UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-39516 Owlet, Inc. (Exact name of Registrant as specified in its Charter) Delaware 85-1615012 (State or other jurisdiction of incorpor ...

Owlet, Inc. (NYSE:OWLT) Q4 2022 Earnings Conference Call March 15, 2023 4:30 PM ET Company Participants Mike Cavanaugh - Investor Relations, ICR Westwicke Kurt Workman - Co-Founder, President and Chief Executive Officer Kate Scolnick - Chief Financial Officer Conference Call Participants Charles Rhyee - TD Cowen Allen Lutz - Bank of America Operator Good afternoon. Thank you for attending the Owlet Earnings Conference Call. My name is Matt, and I will be your moderator for today's call. [Operator Instructio ...

Financial Data and Key Metrics Changes - Revenue for Q3 2022 was $17.4 million, reflecting a challenging macroeconomic environment impacting sell-through and demand [7][30] - Gross billings for Q3 were $23.4 million, up from $22.7 million in Q2, indicating a sequential improvement despite headwinds [27] - Q3 gross margin decreased to 26.6% from 36.1% in Q2, primarily due to increased returns and allowances, and a shift in product mix towards lower-margin camera units [31][33] Business Line Data and Key Metrics Changes - The product mix in Q3 shifted over 35% towards camera units, which have lower margins compared to the Sock product [31] - Q3 product promotions and discounts totaled $3.2 million, up from $2.5 million in Q2, indicating increased promotional activity [28] Market Data and Key Metrics Changes - Owlet was the number one baby monitor brand on Amazon in the U.S. for Q3 based on revenue, showcasing strong brand performance [11] - The company experienced significant distribution expansion with U.S. retailers for 2023 and beyond, positioning itself for holiday season success [8][37] Company Strategy and Development Direction - The company aims to return to gross margins of 45% to 50% through tighter management of promotional spend and supply chain costs [9][33] - Owlet is focused on operational strides towards profitability, targeting breakeven adjusted EBITDA in 2023 [20][42] - The company is pursuing regulatory authorizations for new products, including a prescription monitoring device and a software-as-a-medical device [12][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of an uncertain macroeconomic environment on retailer inventory management and consumer demand [8][38] - The company is cautiously optimistic about the upcoming holiday season, having positioned itself well with key retail partners [55][56] - For 2023, Owlet forecasts revenue growth of 13% to 16% and aims to improve market penetration from 0.09% in 2022 to 0.13% [40][68] Other Important Information - The company has implemented significant cost reduction activities and is negotiating to expand access to working capital [21][22] - Owlet has shown operational resilience over the past year and is focused on long-term leadership in pediatric health [23][25] Q&A Session Summary Question: What was the out-of-period inventory adjustment amount? - The out-of-period inventory adjustment was about a third of the margin impact for the quarter [45] Question: How much is left in terms of potential returns? - Retailers have returned what they expect to return, and the company does not anticipate much more from them [46] Question: What were the discrete expenses in Q3? - The discrete expenses included $1.2 million in severance, $850,000 for regulatory submissions, and $1 million in additional marketing expenses [47] Question: What were the drivers of gross margin decline? - The decline was attributed to an out-of-period inventory adjustment, a shift in product mix, and an increase in returns [48][50] Question: How much of the revenue impact is tied to retailer inventory management versus actual demand? - Underlying demand was strong, with one of the best Prime Days ever, but inventory management by retailers was a significant headwind [54] Question: What is the revenue guidance for next year? - The revenue guidance for 2023 is $69 million to $74 million, with gross margins targeted between 45% and 50% [67][68]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ____________________________________________________________________________ FORM 10-Q ____________________________________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ____________________________________________________________________________ FORM 10-Q ____________________________________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ...

