Aptiv PLC
Change company Symbol lookup
Select an option...
APTV Aptiv PLC
$NQUSB60101015LMCAD Nasdaq US Offshore Drilling and Othe
CUTR Cutera Inc
FRD Friedman Industries Inc
PRPRF Prairie Provident Resources Inc
BAC Bank of America Corp
USB-R US Bancorp
BHR Braemar Hotels & Resorts Inc
NVO Novo Nordisk A/S
LVVEF Yooma Wellness Inc
Go

Consumer Discretionary : Auto Components | Mid Cap Blend
Based in United Kingdom
Company profile

Aptiv PLC is a technology and mobility architecture company. The Company is primarily serving the automotive sector. The Company’s segments include Advanced Safety and User Experience and Signal and Power Solutions. The Advanced Safety and User Experience segment is focused on providing the necessary software and advanced computing platforms. The Signal and Power Solutions segment is focused on providing the requisite networking architecture required to support the integrated systems in vehicles. It delivers mobility solutions enabling its customers’ transition to electrified, software-defined vehicles. The Company designs and manufactures vehicle components and provides electrical, electronic and active safety technology solutions to the global automotive and commercial vehicle markets, creating the software and hardware foundation for vehicle features and functionality. It operates over 127 manufacturing facilities and over 12 technical centers utilizing a regional service model.

Premarket

Last Trade
Delayed
$83.54
-0.01 (-0.01%)
Bid
--
Ask
--
B/A Size
--

Market Hours

Closing Price
$83.55
Day's Change
0.00 (0.00%)
Bid
--
Ask
--
B/A Size
--
Day's High
--
Day's Low
--
Volume
(Light)
Volume:
20

10-day average volume:
1,910,353
20

Aterian Reports Second Quarter 2022 Results

4:15 pm ET August 8, 2022 (Globe Newswire) Print

Reports Second Quarter 2022 Net Revenue of $58.3 Million

Sees Preliminary Signs of Relief in Container Shipping Costs, Company is Gradually Resuming New Product Development

Aterian, Inc. (Nasdaq: ATER) ("Aterian" or the "Company") today announced results for the second quarter ended June 30, 2022.

Second Quarter 2022 Highlights

Yaniv Sarig, Co-Founder and Chief Executive Officer, commented, "We continue to see overall success with our efforts to protect market share across our product portfolio despite the pressures of inflation and high shipping costs. We attribute this quarter's year over year decline in sales mainly to the overall softness in consumer demand that is affecting the entire retail sector as well as continued supply chain issues." Mr. Sarig continued "On the bright side, we are seeing a decline in the cost of shipping containers as global demand subsides and we are optimistic that if the current price trajectory continues, we should be well positioned to reignite growth in 2023. Our focus in the near term is on normalizing inventory levels for products procured at an inflated cost basis so that we can restock inventory while benefiting from lower shipping costs and positioning us for a return to a double digit contribution margin."

Non-GAAP Financial Measures

For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the "Non-GAAP Financial Measures and Reconciliations" section below.

Webcast and Conference Call Information

Aterian will host a live conference call to discuss financial results today, August 8, 2022, at 5:00 p.m. Eastern Time. To access the call, participants from within the U.S. should dial (833) 636-1351 and participants from outside the U.S. should dial (412) 902-4267. Participants need to ask to be joined into the Aterian, Inc. call. Participants may also access the call through a live webcast at https://ir.aterian.io/investor-relations. Please visit the website at least 15 minutes prior to the start of the call to register and download any necessary software. The archived online replay will be available for a limited time after the call in the Investor Relations section of the Aterian website.

About Aterian, Inc.

Aterian, Inc. (Nasdaq: ATER) is a leading technology-enabled consumer product platform that builds, acquires, and partners with best-in-class e-commerce brands by harnessing proprietary software and an agile supply chain to create top selling consumer products. The Company's cloud-based platform, Artificial Intelligence Marketplace Ecommerce Engine (AIMEE(TM)), leverages machine learning, natural language processing and data analytics to streamline the management of products at scale across the world's largest online marketplaces with a focus on Amazon, Shopify and Walmart. Aterian has thousands of SKUs across 14 owned and operated brands and sells products in multiple categories, including home and kitchen appliances, health and wellness, beauty and consumer electronics.

