Financial Data and Key Metrics Changes - In 2024, Owlet, Inc. achieved record revenue of $78.1 million, representing a 45% growth compared to 2023 [14][46] - Fourth quarter revenue was $20.5 million, with a year-over-year growth of 37% after adjusting for a revenue shift from Q3 2023 [16][46] - Gross margins for 2024 were over 50%, marking the best annual gross margin in the company's history, with Q4 gross margins at 53.5%, an increase of 650 basis points year-over-year [14][17][47] - Adjusted EBITDA improved by over $14 million in 2024 compared to 2023, with Q4 adjusted EBITDA at $0.5 million, an improvement of $1.2 million year-over-year [15][50][51] Business Line Data and Key Metrics Changes - The launch of the FDA-cleared devices, Dream Sock and Baby Sat, contributed significantly to revenue growth, with Dream Sock demand in the US showing a robust 34% growth in Q4 2024 compared to Q4 2023 [30][36] - Owlet 360 subscription service was launched, with initial metrics showing a 12% attach rate in January, indicating strong early adoption [22][42] Market Data and Key Metrics Changes - International revenue grew by 45% year-over-year in Q4 2024, with significant growth observed in the UK and Germany [35][36] - The company expanded its global footprint to 26 countries by year-end 2024, contributing to 98% of international revenue growth [9][10] Company Strategy and Development Direction - Owlet, Inc. aims to evolve into a comprehensive pediatric health platform, focusing on the Owlet 360 subscription service to drive predictable recurring revenue and enhance customer lifetime value [24][40] - The strategy includes expanding medical distribution channels for Baby Sat and increasing adoption of Dream Sock in both domestic and international markets [28][30][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning and momentum, highlighting the importance of unlocking care at home to improve infant outcomes and reduce healthcare costs [21][86] - The company expects to generate revenue between $88 million to $92 million in 2025, with a focus on operational efficiency and achieving adjusted EBITDA profitability [53][55] Other Important Information - The company faced legal challenges related to its 2021 SPAC offering, resulting in increased operating expenses in Q4 2024 [48][49] - Cash and cash equivalents at the end of Q4 2024 were $20.2 million, slightly down from $21.5 million in Q3 2024 [52] Q&A Session Summary Question: Guidance on revenue growth and contributions from products - Management indicated that for 2025, they are being cautious with revenue assumptions from Owlet 360 and Baby Sat, not expecting material revenue from these in the upcoming year [58][59] Question: International growth expectations - Management expects growth to come equally from both US and international markets, with international markets representing a larger opportunity for growth [62] Question: Strategies for increasing adoption in populous states - The company plans to drive awareness through partnerships, social media, and product engagement to increase adoption rates in larger states like California and Texas [64][66] Question: Gross margin expectations for 2025 - Management clarified that while Q4 gross margins were high, they expect gross margins for 2025 to be in the range of 50% to 52%, indicating an overall improvement [68] Question: Progress with payers and Medicaid - Management reported solid progress with Medicaid reimbursement and partnerships, indicating a slow but steady advancement in this area [71] Question: Updates on Owlet 360 and user engagement - Early feedback on Owlet 360 has been positive, with high engagement and retention rates, indicating strong potential for future growth [75][78]

