Aterian, Inc. (ATER) goes up by +23.43% to trade at $7.69 in premarket against its last close at $6.23 (+4.53%) on November 8, 2021. This new upside movement can be attributed to the announcement of the Q3 earnings results after the market closed on November 8.
More about Aterian, Inc. (ATER)
Atreian is a technology-enabled consumer products company. ATER uses artificial intelligence and other technologies for creating and selling products. Aterian along with acquiring offerings from other companies markets its own products and has built a supply chain as well.
Using AIMEE software (Artificial Intelligence Marketplace E-commerce Engine), ATER creates, prices, and sells products. AIMEE software uses AI as well as data collected from consumers for the process.
ATER’s Year in the View
After reaching a staggering $49 in February 2021, a lifetime high in its timeline, ATER had been on a bearish path. ATER continued to be bearish until investors targeted the stock as the next candidate for a potential explosive short-squeeze at the end of September. This uptrend didn’t last long after the company announced to issue new common stock to its lender, in order to pay its debts.
Aterian, Inc. attributed its financial crisis to the tremendous increase in shipping containers and other supply chain headwinds, Covid-19 being a major factor.
Q3 Earnings Results
On November 8, 2021, Aterian announced its Q3 earnings result after the market closed at 4:05 pm ET. Quarterly net revenue growth was 16% as it grew to $68.1 million against $58.8 million in the same quarter for 2020. ATER beat the consensus revenue expectations of $63.0M.
According to the Q3 earnings result, the basic and diluted earning per share was -1.23 as compared to -3.15 for the previous quarter.
Remarks by the Co-Founder
As per YanivSarig, Co-Founder and Chief Executive Officer, a collective effort was made in the Q3 in order to bring some stability in the company and improve the financials. It was necessary to put Aterian on the right growth path as it enter 2022. Previously the company suffered a lot mostly on part of the huge shipping charges and Covid-19 hitting hard.
After a tremendous effort by the team, Aterian has finally come up with better logistic solutions to cut back on the shipping costs by securing new competitive rates with certain partners including Amazon, Flexport, and XPO. While Covid-19 and its drastic effects on the supply chain still remain but the current efforts by the team has put the company on the right path for accelerated growth in 2022.
