Aterian (ATER) 9 Mar 222021 Q4 Earnings call transcript

Good day and thank you for standing by. Welcome to the Aterian. Inc. Fourth Quarter and Full Year 2021 Earnings Report Conference Call. At this time, all participants are in a listen-only mode. there a presentation, session. speakers’ the will question-and-answer be After conference advised recorded. [Operator be today’s may Instructions] Please that be [Operator Instructions] I conference over would now like your today, to host Ilya Grozovsky. to hand the

open please is line Your go ahead. –

current full section Co-Founder press us Officer. statements joining place make Relations today, A based Chief the And Aterian’s today’s discuss of statements. quarter results. judgment for undue you release of and number you at not we on that aterian.io. Aterian’s on year forward-looking reflect forward-looking Yaniv analysis Arturo Investor today are and this and statements. earnings actual certain Sarig, Thank XXXX are; Accordingly, a Financial today’s forward-looking Aterian’s is CEO; website Aterian’s available expectations statements you copy affecting will should from factors reliance to would of in fourth of results as and presentation business. these and may to like call our only On on these Rodriguez, I remind materially differ

or that whether release, statements, earnings as the with regarding thorough undertake webcast, SEC. For associated and we We a uncertainties call be forward-looking any you our this statements the to refer of as do otherwise. to quarter risks fourth forward-looking filings more result discussion made our statements and in information, of not forward-looking alter in or obligation as well with a events future is any the to the new included update conference disclaimer

that, will in earlier these to over to Explanation the turn metrics found the non-GAAP be the metrics I addition, call With on of refer filed In earnings today. release call. may can company Yaniv. this

Aterian’s want for Ukraine. toward thank joining condemnation in minute and to the express to you I Ilya you, by violence unjustified bloodshed taking Thank and a start today. us everyone

your families to can based will employees, offer our includes and times are during team company and Aterian four the employees support made The MacKeen] and [ph], the [Sonata on continue have in provide humanitarian donations efforts hearts we Vislon with help. DeRoss, currently. modest many and difficult to you international ground. myself Ukraine to Our Lee, including any

today, with following I’ll quick to Aterian. to over intro some the the I’ll to a over review summarize go call from level story. those temporary then facing start QX. newer who the due go to I’ll Aterian for topics. like challenges we’re I’d events for key On I will prospects and of the takeaways the macro long-term are

would and product at much tasks, scale recurring Walmart, that story, We business allow brands data of be vast our own e-commerce an team to products our acquiring breed such who by opportunities those would allows hiring have software consumer own on on company. Amazon, enables fulfillment analyze To brands, otherwise here’s across the injecting online. executed need to technology-enabled AIMEE. product newer Aterian across selling and and and and of our daily what categories as focus know AIMEE various part eBay are ability find onto workforce. those its you XX scale, require more. effectively proprietary manage channels sustainable processes to partnering and to our platform to amounts automate our automate AIMEE invested and technology manage building, our new new more. and So efficiently into about channels, we’ve can manually, is us and Through team tasks, and brands, products companies. operates marketing we launch Aterian to various consumer Shopify, in building of a more to called with unscalable

globally, companies invest and while in to the and product agile our footprint most efficient is profitability. in world, consumer continuing become of drive in supply to long-term, chain to scale the goal one technology expanding Our the

of fourth X.X%, net now mainly revenue and global QX. supply inflation. the due from to million, grew XXXX, to our In XX.X% contribution takeaways chain our to but key our disruption declined Moving margin related quarter to $XX.X

normal reminder, XX% our contribution a on product As target categories. margin across environment in is average

chain job QX. at average efforts rates face at international this have shipping adapting versus to us reorganize per surface and paradigms thousands several the a of strategy interacting that success. into to Amazon are pressures. After We new able thoroughly Our getting and operational shown to great supply partners by by period, continued and were container spot our as to issues imposed through the such dollars prefer for negotiate rates with XPO few

our However, the still than on approximately – focus higher period. for is in the shipping cost long-term XXX% are XXXX average here. we’re paying same in Regardless of that our prices

a We’re long-term company’s vision. in believers this

continue happy I’m retaining to position portfolio while strong on critical our lead. succeed the laser-focused across categories. shipping average margins a expectation So our eventually and contribution share continue that to on compressed, our market most share costs will market we’re remain in SKUs with efforts maintain that This report to the

thesis of and until Ukraine analysts in shipping a go the thesis are international New sustainable war The time declining few in Chinese – putting shipping over and Year cost. question and price up several a will that Our is short-term. more might start transportation after in to that weeks rates return predicting ago was that

