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Nasdaq: ATER Corporate Presentation March 2025 Six Brands, One Mission: Improving Your Everyday Life Nasdaq: ATER May 2025
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Disclaimer Forward Looking Statements All statements other than statements of historical facts included in this presentation that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements including, in particular, the statements regarding our projected net revenue and adjusted EBITDA for 2025, our guidance for 2025 and the current global environment and inflation. These forward-looking statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties and other factors, all of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially and adversely from those described in the forward-looking statements. These risks include, but are not limited to, those related to our ability to continue as a going concern, our ability to meet financial covenants with our lenders, our ability to maintain and to grow market share in existing and new product categories; our ability to continue to profitably sell the SKUs we operate; our ability to maintain Amazon’s Prime badge on our seller accounts or reinstate the Prime badge in the event of any removal of such badge by Amazon; our ability to create operating leverage and efficiency when integrating companies that we acquire, including through the use of our team’s expertise, the economies of scale of our supply chain and automation driven by our platform; those related to our ability to grow internationally and through the launch of products under our brands and the acquisition of additional brands; those related to consumer demand, our cash flows, financial condition, forecasting and revenue growth rate; our supply chain including sourcing, manufacturing, warehousing and fulfillment; our ability to manage expenses, working capital and capital expenditures efficiently; our business model and our technology platform; our ability to disrupt the consumer products industry; our ability to generate profitability and stockholder value; international tariffs and trade measures; inventory management, product liability claims, recalls or other safety and regulatory concerns; reliance on third party online marketplaces; seasonal and quarterly variations in our revenue; acquisitions of other companies and technologies and our ability to integrate such companies and technologies with our business; our ability to continue to access debt and equity capital (including on terms advantageous to the Company) and the extent of our leverage; and other factors discussed in the “Risk Factors” section of our most recent periodic reports filed with the Securities and Exchange Commission (“SEC”), all of which you may obtain for free on the SEC’s website at www.sec.gov. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by us on our website or otherwise. We do not undertake any obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Industry & Market Data Certain data in this presentation was obtained from various external sources. Neither Aterian, Inc. (the “Company”) nor its affiliates, advisers or representatives have verified such data, with independent sources. Accordingly, neither the Company nor any of its affiliates, advisers or representatives make any representation as to the accuracy or completeness of that data or to update such data after the date of this presentation. Such data involves risks and uncertainties and is subject to change based on various factors Non-GAAP Financial Measures In addition to financial results prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this presentation contains certain non-GAAP financial measures. Such non-GAAP financial measures in this presentation may differ from similarly named non-GAAP financial measures used by other companies. Management believes that in addition to using GAAP results, non-GAAP financial measures can provide meaningful insight in evaluating the Company’s operating performance. You are encouraged to review the reconciliation of non-GAAP financial measures with their most direct comparable GAAP financial results set forth in the Appendix to this presentation. For a full discussion of the Company’s risks, you should review the Company’s most recent SEC filings including the Company’s most recent 10-K and 10-Q available on SEC.gov 2 / Trusted and Innovative Brands
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Our Vision Six foundational consumer brands in 7 categories with a focus on the home Core North America market with growing international presence Omnichannel sales approach provides access to 250M+ consumers Leading product market positions Global supply chain and logistics network Significant brand equity has created a durable product platform and line extension opportunities Tech-enabled go-to-market strategy Aterian at a Glance Trusted and innovative brands crafted to elevate everyday moments across every aspect of your life. 3 / Trusted and Innovative Brands
