Breaking news in the short squeeze world.
Aterian has reported earnings after the bell.
NEW YORK, May 09, 2022 (GLOBE NEWSWIRE) — Aterian, Inc. (Nasdaq: ATER) (“Aterian” or the “Company”) today announced results for the first quarter ended March 31, 2022.
First Quarter 2022 Highlights
- First quarter 2022 net revenue declined 13.3% to $41.7 million, compared to $48.1 million in the first quarter of 2021.
- First quarter 2022 gross margin improved to 56.6%, compared to 54.1% in the first quarter of 2021.
- First quarter 2022 contribution margin declined to 9.2% from 12.7% in the first quarter of 2021, primarily due to global supply chain disruptions and inflation.
- First quarter 2022 operating loss of $(36.3) million declined, compared to a loss of $(27.8) million in the first quarter of 2021. First quarter 2022 operating loss includes a gain of $2.8 million from the net change in fair value and settlement of earn-out liabilities, $29.0 million of impairment loss on goodwill, and $2.9 million of non-cash stock compensation while first quarter 2021 included a $15.6 million charge from the change in fair-value of earn out liabilities and $6.9 million of non-cash stock compensation expense.
- First quarter 2022 net loss of $(42.8) million improved from $(82.6) million in the first quarter of 2021. First quarter 2022 net loss includes a gain on extinguishment of debt of $2.0 million and $7.7 million in net charges from the changes in fair-value of warrants and initial issuance of equity, while first quarter 2021 included $50.3 million of net charges from the changes in fair-value of warrants and cancellation of warrants.
- First quarter 2022 adjusted EBITDA decreased to $(4.5) million from $(1.2) million in the first quarter of 2021.
- As planned, due to supply chain concerns, no new products were launched in the first quarter of 2022 compared with 21 in the first quarter of 2021.
- Total cash balance at March 31, 2022 was $44.3 million.
Yaniv Sarig, Co-Founder and Chief Executive Officer, commented, “We enter the second quarter of 2022 with a strong balance sheet and a focus on retaining market share across our portfolio of brands despite the challenging macroeconomic conditions. Our efforts to optimize our financial strength and our investments in our team and infrastructure should allow us to weather the unpredictable environment and position us to drive growth both organically and through our accretive M&A strategy as the global supply chain stabilizes.”