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ATER Nasdaq· Aterian Inc.
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ATER Nasdaq· Aterian Inc.
Earnings report Q3 2023

ATER's Revenue Declines by 40% in the Latest Quarter

Segments of revenue

ATER reported a net revenue of $39.67 million for the quarter ended September 30, 2023, representing a significant decline of 40% compared to the same quarter last year. The company's revenue for the nine months ended September 30, 2023, was $109.81 million, a decrease of 34% compared to the same period in 2022.

Strengths

Despite the decline in revenue, ATER's gross profit margin remained relatively stable at 49.4% for the latest quarter. This indicates that the company was able to maintain profitability despite the decrease in sales. Management attributed the decline in revenue to various factors, including supply chain disruptions and challenges in the global market.

Challenges

ATER faced several challenges in the latest quarter, resulting in a significant decline in revenue. The company experienced higher costs of goods sold, which impacted its gross profit. Additionally, ATER incurred substantial operating expenses, including sales and distribution costs, research and development expenses, and general and administrative expenses. These expenses contributed to the company's operating loss of $6.52 million for the quarter.

Noteworthy

A notable aspect of ATER's performance in the latest quarter was the impairment loss on goodwill and intangibles. The company recorded impairment losses of $90.92 million and $3.12 million, respectively, which significantly impacted its financial results. This impairment loss reflects a decrease in the estimated fair value of certain assets, indicating potential challenges in the company's business operations.

Summary

ATER's latest quarter performance was marked by a significant decline in revenue, primarily driven by supply chain disruptions and market challenges. Despite the decrease in sales, the company was able to maintain a stable gross profit margin. However, ATER incurred substantial operating expenses and recorded impairment losses on goodwill and intangibles, resulting in an operating loss. The company will need to address these challenges and focus on improving its revenue generation in the coming quarters to ensure long-term financial stability.

Source documents

Form 10-Q  filed on Nov 08, 2023
26 pages scanned

Reference data

Company financials Q3 revenue 32.8M
Analyst estimates Q3 EPS beat by 21.50%
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