Financial Data and Key Metrics Changes - Owlet generated net revenues of $18.3 million for Q2 2022, which fell short of previous guidance and was impacted by lower gross billings of $22.7 million [8][28] - Gross margin for Q2 2022 was 36.1%, a significant decrease from 54.2% in the prior year, primarily due to macro inflationary pressures and product costs [30] - Operating loss for Q2 2022 was $20.4 million, compared to a loss of $5.9 million in the same period in 2021 [33] Business Line Data and Key Metrics Changes - The sell-through rate for Owlet's Dream products grew over 40% from Q1 to Q2 2022, but was slower than expected, leading to lower gross billings [10][11] - Product promotions and discounts in Q2 amounted to $2.5 million, consistent with the prior year, including $2.3 million related to Amazon Prime Day [29] Market Data and Key Metrics Changes - International gross billings increased over 60% year-to-date, with significant progress in launching products in Asia, particularly South Korea [16] - Retailers began to reduce inventory levels in response to macroeconomic headwinds, impacting Owlet's sell-in and sell-through dynamics [11][36] Company Strategy and Development Direction - The company is focusing on three primary areas: achieving strong sell-through of core products, advancing medical device submissions, and managing expenses to reach breakeven adjusted EBITDA by 2023 [12][36] - A restructuring program was implemented to streamline operations and reduce costs, including a workforce reduction of approximately 74 employees [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding consumer spending and retailer inventory management in the current macroeconomic environment, while remaining optimistic about the product portfolio [43][36] - The company is not providing revenue guidance for Q3 due to reduced forecasting visibility but expects lower operating expenses sequentially [37] Other Important Information - The company plans to submit its 510(k) application to the FDA for the BabySat device, aimed at providing care for sick babies [18] - The resignation of Mike Abbott, President and Board member, was announced, marking a significant change in leadership [25] Q&A Session Summary Question: Guidance on the back half of the year - Management acknowledged caution on consumer spending and macro conditions affecting retailer inventory management [40][43] Question: Demand trends and inventory management - Management noted that while sell-through improved from Q1 to Q2, retailers began pulling back on inventory forecasts in June [46][48] Question: Breakeven timeline and impact on growth - Management indicated a target for breakeven adjusted EBITDA by the end of 2023, with a focus on reducing operating expenses in the second half of the year [52][61]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ____________________________________________________________________________ FORM 10-Q ____________________________________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ t ...

Financial Data and Key Metrics Changes - Q1 gross billings before promotions and reserves were approximately $26 million, a 5% year-over-year increase from $25 million [25] - Q1 net revenues were $21.5 million, relatively flat compared to $21.9 million in Q1 2021 [26] - Q1 gross margin was 40.7%, impacted by macro inflationary pressures and higher return adjustments [26][27] - Operating expenses for Q1 2022 were $30.5 million, up from $15.5 million in the same period in 2021 [27] - Q1 operating loss was approximately $22 million, and net loss was $29 million, compared to $3 million operating loss and $8 million net loss in Q1 2021 [27] Business Line Data and Key Metrics Changes - The Dream Sock and Duo products saw double-digit month-over-month sell-through growth for the past three months [12] - Return adjustments for Q1 2022 were $3 million, 11.7% of gross billings, compared to $1.2 million, 4.8% of gross billings in Q1 2021 [25][26] - Customer satisfaction metrics improved, with 93% of parents reporting peace of mind with the Dream Sock [13] Market Data and Key Metrics Changes - International revenue grew over 100% year-over-year, accounting for 13% of total revenue in Q1 2022 [19][26] - The company expanded its retail footprint significantly in the UK, including partnerships with Harrods and John Lewis [19] Company Strategy and Development Direction - The company is focused on building a connected nursery ecosystem, with investments in new products like smart cribs and a membership program [9][11] - Plans to obtain medical device regulatory clearances to accelerate market adoption [11][18] - The company aims to expand its international presence and increase penetration in existing markets [19][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased inflationary cost pressures and ongoing pandemic uncertainties affecting operations [30] - For Q2, the company anticipates revenues in the range of $23 million to $25 million, with continued headwinds from inflation and inventory rework [31][32] Other Important Information - The company is working towards FDA submissions for both prescription and over-the-counter versions of its products [18][58] - The company has made significant charitable contributions, including donating 650 monitors to Ukrainian refugees [20] Q&A Session Summary Question: Clarification on inventory rework - Management confirmed that the $3 million mentioned refers to return reserves related to new product launches, with expectations of stabilization in return rates [36][48] Question: Competitive landscape - Management noted increased competition in the camera segment but emphasized Owlet's leadership in sleep tracking technology [41][42] Question: Impact of return rates on revenue - Management explained that higher return rates were due to initial consumer confusion with new product launches, which have since improved [47][48] Question: Revenue guidance visibility - Management indicated that Q2 revenue expectations are based on sell-through activities correlating with promotional opportunities [52] Question: International market impact from geopolitical events - Management reported strong growth in Europe despite some softness due to the Russia-Ukraine crisis, with overall strong consumer demand [54]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-39516 Owlet, Inc. (Exact name of Registrant as specified in its Charter) Delaware 85-1615012 (State or other jurisdiction of incorpor ...

