The Leading Consumer Product Platform - SEPTEMBER 2021 INVESTOR PRESENTATION $ATER - aterian investor ...
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The Leading
Consumer
Product
Platform
Sharpening the Tools of Trade
SEPTEMBER 2021
INVESTOR PRESENTATION $ATER
NASDAQ
Disclaimer
Caution Concerning Should one or more of these risks or
uncertainties materialize, or should any of Non-GAAP Financial
Forward-Looking our assumptions prove incorrect, actual Measures
results may vary in material respects from
Statements those projected in these forward-looking
statements. No person assumes
responsibility for the accuracy and
completeness of the forward-looking In addition to financial results prepared
This presentation includes statements, and, except as required by law, in accordance with U.S. generally
“forward-looking statements” with the no person undertakes any obligation to accepted accounting principles
meaning of Section 27A of the U.S. update any forward-looking statements for (“GAAP”), this presentation contains
Securities Act of 1933, as amended, and any reason after the date of this company certain non-GAAP financial measures.
Section 21E of the U.S. Securities Exchange presentation. Such non-GAAP financial measures in
Act of 1934, as amended. this presentation may differ from
similarly named non-GAAP financial
All forward-looking statements are measures used by other companies.
subject to a number of risks, Management believes that
uncertainties and assumptions, and you Industry & Market Data in addition to using GAAP results,
non-GAAP financial measures can
should not rely upon forward-looking
statements as predictions of future provide meaningful insight in
events. You can identify forward-looking evaluating the Company’s operating
statements by words such as performance.
Certain data in this presentation was You are encouraged to review the
“anticipate,” “believe,” “could,” “estimate,”
obtained from various external sources. reconciliation of non-GAAP financial
“expect,” “intend,” “may,” “plan,”
Neither Aterian, Inc. (the “Company”) nor its measures with their most direct
“potential,” “predict,” “project,” “should,”
affiliates, advisers or representatives have comparable GAAP financial results set
“will,” “would,” or the negative
verified such data with independent sources. forth in the Appendix to this
of those terms, and similar expressions
Accordingly, neither the Company nor any of presentation.
that convey uncertainty of future events
its affiliates, advisers or representatives
or outcomes.
make any representations as to the For a full discussion of the Company’s
accuracy or completeness of that data or to risks, you should review the Company’s
All forward-looking statements are
update such data after the date of this existing SEC filings including the
based upon current estimates and
presentation. Company’s most recent 10-K for the
expectations about future events and
Such data involves risks and uncertainties period ended December 31, 2020 and
financial and other trends. There is no
and is subject to change based on various the most recently filed 10-Q for the
guarantee that future results,
factors. quarterly period ended June 30, 2021.
performance, or events reflected in the
forward-looking statements will be
achieved or occur.
2
Net Revenue (Annual)
Who Is AGR $185.7
Aterian?
72% C
$116.3
$114.5
$73.3
$36.5
Aterian is building the leading
technology powered consumer
product platform. Adj. EBITDA(1) as % of Net Revenue (Annual)
Our formula for scale:
Proprietary Market
Analytics Software
+
Agile supply chain
=
Top selling
Consumer Products
3
* May 2021 Q1 earnings press release
Evolution to CPG Platform
CPG Manufacturer Brand Wholesaler Retailer Customer
Sourcing
Finance Production
& Quality
D2C Manufacturer Brand Customer
Logistics Distribution Marketing
#1 Manufacturer #1 Brand
Distribution
Production
Sourcing &
Marketing
Logistics
Finance
Quality
#2 Manufacturer #2 Brand
CPG Customer
PLATFORM
#3 Manufacturer #3 Brand
Technology + Agile Operations =
#4 Manufacturer #4 Brand
Economies of Scale
4
Build Acquire Partner
We Build products from the We Acquire high caliber We offer our Platform as a
ground up, using Aimee™ to profitable CPG brands. We use Service (PaaS). Brands use
identify market opportunities Aimee™ to qualify existing Aimee™ as a turnkey way to
What we do
and automate the sales of products to forecast future effectively manage their sales
products across various growth and automate the across eCommerce channels
eCommerce channels, from management of the assets and drive better unit
merchandising to fulfillment once acquired economics across their
and everything in between product portfolio
5
Aterian’s CPG Platform
Drives Efficiency
Technology + Agile Supply Chain
By systematizing the building
blocks of commerce and
investing in technology to
automate our supply chain,
we aim at building the
world’s most efficient
consumer platform.
6
Say Hello
to AIMEE™
Commerce Operating System
An end to end cloud based solution
providing real time data, ML
powered automation and access to
operational services to streamline
the management of thousands of
products at scale across various
channels.
