive measures we would implement to mitigate their effects. Our primary strategy to offset these tariffs would be price adjustments on select products, supplemented by additional cost-management initiatives, if deemed necessary. As trade policies evolve, we will continue to monitor developments and adjust our responses, as needed.
We are continuing our efforts to identify product sourcing alternatives outside of China, wherever possible, in response to the current uncertainty of U.S. trade policies. As we navigate these challenges, we are fortunate to be supported by a strong balance sheet that provides us with the flexibility to adapt as needed while remaining focused on long-term growth and profitability.
We look forward to providing additional clarity on our plans and outlook for 2025 in connection with our fourth quarter and full year financial results conference call scheduled for mid-March, and keeping you apprised of material developments.
Looking ahead, the strength of our brands, the influence and accessibility provided by our marketplace relationships, and our passionate, talented and tenacious people will allow us to deliver on our mission to position Aterian to deliver sustainable, long-term shareholder value. We remain grateful for the continuing support of our shareholders. We hope this is the beginning of more frequent communications as we share in the excitement of Aterian's bright future.
Best regards,
Arturo Rodriguez
Chief Executive Officer
About Aterian, Inc.
Aterian, Inc. (Nasdaq: ATER) is a technology-enabled consumer products company that builds and acquires leading e-commerce brands with top selling consumer products, in multiple categories, including home and kitchen appliances, health and wellness and air quality devices. The Company sells across the world's largest online marketplaces with a focus on Amazon,Walmart and Target in the U.S. and on its own direct to consumer websites. Our primary brands include Squatty Potty, hOmeLabs, Mueller Living, PurSteam, Healing Solutions and Photo Paper Direct. To learn more about Aterian and its brands, visit aterian.io
Forward Looking Statements
All statements other than statements of historical facts included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements including, in particular, regarding our expectations for growth in 2025, including our omnichannel expansion initiatives, organic product launches and our capital allocation strategies. These forward-looking statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties and other factors, all of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially and adversely from those described in the forward-looking statements. These risks include, but are not limited to, those related to our ability to continue as a going concern, our ability to meet financial covenants with our lenders, our ability to maintain and to grow market share in existing and new product categories; our ability to continue to profitably sell the SKUs we operate; our ability to create operating leverage and efficiency when integrating companies that we acquire, including through the use of our team’s expertise, the economies of scale of our supply chain and automation driven by our platform; those related to our ability to grow internationally and through the launch of products under our brands and the acquisition of additional brands; those related to consumer demand, our cash flows, financial condition, forecasting and revenue growth rate; our supply chain including sourcing, manufacturing, warehousing and fulfillment; our ability to manage expenses, working capital and capital expenditures efficiently; our business model and our technology platform; our ability to disrupt the consumer products industry; our ability to generate profitability and stockholder value; international tariffs and trade measures; inventory management, product liability claims, recalls or other safety and regulatory concerns; reliance on third party online marketplaces; seasonal and quarterly variations in our revenue; acquisitions of other companies and technologies and our ability to integrate such companies and technologies with our business; our ability to continue to access debt and equity capital (including on terms advantageous to the Company) and the extent of our leverage; and other factors discussed in the “Risk Factors” section of our most recent periodic reports filed with the Securities and Exchange Commission (“SEC”), all of which you may obtain for free on the SEC’s website at www.sec.gov.
Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by us on our website or otherwise. We do not undertake any obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Contact:
The Equity Group
Devin Sullivan
Managing Director
dsullivan@equityny.com
Conor Rodriguez
Associate
crodriguez@equityny.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/fac8af25-1eb0-4a9b-b114-ed58c424cb02
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