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Our VisionInvestment Considerations Turnaround plan initiated in late 2023 delivered meaningful operational and financial improvements in 2024, highlighted by a $20M+ improvement in Adjusted EBITDA. Rationalized product portfolio providing operational clarity, improved margins, enhanced efficiencies, and opportunities to scale. Proven e-commerce expertise supports channel expansion initiatives. Strong balance sheet and modest debt profile. 2025: Accelerating tariff-response initiatives while implementing aggressive cost optimization plan. Founded 2014 IPO 2019 HQ Summit, NJ Shares O/S 8.7 M* Insiders’ Own 14.7%** North America 94% UK EU Strategic Sales Partners * As of March 31, 2025 ** https://www.sec.gov/Archives/edgar/data/1757715/000114036124032430/ny20024958x1_def14a.htm 2024 Net Revenue Geographic Profile 4 / Trusted and Innovative Brands
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Global Supply Chain Built for Speed, Efficiency, and Market Leadership Global Workforce: Employees in the US, China, and UK ensure seamless operations. Strategic Warehousing: Multiple fulfillment centers across the US and UK reduce lead times. Seller Fulfilled Prime: Direct fulfillment in the US and UK provides faster delivery. Optimized Logistics Network: End-to-end visibility with cross-border expertise. In-house Expertise: Sourcing, quality, engineering, and compliance teams ensure high product quality Peak Live Customer Support: Product support across multiple brands, including live telephone support for seasonal products 5 / Trusted and Innovative Brands
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“Our team completed a comprehensive reassessment of nearly every facet of Aterian’s business model as part of our turnaround strategy. We have focused, simplified, and stabilized the Company. We rationalized our SKUs to focus on the Company’s six foundational brands, generated material improvements in gross margin and contribution margin, and narrowed our losses significantly compared to 2023. We improved our cash flow and working capital profile, reduced debt by more than $4.0 million, and right sized our inventory to focus on Aterian’s most profitable products.” - Arturo Rodriguez Chief Executive Officer March 2025 Rationalized product portfolio to 6 highly regarded brands Simplified go-to-market and marketing strategies Improved efficiencies in market account structures and supply chain Transitioned to best-in- class third-party IT platform Improved working capital profile Expanded sales channels and introduced new products Successful Turnaround Initiatives Implemented in 2023… 6 / Trusted and Innovative Brands 2024
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…Delivered Meaningful Improvements in 2024… 2023 2024 Net Revenue Gross Margin Contribution Margin Operating Loss Net Loss Adjusted EBITDA (1) 2023 2024 $142.6 49.3% 62.1% 1.2% 17.1% $(76.2) $(11.8) Cash Flow from Operations $(13.4) Cash $20.0 $18.0 Total Debt $11.1 $6.9 $99.0 $(74.6) $(22.3) 2023 2024 2023 2024 2023 2024 $(11.9) 2023 2024 $(2.1) 2023 2024 $2.2 2023 2024 2023 2024 (1) A non-GAAP measure; see reconciliation in this presentation 7 / Trusted and Innovative Brands
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“We are accelerating the execution of our tariff mitigation strategy to ensure we maintain the financial runway to evolve and strengthen the business. The actions we are taking will allow us to: ▪ maintain an acceptable level of revenue during this transition period ▪ conserve cash ▪ preserve margin ▪ maximize cash flow ▪ optimize our cost structure We believe that these initiatives will mitigate the effects of tariffs on our results in 2025 and position Aterian to pivot towards a return to growth and profitability beyond 2025, even under prolonged tariff pressure.” - Arturo Rodriguez Chief Executive Officer May 2025 8 / Trusted and Innovative Brands Tariff Response Initiatives: Actively Managing What We Can Control Reduced Fixed Costs Product Re-sourcing Product Launches Strategic Price Adjustments Cost optimization plan targets $5-$6 M of pre-tax cost savings, $5 M of which is expected to be realized by the end of 2025 Goal: No more than 30% of China-manufactured goods by YE 2025 Shifted dehumidifier reorders for Q3 2025 delivery to Indonesia Expect to begin sourcing others from Thailand in early 2026 On track for late Q3 2025 launch of Squatty Potty flushable wipes. Launch a portfolio of new tariff-exempt US-sourced consumable products in 2025, including additional wipe-based products. Temporary pause on new category launches from China, particularly hard electronic goods Inventory and Supply Chain Partnering with manufacturing base to identify cost-saving opportunities, renegotiate pricing, and shift fulfillment to non-U.S. geographies Price increases across portfolio to recoup margin loss and moderate velocity Delaying reorders to find alternative resourcing avenues