While are partner pressure going spot and business. potentially we still inflationary $XX,XXX us believe other rates, favorable to – rates will not above logistics that our is not our preferred give

this time. this challenging cautious, environment, we’re Given to guidance be and providing not at

made we’re organically growth want – Despite to initiatives. a initiative through We’re uncertainty we strategic working QX, hard in out facing, positively XXXX. other potentially few decisions correctly point relative could that the generate I M&A various this year, which and to impact

period, a anticipated bring to at lower will Our Western goods team had around cost. a there be that holidays’ in the slightly window

this long-term inventory the we to two in in competitors that did quarters of critical strategy, our schedules, stock out not pursue of If the as suffered we could bring containers will costs the from medium-term, to early. and opted Given of time our XXXX, unreliable short-term in share next outcome revenue to the same The come later for favorable be much increase the shipping short-term market in due perspective. shipping and down more our if favor but year. several impactful from – towards products part a very decision be us the both

we driven clearly ever optimistic to While us we’re our by macro and more who challenges than important continuing are follow long-term to to continuous grappling with environment, level it’s say that the pursue those vision.

in like expected, taking waiting While to future. than longer we’re will us the that the the thrive for is world pass convinced see storm companies

we’re the As private only invest invested looking consumer mission believing the the of product were equity space. ones $XX billion outcome, this and in platform future. witnessing of pursuing stage compete building in the a continue similar mentioned not Amazon previously, to in XXXX to Over same aggregators, I through companies Shopify we’re in the early

of marketplace to of believe navigating ahead we ability requires companies the brands terms challenges. model, the or private, constant All that that e-commerce tedious our continue is managing we’re of We that on to and in these them are to industry attention be are hearing the similar detail. and execute most through of optimization pack

us intend remain this While over domain, as top Aterian an the technology and has goals keeping Technology to managed we investment organization, forefront scale to of dynamics. for sustainable been at has on marketplace the a our key in fixed achieve advantage advantage to time yet we our to us in and automation. to costs ever-changing while due systems what can of all remain give do

Amazon pandemic, the overcome fulfillment imposed by our During by to capability that AIMEE allowed powered other and us partners. shipping limitations critical

raised tech fronts and to strategy. re-launch We and growth, supply infrastructure chain million we and recently our also capital equity M&A the in drive $XX.X financing, to use on in invest further intend this

However, we patient be of opportunities tend the the short-term evaluate macro in the as in context to we different environment.

variety us allow that to product chain look categories going affected to less of wide is model category-agnostic pressures. supply at potentially by are a Our

more We’re in organization. and invest in leadership the team and into also senior going talented to bring our

our step half Pascal. four Revenue roles, thank want take new his role, We’re Chief currently various and a Tomer will Officer, – recruiting across Tomer who to last I the in a over four including in leadership years. for years President for to

contribution his progress he venture follow will that sounding. proudly with new his to and success, for grateful We’re we is the Aterian’s

believe Our past. that in ready be we we will any XXXX unfolds, we’ve the been for challenge like just

once who and resilience we can I Artie shown navigate growing to the product to believe those to attention - we long-term and believe has to year-end execute long coming do results. the play e-commerce immediate again in grow strategy supply in the the world us, if the chain how and should that, of inflationary for can market one company we’ll pass the in while that I’ll The ahead, – to profitable and so. share world. future thinkers bring pressures might fortitude on we in quarter but in Our financial it even year. we through close our the on With continue become consumer considering pause companies discuss fastest events protect invest it,

everyone. and Yaniv Thanks, good day

the of quarter. details performance are financial Here fourth our

and business, $XX.X million million year and from our was $X.X from the of $XX.X million quarter, acquired acquisitions, our net – an fourth the million and $XX.X organic after our comprised net of The brand acquisitions purchase; which our of our revenue million year quarter quarter million revenue acquisitions For our increase note, of million net $XX.X of brands revenue organic net wholesale. wholesale. XXXX, I from built million million our ago $XX quarter year net business, one to primarily ago $XX.X in of; in revenue starting $XX.X includes million of revenue from brands net revenue business. is from of $X.X of $XX.X primarily primarily XX.X% of organic from revenue in fourth comprised of increased The

Xst, affecting products a moved the of business the Smash from category consumers. Xst, as sales the million impact pricing December the related of of XXXX. $XX.X led organic reminder, global growth year-over-year organic $X.X an organic December inflation our by increase products disruptions, into products $XX.X increased has support our starting impacts which in XXXX, to closed of of on of and $X.X an a and approximately million our and sustained to, the affected reduced for The phase into is government velocity, our inclusion December supply acquisition stimulus offset stopping million due from As by from million in of Smash initial month result, to chain to

in business Our increase saw launch a million. also million phase year-over-year organic of $X.X revenue slight $X.X to

previous and the market zero planned, in XXXX products. the though Even us to products rate as last a pricing also due have longer this compared year’s products due disruptions recently demand have chain compared to in than launched launched won led Overall in as success our conditions led years we to same supply of quarter has launch in of and in quarter. supply XXXX. than products to originally we volatility, As XX XXXX, we the phase to resulting XX chain X did performance to planned. which launched grew, not raise to being needing decrease This certain products

mentioned chain situations more we time we off to continue the and products and will As is predictable. hold new until supply believe have right previously, launching the