Financial Data and Key Metrics Changes - In 2024, the company achieved revenue of $78.1 million, representing a 45% growth compared to 2023 [14][46] - Fourth quarter revenue was $20.5 million, with a year-over-year growth of 37% after adjusting for a revenue shift from Q3 to Q4 2023 [16][46] - Gross margins for 2024 were over 50%, marking the best annual gross margin in the company's history [14][47] - Adjusted EBITDA improved by over $14 million in 2024 compared to 2023, with Q4 adjusted EBITDA at $0.5 million, an improvement of $1.2 million year-over-year [15][50] Business Line Data and Key Metrics Changes - The Dream Sock and Baby Sat were significant contributors to revenue growth, with Dream Sock demand showing robust growth of 34% in Q4 2024 compared to Q4 2023 [30][46] - The company launched the Owlet 360 subscription service, which is expected to drive predictable recurring revenue and enhance customer lifetime value [19][24] Market Data and Key Metrics Changes - International revenue grew by 45% year-over-year in Q4 2024, with strong performance in markets like the UK and Germany [35][36] - The company has expanded its global footprint to 26 countries by year-end 2024, contributing to 98% of international revenue growth [9][10] Company Strategy and Development Direction - The launch of Owlet 360 marks a strategic shift towards becoming a comprehensive pediatric health platform, aiming to empower parents with actionable health insights [19][24] - The company is focused on expanding medical distribution channels and insurance reimbursement opportunities for Baby Sat, targeting higher-risk infants [10][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning and momentum, highlighting that 2024 was a turning point with records in revenue, gross profit, and adjusted EBITDA [12][18] - The company expects to generate revenue between $88 million to $92 million in 2025, with a focus on capitalizing on the momentum from 2024 [53][55] Other Important Information - The company faced legal costs related to its 2021 SPAC offering, impacting operating expenses in Q4 2024 [48][49] - Cash and cash equivalents at the end of Q4 2024 were $20.2 million, slightly down from $21.5 million in Q3 2024 [52] Q&A Session Summary Question: Guidance on revenue growth and contributions from products - Management indicated that they are being cautious in modeling revenue from Owlet 360 and Baby Sat for 2025, not assuming any material revenue from these offerings [58][59] Question: International growth expectations - Management expects growth to come equally from both US and international markets, with international markets representing a larger opportunity for growth [62] Question: Strategies for increasing adoption in populous states - Management emphasized that increasing awareness is key to driving adoption in larger states like California and Texas, leveraging partnerships and marketing efforts [64][66] Question: Gross margin expectations for 2025 - Management clarified that while Q4 gross margins were strong, they expect gross margins for 2025 to be in the range of 50% to 52%, indicating a step up from 2024 [68] Question: Progress with payers and Medicaid reimbursement - Management reported making strides with Medicaid reimbursement and working closely with partners to drive success in this area [71] Question: Updates on Owlet 360 and user engagement - Management noted positive early feedback on Owlet 360, with strong engagement and retention rates among subscribers [42][75] Question: Adoption dynamics in international markets - Management highlighted that while it is still early, they are seeing strong momentum in markets like Germany following CE clearance [80] Question: Progress with NICUs and hospitals - Management reported that pediatricians and neonatologists are increasingly recommending Owlet products, indicating growing acceptance in the medical community [83]

Owlet, Inc. (NYSE: OWLT) Q4 2024 Financial Results March 4, 2025 Owlet, Inc. (NYSE: OWLT) | Q4 2024 Financial Results Conference Call Speakers Webcast Contacts | 2 ● Kurt Workman, CEO and Co-Founder ● Jonathan Harris, President and CRO ● Amanda Twede Crawford, CFO ● Jay Gentzkow, VP Investor Relations ● Domestic Callers: (833) 470-1428 ● International Callers: (404) 975-4839; Access Code: 492081 ● Webcast Archive Available: investors.owletcare.com 1 March 4, 2025 Non-GAAP Financial Measures In addition to t ...