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, the statements regarding the strength of our balance sheet; our ability to reignite growth; our ability to retain market share; our ability to optimize our financial strength; our expectations regarding contribution margin; our ability to weather the current environment; global supply chain disruptions and any easing of constraints thereon or any stabilization thereof; expected changes in the costs of shipping containers; our ability to manage our inventory; our expectations around organic growth and our M&A strategy; our technological advances; our strategic investments in partnerships; consumer behavior; and the global macroenvironment. 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 the global shipping disruptions, our ability to continue as a going concern, our ability to meet financial covenants with our lenders, our ability to create operating leverage and efficiency when integrating companies that we acquire or have acquired, 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 the impact of COVID-19 and the war in the Ukraine, including its impact on 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; the impact of intangible assets such as goodwill, and other impairments; disruptions to the Company's information technology systems, including but not limited to potential or actual security breaches of systems protecting consumer and employee information or other types of cybercrimes or cybersecurity attacks; our ability to disrupt the consumer products industry; our ability to maintain and grow market share in existing and new product categories; 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 and expenses; acquisitions of other companies and technologies and our ability to successfully 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.

Investor Contact:

Ilya Grozovsky

Vice President of Investor Relations & Corp. Development

Aterian, Inc.

ilya@aterian.io

917-905-1699

ATERIAN, INC.

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands, except share and per share data)

                                                                                                                                                                                                                  December 31, 2021    June 30, 2022
ASSETS
CURRENT ASSETS:
Cash                                                                                                                                                                                                              $        30,317      $       34,781
Accounts receivable--net                                                                                                                                                                                                   10,478              7,047
Inventory                                                                                                                                                                                                                  63,045              76,116
Prepaid and other current assets                                                                                                                                                                                           21,034              10,842
Total current assets                                                                                                                                                                                                       124,874             128,786
PROPERTY AND EQUIPMENT--net                                                                                                                                                                                                1,254               946
GOODWILL--net                                                                                                                                                                                                              119,941             90,921
OTHER INTANGIBLES--net                                                                                                                                                                                                     64,955              61,341
OTHER NON-CURRENT ASSETS                                                                                                                                                                                                   2,546               2,653
TOTAL ASSETS                                                                                                                                                                                                      $        313,570     $       284,647
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Credit facility                                                                                                                                                                                                   $        32,845      $       33,999
Accounts payable                                                                                                                                                                                                           21,716              20,459
Seller notes                                                                                                                                                                                                               7,577               3,415
Contingent earn-out liability                                                                                                                                                                                              3,983               774
Warrant liability                                                                                                                                                                                                          --                  11,836
Accrued and other current liabilities                                                                                                                                                                                      17,621              12,904
Total current liabilities                                                                                                                                                                                                  83,742              83,387
OTHER LIABILITIES                                                                                                                                                                                                          360                 412
CONTINGENT EARN-OUT LIABILITY                                                                                                                                                                                              5,240               --
Total liabilities                                                                                                                                                                                                          89,342              83,799
COMMITMENTS AND CONTINGENCIES (Note 9)
STOCKHOLDERS' EQUITY:
Common stock, par value $0.0001 per share--500,000,000 shares authorized and 55,090,237 shares outstanding at December 31, 2021; 500,000,000 shares authorized and 69,219,384 shares outstanding at June 30, 2022          5                   7
Additional paid-in capital                                                                                                                                                                                                 653,650             689,955
Accumulated deficit                                                                                                                                                                                                        (428,959 )          (488,044 )
Accumulated other comprehensive loss                                                                                                                                                                                       (468     )          (1,070   )
Total stockholders' equity                                                                                                                                                                                                 224,228             200,848
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                                        $        313,570     $       284,647
See notes to condensed consolidated financial statements.