$XX.X Our Healing of M&A Solutions, to Direct. the due million Squatty Paper million increased in and our Potty from of prior $XX.X revenue Photo acquisitions year

is Direct the closing Photo seasonality acquisitions. timing of expectations Paper the revenue Squatty for of outside M&A in and Smash, Our line of with and

chain expectations service the below products. supply are and have to That of shift long-term Solutions form we previously new with Solutions’ to discussed, As vendors planned. largely as due capabilities from third-party from Healing strength still brands its to previously we said, Healing pleased manufacturing difficulties acquisition continues our

Overall, in the the million margin XXXX. increased period. from XX.X% for revenue. quarter estimated $X period, quarter ago shorts suffered XX.X% from and current as decreased net to of shorts million inventory quarter we approximately from an fourth approximately the inventory to gross be year in on to Finally, prior $X.X XX.X% We which in compared of ago in impact the the QX year in

the and shipping margin containers last year gross from brands. cost X% mix of the margin Our predominantly impacted of quarter is acquired gross of fourth in increased favorable We our inclusion our believe by the approximately XXXX. improvement versus product

slightly out. a XXXX QX see purchased previously the clear We in higher rates to to as impact inventory, continues expect larger

and margin defined prior earnings sustained of contribution increased our to With the chain sales compared Our saw in carrier overall QX fulfillment, were drove XXXX. release contribution X.X%, and in XX.X% XXXX costs in quarter. as tightness negatively which global inflationary XX.X%. was XX.X% in distribution pressures impacted disruptions expenses CM, given our supply last which XXXX mile versus decreased higher by year QX our CM margin to products QX

sales in year net percentage ago as and as to expenses XX.X% quarter. variable of distribution compared increase revenue a XX.X% QX to Our the

continue We impacts the expect see to these quarter. in current

best dynamics, of Adjusted our cost XXXX our XXXX loss for positive EBITDA largely in CM mitigate compared fourth see mile costs. continue quarter higher to While a $X $XXX,XXX we’ll release due to disruptions we’re for the chain pressure supply of fourth the as last million was a earnings doing to we quarter in defined believe and of to XXXX. increased

price $X operating expense, settlements XXst, $XX.X earn of December the related share from primarily loss at versus net charges XXXX million, Our and million which for income and is million to September compensation also include to $X.X includes out quarter XXXX. of contingent stock-based decrease XXth, of

payments loss loss of from facility to lender. the $XX the and net net million $X.X completion includes our million of million me, credit excuse – our million with $X.X net for extinguishment quarter related debt $X.X a Our

proceeds the cash cash million compared cash lender, to XXXX, a end changes at $X Potty, XXst, Squatty we predominately approximately at $XX.X transition cash driven reported At of of related from service is previously capital. The $XX.X sheet. of our payment of the ABL payment $XX.X from to working and million XXXX. to loss offset our Turning December million and balance decrease M&A purchase the September new net in $XX.X our our in million had XXth, by million

upon than XXXX summer increased asset-backed initially chain to hand the put $XX.X our we week, million our up sale of prepare X.X are million price, registered through the liquidity end pressure until market enter As we earlier our We purchased and restricted minimum pre-funded we approximately at us the the anticipate approximately and Last proceeds order market shares In will warrants loan. gross as locked a in offering, in will capital this for facility in X.X as disruptions, of million through also seasonal million million This warrants and we strike raised price close ACs of the with credit such be exercised disclosed, quarter inventory as early in premium up an additional X.X in a global then. these the previously connection on products add XX% may complete anticipated. and future second the on repayment December, be issued humidifiers. of additional at inventory at private navigate during and we to we our on supply at secured working sheet. which million and providing shares allowing cash the exercise to the balance $XX debt flexibility new price. we $XX term an Further, in us XXXX

continued volatility with the market East and current there of the in unknown concern the the conflict is recent markets. Given in Europe,

Further, recent strategy. to we us our continue accretive balance disruption to to possibility pursue such, supply record open up to As to global the considering the inflation. current our the chain our operate seize and to allow financing M&A this us secure business opportunity sheet now allows appropriately,

We chain of be global the stemming disruptions, by continue from Ukraine. supply globally the to considering especially and pressures the inflationary impacted invasion uncertainty

