Consumer products firm Aterian suffered a 14.5% decline in second-quarter revenue YoY to $58.3 million -- down from $68.2 million in Q2 2021.
The company attributes this decline “mainly to the overall softness in consumer demand that is affecting the entire retail sector as well as continued supply chain issues,” says Yaniv Sarig, Co-Founder and Chief Executive Officer of Aterian.
In addition, there was a Q2 net loss of $16.3 million -- an improvement from $36.3 million in the second quarter of 2021.
The Q2 gross margin improved to 53.8%, compared to 48.0% in the same period last year.
Sarig adds that on “the bright side, we are seeing a decline in the cost of shipping containers as global demand subsides and we are optimistic that if the current price trajectory continues, we should be well positioned to reignite growth in 2023.”
“Our focus in the near term is on normalizing inventory levels for products procured at an inflated cost basis so that we can restock inventory while benefiting from lower shipping costs and positioning us for a return to a double digit contribution margin," Sarig adds.
Aterian’s cloud-based platform, Artificial Intelligence Marketplace Ecommerce Engine, streamlines management of products across such online marketplaces as Amazon, Shopify and Walmart.