ATERIAN, INC.

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands, except share and per share data)

                                                                 Three Months Ended June 30,                Six Months Ended June 30,
                                                                 2021                  2022                 2021                  2022
NET REVENUE                                                      $    68,188           $    58,268          $    116,324          $    99,941
COST OF GOODS SOLD                                                    35,445                26,917               57,518                44,982
GROSS PROFIT                                                          32,743                31,351               58,806                54,959
OPERATING EXPENSES:
Sales and distribution                                                39,310                31,866               64,379                54,840
Research and development                                              2,324                 1,730                4,452                 2,877
General and administrative                                            9,990                 9,571                20,965                19,112
Impairment loss on goodwill                                           --                    --                   --                    29,020
Change in fair value of contingent earn-out liabilities               (23,349    )          (1,691     )         (7,704     )          (4,466     )
TOTAL OPERATING EXPENSES:                                             28,275                41,476               82,092                101,383
OPERATING INCOME (LOSS)                                               4,468                 (10,125    )         (23,286    )          (46,424    )
INTEREST EXPENSE--net                                                 4,675                 338                  9,092                 1,138
GAIN ON EXTINGUISHMENT OF SELLER NOTE                                 --                    --                   --                    (2,012     )
LOSS ON INITIAL ISSUANCE OF EQUITY                                    --                    --                   --                    5,835
CHANGE IN FAIR VALUE OF DERIVATIVE LIABILITY                          1,894                 --                   1,894                 --
LOSS ON EXTINGUISHMENT OF DEBT                                        29,772                --                   29,772                --
CHANGE IN FAIR VALUE OF WARRANT LIABILITY                             4,387                 6,014                34,589                7,893
LOSS ON INITIAL ISSUANCE OF WARRANT                                   --                    --                   20,147                --
OTHER EXPENSE (INCOME)                                                5                     --                   38                    (25        )
LOSS BEFORE INCOME TAXES                                              (36,265    )          (16,477    )         (118,818   )          (59,253    )
PROVISION FOR (BENEFIT FROM) INCOME TAXES                             41                    (168       )         41                    (168       )
NET LOSS                                                         $    (36,306    )     $    (16,309    )    $    (118,859   )     $    (59,085    )
Net loss per share, basic and diluted                            $    (1.23      )     $    (0.26      )    $    (4.26      )     $    (0.94      )
Weighted-average number of shares outstanding, basic and diluted      29,547,781            63,947,069           27,886,582            62,749,520
See notes to condensed consolidated financial statements.

