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]

Financial Performance - As of September 30, 2021, the company had an accumulated deficit of $119.4 million, up from $71.7 million as of December 31, 2020[135]. - The company reported a net loss of $34.5 million for the three months ended September 30, 2021, compared to a net loss of $1.5 million for the same period in 2020[154]. - Adjusted EBITDA for the nine months ended September 30, 2021, was $(13.9) million, with an Adjusted EBITDA margin of (17.7)%[154]. - Revenues for the three months ended September 30, 2021, increased by $10.3 million, or 48.8%, to $31.5 million compared to $21.2 million for the same period in 2020, driven by a 54% increase in sales volume[168]. - Revenues for the nine months ended September 30, 2021, increased by $23.9 million, or 44.0%, to $78.4 million compared to $54.4 million for the same period in 2020, primarily due to a 47% increase in sales volume[170]. - Gross profit for the three months ended September 30, 2021, was $14.9 million, representing a 51.5% increase from $9.8 million for the same period in 2020[171]. - Gross margin for the three months ended September 30, 2021, improved to 47.2% from 46.4% for the same period in 2020[171]. Expenses - General and administrative expenses for the three months ended September 30, 2021, increased by $6.1 million, or 191.5%, to $9.3 million compared to $3.2 million for the same period in 2020[173]. - Sales and marketing expenses for the three months ended September 30, 2021, increased by $8.0 million, or 159.3%, to $13.1 million compared to $5.0 million for the same period in 2020[176]. - Research and development expenses are expected to increase significantly as the company invests in the development of its monitoring pipeline, including Smart Sock variants[162]. - Sales and Marketing expense increased by $13.7 million, or 104.3%, from $13.1 million for the nine months ended September 30, 2020 to $26.8 million for the nine months ended September 30, 2021, representing 34.2% of revenues[177]. - Research and Development expense increased by $3.6 million, or 131.5%, from $2.7 million for the three months ended September 30, 2020 to $6.3 million for the three months ended September 30, 2021, accounting for 20.1% of revenue[178]. - For the nine months ended September 30, 2021, Research and Development expenses increased by $6.6 million, or 86.9%, from $7.6 million in the same period of 2020, representing 18.2% of revenue[179]. Cash Flow and Financing - The company generated net cash used in operating activities of $34.7 million for the nine months ended September 30, 2021, primarily due to a net loss of $47.6 million[201]. - Net cash used in investing activities increased to $1.6 million for the nine months ended September 30, 2021, up from $0.9 million in the same period of 2020[203]. - For the nine months ended September 30, 2021, net cash provided by financing activities was $134.2 million, compared to $2.9 million for the same period in 2020[204][206]. - The financing activities in 2021 included gross draws of $8.2 million on the line of credit and the issuance of $5.0 million in additional long-term debt[204]. - As of September 30, 2021, the company had cash and cash equivalents of $114.9 million[187]. - The company had an amended loan and security agreement with Silicon Valley Bank, with a borrowing capacity under the SVB Revolver of $17.5 million as of September 30, 2021[191]. Regulatory and Market Expansion - The company suspended distribution of the Owlet Smart Sock in the U.S. as of October 2021 in response to a Warning Letter from the FDA, impacting sales and operations[140]. - The company plans to develop a new sleep monitoring sock, the Owlet Dream Sock, which is expected to avoid the regulatory concerns raised by the FDA regarding the Owlet Smart Sock[144]. - The company is developing two variations of the Owlet Smart Sock as medical devices, which will require FDA marketing authorization[145]. - The company aims to expand its market presence internationally, focusing on Europe, Asia, and Latin America, while investing in its supply chain to support this expansion[147]. - International revenues for the three months ended September 30, 2021, increased by $2.1 million, or 170.4%, to $3.3 million compared to $1.2 million for the same period in 2020[169]. Company Classification and Risks - The company qualifies as an emerging growth company (EGC) under the JOBS Act, allowing for an extended transition period to comply with new accounting standards[211]. - The company anticipates remaining an EGC until at least December 31, 2025, or until certain revenue thresholds are met[213]. - The company is classified as a "smaller reporting company," allowing for reduced disclosure obligations[214]. - The company is exposed to market risks primarily due to interest rate fluctuations and credit risk[215]. - The interest rate on the Term Note was the greater of the prime rate plus 3.5% or 6.5% as of September 30, 2021, with no material risk from interest rate fluctuations[217]. - Substantially all cash and cash equivalents are deposited in one financial institution, minimizing credit risk[218]. - The company has experienced significant credit losses primarily from a national retailer's bankruptcy in September 2017, but maintains an allowance for doubtful accounts[220].