7
AIMEE™
Platform
SKUs feed data
to ML engine
Flywheel
Aimee™
More efficient Engine Better product
marketing, opportunities
3,000+ SKUs under product pricing identified
Management and logistics
~$350 million GMV ,
More products reach
8 = Product (SKU)
scale and profitability
Build
FEATURED BRANDS
Home Home & Kitchen Beauty Consumer
Appliances Appliances Products Electronics
10Aterian Significantly Shortens Go-To-Market Timing
AIMEE™ AIMEE™ AIMEE™
IDEA TRADING FULFILLMENT
GENERATOR ENGINE ENGINE
Aterian
BUSINESS
MODEL
Real time data Manufacturing Data driven automated Dynamic inventory allocation Marketplace
driven opportunity Shipping marketing & product lifetime Fulfillment selection / cost optimization Customer
& trend tracking Warehousing management 3rd party logistics network
2 day ship – virtually all US
6–8 Month Go-To-Market Cycle ~60 Min Marketing Cycle
18–24 Month Go-To-Market Cycle 3 Month Marketing Cycle
Standard
BUSINESS
MODEL
Focus Group Manufacturing Agents Distributor No Direct Distribution / Retailer
R&D Shipping Ad Agency Reseller FBA Customer
Warehousing
11Acquire
FEATURED BRANDS
Kitchen Home & Kitchen Health Essential
Appliances Appliances & Wellness Oils
13M&A
Opportunity “The Amazon
Third-Party Seller
market is larger
than meets the eye,
Amazon Retail
$190B (39%)
$300B Market on Amazon and it is growing
quickly Third Party Sellers
$300B (61%)
● 3+ million Amazon sellers
● Who lack technology
& scalability
● Limited managerial
Experience
● Limited working capital
● Have built strong and
sustainable businesses
14
* Sources: Company Filings, MarketplacepulseM&A Strategy
Growth at Accretive Multiples
“
● Continued focus on US market, plus expansion to other international marketplaces
● Continue to acquire 3rd party sellers with long term sustainable products
○ Strong social proof / High quality product
○ Unit economics
○ Limited innovation
○ Addressing a real need
● Acquire larger targets that have strong marketplace and retail businesses
● Focus on acquiring other aggregators who have hit inflection points in lifecycle
● Generally only purchasing: listing, IP, assets, manufacturer and retail relationships
● Limited headcount addition for Aterian (post-transition) for FBA businesses + quick
integration - AIMEE onboarding
15Cumulative Cash Raised by
M&A Strategy: Amazon Acquirers 2020
Competitive Landscape
Notable Competitors who Raised Capital
to Acquire Amazon Brands
Company Amt. Raised Stage Revenue
Thrasio $1,750M Series D $500M
HeyDay $175M Series A ?
Perch $134M Series C ?
Notable Debt and Equity Investors
SellerX $118M Series A ?
Boosted
$87M Series A ?
Commerce
Heroes $65M Series A ?
16
*Sources: Crunchbase, Marketplace Pulse, ForbesPartner
1 2 3 4
Turnkey
platform for
eCommerce Quickly Easily integrate AIMEE™ Leverage
brands qualify your
SKU to ensure
SKU information
and Historical
automates
the marketing,
AIMEE™ Fulfillment
Network to deliver
program trends into pricing, analytics, SKUs 1 day Prime,
success AIMEE™ and forecasting cheaper than FBA
The AIMEE™ platform
automates sales and
drives performance
across the largest
e-commerce
channels &
marketplaces
18Turnkey
E-commerce channel
integrations
Logistics
at Scale Inventory
visualization
and
14 Warehouses Across the US
Real-time
order
forecasting ingestion
Optimized for
oversized Products
97%
Automated
Same day
shipping
pick & pack
label
and delivery
creation
Aterian Fulfillment Network
Optimized
ensures 2 days delivery to warehouse
97% of the US and 1 day selection
delivery to 76% of the US
19Thank you aterian.io
Massive
CAGR 13.8 %
And Rapidly
RETAIL ECOMMERCE SALES WORLDWIDE & % OF TOTAL RETAIL SALES(1)
Expanding
Sales
$tn
% of Total Retail Sales
Market 20.4%
21.1%
21.8%
19.5%
18.0%
$ 6.4
$ 5.9
Worldwide E-Commerce 13.6% $ 5.4
Sales are expected to $ 4.9
grow to: $ 4.3
$ 3.4
$4.3 trillion $6.4
trillion(1)
2020 2024
2019 2020 2021 2022 2023 2024
21 (1) eMarketer estimatesYou can also read