While temporary be year to we forecast our we this these it results. cause permanent, guidance believe will not diminished And visibility and full not time. ability have issues us at to are providing the in

in believe taking current including with and environment, difficulty QX of chain made we made to it a efforts challenging in bringing in of closing, our prior conditions and the outs at was and for XXXX, difficult QX position than investments especially us as continue XXXX inflation believe will look our better many to difficult the demand said, and early sellers does the supply summer our world global stock lower macroeconomic season. summer best on confidence and products inventory grow pandemic we versus season continued The rising we comparisons makes look our year. the we at current continue XXXX. year. difficult. QX, the QX In organic business global into around much this, be That revenue from operate will chain, as put products several current However, comparisons habits our we XXXX and account some in net Amazon. for We the considering changing early see predict to Despite purchased consumer of supply a to XXXX

have We pressures. inflationary continue portfolios. supply to and pressure leave on related to chain acutely global profitability very strong We’ll and is brands the and product current growth

and the explain assuming on new similar To adjustments, future. continue direct Further, EBITDA opportunity help disclosed we environment, continue rates, still margin towards to and action strength years. our is believe this raise, would previously to right-size in been credit have balance can context, which facility what its through our for We we with believes navigate adjusted QX and we back company the environment achieved to the sheet typical believe the the wisest navigate XXXX normal difficult have to to performance our we equity profitability. our continue recent through prior secure us difficult through take as for contribution conditions. us taken us to macroeconomic as navigate these will this providing and we and And XXXX with course the be

confident the proud We continue we built. business be very to and of have

challenges operator acquired, turn leader globe. and hardworking and With the Our technology, and and in will people questions. up call to industry. continue our a products, our Aterian both our to we for the believe most these I’ll open network, the it back across to importantly, organic be Together logistics dedicated our overcome that,

Brian Nagel of Thank with you. from [Operator question Instructions] comes first Oppenheimer. And line the our

Your Please go line ahead. is open.

afternoon. good Hi,

afternoon. Good

So a of questions. couple

comments I around all the the off, supply chain. appreciate First

supply disruptions is to to introductions question. have question shipping get regard with to product maybe chain the you first resume know one for where costs, more – my or or Aterian what offensive shipping to to that product to Where in happen? you That’s know guess rates have get I does even to order acquisitions? has So stance a acquisition

Brian. Thanks, Yeah.

we question. simplest for from which, the most was then, the a answer shipping back back You if that And increase of know especially whereas challenging, unfolded, XXXX of normalized trace it’s the prices you whether the I exponential could cost year, a kind right, the great more chain you XXXX, you linearly – that in it that know supply to is obviously like know you you crisis back think of rates right, at is, know look cost in we’re kind previous as right. saw containers in very

same and So the And second the to to all he right. happening? back think goes question right. it right. will it floor take? I simplest I little a help XXXX. how set and the everyone it when for if economy the And a will it way. believe that, amazing, Again, that in maybe is all think a closer the is that be floor And at mean when said part does is that’s in is obviously, that done, should us when long that, question new for right, us, happen, really that I answer, that The But that is, higher, you that is, entire I right. time, numbers competitors know for point the the big will our to the

I make then on the I is. That’s just mechanics. as And got that as guess you me sure know that Okay, well it. understand

lifted here. really Because know you have have prices? margins your on So you gross selling hit quoted not a just not you

these could strategically lever would And you So lifted part offset was more of you prices what a is have you could I I second that that to costs? I pull? prices? that mean, guess to that lift you guess some start extent – a be know shipping of to

start have contribution, number I say a recently, know you want SKUs, at across you around in know from the say protecting price our increase to would margin an – doesn’t have at know the or you talk – lifted also at share, to I the by what – gives contribution the level. XX not we product if that we’re level, with and market a in between unit tell know that to a that profitable that level go and I’d might lose which you so yeah, we’re right. say be finding when we we I’d that, prices average, a the share be well where market our market I share, XX%, cause know we in economic still we us say that you I top So approximately where margin beyond right. That’s don’t but about don’t us we looked which Board, you But on price, losing long-term, in situation it’s to enough balancing remember, need impact be what a we seeing, to have act losing

their so those it And their know gas are other I increases consumers know everywhere. of aspect to think price you is seeing coffee you from the everywhere to stations

number that So comes year-on-year, exact normalized But to across have a to generating increase you I getting it environment. margin be not Board. in to we the again challenge say obviously, that us you around I’d an know, another the a right. growth that XX% still contribution need is know creates But don’t when

gives believe, you that sense right. I So a

Yaniv. That’s Thank helpful. you. I appreciate,

Brian. you, Thank

from comes Capital. of Thank ROTH line you. question next Koranda with Matt our And

open. is go ahead. line Your Please

Hey, guys. Thank you.

we start then just for continue model build can realistic a could organic kind understand an we ‘XX. speak guess acquired ‘XX, But out ‘XX, Just the should the of into versus that to helpful wanted could to versus qualitatively year and start expect to takes for be you maybe for puts you would I difficult break wholesale and Artie, growth just around appreciate maybe to to environment what if give And know in was ‘XX? I guys get organic you year revenue outlook. to see so and out, maybe to, full full if

a to you your ‘XX drive XXXX, to you organically potentially, both me a answer world second obviously yeah want is and for to is Let I’ll answer we know speak right to growth first pass right question. yes, the the and Artie little now. know, it chaotic in on But

potentially a So we’re also but M&A, right. being to patient, little

growth not growth we’re we’re company know, with are negative, that company, want grow a doesn’t to you So, also unit we economics are a right.

