Aterian Inc (ATER) Reports Q3 2023 Earnings: Net Loss Narrows Significantly
ATER's Q3 2023 net revenue decreased to $39.7 million from $66.3 million in the same period last year.
Net loss improved by 94.6% year-over-year, with a reported Q3 net loss of $6.3 million compared to $116.9 million.
Adjusted EBITDA loss improved by 51.3% year-over-year, indicating better operational efficiency.
Q4 2023 outlook anticipates net revenue between $28 million and $32 million, with adjusted EBITDA loss between $6.5 million to $7.5 million.
On November 8, 2023, Aterian Inc (NASDAQ:ATER) released its third-quarter earnings for the period ending September 30, 2023. The company reported a significant improvement in its net loss, which narrowed by 94.6% year-over-year, and an adjusted EBITDA loss that improved by 51.3%. However, net revenue saw a decline from the previous year's figure.
Financial Performance Overview
Aterian Inc (NASDAQ:ATER) reported a net revenue of $39.7 million for the third quarter of 2023, a decrease from the $66.3 million reported in the same quarter of the previous year. The net loss for the quarter showed a marked improvement, coming in at $6.3 million compared to a net loss of $116.9 million in Q3 2022. This significant reduction in net loss reflects Aterian's efforts to streamline operations and reduce costs.
Balance Sheet and Cash Flow Highlights
The balance sheet of Aterian Inc (NASDAQ:ATER) as of September 30, 2023, showed total assets of $82.0 million, down from $156.4 million at the end of 2022. The company's cash position decreased to $27.9 million from $43.6 million at the end of the previous year. Total liabilities stood at $40.1 million, with stockholders' equity at $41.9 million, indicating a more balanced capital structure compared to the end of 2022.
For the nine months ended September 30, 2023, Aterian's cash used in operating activities was $8.5 million, and cash used in investing activities was $205 thousand. Financing activities used $7.5 million, primarily due to repayments for credit facilities and other financing obligations.
Outlook and Forward-Looking Statements
Looking ahead to the fourth quarter of 2023, Aterian anticipates net revenue to be between $28 million and $32 million, with an adjusted EBITDA loss projected between $6.5 million to $7.5 million. These expectations include the impact of pricing initiatives related to Black Friday and Cyber Monday sales.
Non-GAAP Financial Measures
Aterian Inc (NASDAQ:ATER) also provided non-GAAP financial measures, including Contribution Margin and Adjusted EBITDA, to offer additional insights into its operational performance. For the third quarter of 2023, the Contribution Margin was $1.2 million, and the Adjusted EBITDA loss was $4.4 million. These measures are used by Aterian to evaluate its core net operating results and provide a supplemental understanding of the company's performance.
The company's management believes that these non-GAAP measures, when considered alongside GAAP results, provide a more complete understanding of Aterian's financial performance. However, these non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.
Conclusion
Aterian Inc (NASDAQ:ATER) has shown resilience in the face of a challenging global environment and inflationary pressures. The significant improvement in net loss and adjusted EBITDA loss demonstrates the company's ability to manage costs and improve operational efficiency. As Aterian continues to navigate the current economic landscape, investors and stakeholders will be closely monitoring its performance in the upcoming quarters.
For more detailed information, investors are encouraged to review the full earnings release and financial statements available on the Aterian website and the SEC's database.
Explore the complete 8-K earnings release (here) from Aterian Inc for further details.
This article first appeared on GuruFocus.
