Owlet(US:OWLT)2024-11-13 21:06Financial Performance - Q3 2024 revenue was $22.1 million, a 141% increase from Q3 2023's $9.2 million[3] - Gross margin for Q3 2024 was 52.2%, up 1,590 basis points from 36.3% in Q3 2023[4] - Q3 2024 net loss remained at $(5.6) million, consistent with Q3 2023[6] - Adjusted EBITDA improved to $0.6 million in Q3 2024, a $6.1 million increase from a loss of $5.5 million in Q3 2023[7] - Revenues for the three months ended September 30, 2024, were $22.1 million, a significant increase from $9.2 million in the same period of 2023, reflecting a 140.2% year-over-year growth[28] - Gross profit for the nine months ended September 30, 2024, was $28.3 million, compared to $12.7 million for the same period in 2023, indicating a 122.0% increase[28] - Operating loss narrowed to $4.8 million for the three months ended September 30, 2024, compared to a loss of $7.9 million in the same period of 2023, showing a 39.2% improvement[28] - Net loss attributable to common stockholders for the three months ended September 30, 2024, was $6.8 million, compared to a loss of $7.0 million in the same period of 2023, reflecting a 2.9% improvement[30] - Non-GAAP adjusted net income for the three months ended September 30, 2024, was $0.4 million, compared to a loss of $5.8 million in the same period of 2023, indicating a significant turnaround[31] Expenses and Liabilities - Operating expenses for Q3 2024 were $16.4 million, up from $11.2 million in Q3 2023, primarily due to higher compensation and marketing expenses[5] - Total current liabilities decreased to $35.7 million as of September 30, 2024, from $45.1 million at December 31, 2023, a decline of 20.7%[23] - Total liabilities decreased to $65.5 million as of September 30, 2024, down from $73.8 million at December 31, 2023, a reduction of 11.2%[23] Cash Flow and Assets - Net cash used in operating activities decreased to $14.5 million for the nine months ended September 30, 2024, down from $22.0 million in the same period of 2023, a reduction of 34.1%[25] - Cash and cash equivalents increased to $21.5 million as of September 30, 2024, from $16.6 million at December 31, 2023, a growth of 29.5%[23] - Total assets increased to $56.1 million as of September 30, 2024, up from $44.1 million at December 31, 2023, representing a 27.8% growth[23] Growth Drivers and Future Outlook - The increase in revenue was driven by higher sales of Dream Sock products and a new direct selling arrangement with Amazon[3] - Full year 2024 net revenue is expected to range from $74 million to $77.5 million, with gross margins of 48% to 49%[8] - Owlet aims to capitalize on growth opportunities in core products and the long-term potential of its BabySat medical offering and subscription service[2] - The company recognized a $1.9 million charge for asset impairment related to internally developed software in Q3 2024[6]