Aterian, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with net revenue falling to $99.0 million, a decrease of 30.5% from $142.6 million in 2023. The company's operating loss improved to $11.8 million from a loss of $76.2 million in the previous year, reflecting a substantial reduction in operating expenses, which dropped by nearly 50% to $73.3 million. This reduction was primarily driven by a strategic decision to rationalize its product offerings, resulting in lower costs of goods sold, which decreased by 48% to $37.6 million.
The company undertook several strategic initiatives during the year, including a shift in its technology platform from an internally developed model to an integrated third-party model, which is expected to enhance operational efficiency. Additionally, Aterian implemented workforce reductions, impacting approximately 17 employees and 26 contractors globally, as part of a broader cost-cutting plan. These changes are part of Aterian's efforts to streamline operations and focus on core, profitable products.
Operationally, Aterian's reliance on the Amazon marketplace continued, with approximately 92% of its revenue generated through this channel in 2024, up from 88% in 2023. The company also reported a decrease in inventory levels, which fell to $13.7 million from $20.4 million, indicating a tighter management of stock in response to reduced sales. The total employee headcount as of December 31, 2024, was 97 full-time employees and 28 independent contractors, reflecting the impact of the recent restructuring efforts.
Looking ahead, Aterian's management expressed cautious optimism about achieving sustainable profitability, although they acknowledged ongoing challenges related to macroeconomic conditions, including inflation and reduced consumer spending. The company has extended its credit facility with MidCap Funding IV Trust until December 2026, providing additional liquidity to support its operations. However, the filing also highlighted substantial doubt about the company's ability to continue as a going concern, emphasizing the need for ongoing capital to fund operations and potential growth initiatives.
About Aterian, Inc.
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