Financial Data and Key Metrics Changes - For the full year 2021, the company recorded revenue of $75.8 million, a slight increase of $0.4 million from $75.4 million in 2020, with a significant year-over-year increase of $23.9 million during the first nine months offset by net contra revenue in Q4 2021 [28][30] - Q4 2021 product gross billings before promotions and reserves were approximately $11 million, leading to total net negative revenues of $2.5 million for the quarter due to the halt in sales of Smart Sock products [22][21] - Operating loss for Q4 2021 was $33.3 million, compared to an operating loss of $3.4 million for the same period in 2020, while net loss for Q4 2021 was $24.1 million compared to $5.8 million in Q4 2020 [24][30] Business Line Data and Key Metrics Changes - The company launched the Dream Sock and Dream Duo product lines in January 2022, which are designed to monitor babies' sleep and provide insights to parents [12][13] - International revenue grew by over 100% from 2020 to 2021, with Owlet products now available in 16 countries [14] Market Data and Key Metrics Changes - The company reported that all major US retailers have the Dream product line available online, with many also stocking it in stores by the end of Q1 2022 [34] - The international business had a strong start in Q1 2022, continuing the momentum from a successful expansion year in 2021 [35] Company Strategy and Development Direction - The company aims to increase market penetration in the connected nursery segment, invest in product innovation, and focus on obtaining marketing authorizations in the US and key global markets [32] - Owlet is working on expanding its product ecosystem, including a smart crib and enhancing its sleepwear product line [17][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in Q4 2021 due to the FDA warning letter but expressed optimism about the long-term opportunities and the successful launch of new products [11][32] - The company is actively managing variable spending and finding ways to mitigate inflationary pressures while maintaining sufficient liquidity [36] Other Important Information - The company received ISO 1345 and MDSAP certifications as part of its efforts to submit medical device applications for the Smart Sock in various international markets [16] - As of December 31, 2021, cash and cash equivalents were approximately $95 million [24] Q&A Session Summary Question: Clarification on Q1 billing expectations - Management provided high-level directional commentary but did not offer specific guidance for Q1 financial expectations, indicating that the new product's market presence is still being evaluated [41] Question: Inquiry about product accessories - Management clarified that new accessories are primarily non-smart items, such as the sleepwear line, which will integrate with the Smart Sock and camera [46][47] Question: Revenue figure excluding contra revenue - Management stated that due to the negative revenue in Q4, they could not provide a separate revenue figure excluding contra revenue [61] Question: International sales growth specifics - Management confirmed over 100% growth in international sales but did not provide specific figures, citing strong momentum going into 2022 [65] Question: Retailer relationships post-FDA actions - Management confirmed that they did not lose any retailers and maintained all existing relationships despite the challenges faced [66] Question: Update on international expansion - Management reported positive adoption rates in new international markets and ongoing efforts to expand into South America and Asia [69] Question: Timeline for FDA approval of OTC stock - Management emphasized that obtaining clearance for the OTC stock is a top priority, with ongoing discussions with the FDA to ensure all necessary information is included in submissions [70] Question: Product development updates - Management shared positive feedback on prototypes for the smart crib, indicating it is in development but did not announce a specific market release date [74]