are our just achieve what that again, of very it dimensions the will at hard is level that. looks goal, business be growth working right we across But very to clear do And like. influence you So, to macro that. to all least probably know our

the In earlier launched important to we terms of when is which – is to to new the about right we it it predictability know, us plan with product of certain arrived, plan launch will be launching that that talked also moment the XX%, at if a price certain by launch we you on it moment part by P&L pause also changed products, product has arrives, as comes point XX% not very it now, a P&L, a from we because for it’s the have some successful. time

internally initiatives But So, drive growth year. intending of the lot have are we this and to a the we factors. those to growth are drive

I’ll on – to pass Sorry, the answer you Artie it maybe to

Thanks. Yeah.

You know for number for looking you’re and It’s you’re million. roughly the Matt for? was That looking the year? organic $XXX

Correct, yeah.

roughly was that. M&A and Yep about

I that bunch of a you year, know at some when M&A in there. mind, look think in we had keep last wholesale you

think organic closer number like the So I million. probably $XXX was

helpful? that’s So

in across to a just And guys. it made, bit the on that from curious more SKUs. very Is little as that unpack could then just if demand price of terms specifically there? price you dig What bit XX% is pricing the lose just happens in as it helpful. those what top you kind said this why Or more, you I just correctly, we if see kind ceiling? And can I’m of you take understand you both behavior curious just is little wanes of that it level? the XX% could average above you if on I mean so yeah SKUs? Appreciate you of kind kind see XX Yaniv. top that a you there, maybe we the of commentary across Okay, price share that when declines, I’m heard as you because you maybe SKUs? volume market that start take just

think an great Good question, right. you bottle yeah. category-agnostic is because we’re so Because – sell you oils XX% a things to we you ice small all, Sure, commercial that the average, are know product related, Matt. our I of that averages quite two and know close. know - from over And The of maker, the answer profile essential a right. first is of But the our all place. that is is

the product, potential in product sales your you the goes know your that You engine know, you take at sell you the a moment know market right. promote to share, as advertising a will know share look another on market last more take would and you will down at visibility, your more and look marketplaces, right sales, the function in you more in e-commerce more is of the have general, you the get more

other So is price, market capturing there’s the products the almost now. answer between a know the the take right, of is to and not always that also share in amount circular for you know as market we we’re a, you up that Yes, of door dependency of share bit kind as us. sales, little obvious opening but come sales, from obviously, pressuring and

even door ask Now, they a sometimes market competitors strength, me share it? necessarily lot of maybe do like to that how you not might the out is can is almost competitors do answer hopelessness how of open you price The that and know you other it that if come right. their out of lower – your take

everyone If from in suffering the you is the – industry same problem.

liquidation inventory, a if in And sometimes liquidate will you price and and so just significant you or throw more have customers during might come But higher on to might appealing show know a get the of product visibility, because time price right. that up come tag. never might the their those which more lower they that appear towel search, of amount back, might they lot you products of

try trying chaotic to try it’s expect competition of like and take normal little see of kind bit type in competitors you not take a an know the to bit, smaller little get where of that profits. a advantage risk a So might right, a everyone’s some because you maybe e-commerce good, might it’s their more of situation, environment the you revenue not taking It’s sustainable marketplace, to share, actually so market margin are price, because inventory. customer other the that your have versus trying very to and competitors the to know capture they’re trying fact product appealing as to liquidate revenue that be you, they’re from But despite by you’re seeing doing the distressed who just they protect right.

of whether that strengths be And are think make a of kind those have really performance have, the the that or semi-automated – the to of And time challenges that know visibility type I have the our that’s it’s kind really is is you we of analytics be having to manually, I time real think of real that. able analytics you built that’s to part even able So to totally the we automatically decisions, the right, of business one the in to about this. manage of business. critical

one the one Yaniv. I front. helpful, you. for if me, margin then last in that’s on Thank And Okay, just could sneak

can And kind fourth help be directional remain quarter, filter just But shipping P&L? Thanks. sounds provide quarter, in quarter margin appreciated. how much increase be that expect of first we into almost that you flattish. relative like maybe a pressure through commentary It this potentially. much on things When You the to would then guys us factor to somewhat just know would mentioned you you year? that any should the costs near-term to the of second to

I’ve is know cost you kind of there. shipping of there’s is we on that know cover really you company, publishers there’s up, reading what there’s know some know, is and been content you colleagues that, shipping I’d became right. And one in the gas the with you you some know going you and are potential avidly out chain, the think obviously going shipping. like the see supply obvious – actually made improvement, You say know you of is there all And comment to we to the other interesting these might across Matt even Ukraine and know know and but disruptions we help. that on cost to that analysts online one of just an are going not happened analysts of who your obviously up shipping going the opinions we two what’s But related followers up

shipping the that that so know honestly comprehend oil has you So bet we worse before that companies the get get much in that is really necessarily there, likely. are I including I price. being cautious the a ripple don’t would of think effect happening many going here commodities Europe, out can and I saying question. How know effect it that and it’s it’s think price better. what’s great it’s And XXX% to anyone businesses and to that not going we on