Revenue and Growth - Q4 2024 revenue was $20.5 million, a 37% increase compared to Q4 2023 when excluding the revenue impact from the prior year Amazon distribution partner transition[6] - FY 2024 revenue reached $78.1 million, representing a 45% increase from FY 2023[6] - Revenues for the year ended December 31, 2024, were $78.1 million, a significant increase of 44.7% compared to $54.0 million in 2023[38] Gross Margin and Profitability - Q4 2024 gross margin improved to 53.5%, up 650 basis points from Q4 2023[6] - FY 2024 gross margin was 50.4%, an increase of 850 basis points compared to FY 2023[12] - Gross profit for the year ended December 31, 2024, was $39.3 million, up from $22.6 million in 2023, reflecting an increase of 74.5%[38] EBITDA and Operational Efficiency - Q4 2024 adjusted EBITDA was $0.5 million, improving by $1.2 million compared to Q4 2023[8] - The company aims to achieve adjusted EBITDA profitability for FY 2025[17] - Operating loss for the year ended December 31, 2024, improved to $(20.2) million from $(28.6) million in 2023, a reduction of 29.8%[38] - Net cash used in operating activities decreased to $(11.7) million in 2024 from $(23.5) million in 2023, indicating improved operational efficiency[36] Net Loss and Financial Position - FY 2024 net loss was $(12.5) million, significantly reduced from $(32.9) million in FY 2023[13] - The company reported a net loss attributable to common stockholders of $(17.2) million for the year ended December 31, 2024, an improvement from $(37.5) million in 2023[38] - Non-GAAP adjusted net income (loss) for the year ended December 31, 2024, was $(4.0) million, compared to $(20.3) million in 2023, showing a significant improvement[40] Assets and Liabilities - Total assets increased to $49.5 million as of December 31, 2024, up from $44.1 million in 2023, representing a growth of 8.9%[35] - Total current liabilities decreased to $36.8 million in 2024 from $45.1 million in 2023, a reduction of 18.3%[35] Cash Position - Cash and cash equivalents increased to $20.2 million as of December 31, 2024, compared to $16.6 million in 2023, an increase of 21.7%[35] Future Outlook - The company expects FY 2025 revenue to be in the range of $88 million to $92 million[17] - Owlet continues to focus on scaling its core business and expanding its market share in pediatric health[4] - Owlet360, a new subscription service, was launched to provide personalized insights to parents[4] Shareholder Information - The weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders increased to 10,951,270 in 2024 from 8,276,481 in 2023[40]

Financial Performance - Total revenues for the three months ended September 30, 2024, were $22,122 thousand, a significant increase from $9,182 thousand in the same period of 2023, representing a growth of 141%[19] - Gross profit for the three months ended September 30, 2024, was $11,546 thousand, compared to $3,329 thousand in the same period of 2023, indicating a gross margin improvement[19] - The net loss attributable to common stockholders for the three months ended September 30, 2024, was $(6,756) thousand, compared to $(6,960) thousand in the same period of 2023, showing a slight improvement[19] - Operating expenses for the three months ended September 30, 2024, totaled $16,368 thousand, up from $11,209 thousand in the same period of 2023, representing a 46% increase[19] - Revenues for the nine months ended September 30, 2024, increased by $24.6 million, or 74.4%, from $33.0 million in the same period of 2023 to $57.6 million[155] - The Company recorded an operating loss of $12.8 million for the nine months ended September 30, 2024, compared to an operating loss of $25.6 million for the same period in the prior year[198] Assets and Liabilities - Total current assets increased to $52,281 thousand as of September 30, 2024, from $39,944 thousand as of December 31, 2023, reflecting a growth of 31%[16] - Total liabilities decreased to $65,520 thousand as of September 30, 2024, down from $73,799 thousand as of December 31, 2023, a reduction of approximately 11%[16] - Cash and cash equivalents increased to $21,502 thousand as of September 30, 2024, from $16,557 thousand as of December 31, 2023, an increase