Aterian, Inc. issued a letter to shareholders, highlighting the successful execution of its turnaround strategy in 2024, which focused on streamlining operations and stabilizing the company. Key achievements included rationalizing its product portfolio to six core brands and simplifying go-to-market strategies. The company also improved supply chain efficiencies and transitioned to a best-in-class third-party tech platform, enhancing nimbleness and cost savings.
The company's efforts yielded tangible financial results, with a significant improvement in its third quarter 2024 year-to-date performance. Aterian narrowed its net loss by $56.3 million, or 84%, compared to the same nine-month period in 2023, and reported positive adjusted EBITDA for both the second and third quarters of 2024. Cash flow from operations improved by $10.6 million to $2.2 million for the same period, and cash on hand reached $16.1 million at September 30, 2024.
Preliminary results for the fourth quarter of 2024 indicate net revenue between $24.2 million and $25.0 million, at the higher end of previous guidance, with approximately breakeven adjusted EBITDA. Looking ahead to 2025, Aterian anticipates higher revenue and continued improvements in operating efficiencies and adjusted EBITDA, driven by omnichannel expansion and organic product launches. The company is also proactively identifying product sourcing alternatives outside of China to mitigate potential tariff impacts, supported by a strong balance sheet.
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