So, going than get the it’s is worse not. it to hope much been past? I in

I come think for to longer it might it down. just take

everything’s in, possible think I I the think world more you we – point. know But live kind of at this like that’s probably the scenario. likely

tell. So to hard very

But have don’t don’t answer more anyone think does. there. that but really Sorry, any clear I

So.

fair. seems there, leave Thank you. it That guys. I’ll

Thank you.

question comes with the Kinstlinger Brian of from And our next line Thank Global Alliance you. Partners.

line is go open. Please Your ahead.

total? through that your benefit? of new much how the much. so half per dollars your I’m thousand the first mentioned thanks And full through to program? several by expect some maybe is your year of Do benefits and others. Amazon When quarter the you run first you are containers Great, partnerships P&L that container with curious of you get expect

from good to you. Hey, Brian, hear

were, the arrival I takes you know weren’t the benefits if our back just It’s we it’s it, not like port you if could the the doesn’t horrible where we’re in way and in it, without how that know of other right. been I a you absolutely also between you benefit the including of that business shape port did of we shipping. cost. are say even to not anywhere can’t many about it’s still right. And the know in like include right got would always rates some later, call long know lines situation right. those average not of before, imagine were XXXX, linking and and in it clear you the origin, seeing – But that you delays know you even in like already really you where we be great in know, on more quarter So sides. have shipping be it, know it But our But necessarily it’s preferred both secure able again, can to say each well where navigate we’re it’s to of we the other obstacles high-five a we’re rates. and where we back know we

sense. think to would good to relatively more that patience I think we get shape speaking secure before if didn’t happen there’s overall makes what if there. I this, we happened, need have that But we’re in

you Yeah. how in near-term? sense maybe you about the Are talk on leasing making about costs thinking in preserve capital of you expenses? about capital can to overhead? weather the to And thinking storm? lead you then Are and investments raise Does are just some you fixed the the expenses cutting line the hold guys some

you take it on. let I’ll Artie,

you two. I hit And think us Yeah. with

looking about, at warehouse So listen equity us know well to we’re facility, XX cost $XX.X we’re now possible weather From we’re best long-term, where we’re going be chain, costs. still of a know we the we’re the weather said, it’s think think not right with fixed partners the our we’ve supply at this million to mile the a That our we’re optimize much our allow we circumstances. credit sure we like we’re looking looking the always going we as you last constantly – driving and once lot sheet, balance always as have sort cut of to considering in same at you perspective, we – growth time talked necessarily looking, to raise much make with partners, storm. you so – anticipated to constantly the a capitalized, know secured margin

be just systems. and We’re as and optimizing can automation to investments we other from going always

you. thank Okay,

line question the our comes from next you. And Thank of Davidson. Thomas Forte with D.A.

Please ahead. go open. is line Your

Great.

So two three one and questions, industry. companies sets of specific

one So at side I’ll time. go a

the so, the a XX% you’re expectations XX%? how on long-term So today, if grows CAGR want then this versus XXXX, Yaniv I about very your expect we the realistic on think business know industry pitching fair long-term for at margin? basis, if a And March success? So what Xth, should how to one, e-commerce do first you long-term contribution

Thanks, you. Tom, and from hear good to

months, world. in couldn’t we’ve know as challenging I my you the you know mentioned six excited say I more you in – obviously remarks with also future. about before, had So happening eight let’s know, be But everything that’s months a the

you that the doing consumer product think is I companies everything know we’re online. future of

I seeing you that on groups as of the who have the those us, passes strong think are strong mentioned growing. I who those And earlier, scale, all are the including just focusing them, of with of know, sitting now other operational think are will and balance Yes, right, storm I potential. weathering e-commerce lot capabilities, to opportunity the does enormous storm. settles by, dust a as really and as kind like sheet is And us a right.

the we we’re to a global close US, definitely to the think in our we of time ambition be the ambitions. don’t the know have at even And mentioned, You I scratching surface company. Calgary but over

perspective, very team expertise think in resiliency we there’s systems a strong cultural we’ve a too, that from I built just and and from foundation, from a that built perspective, a right.

us, really for things of one navigated have make you the companies ability the day, it right. moment gives I because of know me to can of recently you to that it’s lot a say the so challenges better, align our what end we’ve know enormous things many when don’t part think at confidence I that that fall they crush crisis through, have apart, and

growth. hyper – pass know that here patience think time, know around the and should element that you is and ambitions is to excitement we I scale. the me there company. the you think to and I happen know, that huge, wait by. back are that same you then needs choose what enough, allowing So, my that, to to I around pedal e-commerce well we’ll the go am have do metal But to Tom And some of want to put a back what here, we protecting again, to think have, can’t an go at I back storms scale – enormous to metal and I with an we of element this opportunities there

So, that’s how I think of it.

think one you second about was, M&A. then I resuming talked And Great.

an return resuming earn of confidence capital? given So cost on what today, appropriate capital in XXXX, current March gives you ability your from M&A, your to

Yeah.

