Earnings call transcript Q2 2023

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Operator

Good afternoon, and welcome to the Aterian, Incorporated Second Quarter 2023 Earnings Report Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Ilya Grozovsky, Vice President of Investor Relations and Corporate Development. Please go ahead.

Ilya Grozovsky

us discuss joining XXXX second for results. earnings you today Aterian's to quarter Thank are and Joe Co-CEOs. call today's On Risico Arturo our Rodriguez,

A website release Relations press copy on of Investor the is section iterian.io. at available Aterian's of today's

regarding on Before Reform that remarks we that Act forward-looking within of on everyone the of based contain the the our may XXXX get expectations, meaning developments management want including expectations. differ current targets without call and mentioned. plans Private remind predictions, I statements started, may to and this those could Securities and financial are Litigation It or anticipated objectives, include limitation, results materially events business from performance, estimates, future actual

our differ statements review actual substantial SEC. at a and our These you also others control risks from on XX-Q on some materially of on filings risks that involve in of among XXXX XX, uncertainties encourage the our the could is These expressed discussion are March such results it Form report statements. website uncertainties, XX-K Investors discussed filings by cause our or outside and implied to forward-looking and and those of which on report maybe when including risks, to our which quarterly Form Annual We aterian.io. available these filed of these is portion with for

evaluating consistency performance period comparability facilitate supplemental to are which margin, generate with our undertake results. information This our obligation earnings, EBITDA to certain measures statements. are new financial made provide adjusted statements by no law. these believe or and and only for These EBITDA to adjusted not today, that also period should of operating call forward-looking in assist reliance of ability and including core undue useful contain our required You comparisons and we on place past revise non-GAAP measures, we as as will any update them

are included and titled GAAP Please at these by which release, other aterian.io. in presented investors non-GAAP is indicators note of the our the most similarly website available of definitions these our these to measures our comparable from metrics on earnings differ that of measures Reconciliation of portion companies. may measures definition

unable are are measure margin net adjusted without company's a not the unreasonable forward-looking the most to GAAP margin, income of or reconciliation comparable reasonably EBITDA provide non-GAAP directly predicted. within We GAAP on that this items be cannot efforts a measure financial to financial control and basis impact because

will I Joe. over turn that, With the to call

Joseph A. Risico

challenges our everyone our will and Ilya, adjusted and change, management then for joining quarter, focus QX. near-term path us the in with with a the the cover for profitability. EBITDA second and you quarter, recent going today. Thank we strategy thank our on to to for our financial you, you second experienced share discuss Today outlook our results I'm Arty then

steward Aterian. as As on people and Board want of Sarig, on of efforts Arty Yaniv Aterian Co-CEOs of our previously July of and XX, Co-Founder for Aterian. to I and tireless I've to relentless former CEO announced, taken and Arty, his of our the myself, behalf role thank

sell. been joined from products as navigate practically the inflationary high COVID-XX the X reductions long IPO categories particular, and day its Arty over spending, chain Aterian imports, challenges prior now of and to we that on been the tariffs well in and years, both shifts environment very through costs, I consumer the rapidly years the pandemic, a crisis, consumer strong Chinese Aterian's Aterian have given It's as including in say the and the number discretionary over headwinds current supply one, journey as IPO. we for its and for Arty I of that escalating to taking a ago business proud I'm partners, Aterian helping

CFO and revenue, company initiatives. oversight as serve will and operationally, strategy our which on I chain growth will will to lead of and primarily Arty includes lead technology. related supply the continue

bumps there opportunity While into the ahead, lead be are the excited likely grateful to and will road Aterian I in future. Arty for the and

second results. to quarter on Moving

across reduced air Our patterns of unfavorable sales portfolio, and we where reflect United weather consumer lines. our for results discretionary to extent product our particular, expected appliances, spending environmental the parts dehumidifier some stronger our of States, in and in conditioning

selling we're experienced We marketplaces as shelves on above. the revenues impacted And today. is that in come of also almost pricing competitive we where also light which such of our Amazon, with significant dynamics on by earn all pressure unlimited

