As expected, Aterian Inc. (ATER) missed its Q1 2022 earnings as well as revenues when it posted the results on May 9, 2022. Investors were worried about the earnings as its history of earnings miss and declining contribution margin amid the supply chain disruptions and inflation, had been indicating another earnings miss. Thus, with worries surrounding the earnings, ATER stock suffered a loss of 7.64% prior to the earnings in Yesterday’s regular session. Following the earnings report, the stock continued to plunge down in the after-hours and has so far lost 12.28% in today’s premarket.
At the time of writing, ATER was trading at a price of $3.50 per share in the premarket on May 10, 2022.
ATER’s March Quarter Highlights
In the first quarter of 2022, the technology-enabled consumer goods company generated net revenue of $41.7 million against $48.1 million in the comparable period. Marking a decline of `13.3% YOY, the revenue missed the consensus estimate by 8.16% for the quarter.
While the quarterly net loss of $42.8 million did mark an improvement against the comparable $82.6 million, the loss per share still missed the expectations. ATER came out with a loss of 25 cents per share while it was expected to post a quarterly loss of 24 cents per share.
Moreover, the adjusted EBITDA loss increased to $4.5 million against $1.2 million and the contribution margin went down to 9.2% from 12.7% as supply chain headwinds continued.
At the end of the quarter, ATER had a cash balance of $44.3 million which the company said will help with its focus on retaining its market share across its portfolio of products amid the challenging macroeconomic conditions and help it shield from the unpredictable environment.
The macroeconomic conditions have been deteriorating since the pandemic started in 2019. While things were heading towards normalizing after the outbreak settled down a bit but the new crisis caused by the Russian Invasion of Ukraine has caused a huge blow to the already fragile situation. Global supply chain constraints, peaking inflation, and rising interest amid geopolitical and economic instability are causing continuous blows to the stock markets around the world.
Given the continued global supply chain constraints and inflationary pressure, ATER failed to impress investors with its latest earnings report. Hence, the stock has continued on a bearish roll since before the earnings were released and is still plunging down in today’s premarket session.