Strategic cost reductions and …

Appearance date: May 14, 2025

For the complete protocol of the earnings call, see the full profit call transcription.

• Aterian INC (NASDAQ: Ater) has carried out an initiative for fixed cost reduction for annual savings of 5 to 6 million US dollars.

• The company accelerates its plan to diversify production and aims to reduce the dependence on China to 30% by the end of 2025.

• Aterian Inc (Nasdaq: Ater) extends its product line in consumables, which are mainly freed from tariffs.

• The company has managed to improve the adjusted EBITDA loss by 24% with a decline in net sales.

• Aterian Inc (Nasdaq: Ater) has a strong record of 14.3 million US dollars in cash, so that it can navigate in 2025 without increasing additional equity.

• The net turnover for the first quarter of 2025 decreased by 24% compared to the same period of 2024, especially due to the Sku rationalization and changes to Amazon's partner program.

• Due to the recent changes in tariffs, the company is exposed to considerable volatility, which affects the supply chain and its price strategies.

• Aterian Inc (Nasdaq: Ater) has withdrawn its financial guidelines from 2025 due to the current economic uncertainty.

• As part of its cost -saving measures, which can affect the morals of employees, the company will change the company's employees.

• The gross margin fell from 65.1% in the previous year to 61.4%, mainly due to changes in the product mix.

Q: Can you talk a little more about your inventory plans with 30%China tariffs at short notice and in the medium term? A: Arturo Rodriguez, CEO: We parked some processing businesses in China and explored the opportunities to move them to other regions. We also increased the prices to slow down the speed. Our supply chain is diversified and we feel comfortable when we ensure the necessary programs. We closely monitor the situation to ensure stable tax environments and avoid filling.

Q: Could you talk a little more about your price strategy and how consumers reacted to the changes you have reacted? A: Arturo Rodriguez, CEO: The e-commerce market is very insensitive. We saw mixed results, the speed decreasing with increasing prices. It is unclear whether this is due to the softness or price resistance of consumers. Nevertheless, our core products have strong ranking lists. We have price inflexibility, especially at tariffs at 30%, and we visit our strategy again if necessary.

Q: Is there a way to accelerate your diversification strategy with regard to the production? A: Arturo Rodriguez, CEO: We move as soon as possible and ensure product quality. We focus on the diversification of our product lines and the doubling of the consumables, which will help us to diversify and position us for 2026.