coming pricing Having said and have consumer continue believe margins the taking good rest be expect to that or months the results do will we we price, deliver continue to We that competitive in to to of better spending primary and a for great core Aterian's to organic products adjusted release actions reduced growth. set in products sustainable profitability provide the for strong that, that and position and with consumers pressures business, competitive is goal value other EBITDA and XXXX. discretionary Aterian's of Aterian. performing high we

and in focus, is near-term, the with we path Aterian's first to and around with intend themes I I focus, As Today, revenues cornerstone how which strategy and recurring our operations: share profitability. Arty the and want simplification on three for leading to you our to will stabilization. be view

take promising narrowing we in first, profitability, our consumer profitable most historical strategy. focus. we look like with on this particular our and by approach operations, a and thoughtful our to products Non-core to being to product radically for on Aterian's unlock and ability deliberate, updates portfolio can been We and sustainable omni-channel an to the Potty our implement, and agnostic have several forward to Squatty path skews that will example, product on believe rationalization a months will be providing drag to effort. process This SKU profitability and

selling intend technology theme of remains I do while pursue our clear Continuing a important we highly our to success, service. make want the technology that for on focus, to as today not

overall will down shut we have of affiliate marketing DealMojo, important affiliate strategy, marketing marketing while our addition, In remain platform. our component an

As intermediary, do third-party an matching would DealMojo a a platform, not that where own and a we exchange was fee, for control. or to serve publishers reminder as intended be in Aterian brands

not to to allow these While financial us our initiatives not further will drive material results, focus. pursuing

Regarding be for will a Europe, focus geographic it near-term. expansion, particular in not area in the us in

While business we do have in our Potty Squatty our is that and selling expect transfer currently continue. and we paper Europe, to

focused expand the For that not success now, need to given geo, in to we intend highly U.S driving remain market. to do the on that

driving rationalization Lastly, believe on with focusing that organic non-core from be summarize, to can and can strategy consumers we business by omni-channel coming deliver and thoughtfully roadmap. more our baseline new continue which we of To products will growth SKUs an profitable by products, by that M&A from starting the grow. strategic our of unprofitable a for our launching love, part best we

and with the focus, In efforts you relating initiatives other also and progress, look simplify to share coming our strategic to stabilize months, discussing to forward to we our business. our

that, Arty. to I'll With you. along Thank it pass

Arturo Rodriguez

Good as its to days evening, your to first some and more great excited supply tech, very of the rest futures. and call has with partner CEO. importantly and even everyone. co-lead have Aterian chain into impressive team. Joe the fantastic an to you I'm in supported and people. most products our by Co- to Both earnings Co-CEO as I'm opportunity Aterian honored Joe welcome Thanks, and humbled and brands the

continued our every single is achievable, going profitability adjusted Joe runway few remaining to continue so profitability. we and with person sheet have path to that take which strongly we of believe it Regardless than past balance goal highlighted longer as some EBITDA originally improve over of get successfully to I our to earlier will we us believe to navigate anticipated. us our are hearing, that Together to give by is delay, have obstacles that will challenged the of that the years Joe. the

as work we have a respective on and embark mission. of Joe lot our I do to

of simplifying shared and our resolute. stabilizing to ultimately tearing back and vision is and towards profitability, However, growth focusing initial

Now quarter. our details of second here financial the are performance

to second and net quarter reduced declined year portfolio. the revenues $XX.X competitive ago $XX.X from spending due discretionary consumer million XXXX, across in significant our pressures XX.X% of quarter, the to pricing For primarily million

at follows: broke release, $XX.X as $X.X revenue. $X.X Looking $XX.X million sustain, normalization than and less revenue follows; ago down net net the defined sustain, and in second as million inventory launch inventory in in million phase in The and year million of million our liquidate revenue by in launch as broke phase and $XX.X normalization. in quarter by and $X.X down liquidate $XX million million our million $X.X press

and decrease competitive pressure pricing sustain the discretionary our and of portfolio, in particular product million $XX.X significant air spending consumer reduced revenues conditioning net from but is across lines. dehumidifier Our

levels. inventory strategic our higher increased to $X.X sell-off revenue normalize and by from net price liquidation Our initiatives inventory, to million

revenue new launched late quarter to Four attributing in product period. were the variations in the very second nominal

