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ATERIAN Aterian Reports First Quarter 2021 Results May 6 , 2021 Quarterly Net Revenue Grew 88 % Year - Over - Year to $ 48.1 Million Announces Acquisition of Squatty Potty , a Leading Health & Wellness Brand Announces Closing of Previously Disclosed Photo Paper Direct Acquisition Company Raises 2021 Net Revenue Outlook Range to $ 360 Million - $ 390 Million NEW YORK , May 06 , 2021 ( GLOBE NEWSWIRE ) -- Aterian , Inc. ( Nasdaq : ATER ) ( " Aterian " or the " Company " ) today announced results for the first quarter ended March 31 , 2021. Aterian was formerly named Mohawk Group Holdings , Inc. and was renamed Aterian , Inc. on April 30 , 2021 . First Quarter 2021 Highlights • Net revenue grew 88 % year over year to $ 48.1 million , compared to $ 25.6 million in the first quarter of 2020 . • Gross margin improved to 54.1 % compared to 40.2 % in the first quarter of 2020 . • Operating loss increased to $ ( 27.8 ) million , which includes $ 15.6 million of charges from the change in fair - value of earn out liabilities , compared to an operating loss of $ ( 13.9 ) million in the first quarter of 2020 . • Contribution margin improved to 12.7 % from negative ( 2.9 ) % in the first quarter 2020 . ● Operating expenses for the first quarter of 2021 were $ 53.8 million an increase from $ 24.2 million in the first quarter of 2020 . • Excluding non - cash stock - based compensation and amortization of intangibles of $ 8.0 million in the first quarter of 2021 and $ 7.4 million in the first quarter of 2020 and $ 15.6 million from the change in fair - value of potential future performance based earnouts from acquisitions in 2021 , fixed operating expenses for the first quarter decreased as a percentage of net revenue to 17.5 % compared to 22.3 % in the first quarter of 2020 . • Net loss of $ ( 82.6 ) million , which includes $ 50.3 million of net charges from the changes in fair - value of and cancellation of warrants and includes $ 15.6 million of charges from the change in fair - value of earn out liabilities , increased from a net loss of $ ( 15.0 ) million in the first quarter of 2020 . ● Adjusted EBITDA loss improved to $ ( 1.3 ) million compared to $ ( 6.4 ) million in the first quarter of 2020 . • 21 new products launched in the first quarter compared to 16 in the first quarter of 2020 . • Total cash balance at March 31 , 2021 increased by $ 8.3 million from December 31 , 2020 to $ 35.0 million . M & A Update • Announces acquisition of Squatty Potty , LLC ( " Squatty Potty " ) , a leading online seller of health and wellness products in an asset purchase transaction . • Closes previously announced acquisition of Photo Paper Direct Ltd. , ( " Photo Paper Direct " ) , a leading online seller of printing supplies . • The historical audit of the 9830 Macarthur LLC acquisition ( " Smash " ) has been completed and we now expect to file our delayed Form 8K / A no later than May 14 , 2021 . • Currently evaluating a pipeline of potential M & A targets that in total have trailing twelve month's net revenue of $ 613 million and trailing twelve month's EBITDA of $ 91 million . • We are currently in discussions with various top tier investment banks to evaluate financing structures in an effort to capitalize our accelerated M & A strategy and to improve our cost of capital . Yaniv Sarig , Co - Founder and Chief Executive Officer , commented , " Despite the challenges e - commerce faced with strains on the global supply chain throughout the first quarter , Aterian remains well - positioned to capitalize on the continued global acceleration of e - commerce adoption and expanding market opportunities in the long - term . Due to extreme shortages of containers and backlogs of ships at the Long Beach Port , we suffered from stockouts on some of our top SKUs aggregating to an estimate of approximately $ 6 million of missed revenue . However , our sourcing , supply chain and operations team continues to work diligently to resolve these issues and we are continuing to monitor this global crisis closely . " " As a market leading technology - enabled consumer products platform that builds , acquires and partners with best - in - class e - commerce brands , we are happy to announce today that we have closed our previously announced acquisition of Photo Paper Direct . We are excited to formally welcome our first European - based brand to Aterian's portfolio and pleased about our entrance in the printing supplies category . " Sarig continued , " I am also thrilled to announce the acquisition of Squatty Potty , a category creator with a strong brand and broad customer base . We believe that the business's significant online presence and brand equity can be further enhanced through investments in international expansion and the launch of additional products . As we bring this brand into the Aterian family , we continue to demonstrate our ability to operate across diverse product categories through leveraging our proprietary technology and agile supply chain . We look forward to building on the strength of this brand . "