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Acquired in 2021 Over 3.5M stools sold from acquisition through 2024 New products scheduled for 2025 The #1 Brand to help you #2. We created the Toilet Stool category, now we are reimagining bathroom wellness, one product at a time. Squatty Potty offers innovative, health-forward solutions that prioritize comfort, wellness, and sustainability—all while bringing a little joy to your daily routine. 97% customer satisfaction Top 1% of searches on Amazon #1 best selling toilet stool in the world 9 / Trusted and Innovative Brands Our Brands and Products
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Our Brands and Products Created in 2017 hOmeLabs is redefining home essentials with innovative, stylish, and functional appliances designed for modern living. Dehumidifiers Refrigerators Trash Cans 10 / Trusted and Innovative Brands AVAILABLE AT
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Our Brands and Products At PurSteam, we’re redefining the way people clean by harnessing the natural power of steam. Our innovative solutions make home cleaning and garment care effortless—without relying on harsh chemicals. Acquired in 2020 Steam mops Irons Steamers AVAILABLE AT 11 / Trusted and Innovative Brands
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Our Brands and Products Stylish & Functional Kitchen Essentials Designed for both performance and style, our streamlined kitchen essentials bring efficiency and elegance to every home. Acquired in 2020 French Presses Blenders Kettles Vacuum Sealers Slicers Coffee Grinders AVAILABLE AT 12 / Trusted and Innovative Brands
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Our Brands and Products Acquired in 2021 Essential and fragrance oils Bulk sizes Organic options Sets Diffusers Sprays, Roll-on, Droppers We provide targeted, natural remedies for specific beauty and wellness needs. Our products empower consumers to achieve visible, results-driven self-care with natural, simple solutions. 13 / Trusted and Innovative Brands AVAILABLE AT
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Our Brands and Products Acquired in 2021 Inkjet photo paper Professional photo paper Creative paper Transfer paper AVAILABLE AT Empowering creators, crafters, and professionals with high-quality, versatile paper solutions that bring ideas to life. From vibrant photo prints to innovative DIY projects, we inspire creativity and deliver trusted performance for every need—created with care in the United Kingdom. 14 / Trusted and Innovative Brands
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Net Revenue Profile Heating, cooling, & air quality -hOmeLabs- Kitchen appliances -Mueller Living- Health & beauty -Squatty Potty- Cookware, kitchen tools, & gadgets -Mueller Living- Home office -Photo Paper Direct- Housewares -PurSteam- -hOmeLabs- Essential oils & related accessories -Healing Solutions- Other 2023 Net Revenue $142.6 M 2024 Net Revenue $99.0 M 24.3% 17.0% 11.2%8.2% 6.9% 18.3% 12.1% 2.0% 15 / Trusted and Innovative Brands < 1.0%
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Leadership 16 / Trusted and Innovative Brands
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Investment Conclusions Refreshed leadership Established portfolio of well-respected consumer brands with leading market positions Core North America market with focus on expanding international presence Access to 250M+ consumers Strong financial profile Tariff-mitigation strategies support a return to growth and profitability beyond 2025, even under prolonged tariff pressure 17 / Trusted and Innovative Brands
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18 / Powering the Energy Transition Forward Looking Statements Financials / Appendix
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3 2024 Consolidated Results Statement of Operations Summary ($ in thousands) FY 2024 FY 2023 Net Revenue $ 99,045 $ 142,566 Gross Profit $61,495 $70,285 Gross Profit Margin 62.1% 49.3% Total Operating Expenses $73,318 $146,475 Operating Loss $(11,823) $(76,190) Net Loss $(11,862) $(74,564) Adjusted EBITDA ($2,059) ($22,284) 2024 Financial Results Source: Company SEC filings 19 / Trusted and Innovative Brands ▪ Decline in net revenue reflected the success of the SKU rationalization, improved inventory profile, and new product introductions. ▪ Higher gross margin due to success of SKU rationalization and improved inventory profile. ▪ Contribution margin rose to 17.1% from 1.2%. ▪ Full year 2024 operating loss included ($7.5) M of non-cash stock compensation, and restructuring costs of ($0.6) M, while full year 2023 operating loss included ($8.3) M of non-cash stock compensation, a non-cash loss on impairment of intangibles of ($39.7) M, restructuring costs of ($1.6) M and a reserve for barter credits of ($0.3) M. ▪ Full year 2024 net loss also included a gain on fair value of warrant liability of $0.9 M, while full year 2023 net loss also included a gain on fair value of warrant liability of $2.4 M.