continuing to later new in product XXXX, plan opportunistic. with introductions timing are We being the

the $X.X XX.X% essential impacts product period, and margin on other inventory quarter quarter higher during mix sell-off and reserve. a continuous This gross gross second impact reserve a and X.X% from price pressures by for ago to XXXX. the was pricing in from or The initiatives of in and the XX.X% Overall reduction QX strategic decrease year to from declined driven our oils levels This normalize increased inventory million was from margin. had in products expiring changes primarily negative reserve forecast. our inventory of obsolescence XX.X%

been XX.X%. margin gross our impact, this have Excluding would

higher and release contribution was prior pricing QX and of normalized our period, increase to in X.X%, overall decrease quarter's by margin Our margin sell-off million defined CM in negative was XXXX of inventory mix, which years to contribution product The reserve. inventory earnings first decreased obsolescence inventory pressure the price and driven in CM levels continued to our X.X% initiatives $X.X strategic during XXXX decreased compared compared as X.X%.

impact, would reserve this been have Excluding CM positive our X.X%.

was pricing continued XX.X% during product reserve. contribution period, our to obsolescence decrease in of sell-off increase to by initiative saw and higher XXXX million X.X% $X.X inventory the versus margin sustain XXXX. contribution in strategic mix, QX our product driven in price year-over-year inventory the margin decline The QX pressure

on sustain Excluding XX.X%. been our would for have CM positive this impact reserve

a online as distribution an net in for and ago of due product fees to compared into This contribution in XX.X% in quarter. to deeper mix sales expenses our and increase variable costs. a increase expenses percentage fulfillment to increased Looking increase revenues XX.X% and margin primarily QX advertising an year distribution XXXX, and sales as

million May our restructuring our charge of $X.X reduction. period, announcement for a the expenses work we Xth plan force from primarily of took our In

reduce costs by previously plan we annually. $X stated, this million As its expect to

to see effects those savings in to expect We QX the of XXXX. of start

the loss Our our our to higher our operating second business supply sheet continue continued normalize year of sell in the to strengthening quarter of by as compared from price we balance million the to ago strategic increased chain from inventory. $XX.X impacts $XX.X million quarter and initiative

of change million of million $X.X noncash stock $X.X million Our includes loss included impairment and intangibles cost XXXX compensation restructuring expense, and noncash and second of a quarter $X in $X.X XXXX our from gain noncash second the while expense. a $XX.X value quarter of compensation net fair for liabilities in stock operating loss loss operating of million million,

of increased the Our loss the million quarter to our from year buy higher quarter and million net the as $XX.X balance continued sell strategic inventory. of $XX.X we our in our priced to from loss initiative a business ago chain for strengthening normalize of sheet the of impacts supply continue

operating the a quarter second value plus gain warrants. while plus impacts quarter operating our a change our loss as impacts from second of impact value our XXXX loss includes from earlier net includes million, of fair million liability warrant described $X of $X.X XXXX as described Our earlier net in fair of loss loss of

defined previously EBITDA quarter loss Adjusted loss of a second from in $X.X increased as $X The inventory earnings mentioned our reserve impact our in of of had adjusted million $X.X negative a million on increase million in EBITDA. XXXX. the release obsolescence

loss our of have Excluding EBITDA would this impact, a been million. adjusted $X.X

from balance the June our repayments on expected, March the cast million our loss working million credit at At a by $X.X XX, in net the as primarily and million in sheet. million we $XX.X is end XX, $X.X of compared capital had XXXX. approximately to Going decrease period, approximately inflows net of driven of cash, $XX.X facility. to The

noncore We inventory. in the to on inventory of continue second XXXX normalizing by quarter focus liquidating high cost our levels our

of consumer was We level at At considering levels down and but progress, in need are inventory time our appropriate end from reduced to XX, with our million, inventory down quarter of $XX.X the $XX.X $XX.X the do first from million more year pleased at especially at our ago demand. million quarter. the June get XXXX the

of down quarter credit at Our the $XX.X of facility the million XXXX million, end was at end the first quarter balance from XXXX. the second $XX.X of of

