Aterian, Inc. (NASDAQ:ATER) Q4 2022 Earnings Call Transcript

Ilya Grozovsky: Great. Next question was, when do you expect to clear inventory purchased during Covid and start benefiting from the lower shipping costs.

Yaniv Sarig: Yes. So as already mentioned as well, right, we made great progress on reducing the inventory. I mean, it was almost — it was probably $73 million back in June down to $43 million. We still have a bit of inventory on the balance sheet that remains longer and we’re going to clear it out through the end of the second quarter at most. And really, our target is to get to less than 5% long inventory which I think at this point is quite achievable based on the progress we’ve made in Q4 and continuous work in Q1.

Ilya Grozovsky: Great. okay. And the last question was what was the health wellness brand that you acquired in October of 2022? And how will that come to market?

Yaniv Sarig: Yes. So there was a lot of interest in this. And here’s what we want to share, right? So we bought a small competitor to Square party. It was a competitor that had a product specifically that was competing against that brand and was actually undercutting our price and hurting our sales at the quad-pay level. We had the opportunity to acquire this very small brand because they were like a lot of other consumer companies in a difficult position. And we did it really just because we wanted to control the listing and stop undercutting body which is a long-term investment, right? Because if we if that competitor has gone through the challenges that they had and continue to invest in their business, they could have further chips at our Swift brand. And so we just took advantage of that and brought that product in, so that they’re not a long-term issue for us, right?

Ilya Grozovsky: Got it. Great. This concludes the Q&A portion of the call. In terms of upcoming calendar, Aterian management will be participating in the 35th Annual ROTH Conference, March 12 through 14 in Laguna Nigel, California. We look forward to speaking with you on future calls. This ends our call and you may now disconnect. Thank you.

Operator: Thank you for attending today’s presentation. You may now disconnect.