And we’re M&A to resuming far a this. one comments, seeing this then only that only that’s not mentioned, – arena, that as Smart that is happen, my lot right. going the again, and The going opportunity capital incredible. to that’s – is one be know to I after my there’s the You entered continues knowledge it, side on it, of we’re pursuing the the in Capital public so

the start was feel confident in categories we supply before are out patient, thing, to, at the right. are affect know like be Ukraine know that think categories, not I one that about Beverage because Ukraine, are we’re Other we say in talking can that the of to that right. we’re there and again, even opportunities these you could that the fact the the companies category-agnostic Food now that know especially economy of right other we’re that the the I are right think that because out of know are international the other pointed war looking know a and everything & do you in there’s, affected chain, in about things lot commodities I our and by targets affected wheat obviously you immediate, that – going that that’s aspects – Americas, M&A or US You have the the and in reigniting you in Consumables With manufactured again, happening

closely that And we be what’s is is there. is on and the macro again, opportunity again, we the on tracking to going very patience know making need I So, just clearly level think sure right, critical. focused when timing Tom. the But

right. All

pendulum. So thank the talked you Last one particularly who that. the for you’re one about

the other swung the So stores. heavy and the players essentially beginning of reported e-commerce. the still physical give shelter things quarter, you to question pendulum toward at place. their Wayfair in it’s pendulum pandemic, example. and in suggest Everyone e-commerce lies started to pendulum the back the this And being that swung Can industry-wide toward their as a talked then idea who’ve that you There comments been a was have good thoughts your ease, leaning on was current stores. where physical December today? have know is

Yeah Yeah, still think the in middle – yet going the I it’s ground. made the Wayfair think saw pendulum stabilized to there. thanks, the try I were to Tom. that not still I definitely find itself, comments results has

ground middle it to the way will the like the continue linearly used is, to, before e-commerce pandemic. think of growth I

versus other access use e-commerce the lot certain as to choice as stores growing because to because things. I there’s you you really on see we’ve you know you normalized amount to the downtick know now a you think think know this keep in right. right – in you of of And a I right that retail, strong But massive much as in seen no in countries that’s exciting, China, not e-commerce faster very and almost think of right for we’re of going almost stores. scratching you the kind who have I even is know people a of mean, e-commerce clear or mentioned tracing think to there. I line example might estimation faster I to as just this US, that a there is sinus see than wave path said straight incredible earlier, There’s excited if ride consumers I more you’ll access growth out as surface of growth of e-commerce beyond business you as a because kind other go e-commerce pendulum uptick But know you a back with opportunity. the my know were best that,

obviously growth in see around the time you’ll my big that, to And again, become will, a I for so over And retail. very that think But see to that part of world, doubt in us faster. e-commerce like it’s that that mind happening no continue very there’s exciting countries happening.

hopefully makes sense. So, that

– Yaniv you, Thank

Yep –

you. Thank

you. Thank

comes Thank you. from with line our next of Marvin question And BTIG. Fong

go Please Your ahead. line is open.

for Two may. questions, questions. taking everyone I Thanks, Great. if my

Are know you but discussion the commodity perhaps guys or that obviously that you exposures then a be just And that, sort And Just you have, guys are there you that anything a and spring should know appreciate shipping. first have one, your front. a about? know any we you you the a that on about? products like I steel thinking that commodity of on lot I if run, other I that anything thinking of pretty inventory, exposure do should lot know, you lot know of be and material you have doing also the said follow-up. summer you’ve a know secured in I what long we broad

that I hear ones out are probably the you of right, think commodities know pointing Hey, want from you copper you I one reaching prices think know think Yeah, manufacturers you going you. that to and out know Marvin, obviously is up, our to sell good it. lot plastic, in have certain that the pressure you affected right. on Board, But lot have a that. of in the even been across kind know of them, by A products about, of are electronics that we right – the

they the goal go things things – doing right. seeing and – comes to that being back up, the certain we that So think of turned otherwise – it know from comments turned into to obviously is their get is careful I that those you does and you they, reasons manufacturers, cost goods. definitely those you of we’re out track them the back increases pressure know hopefully we’re of that trickle that manufacturers request obviously bubble when And in very justify know, back down, it one they to our that

you it’s And the shipping up, going given still across again, course, that got mile So last commodities, the going in gas price yeah got have you is I shipping tariffs, mean of you of XXXX. which started internationally you up. also you know have the it’s, then right Board,