$XX.X we between in believe approximately from the represents reduction net $XX.X range. look considering the we middle revenues at the of be XXXX, that the last using This consumer inflation million spend, and As quarter same will of a year QX decrease impact and a of million. XX%

continue to in consumer for to year. expect see We softness the spend the similar of remainder

we in adjusted XXXX, loss $X.X be the second XXXX. EBITDA the range QX expect of EBITDA profitability adjusted of $X.X We targeted million. to million For in to originally half

achievable continued rest spending of at expectation in believe previously don't consumer -- the year. this of softness with as announced, in that However, XXXX through and we we least profitability is we believe don't

sufficient based EBITDA is I on raising above Although strategy this goal our achieve and more targeting are currently currently forecast, cash to summer than we year. that through our have in of and realistic this Joe covenants we believe believe Further, XXXX adjusted working equity. without vision, additional current we our profitability the

if additional be predominantly pursue growth it financing, M&A. previously will through As we stated, for

challenge. that towards access core balance, sheet will to simplifying one. tremendous the This few will In believe closing, continued us navigate focused on stabilizing credit years. is will Aterian of us through for past and solid balance and excited profitability and inventory and our business that vision we time towards goal cash believe allow led levels midcap shared Aterian continue initial focusing, driving laser our profitability. effort our EBITDA challenged take with are and facility our We obstacles priority my we over Joe's be adjusted to of by normalizing

back With it operator that, to turn questions. to call to up the open the I'll

Operator

Marvin [Operator first Instructions] comes BTIG. from ahead. question with Please Fong Our go

Marvin Fong

and Hey, Joe. Arty CEO evening, to good Joe the welcome role.

the rationalized just most focused on of and of offering. So kind question on your initiative guess, the I to, portfolio profitable

base more I profitable maybe of of first and revenue maybe idea So two viewpoint? can rationalized? kind give in you us So this much how like, one, included how guess revenue the kind of an we expect of -- questions of be will could on to the what much this your base be kind

Joseph A. Risico

to one, want you Arty? do -- take Arty that

Arturo Rodriguez

Got the it, Marvin, over think off where guidance the some will think do, working Yes, right to we our primary do we we're you're a hard that. hear said, that as to to going Joe we said, Joe. doing is Thanks. don't material perspective any Hi, that now. from impact, Good question, Hope [indiscernible] you. focus, well. Marvin. through rationalization We That very we'll have but our hopefully it's but than revenue excited think on current going don't is. this. It's to the is based be say, in I our do guided do in be but material, stronger to provide current think, current as it's consumers it. to on on we're able We But think don't currently next to time -- numbers. we And what seeing earnings cut that more be to we're think Joe than call. color still through need is work lot impact revenue, as mentioned, we it a profitability the our

Marvin Fong

said eliminated? this question it guess whole topic. possible just know But on what great. you with going And more that is and but you like in, I XX Or days do surgical is you're this the I to [indiscernible]? might cross brand Okay, be be another

Joseph A. Risico

I'll take that Arty. one,

the all do think right going Marvin, sure -- we're SKU by a SKU so for brands. to we're to going line across review, I be

So it will definitely be surgical.

course we'll to of surgically, [ph] right the of one brands. we're that if that decide we or right, today. it's that work, don't drive Jettison now, don't meaningfully that and But P&L it see expands might in brands Now -- more more any thinking then really to --

Marvin Fong

maybe Okay, just already P&L question. perfect. one And

increase that come that of expect Can expect fixed was jump quarter-over-quarter, that thing? quarter, to down? the restructuring the a one-time why we distribution just But you mentioned So in can just we what in. and know kicking back going I this savings start costing did kind should forward?

Joseph A. Risico

Yes.

in there. from think I some Marvin there's restructuring memory, costs So I think

we of that normal. in restructuring. out, back when expect to we certainly do think be start costs down the think probably actually anyway, coming action more I fixed a as you'll So kind you QX that But bit I more

Marvin Fong

Perfect.

Okay. Thanks, guys.

Operator

question next Please Brian Alliance Kinstlinger is with The Global ahead. go Partners. from

Brian Kinstlinger

my taking questions, for guys. Thanks Hi.

talk inventory or you of much First missed high that one, sorry, the how remaining you process SKU you planned overbought? I about liquidation as priced maybe in the still answered part were it. have Can

Joseph A. Risico

Arty?