of 30%[16] - The company reported a total stockholders' deficit of $(21,459) thousand as of September 30, 2024, an improvement from $(37,531) thousand as of December 31, 2023[16] - The total stockholders' deficit as of September 30, 2024, was $259,143,000[26] - Cash and cash equivalents at the end of the period were $21,882,000, up from $15,165,000 at the end of September 30, 2023[24] Stock and Financing Activities - Proceeds from the issuance of preferred stock and warrants were $8,856,000 for the nine months ended September 30, 2024[24] - The Company issued common stock for restricted stock units vesting totaling 439,659 shares during the reporting period[26] - The Company issued 3,135,136 shares of common stock in September 2024, generating net proceeds of $9,843, and completed a sale of preferred stock and warrants for net proceeds of $8,856 in February 2024[35] - The Company entered into a loan facility agreement for a term loan of up to $15,000 and an asset-based revolving credit facility with a maximum commitment of $15,000, with an additional $5,000 available in September 2025[36] - The Company issued 750,000 shares of redeemable common stock to WTI as part of the Loan Facility Agreement, with an initial value of $4,308 million[75][76] Expenses and Costs - Research and development expenses for the three months ended September 30, 2024, were $2,559 thousand, slightly up from $2,426 thousand in the same period of 2023[19] - General and administrative expenses increased by $4.3 million, or 79.6%, from $5.4 million for the three months ended September 30, 2023, to $9.8 million for the same period in 2024[159] - Sales and marketing expenses increased by $0.7 million, or 20.6%, from $3.3 million for the three months ended September 30, 2023, to $4.0 million for the same period in 2024[161] - Interest expense decreased by $2.7 million, from $3.0 million for the nine months ended September 30, 2023, to $0.3 million for the same period in 2024[167] Cash Flow and Operating Activities - Cash used in operating activities for the nine months ended September 30, 2024, was $14,530,000, a decrease from $21,951,000 in the prior year[24] - Net cash provided by financing activities was $20.6 million for the nine months ended September 30, 2024, down from $25.9 million in the same period in 2023, primarily due to lower proceeds from stock offerings[200] - The company has not generated sufficient cash flows from operations to meet capital requirements, raising substantial doubt about its ability to continue as a going concern[178][181] Legal and Compliance Issues - The Company has experienced recurring operating losses and negative cash flows from operations since inception, raising substantial doubt about its ability to continue as a going concern[39] - As of September 30, 2024, the company concluded that its disclosure controls and procedures were not effective due to material weaknesses in internal control over financial reporting[204] - The company identified deficiencies in maintaining an effective control environment, including insufficient personnel with appropriate accounting knowledge[207] - Material weaknesses included ineffective controls over the segregation of duties related to journal entries, which did not result in adjustments to the consolidated financial statements[207] Shareholder and Stockholder Information - The weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders increased to 11,042,602 for the three months ended September 30, 2024, compared to 8,310,965 for the same period in 2023[19] - The Company reported a basic and diluted net loss per share attributable to common stockholders of $(0.57) for the three months ended September 30, 2024, compared to $(0.61) for the same period in 2023[134] - The total number of common stock warrants increased to 11,099,708 as of September 30, 2024, from 9,175,282 as of September 30, 2023[137]