ATERIAN, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

                                                                                 Six Months Ended June 30,
                                                                                 2021                2022
OPERATING ACTIVITIES:
Net loss                                                                         $    (118,859 )     $    (59,085 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization                                                         2,885               3,894
Provision for sales returns                                                           607                 226
Amortization of deferred financing costs and debt discounts                           6,378               213
Stock-based compensation                                                              11,760              8,913
Gain from increase of contingent earn-out liability fair value                        (7,704   )          (4,466  )
Loss in connection with the change in warrant fair value                              34,589              7,893
Loss from extinguishment of High Trail December 2020 and February 2021 Term Loan      28,240              --
Loss from embedded derivative related to term loan                                    1,894               --
Loss from extinguishment of Credit Facility                                           1,532               --
Loss on initial issuance of warrant                                                   20,147              --
Gain in connection with settlement of note payable                                    --                  (2,012  )
Loss on initial issuance of equity                                                    --                  5,835
Impairment loss on goodwill                                                           --                  29,020
Allowance for doubtful accounts and other                                             4,597               127
Changes in assets and liabilities:
Accounts receivable                                                                   (10,736  )          3,304
Inventory                                                                             (31,772  )          (13,071 )
Prepaid and other current assets                                                      (6,545   )          2,108
Accounts payable, accrued and other liabilities                                       30,151              (5,010  )
Cash used in operating activities                                                     (32,836  )          (22,111 )
INVESTING ACTIVITIES:
Purchase of fixed assets                                                              (44      )          (16     )
Purchase of Healing Solutions assets                                                  (15,280  )          --
Purchase of Photo Paper Direct, net of cash acquired                                  (10,583  )          --
Purchase of Squatty Potty assets                                                      (19,040  )          --
Cash used in investing activities                                                     (44,947  )          (16     )
FINANCING ACTIVITIES:
Proceeds from warrant exercise                                                        9,051               --
Proceeds from cancellation of warrant                                                 16,957              --
Proceeds from equity offering, net of issuance costs                                  36,735              27,007
Proceeds from exercise of stock options                                               8,749               --
Repayments on note payable to Smash                                                   (7,503   )          (1,778  )
Payment of Squatty Potty earn-out                                                     --                  (3,983  )
Borrowings from MidCap credit facility                                                14,630              71,914
Repayments for MidCap credit facility                                                 (28,274  )          (70,972 )
Deferred financing costs from MidCap credit facility                                  (151     )          --
Repayments for High Trail December 2020 Note and February 2021 Note                   (59,500  )          --
Borrowings from High Trail February 2021 Note                                         14,025              --
Borrowings from High Trail April 2021 Note                                            110,000             --
Debt issuance costs from High Trail February 2021 Note                                (1,462   )          --
Debt issuance costs from High Trail April 2021 Note                                   (2,200   )          --
Insurance obligation payments                                                         (1,557   )          (719    )
Insurance financing proceeds                                                          2,424               --
Cash provided by financing activities                                                 111,924             21,469
EFFECT OF EXCHANGE RATE ON CASH                                                       (175     )          (602    )
NET CHANGE IN CASH AND RESTRICTED CASH FOR PERIOD                                     33,966              (1,260  )
CASH AND RESTRICTED CASH AT BEGINNING OF PERIOD                                       30,097              38,315
CASH AND RESTRICTED CASH AT END OF PERIOD                                        $    64,063         $    37,055
RECONCILIATION OF CASH AND RESTRICTED CASH
CASH                                                                             $    61,934         $    34,781
RESTRICTED CASH--Prepaid and other assets                                             2,000               2,145
RESTRICTED CASH--Other non-current assets                                             129                 129
TOTAL CASH AND RESTRICTED CASH                                                   $    64,063         $    37,055

ATERIAN, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest                                                                            $ 1,727      $ 828
Cash paid for taxes                                                                               $ 41         $ 58
Non-cash consideration paid to contractors                                                        $ --         $ 1,137
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Equity fundraising costs not paid                                                                 $ 125        $ --
Original issue discount                                                                           $ 2,475      $ --
Fair value of contingent consideration                                                            $ 20,971     $ --
Discount of debt relating to warrants issuance                                                    $ 46,756     $ --
Issuance of restricted stock awards                                                               $ 3,427      $ --
Issuance of common stock in connection with Healing Solutions and Photo Paper Direct acquisitions $ 50,529     $ --
Common stock issued to High Trail                                                                 $ 4,056      $ --
Issuance of common stock related to exercise of warrants                                          $ --         $ 767
Fair value of warrants issued in connection with equity offering                                  $ --         $ 18,982
Exercise of Prefunded Warrants                                                                    $ --         $ 15,039
Reclassification of warrants to equity                                                            $ 80,022     $ --
See notes to condensed consolidated financial statements.

Non-GAAP Financial Measures

In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), this press release and accompanying tables include certain non-GAAP financial measures. The non-GAAP financial measures contained herein are a supplement to the corresponding financial measures prepared in accordance with U.S. GAAP. The non-GAAP financial measures presented exclude the items described below. Management believes that adjustments for these items assist investors in making comparisons of period-to-period operating results. Furthermore, management also believes that these items are not indicative of our on-going core operating performance. These non-GAAP financial measures have certain limitations in that they do not reflect all of the costs associated with the operations of our business as determined in accordance with GAAP.