Arturo Rodriguez

Yes, some $XX from went so aspects, Joe, I'll $XX year you're that. at down Hey, how grab Brian, doing? in doing last through sometime Thanks. we're I think are well. Hope cut Listen, you right? that working to million million. that, -- really we still

we component listen, with in and a said been we're out what below that. do. that state never right pleased very think been to the we there, as a going always to said number more as our there's We we've I doing fixing perfect. and But of got work bit be we're of on really XX% that in earlier, average in So Brian. pleased But past we've to is, general, be want we've what We didn't injury little how some not balances. inventory is number long

now I looking that probably XX%. being we're think at XX% right XX.X% number to versus

So that. roughly basis, bucks that's $X or so something like like an from million average

in they right So of with fluid the what to that's down. kind that's as environment, But of still we're current consumer we of of want very that's obviously, the that work that sort both now. kind thinking but amount SKU work kind rationalization

Brian Kinstlinger

of least the then, the curious cooling begun been you Thanks. highlighted air to pricing Got under the meaningful I'm it. in That's a other see simply you products. pressure pressure have your at SKUs? piece historically. quarter, obviously and And quality pricing on business,

Joseph A. Risico

I can take that, Arty.

But in And are pockets. discretionary, have you're portfolio, some products and very in well get across it's some there's cases, right. more speaking, margins, areas strong strong sellers. want well, generally that, also say would pressure do out obviously that very there their People, And in run get daily have seeing I I that pricing we inventory. best then they’re that right. in. jump a the though, can rates pressures think sellers as their other little to You of

Brian Kinstlinger

question me. for okay. Yes, Last

to order profitability to have to expect OpEx. [indiscernible], more in like the come all in will back XXXX or basis to do from returning EBITDA, highlighted likely summer $X returning EBITDA adjusted get You of you more which In cut sounds annual million adjusted to you the positive in or growth. revenue it -- to

Joseph A. Risico

Go ahead, that one. Arty speakers] [multiple

Arturo Rodriguez

Thanks. Yes.

believe and brands line good focus As mentioned, profitability revenue. as Joe Brian, as question, portfolio Listen, our I So, than top probably its question. think right? of natural earlier rationalization product I we drag the the we on a bigger [indiscernible] recover, one highlighted

And factor pretty seen I that targets, we quickly target XX%. a CM number our so kind that XX% gets probably the when haven't even in of again, in, and think that to while, early you of think, you above closer maybe

that even after $XX reduced run think, factor total especially just you a fixed below costs, million. on will did, cutting you're kind think we the rating fixed I I right, kind our think when in of be of there, cost right we revenue, that

of that's naturally rationalization to an type that there's be supply that, going And on SKUs, doing right. any out chain come before efficiency through less for that comes of efficiencies

that's up of we're kind see really you and as and how that think -- that's get it. going work we all and that's So sleeves think have how how our where we of get in, lot doing can a you to of there, But of there. kind when how that. have still of we roll that's we mentioned, kind sight. on to it see And line I we we But factor I focus

Brian Kinstlinger

much. Thank Good Great. guys. luck, so you

Joseph A. Risico

Thank you, Brian.

Arturo Rodriguez

Thanks, Brian.

Operator

Fuhrman with The go Alex next Craig-Hallum is Please Group. from Capital ahead. question

Alex Fuhrman

question. And How my expect current more bit is? rate to taking annualized give versus the in quarter And see how I and the million Arty, to for we sense you in what a P&L? million $X of expect year? third cost see fixed other you're you that the in when the much about mentioned Thanks guys. see much to quarter. Can headcount cuts think of of starting quarter that then that you of us full expenses? run going Hi, granular that is $X the this would fourth little should

Arturo Rodriguez

expect of point the Hey, predominant was doing seeing from would time. question. most we in you that Alex, full of the But that say But have by are close to people. QX. some in some think probably of the people the cost how thanks that there amount probably elements to QX. run I at not of you impacts totally start the I if XX% XX% little QX. of through. I I would pretty coming that number say and and a tiny say work savings There's -- do of would we'll in bit savings QX, is there for in this the the rate, time start seeing impacts you

of definitely see a QX. QX that of that I of portion say bigger in XXX% by see would you'll then You next And lot year, through. coming

Alex Fuhrman

some Okay. behind? helpful. give a top sense really be going are of just as rationalizing think put just and really what dollars performing from investment to that SKU, And That can now brands marketing about most willing of, your you're profitable high-level, that's you us right to here then you kind a

Joseph A. Risico

Sure. I that can one, take Arty.