Financial Data and Key Metrics Changes - Owlet achieved net revenue of $22.1 million in Q3 2024, representing a year-over-year growth of 141% [7][28] - Gross margin increased to 52%, up 1,590 basis points compared to Q3 2023, marking the highest gross margin since going public [7][30] - Adjusted EBITDA for Q3 was $0.6 million, an improvement of $6.1 million year-over-year, indicating the second consecutive quarter of positive adjusted EBITDA [8][32] Business Line Data and Key Metrics Changes - Revenue growth was primarily driven by global sales of Dream Sock and Duo, with Dream Sock achieving a domestic sell-through growth of 55% year-over-year [15][28] - The subscription service launched in beta showed an 85% retention rate after the first month, with approximately 60% of subscribers engaging as daily active users [12][26] Market Data and Key Metrics Changes - International revenue growth was 96% year-over-year, with expansion into nine additional European markets, totaling 26 countries [19][28] - Owlet's market share of total dollars spent on baby monitors increased to approximately 31% in the six months trending September 2024, up from 23% in the same period in 2023 [17] Company Strategy and Development Direction - The company focuses on three strategic areas: driving global adoption of Dream Sock, expanding medical and healthcare channels for BabySat, and transitioning into a subscription service [13][20] - Owlet aims to leverage its extensive health and sleep dataset to enhance the value proposition of its products and increase customer lifetime value [25][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the consumer environment, noting continued strong demand for products following FDA and CE Med mark clearances [39] - The company expects to land at the higher end of its 2024 guidance, estimating net revenue of $74 million to $77.5 million [35] Other Important Information - The company completed a follow-on equity offering raising net proceeds of approximately $9.8 million, enhancing its cash position and balance sheet flexibility [33] - A comprehensive debt restructuring was completed, improving the health of the balance sheet and increasing operational flexibility [34] Q&A Session Summary Question: Insights on the state of the consumer environment - Management noted a continued strong consumer environment, with FDA clearance resonating well with customers [39] Question: Manufacturing exposure and potential tariff impacts - Current manufacturing is in China and Thailand, with considerations to move camera manufacturing to Vietnam to minimize tariff exposure [40][41] Question: Path forward for BabySat reimbursement integration - Management is building relationships with DMEs and hospitals to drive reimbursement opportunities for BabySat [43][44] Question: International opportunities for BabySat - The company is focused on expanding the consumer side while exploring international markets, with significant growth potential [45]

Owlet, Inc. Q3 2024 Financial Results November 13, 2024 Owlet, Inc. (NYSE: OWLT) | Q3 2024 Financial Results Conference Call Speakers ● Kurt Workman, Co-Founder and CEO ● Jonathan Harris, President and CRO ● Amanda Twede Crawford, CFO ● Jay Gentzkow, VP Investor Relations Webcast ● Domestic Callers: (833) 470-1428 ● International Callers: (404) 975-4839; Access Code: 626609 ● Webcast Archive Available: investors.owletcare.com Contacts ● Website: investors.owletcare.com ● Email: IR@owletcare.com ● Investor C ...

Core Viewpoint - Kuehn Law, PLLC is investigating potential breaches of fiduciary duties by certain officers and directors of Owlet, Inc. related to shareholder interests [1]. Group 1: Legal Investigation - A federal securities lawsuit alleges that Owlet insiders misrepresented or failed to disclose critical information regarding the Smart Sock, which the FDA classified as a medical device [2]. - The lawsuit claims that Owlet is likely required to obtain marketing authorization for the Smart Sock and may need to cease its commercial distribution in the U.S. until such approval is obtained [2]. - Positive statements made by Owlet about its business operations and prospects are alleged to be materially misleading and lack a reasonable basis [2]. Group 2: Shareholder Engagement - Long-term OWLT stockholders are encouraged to contact Kuehn Law for a free consultation regarding their rights as shareholders [3]. - The firm emphasizes the importance of shareholder participation in maintaining the integrity and fairness of financial markets [3].