Therefore, investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP financial measures presented by us may be different from the non-GAAP financial measures used by other companies.

We have presented the following non-GAAP measures to assist investors in understanding our core net operating results on an on-going basis: (i) Contribution Margin; (ii) Contribution margin as a percentage of net revenue; (iii) EBITDA (iv) Adjusted EBITDA; and (v) Adjusted EBITDA as a percentage of net revenue. These non-GAAP financial measures may also assist investors in making comparisons of our core operating results with those of other companies.

As used herein, Contribution margin represents gross profit less amortization of inventory step-up from acquisitions (included in cost of goods sold) and e-commerce platform commissions, online advertising, selling and logistics expenses (included in sales and distribution expenses). As used herein, Contribution margin as a percentage of net revenue represents Contribution margin divided by net revenue. As used herein, EBITDA represents net loss plus depreciation and amortization, interest expense, net and provision for income taxes. As used herein, Adjusted EBITDA represents EBITDA plus stock-based compensation expense, changes in fair-market value of earn-outs, amortization of inventory step-up from acquisitions (included in cost of goods sold), changes in fair-market value of warrant liability, professional fees and transition costs related to acquisitions, loss from extinguishment of debt, impairment of goodwill, loss on initial issuance of equity, litigation reserve and other expenses, net. As used herein, Adjusted EBITDA as a percentage of net revenue represents Adjusted EBITDA divided by net revenue. Contribution margin, EBITDA and Adjusted EBITDA do not represent and should not be considered as alternatives to loss from operations or net loss, as determined under GAAP.

We present Contribution margin and Contribution margin as a percentage of net revenue, as we believe each of these measures provides an additional metric to evaluate our operations and, when considered with both our GAAP results and the reconciliation to gross profit, provides useful supplemental information for investors. Specifically, Contribution margin and Contribution margin as a percentage of net revenue are two of our key metrics in running our business. All product decisions made by us, from the approval of launching a new product and to the liquidation of a product at the end of its life cycle, are measured primarily from Contribution margin and/or Contribution margin as a percentage of net revenue. Further, we believe these measures provide improved transparency to our stockholders to determine the performance of our products prior to fixed costs as opposed to referencing gross profit alone.

In the reconciliation to calculate contribution margin, we add e-commerce platform commissions, online advertising, selling and logistics expenses ("sales and distribution variable expense"), to gross margin to inform users of our financial statements of what our product profitability is at each period prior to fixed costs (such as sales and distribution expenses such as salaries as well as research and development expenses and general administrative expenses). By excluding these fixed costs, we believe this allows users of our financial statements to understand our products' performance and allows them to measure our products' performance over time.

We present EBITDA, Adjusted EBITDA and Adjusted EBITDA as a percentage of net revenue because we believe each of these measures provides an additional metric to evaluate our operations and, when considered with both our GAAP results and the reconciliation to net loss, provide useful supplemental information for investors. We use these measures with financial measures prepared in accordance with GAAP, such as sales and gross margins, to assess our historical and prospective operating performance, to provide meaningful comparisons of operating performance across periods, to enhance our understanding of our operating performance and to compare our performance to that of our peers and competitors. We believe EBITDA, Adjusted EBITDA and Adjusted EBITDA as a percentage of net revenue are useful to investors in assessing the operating performance of our business without the effect of non-cash items.

Contribution margin, Contribution margin as a percentage of net revenue, EBITDA, Adjusted EBITDA and Adjusted EBITDA as a percentage of net revenue should not be considered in isolation or as alternatives to net loss, loss from operations or any other measure of financial performance calculated and prescribed in accordance with GAAP. Neither EBITDA, Adjusted EBITDA or Adjusted EBITDA as a percentage of net revenue should be considered a measure of discretionary cash available to us to invest in the growth of our business. Our Contribution margin, Contribution margin as a percentage of net revenue, EBITDA, Adjusted EBITDA and Adjusted EBITDA as a percentage of net revenue may not be comparable to similarly titled measures in other organizations because other organizations may not calculate Contribution margin, Contribution margin as a percentage of net revenue, EBITDA, Adjusted EBITDA or Adjusted EBITDA as a percentage of net revenue in the same manner as we do. Our presentation of Contribution margin and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by the expenses that are excluded from such terms or by unusual or non-recurring items.

