Aterian, Inc.

is maybe just elaborate on what exactly needs to happen for us to see selling distribution leverage in the back half of the year, and is 2021 a good proxy to use? I think we were floating around the 46% to 48% of sales range, whereas for the past couple of quarters, we've been kind of mid to high 50s. So is 2021 a good proxy to use, and what exactly needs to happen to see meaningful leverage in the back half of the year?

Arti, you want to take that as well?

Yes. Thanks, Geneve. No, I wouldn't necessarily say 2021 is a good proxy. I think those numbers that you mentioned there, we do see that, you know, getting below 50-ish percent, right? I think we just did this past quarter, 48.8, that we just mentioned, gets us very close. I think the other side, as Geneve mentioned in the past, you know, the normalization of container rates will allow our gross margin to pick up a couple points allow us to get back to normalized pricing which allows to increase the velocity all these things play into that but i don't i don't know if we'll get back to like sub 46 that you're quoting i think you know high 40s is probably the right number just like we did this quarter maybe you'll see that improve a point or two uh over the coming quarters but certainly that's kind of the target we're going to be i think You're right. In Q4 and Q3, we saw those numbers being as high as 50% or 55%, but I think we're going to be probably closer to the higher 40s, like Q1, as you're seeing right now.