Potty Squatty Squatty product, great the look, right? Potty, brand, right. right, is a its It's So,

great So that's brand. a

brands, really few that these all great other and kitchen brand, that, an in brand. we are have paper have our some oils appliance that again, products to really, home have a needs We got brands them have some SKUs rationalized, [indiscernible], in some brands, them. but We've be

areas And our in for going so, are we the we to months, the think we'll be most of make color think on [indiscernible] coming now. But provide where Alex. more we'll where time we're spending bigger those

Alex Fuhrman

much. very helpful. Okay. That's very Thank you

Joseph A. Risico

welcome. You're

Operator

Koranda ahead. from go MKM. is Please question Matt with next ROTH The

Matt Koranda

evening. Hey, Good guys.

get have last The sort I in the think little in in the year-over-year on things month, third quarter? worse explicitly erosion more outlook, third Just declines to quarter bit color driving what's the imply a guess. a wanted gotten of I little

for a losing erosion categories up of macro it because you in us any weakness. you categories? of clarify have and it search are seems top maybe, then could like stark Or all to little what those seen in particular too chalk to you So

wanted volume pressure just point lastly, just some can pressure So competition a address versus put maybe saying pricing there's and finer of we've on in a maybe where pricing search. lost that to categories then you're just like unit you for see sort some there dynamic some are the of, that categories, sounds top on It us. maybe point And some seeing? so key as maybe finer that well you're put if

Joseph A. Risico

Arty, I can try to address this and then me. maybe you can just jump in over

Arturo Rodriguez

Perfect, Joe. Thank you.

Joseph A. Risico

Okay.

quarter, Matt, most dehumidifiers, so we in the that interesting. So, appliances air comes are dehumidifiers. drive second to expect right, products sort it the to those the When of conditioners P&L, our it's of environmental are and

in actually about it challenges product dehumidifier. had a not I my this was us. loss a the marketplace, and So, of We on being a right. this from that of away But a that's came part the a took -- that a is had remarks There rank product little category into the there. bestseller of bit. tag spoke We

deserve on marketplace, tag that's there the sales you tag on being they right, On hit bestseller other the again that a don't So an this top the and differentiating, when that is are tag, lose challenges of are take of that that competitors, velocity. that, immediate bestseller and have. right, is to you getting velocity, very

and stockings, you product tag, that on ranked in if has bestseller on the in a bestseller dehumidifier, it. front you And you'll okay. for type right, computer, the that do brand the But the of and when NineSky. click Christmas product So one it's number tag you're work, see you'll your called see

the the all shouldn't consumers, it's to priced, of product, have product, had consumer job. So even -- harder know also are it it's that -- a there sort product does for great are gaming confusing though coming that the we another the to and tag, the makes it's out there's we well have which of players creates algorithms, it and category we -- find our there

sort in dehumidifier and you, of right. sort the that of category, seeing kinds of break the And or the And so, that's -- quarter. we're of kind that in make things dynamic right, those can

second because for rather season. been need humidity to started mild then season, incredible rather it are a the the it And folks inventory, right, they right, -- quarter, weather, in on loaded hasn't exit up and the out

down. come prices So

there's And so, pressure if that to Arty, see well. a follow-up as want to add you you. start got little don't way if That's for I you anything a I've of or there. bit what know

Arturo Rodriguez

it well. No, Joe, I answered think,

I think, Matt, your started rates, see we when point, did July, in our it in to into we improvement heating think got aspects, especially I up. some because some run

see cautious still we up we have increase spend improvements, we're still bit, very right? So we some the cautious. particular these but -- but the did just trying you we're good we're a because -- very are of numbers as to being some other be being guided consumer that and just points seen brought there, cautious don't We

when guide, has to been August and really Weather And like months wane. kind of QX. strong flat unpredictable. August, similar I to second QX, September So to to that's look keep half two wane. think the almost mind, you we're QX why at tends starts even very And has in

good versus have numbers certainly the look we'll maybe flat the news being relatively But we're and QX. that's end. So at why some there in cautious QX