Owlet, Inc. (NYSE:OWLT) Q3 2021 Results Conference Call November 10, 2021 4:30 PM ET Company Participants Mike Cavanaugh - Investor Relations Kurt Workman - Co-Founder and Chief Executive Officer Kate Scolnick - Chief Financial Officer Conference Call Participants Charles Rhyee - Cowen & Co John Babcock - Bank of America Jim Suva - Citigroup Operator Hello everyone and welcome to Owlet Q3 2021 Earnings Call. My name is [Nadia] and I will be coordinating your call today. [Operator Instructions] I will now ha ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to _________ Commission File No. 001-39516 OWLET, INC. (Exact name of registrant as specified in its charter) (State or other jurisdict ...

Financial Data and Key Metrics Changes - Total revenues for Q2 2021 were $24.9 million, representing a year-over-year increase of 36% and a sequential increase of 14% from Q1 2021 [19] - Gross margins were 54.2%, an increase of 600 basis points compared to 48.2% in Q2 2020 [20] - Operating loss for Q2 was $5.9 million, compared to $0.6 million in Q2 2020 [21] - Net loss in Q2 was $5.3 million, compared to $1.1 million in Q2 2020 [22] - EBITDA loss for Q2 2021 was $4.6 million, with an EBITDA margin of negative 18.4% [22] Business Line Data and Key Metrics Changes - Revenue growth was primarily driven by the flagship Smart Sock and Monitor Duo products [19] - Approximately $2.2 million of Q2 2020 revenues were related to initial sales of new inventory for Smart Sock version three and Monitor Duo version three [20] Market Data and Key Metrics Changes - International sales accounted for 7% of total revenue, the highest percentage to date [13] - Traffic to the company's website in July was up over 50% year-over-year [12] Company Strategy and Development Direction - The company aims to deepen market penetration in the U.S., expand globally, and enhance the Owlet ecosystem with integrated services [10][17] - The company is focused on increasing awareness and accessibility of its products through aggressive marketing strategies [11][31] - OwletCare platform represents an $81 billion market opportunity, with a goal to drive over $1 billion in revenue by 2025 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving revenue goals for 2021, projecting approximately $107 million in revenues [23] - The company is confident in its ability to navigate supply chain challenges while maintaining gross margin improvements [38] Other Important Information - The company raised $135 million in capital through its public company business combination, strengthening its balance sheet for future investments [22] - The Smart Sock Plus was launched, extending the product's age range from 18 months to five years [14] Q&A Session Summary Question: How will the company deploy the $135 million raised? - The company plans to focus on deepening U.S. market penetration, expanding internationally, and enhancing the connected nursery ecosystem [28] Question: What is the current adoption rate in states with over 20% penetration? - Awareness is the main driver for adoption, and the company is increasing marketing efforts to boost awareness [31] Question: What is the timeline for FDA approval and insurance reimbursement? - The company is confident in its FDA submission progress and plans to work with insurance for reimbursement after approval [39]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to _________ Commission File No. 001-39516 SANDBRIDGE ACQUISITION CORPORATION (Exact name of registrant as specified in its charter) (State or other jur ...