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3 2024 Consolidated Results Statement of Operations Summary ($ in thousands, except EPS) Q1 2025 Q1 2024 Net Revenue $15,360 $20,214 Gross Profit $9,424 $13,168 Gross Profit Margin 61.4% 65.1% Total Operating Expenses $13,120 $18,446 Operating Loss $(3,696) $(5,278) Operating Margin (24.1%) (26.1%) Net Loss $(3,896) $(5,162) EPS (basic and diluted) $(0.52) $(0.76) Adjusted EBITDA $(2,505) $(2,625) 2025 First Quarter Financial Results Source: Company SEC filings 20 / Trusted and Innovative Brands ▪ Net revenue reflected previously announced SKU rationalization designed to focus on the Company’s most profitable products and changes to Amazon’s affiliate market program leading to reduced traffic and conversions for certain products. ▪ Gross margin reflected change in product mix. ▪ Contribution margin decreased to 13.4% from 14.1%. ▪ Q1 2025 operating loss included $(0.8) M of non- cash stock compensation, while Q1 2024 operating loss included $(1.7) M of non-cash stock compensation, and restructuring costs of $(0.6) M. ▪ Q1 2025 net loss also included a gain on fair value of warrant liability of $0.1 M, while Q1 2024 net loss also included a gain on fair value of warrant liability of $0.5 M.
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Consolidated Balance Sheet Balance Sheet Summary ($ in thousands) March 31, 2025 December 31, 2024 Cash & Equivalents $14,337 $17,998 Accounts receivable, net $3,391 $3,782 Inventories $18,144 $13,749 Current Assets $39,384 $38,719 Property, Plant, and Equipment $689 $685 Total Assets $49,818 $49,542 Current Liabilities $22,550 $19,298 Total Liabilities $22,779 $19,525 Stockholders’ Equity $27,039 $30,017 Total Liabilities and Stockholders’ Equity $49,818 $49,542 Financial / Liquidity Position Source: Company SEC filings 21 / Trusted and Innovative Brands
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Source: Company SEC filings Adjusted EBITDA (Non-GAAP) Reconciliation ($ in thousands) 2024 2023 Net (loss) income $(11,862) $(74,564) Add: Benefit for income taxes $(47) $(867) Interest expense, net $949 $1,421 Depreciation and amortization $1,689 $3,886 EBITDA $(9,271) $(70,124) Other expense, net $61 $260 Impairment loss on intangibles — $39,728 Change in fair market value of warrant liabilities $(924) $(2,440) Reserve on barter credits — $323 Restructuring expense $565 $1,633 Stock-based compensation expense $7,510 $8,336 Adjusted EBITDA (non-GAAP) $(2,059) $(22,284) Net loss as a percentage of net revenue (12.0%) (52.3%) Adjusted EBITDA as a percentage of net revenue (2.1%) (15.6%) Note: Each adjustment has been taken directly from the income statement to derive adjusted EBITDA (Non-GAAP) for YoY operational comparisons. 22 / Trusted and Innovative Brands Annual Reconciliation
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Source: Company SEC filings Adjusted EBITDA (Non-GAAP) Reconciliation ($ in thousands) Q1 2025 Q1 2024 Net (loss) income $(3,896) $(5,162) Add: Provision for income taxes $20 $71 Interest expense, net $175 $323 Depreciation and amortization $408 $428 EBITDA $(3,293) $(4,340) Other expense, net $60 $7 Change in fair market value of warrant liabilities $(55) $(517) Restructuring expense ― $558 Stock-based compensation expense $783 $1,667 Adjusted EBITDA (non-GAAP) $(2,505) $(2,625) Net loss as a percentage of net revenue (25.4%) (25.5%) Adjusted EBITDA as a percentage of net revenue (16.3%) (13.0%) Note: Each adjustment has been taken directly from the income statement to derive adjusted EBITDA (Non-GAAP) for YoY operational comparisons. 23 / Trusted and Innovative Brands Q1 Reconciliation