We recognize that EBITDA, Adjusted EBITDA and Adjusted EBITDA as a percentage of net revenue, have limitations as analytical financial measures. For example, neither EBITDA nor Adjusted EBITDA reflects:

-- our capital expenditures or future requirements for capital expenditures or mergers and acquisitions;

-- the interest expense or the cash requirements necessary to service interest expense or principal payments, associated with indebtedness;

-- depreciation and amortization, which are non-cash charges, although the assets being depreciated and amortized will likely have to be replaced in the future, or any cash requirements for the replacement of assets;

-- changes in cash requirements for our working capital needs; or

-- changes in fair value of contingent earn-out liabilities, warrant liabilities, and amortization of inventory step-up from acquisitions (included in cost of goods sold).

Additionally, Adjusted EBITDA excludes non-cash expense for stock-based compensation, which is and is expected to remain a key element of our overall long-term incentive compensation package.

We also recognize that Contribution margin and Contribution margin as a percentage of net revenue have limitations as analytical financial measures. For example, Contribution margin does not reflect:

-- research and development expenses necessary for the development, operation and support of our software platform;

-- the fixed costs portion of our sales and distribution expenses including stock-based compensation expense; or

-- changes in fair value of contingent earn-out liabilities, warrant liabilities, and amortization of inventory step-up from acquisitions (included in cost of goods sold).

Adjusted EBITDA

EBITDA represents net loss plus depreciation and amortization, interest expense, net and provision for income taxes. Adjusted EBITDA represents EBITDA plus stock-based compensation expense, changes in fair-market value of earn-outs, amortization of inventory step-up from acquisitions (included in cost of goods sold), change in fair-market value of warrant liability, professional fees and transition costs related to acquisitions, loss from extinguishment of debt, impairment of goodwill, loss on initial issuance of equity, litigation reserve and other expenses, net. As used herein, Adjusted EBITDA as a percentage of net revenue represents Adjusted EBITDA divided by net revenue.

The following table provides a reconciliation of EBITDA and Adjusted EBITDA to net loss, which is the most directly comparable financial measure presented in accordance with GAAP:

                                                                                     Three Months Ended June 30,         Six Months Ended June 30,
                                                                                     2021               2022             2021                2022
                                                                                     (in thousands, except percentages)
Net loss                                                                             $    (36,306 )     $    (16,309 )   $    (118,859 )     $    (59,085 )
Add:
Provision for (benefit from) income taxes                                                 41                 (168    )        41                  (168    )
Interest expense, net                                                                     4,675              338              9,092               1,138
Depreciation and amortization                                                             1,681              2,048            2,885               3,894
EBITDA                                                                                    (29,909 )          (14,091 )        (106,841 )          (54,221 )
Other expense (income), net                                                               (5      )          --               (38      )          (25     )
Impairment loss on goodwill                                                               --                 --               --                  29,020
Change in fair value of contingent earn-out liabilities                                   (23,349 )          (1,691  )        (7,704   )          (4,466  )
Amortization of inventory step-up from acquisitions (included in cost of goods sold)      2,233              --               4,041               --
Gain on extinguishment of seller note                                                     --                 --               --                  (2,012  )
Loss on initial issuance of equity                                                        --                 --               --                  5,835
Change in fair value of derivative liability                                              1,894              --               1,894               --
Loss on extinguishment of debt                                                            29,772             --               29,772              --
Change in fair market value of warrant liability                                          4,387              6,014            34,589              7,893
Loss on initial issuance of warrant                                                       --                 --               20,147              --
Professional fees related to acquisitions                                                 948                --               1,397               --
Litigation reserve                                                                        --                 --               --                  800
Transition cost from acquisitions                                                         632                --               1,184               --
Professional fees related to Photo Paper Direct acquisition                               696                --               696                 --
Reserve on dispute with PPE supplier                                                      4,100              --               4,100               --
Stock-based compensation expense                                                          4,862              6,048            11,760              8,913
Adjusted EBITDA                                                                      $    (3,739  )     $    (3,720  )   $    (5,003   )     $    (8,263  )
Net loss as a percentage of net revenue                                                   (53.2   )%         (28.0   )%       (102.2   )%         (59.1   )%
Adjusted EBITDA as a percentage of net revenue                                            (5.5    )%         (6.4    )%       (4.3     )%         (8.3    )%

