Aterian (ATER) Investor Update summary

Leadership changes and strategic focus

• Arturo Rodriguez appointed CEO, succeeding Joe Risico, who will consult during a three-month transition.

• Josh Feldman promoted to CFO after serving as SVP of Finance, recognized for strengthening the balance sheet.

• Leadership reiterates commitment to focus, simplification, and stabilization.

Updated financial guidance and performance drivers

• Q2 2024 net revenue guidance raised to $23–$26 million, up from $20–$23 million.

• Adjusted EBITDA guidance improved to -$1 million to breakeven, from prior -$2 million to -$1 million.

• Cash balance expected at $17–$18 million with $10 million drawn on credit facility as of June 30, 2024.

• Strong dehumidifier sales, driven by effective marketing and possibly weather, are the main factor in improved outlook.

• Company expects to achieve Adjusted EBITDA profitability in the second half of 2024.

Operational initiatives and cost management

• Continued reduction in general and administrative expenses to support profitability goals.

• Appointment of UHY as new independent auditor, replacing Deloitte.

• SKU rationalization and focus on core products have improved execution and marketing efficiency.

• Diversified freight vendors and timing of inventory have mitigated impact of rising freight rates.

• Company expects to report a net loss for Q2, H2, and full year 2024 due to interest, restructuring, and stock-based compensation expenses.