ATER - Aterian Q3 Results: Outlook Remains Gloomy

• Although Q3 2021 results came in above consensus on revenues and operating profit, we believe the overall picture on Aterian has not changed materially, and the outlook remains gloomy.
• Q3 net revenues reached $68.1 mln (+16% YoY), of which $35.4 mln were supported by organic business and $30.7 mln from recent M&A activity.
• Aterian made no new product launch in Q3 as the 40 new launches in 2021 were all made in H1. This is understandable given the current challenging market conditions.
• We believe a share capital injection is in the cards. We expect ATER will be shortly forced to issue new shares at a discount to finance its operations. From June 2020, the company has almost tripled the number of shares from 15.4 mln to the current 50 mln.

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