Contribution Margin

Contribution margin represents gross profit less amortization of inventory step-up from acquisitions (included in cost of goods sold) and e-commerce platform commissions, online advertising, selling and logistics expenses (included in sales and distribution expenses). Contribution margin as a percentage of net revenue represents Contribution margin divided by net revenue. The following table provides a reconciliation of Contribution margin to gross profit and Contribution margin as a percentage of net revenue to gross profit as a percentage of net revenue, which are the most directly comparable financial measures presented in accordance with GAAP.

                                                                                     Three Months Ended June 30,         Six Months Ended June 30,
                                                                                     2021               2022             2021               2022
                                                                                     (in thousands, except percentages)
Gross Profit                                                                         $    32,743        $    31,351      $    58,806        $    54,959
Add:
Amortization of inventory step-up from acquisitions (included in cost of goods sold)      2,233              --               4,041              --
Less:
E-commerce platform commissions, online advertising, selling and logistics expenses       (29,315 )          (25,703 )        (51,052 )          (45,479 )
Contribution margin                                                                  $    5,661         $    5,648       $    11,795        $    9,480
Gross Profit as a percentage of net revenue                                               48.0    %          53.8    %        50.6    %          55.0    %
Contribution margin as a percentage of net revenue                                        8.3     %          9.7     %        10.1    %          9.5     %

Each of our products typically goes through the Launch phase and depending on its level of success is moved to one of the other phases as further described below:

-- Launch phase: During this phase, we leverage our technology to target opportunities identified using AIMEE (Artificial Intelligence Marketplace e-Commerce Engine) and other sources. During this period of time, due to the combination of discounts and investment in marketing, our net margin for a product could be as low as approximately negative 35%. Net margin is calculated by taking net revenue less the cost of goods sold, less fulfillment, online advertising and selling expenses. These costs primarily reflect the estimated variable costs related to the sale of a product.

-- Sustain phase: Our goal is for every product we launch to enter the sustain phase and become profitable, with a target of positive 15% net margin for most products, within approximately three months of launch on average. Net margin primarily reflects a combination of manual and automated adjustments in price and marketing spend.

-- Milk phase or Liquidate phase: If a product does not enter the sustain phase or if the customer satisfaction of the product (i.e., ratings) is not satisfactory, then it will go to the liquidate phase and we will sell through the remaining inventory. In order to enter the milk phase, a product must be well received and become a strong leader in its category in both customer satisfaction and volume sold as compared to its competition. Products in the milk phase that have achieved profitability should benefit from pricing power and we expect their profitability to increase accordingly. To date, none of our products have achieved the milk phase and we can provide no assurance that any of our products will do so in the future.