Matt Koranda

Okay.

the Okay. Fair seller how gamesmanship lack do for follow-up I maybe of enough, like listing the as to of guys. And interesting. of, it's then just redress? you some sort comments, with better a raise that do you Joe's the with you highlighting what's How you avenue sort get issue Amazon, through challenges product that? your to guys that mentioned? of receptive Amazon term, Is for a guess,

Joseph A. Risico

that have have filing look, take our don't but people have call, -- we constantly speed important. phone they we super a things, Amazon Yes, overnight our right. Bezos something We just very on will it's We marketplace gets large about it's fixed representatives these Jeff on we that. org. but Integrity But is care that the dial, do right, know on complaints. not

Matt Koranda

calls here, any then or guys maybe was you right. you're missed but if what you was Fair write-down, in it us, I've between what enough. just maybe explicitly I just down on for maybe that all out put the can category where focused could. down -- too. winding cover product particular bouncing Okay, written spell inventory And been

Arturo Rodriguez

we day Sure. got we especially certain which expire for out of when a sure. think them it of those big range, expiring and prepared Yes, days it saw, Sure, marks, in In we oils, Yes. time Matt. reality, essential was when done it. with right, downturns in -- they consumer plans That that unfortunately, moving the sell we some get had we I some expires. oils, couldn't predominantly the to within XX said

have charge still them. the take to to You

put I'm it you to So going the platform. on let

Matt Koranda

got [indiscernible] it. take guys. Thank Okay, I'll care you.

Operator

time, I'd the like to conference ahead. this Grozovsky. Please over Ilya At turn go to

Ilya Grozovsky

Thanks.

perks participants the questions they and their program, on our part all thank is submitted. wanted a participation at a what I shareholder for for your progress Participants have of to the aterian.io/perks. which their As that most investors ask sign number to have up management ability popular the program, with one, in questions. the the their our calls. Question as European questions loyalty, shareholder picked reminder, have of of can perks earnings I few expansion?

Joseph A. Risico

when think the important, and time that's right appreciate lot got chop a something where continue -- is the it's said a company. to and And we right markets, wood addressed international for in U.S expansion Having SKU we I with rationalization. that, will in think now we we this the that opportunity there's it remarks. about lot we've want I think to right of We of focus. is the to

Ilya Grozovsky

on Update the thanks. reverse efforts [indiscernible]. the Great, meeting annual split given

Joseph A. Risico

[Indiscernible] already.

focus. day approval split. there to theme of update reverse is quick right is we again, -- the the the expect to We the now, So, get the effect

us, for closing profitability to game. of on EBITDA So, is the path the in name adjusted the

to reverse continue all comment it, doing that's to it. we're think we can about will we're at need we We And on lot a work, we're whether time. evaluating stock. thinking really about But the this

Ilya Grozovsky

is last the shareholder transparency to And and plan confidence? question what regain Great. the was, increase

Joseph A. Risico

Ilya. you, Thank

stock the today. that look, extremely appreciate and -- I just largely and that these We support. retail and get a questions the I are we Arty we So say, realize we're I want engagement, we appreciate to grateful

Arty we to extremely before I for and That's and this transparent, important be at took both endeavor think were always us. I we Aterian right. role, fiduciaries

expect we a to profitability, we of continue reestablishing a have hopefully that will get us, for to we long And So do. if be way to that confidence. we on to and transparent lot go to work path know can

Ilya Grozovsky

Great, you. thank

Operator

call. concludes the question-and-answer the portion This of

look forward speaking terms X Aterian Investment Conference Conference management on with through Global York, In on Main LD of through you future Micro will in the Los September the the upcoming XX our calendar, Wainwright X in ends participating XX. New XXth October XX Annual Select Event be H.C. Annual XXth XXXX Craig-Hallum Alpha New This to We XX in call. calls. on York November Angeles, in

disconnect. now may You

Aterian (ATER) 8 Aug 232023 Q2 Earnings call transcript