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Owlet, Inc. regarding breaches of fiduciary duties by its board of directors following a class action complaint related to the company's marketing practices and regulatory compliance [1] Company Overview - Owlet, Inc. was formed through a business combination with Sandbridge and Owlet Baby Care Inc. on July 15, 2021, focusing on products that help parents monitor their children's health [2] Regulatory Issues - On October 4, 2021, Owlet disclosed that the FDA issued a warning letter indicating that its Owlet Smart Sock product qualifies as a medical device requiring premarket clearance, which the company has not obtained [3] - The FDA requested that Owlet cease the commercial distribution of the Smart Sock for specific health monitoring uses, which could lead to significant operational and financial implications for the company [3] Market Reaction - Following the FDA warning, Owlet's stock price dropped by $1.29, or 23%, closing at $4.19 per share, with unusually high trading volume [3] - Investors from Sandbridge who could have opposed the business combination and redeemed shares at $10.00 per share experienced a loss of $5.81 per share due to the stock price decline [3]

Financial Performance - Revenues for Q2 2024 reached $20,699,000, a 58% increase from $13,088,000 in Q2 2023[17] - Gross profit for the six months ended June 30, 2024, was $16,799,000, compared to $9,386,000 for the same period in 2023, reflecting a 79% increase[17] - For the six months ended June 30, 2024, Owlet reported a net income of $2,127 thousand, a significant improvement compared to a net loss of $20,334 thousand for the same period in 2023[22] - The net loss attributable to common stockholders for Q2 2024 was $2,682,000, compared to a loss of $9,793,000 in Q2 2023[17] - The company reported a net income of $2,127 thousand for the six months ended June 30, 2024, compared to a net loss of $(22,313) thousand for the same period in 2023[94] - The company recognized a gain of $10.2 million for the six months ended June 30, 2024, compared to a gain of $0.3 million for the same period in the prior year[117] Cash Flow and Liquidity - The company experienced negative cash flows from operations of $6,674 thousand for the six months ended June 30, 2024, compared to $16,757 thousand for the same period in 2023, indicating improved cash management[30] - As of June 30, 2024, Owlet had cash and cash equivalents of $15,363 thousand, down from $24,746 thousand at the end of June 2023[22] - The company reported net cash provided by financing activities of $5.6 million for the six months ended June 30, 2024, down from $30.3 million in the same period of the previous year[147] - For the six months ended June 30, 2024, net cash used in operating activities was $6.7 million, a decrease from $16.8 million in the prior year, primarily due to a lower operating loss of $8.0 million compared to $17.7 million[145] Assets and Liabilities - Total current assets increased to $42,530,000 as of June 30, 2024, up from $39,944,000 at the end of 2023[15] - Current liabilities decreased to $42,150,000 as of June 30, 2024, down from $45,090,000 at the end of 2023[15] - Total liabilities decreased to $66,729,000 as of June 30, 2024, down from $73,799,000 at the end of 2023[15] - The company reported a common stock warrant liability of $24,429,000 as of June 30, 2024, down from $27,781,000 at the end of 2023[15] - As of June 30, 2024, the accumulated deficit of Owlet, Inc. was $253,532 thousand, reflecting ongoing financial challenges[30] Operating Expenses - Total operating expenses for the three months ended June 30, 2024, were $12.5 million, compared to $11.9 million in the same period of 2023[105] - General and administrative expenses for the three months ended June 30, 2024, were $6.3 million, a slight increase of 2.7% from $6.1 million in the same period of 2023[109] - Sales and marketing expenses for the three months ended June 30, 2024, increased by 25.1% to $3.9 million from $3.1 million in the same period of 2023[111] - The company reported an operating loss of $2.2 million for the three months ended June 30, 2024, an improvement from an operating loss of $6.7 million in the same period of 2023[105] Financing Activities - The company raised $9,250 thousand from the issuance of preferred stock and warrants on February 29, 2024, as part of its financing strategy[32] - The company raised aggregate gross proceeds of $30.0 million from a sale of preferred stock and warrants on February 17, 2023[134] - The company entered into amendments with SVB, deferring certain principal payments and extending the maturity of the revolving line of credit to December 31, 2024[135] Regulatory and Compliance - The company received its first medical device marketing authorization with the 510(k) clearance from the FDA for BabySat in June 2023, a prescription use-only pulse oximeter for patients aged over one month and weighing between 6 and 30 pounds[172] - In November 2023, the company obtained de novo classification from the FDA for Dream Sock with Health Notifications, which is now regulated as a medical device[175] - The company is involved in ongoing litigation related to claims of misleading statements regarding the FDA's classification of the Owlet Smart Sock, which could have material adverse effects on its financial condition[171] - The company was notified by NYSE in April 2023 for non-compliance with listing requirements, specifically due to an average global market capitalization and stockholders' equity both being less than $50 million[182] Internal Controls - The company has identified material weaknesses in internal controls over financial reporting, which could lead to misstatements in financial statements[153] - A remediation plan is in place to address identified weaknesses, including hiring additional personnel and implementing new controls[158]