The following tables break out our second quarter 2021 and 2022 results of operations by our product phases:

                                                        Three months ended June 30, 2021 (in thousands) (unaudited)
                                                        Sustain      Launch     Liquidate/      Fixed Costs        Stock-based compensation expense   Total
                                                                                Other
NET REVENUE                                             $   61,764   $   4,358  $   2,066       $     --           $                --                $   68,188
COST OF GOODS SOLD                                          28,555       3,464      3,426             --                            --                    35,445
GROSS PROFIT                                                33,209       894        (1,360 )          --                            --                    32,743
OPERATING EXPENSES:
Sales and distribution                                      25,412       2,131      1,765             8,433                         1,569                 39,310
Research and development                                    --           --         --                1,103                         1,221                 2,324
General and administrative                                  --           --         --                7,918                         2,072                 9,990
Change in fair value of contingent earn-out liabilities     --           --         --                (23,349 )                     --                    (23,349 )
                                                        Three months ended June 30, 2022 (in thousands) (unaudited)
                                                        Sustain      Launch     Liquidate/      Fixed Costs        Stock-based compensation expense   Total
                                                                                Other
NET REVENUE                                             $   54,080   $   1,342  $   2,846       $     --           $                --                $   58,268
COST OF GOODS SOLD                                          24,259       742        1,916             --                            --                    26,917
GROSS PROFIT                                                29,821       600        930               --                            --                    31,351
OPERATING EXPENSES:
Sales and distribution                                      22,635       632        2,435             3,281                         2,882                 31,866
Research and development                                    --           --         --                1,097                         633                   1,730
General and administrative                                  --           --         --                7,038                         2,533                 9,571
Change in fair value of contingent earn-out liabilities     --           --         --                (1,691  )                     --                    (1,691  )
                                                        Six months ended June 30, 2021 (in thousands) (unaudited)
                                                        Sustain      Launch     Liquidate/      Fixed Costs        Stock-based compensation expense   Total
                                                                                Other
NET REVENUE                                             $   103,710  $   6,957  $   5,657       $     --           $                --                $   116,324
COST OF GOODS SOLD                                          45,860       4,916      6,742             --                            --                    57,518
GROSS PROFIT                                                57,850       2,041      (1,085 )          --                            --                    58,806
OPERATING EXPENSES:
Sales and distribution                                      44,228       3,528      3,283             10,816                        2,524                 64,379
Research and development                                    --           --         --                2,348                         2,104                 4,452
General and administrative                                  --           --         --                13,833                        7,132                 20,965
Change in fair value of contingent earn-out liabilities     --           --         --                (7,704  )                     --                    (7,704  )
                                                        Six months ended June 30, 2022 (in thousands) (unaudited)
                                                        Sustain      Launch     Liquidate/      Fixed Costs        Stock-based compensation expense   Total
                                                                                Other
NET REVENUE                                             $   92,044   $   2,179  $   5,718       $     --           $                --                $   99,941
COST OF GOODS SOLD                                          40,008       1,153      3,821             --                            --                    44,982
GROSS PROFIT                                                52,036       1,026      1,897             --                            --                    54,959
OPERATING EXPENSES:
Sales and distribution                                      40,114       1,167      4,197             6,133                         3,229                 54,840
Research and development                                    --           --         --                1,970                         907                   2,877
General and administrative                                  --           --         --                14,335                        4,777                 19,112
Impairment loss on goodwill                                 --           --         --                29,020                        --                    29,020
Change in fair value of contingent earn-out liabilities     --           --         --                (4,466  )                     --                    (4,466  )

https://ml.globenewswire.com/media/16d1eab9-d349-44b6-b179-bf634d641202/small/aterian-logo-pantone-blue-dark-jpg.jpg

https://ml.globenewswire.com/media/16d1eab9-d349-44b6-b179-bf634d641202/small/aterian-logo-pantone-blue-dark-jpg.jpg

comtex tracking

COMTEX_411862316/2010/2022-08-08T16:15:01

Earnings Calendar and Events Data provided by |Terms of Use| © 2022 Wall Street Horizon, Inc.

Market data accompanied by is delayed by at least 15 minutes for NASDAQ, NYSE MKT, NYSE, and options. Duration of the delay for other exchanges varies.
Market data and information provided by Morningstar.

Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses.
Please read Characteristics and Risks of Standard Options before investing in options.

Information and news provided by ,, , Computrade Systems, Inc., ,, and

Copyright © 2022. All rights reserved.