ATER - Aterian stock drops 17% after Q2 guidance cut amid consumer softness; CEO quits

2023-07-27 11:13:02 ET

Aterian ( NASDAQ: ATER ) stock dropped 17% on Thursday after the company cut its Q2 guidance to reflect softness in the consumer discretionary space, and expects to achieve profitability next year. Additionally, Yaniv Sarig stepped down as CEO and board member a day earlier.

Aterian ( ATER ) expects Q2 net revenue of $34.8M-$35.4M vs. prior outlook of $37M-$44M and $39.74M consensus .

Adjusted EBITDA loss is projected to be $8M-$9M, excluding $1.2M of restructuring expenses expected to be reported. That compares to its previous forecast of $4.2M-$5.2M.

"We are still focused on driving the company to profitability; however, with our expected view of continued consumer softness in 2023, we believe adjusted EBITDA profitability will be more realistic in the summer of 2024 vs. H2 2023," said co-CEO Arturo Rodriguez.

Aterian ( ATER ) appointed Joe Risico and Rodriguez as co-CEOs effective July 26. They also joined the board. Rodriguez will continue in his current role as CFO.

William Kurtz, Aterian's ( ATER ) current lead independent director and board member, has been named the chair of the board.

Now read - Aterian: Downgrading On Substantially Reduced Expectations Amid Weak Consumer Demand

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