we’re it to, of that – when those right. there’s and the of Board allows keeping the looking cost in down renegotiate again, to And you P&L So know the the on there track us pressure environment products upwards. the across strong

you. you then to M&A, know totally very just Got I said And revisit Perfect. you the patient. you’d be appreciate

of little so of markets? Obviously couple capital you much seeing now? there of from aggregator mean, I do up to are are you Just flowing in you maybe you seeing a multiples your know in Or think times we’re couple just turns part a some you know that to of know revisit things we out that. where kind around we they more And you X know the last something years is valuations as is end of of time coming expand times question. on space? could still mean, air that a seeing the kind ago discipline second of perhaps? were public you what you saw know, of maybe EBITDA Are I the versus X higher that a over that towards year? acquire and just or the similar

our Again it, you. competitors thank know none It’s know the of dealing right. in challenges. to they’re know immune the great same you with a private Yeah, space, about question. them you is all what And we from

and experience our better infrastructure, we’ll with again that I think better. navigate think I it

for really would us and be able of comps right. not I for them it this. model, know the our think some it and solidify You good might is be the of well, create hope industry more I do through my that to competitors will lot that a get think definitely just

in You kind as of sitting the for pressure well. lot to we designed contracted it’s on know have problem right, of once been debt cash and a know you was that the live a true with supply the that businesses like flows as chain, of that flows because just businesses front of of were temporary like became the the them cash of

possibility these I’d I players in I bit holding that that know, divest multiples months, although there’s as not could as it to some might which and because able multiples you are know a a know right, can’t again, assets, of, of the on, navigated a might on move that do So, the see pressure be where do well we you that even have can’t, reason part forward all. the foresee those the we again, not is the downward way, few in some acquisitions say a think believe they you be next right, still the situation of that challenges really, at of we’ll do we although to to is are that little on in patient

And so there. there great might pretty be opportunities some

see that valuations the the I is world really to could that think around at the to exactly obviously be the opinion, – And that end understand especially those who’s – do the I out see X the hard that it’s high times going But to this know important stabilize driving my but those strong valuations you doesn’t that’s we’ll going again, we’ll and as right. getting businesses day, I standing predict of today, the be and with land go are even think potentially, why deals my know and forward where to where few is again industry complex to you not, believe run right, it are months times, that “aggregated” who’s will necessary going as assets right. X of make X times. X times, next tall versus going, to to are that

why important. I think patience that’s So, is the

Thanks so Yaniv. much, great. That’s

Thank you, Marvin.

to Thank for the conference to you. over like And Grozovsky I’d any showing turn remarks. back Mr. no questions. And I’m further further

Michelle. Thanks,

participants for of sign wanted on all can which management thank Participants up as Shareholder ask I program, have Perks’ the part call. earnings Aterian? Can our have to option aterian.io/perk. an to Perks As a our you questions asked. their Shareholder few a reminder, at investors the their picked to participation. the relevant naked for for effort questions the update and that I’ve of provide shorting they loyalty stop

Yaniv right, here. All

So Ilya. you, thank

a further working we’re you sure we’re when with and take it’s long on that. there, out results, process the But going trading investing have through. rules that active time, them. all to time and to shares know, really And we So make in our know all the we’ll definitely laws takes compliance see you hard that and and report the to in

Okay, thank you.

was, than Another had question Amazon? other had progress the please on platforms update – we

you is to so we was know year Yeah wanted of that – push I things the forward think one international. really last on

made moving of chain on You we’re progress lot crisis slowed still the to think forward. it’s still effort lot supply has know, again, we’ve do. The down, now doing big is a I that there, a Walmart,

that’s e-commerce, to Amazon. that And recently platform investing know know good allows You behind making is that, be tools Walmart seem AIMEE. heavily are which analytics but a faster news into us you and providing to leverage integrate us they’re in the the and is progress they obviously they the their them still

So we’re cautiously more optimistic that valuable. about becoming

you is growth know organically want aspect DXC. to other through in invest The we more

so to even the the and expensive, starting because are than our for is Europe international with supply brands even given the little don’t uptick now, chain, the the the right that, a obviously, is prefer shipping everything are So scaling correctly. want Shopify take with compared make it I longer in to investment biggest Europe two US, would up more going that actually products say competition. we have you than slowly kind efforts to on know carriers we’re and US the that of again, they example Those stores like show to overpriced line to worse to

bit I us. think So, focus patience, again, a for more big little is again, but there a Walmart

you Yaniv call. participating today’s you, and on thank thank Great, for

with X:XX XXth. and terms on In calendar, ROTH you XXth Annual Conference XXth. through at calls. March forward – will The And call. Annual the upcoming management future This be speaking March Xth will D.A. on Growth PM participating ends Davidson in XXth chat to fireside be our on of We be Consumer Aterian the Conference webcast. the look will

disconnect. You now may

This you call. concludes for Thank conference today’s participating.

have Everyone a disconnect. now day. great may You