Owlet Announces Third Quarter 2024 Financial Results
Owlet (NYSE:OWLT) reported strong Q3 2024 financial results with revenue of $22.1 million, up 141% from Q3 2023. The company achieved a gross margin of 52.2%, representing a 1,590 basis point improvement year-over-year. While net loss remained at $(5.6) million, Adjusted EBITDA turned positive at $0.6 million, improving by $6.1 million compared to Q3 2023.
The revenue increase was primarily driven by higher Dream Sock product sales across all channels. The company updated its 2024 outlook, projecting net revenue between $74-77.5 million, gross margins of 48-49%, and adjusted EBITDA loss of $(5)-(3) million.
Owlet (NYSE:OWLT) ha riportato risultati finanziari forti per il terzo trimestre del 2024, con un fatturato di 22,1 milioni di dollari, in aumento del 141% rispetto al terzo trimestre del 2023. L'azienda ha raggiunto un margine lordo del 52,2%, rappresentando un miglioramento di 1.590 punti base su base annua. Anche se la perdita netta è rimasta a $(5,6) milioni, l'EBITDA rettificato è diventato positivo a 0,6 milioni di dollari, con un miglioramento di 6,1 milioni di dollari rispetto al terzo trimestre del 2023.
L'aumento del fatturato è stato principalmente guidato da un incremento delle vendite del prodotto Dream Sock attraverso tutti i canali. L'azienda ha aggiornato le previsioni per il 2024, prevedendo un fatturato netto compreso tra 74 e 77,5 milioni di dollari, margini lordi del 48-49% e una perdita di EBITDA rettificato tra $(5) e $(3) milioni.
Owlet (NYSE:OWLT) reportó resultados financieros sólidos para el tercer trimestre de 2024, con ingresos de 22,1 millones de dólares, un 141% más que en el tercer trimestre de 2023. La compañía logró un margen bruto del 52,2%, lo que representa una mejora de 1.590 puntos básicos interanuales. Aunque la pérdida neta se mantuvo en $(5,6) millones, el EBITDA ajustado se volvió positivo con 0,6 millones de dólares, mejorando en 6,1 millones de dólares en comparación con el tercer trimestre de 2023.
El aumento en los ingresos fue impulsado principalmente por un mayor aumento en las ventas del producto Dream Sock a través de todos los canales. La empresa actualizó sus perspectivas para 2024, proyectando ingresos netos entre 74 y 77,5 millones de dólares, márgenes brutos del 48-49% y una pérdida de EBITDA ajustado entre $(5) y $(3) millones.
Owlet (NYSE:OWLT)는 2024년 3분기 강력한 재무 결과를 발표하였으며, 수익은 2,210만 달러로 2023년 3분기 대비 141% 증가했습니다. 회사는 52.2%의 총 마진을 달성하였으며, 이는 연간 1,590 기준 포인트 개선을 나타냅니다. 순손실은 $(5.6)백만 달러로 유지되었으나, 조정 EBITDA는 60만 달러로 전년 동기 대비 610만 달러 개선되었습니다.
수익 증가의 주된 원인은 모든 채널에서 Dream Sock 제품 판매가 증가했기 때문입니다. 이 회사는 2024년 전망을 업데이트하며, 순수익은 7400만에서 7750만 달러 사이, 총 마진은 48-49%, 조정 EBITDA 손실은 $(5)에서 $(3)백만 달러 사이로 예상했습니다.
Owlet (NYSE:OWLT) a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec un chiffre d'affaires de 22,1 millions de dollars, en hausse de 141 % par rapport au troisième trimestre 2023. L'entreprise a réalisé une marge brute de 52,2 %, ce qui représente une amélioration de 1 590 points de base d'une année sur l'autre. Bien que la perte nette soit restée à $(5,6) millions, l'EBITDA ajusté est devenu positif à 0,6 million de dollars, s'améliorant de 6,1 millions de dollars par rapport au troisième trimestre 2023.
L'augmentation des revenus a été principalement tirée par une hausse des ventes du produit Dream Sock dans tous les canaux. L'entreprise a mis à jour ses prévisions pour 2024, projetant un chiffre d'affaires net entre 74 et 77,5 millions de dollars, des marges brutes de 48 à 49 % et une perte d'EBITDA ajusté entre $(5) et $(3) millions.
Owlet (NYSE:OWLT) hat starke Finanzzahlen für das dritte Quartal 2024 gemeldet, mit einem Umsatz von 22,1 Millionen US-Dollar, was einem Anstieg von 141% im Vergleich zum dritten Quartal 2023 entspricht. Das Unternehmen erreichte eine Bruttomarge von 52,2%, was einer Verbesserung um 1.590 Basispunkte im Jahresvergleich entspricht. Während der Nettoverlust bei $(5,6) Millionen USD blieb, wurde das bereinigte EBITDA mit 0,6 Millionen USD positiv und verbesserte sich um 6,1 Millionen USD im Vergleich zum dritten Quartal 2023.
Der Umsatzanstieg wurde hauptsächlich durch höhere Verkaufszahlen des Dream Sock Produkts über alle Kanäle vorangetrieben. Das Unternehmen aktualisierte seine Prognosen für 2024 und erwartet einen Nettoumsatz zwischen 74 und 77,5 Millionen US-Dollar, eine Bruttomarge von 48-49% und einen bereinigten EBITDA-Verlust zwischen $(5) und $(3) Millionen USD.
- Revenue increased 141% year-over-year to $22.1 million
- Gross margin improved significantly by 1,590 basis points to 52.2%
- Adjusted EBITDA turned positive at $0.6 million, a $6.1 million improvement
- Successful completion of follow-on equity offering and debt refinancing
- Raised full-year 2024 financial outlook
- Net loss remained at $(5.6) million
- $1.9 million charge for asset impairment related to internally developed software
- Operating expenses increased due to higher compensation and marketing costs
- Projecting adjusted EBITDA loss of $(5)-(3) million for full year 2024
Insights
The Q3 results show remarkable improvement in Owlet's financial performance. Revenue surged
Key positives include enhanced operational efficiency, successful debt refinancing and strong Dream Sock product demand. However, investors should note the
The strong performance in Dream Sock sales and transition to first-party seller status with Amazon indicates improving market positioning. The FDA approval and CE clearance create significant competitive advantages in the infant monitoring space. The company's focus on BabySat medical offering and subscription services presents promising diversification opportunities.
However, the high operating expenses and marketing costs suggest substantial investment needed for market expansion. The improved gross margins and return rates demonstrate better operational execution, but sustained profitability remains a challenge. The successful equity offering strengthens the balance sheet, providing runway for growth initiatives.
Q3 2024 Financial Highlights:
-
Q3 Revenue of
, up$22.1 million 141% from Q3 2023 -
Q3 Gross Margin of
52.2% , up 1,590 basis points from Q3 2023 -
Q3 Net Loss of
, compared to$(5.6) million in Q3 2023$(5.6) million -
Q3 Adjusted EBITDA of
, improving$0.6 million compared to Q3 2023$6.1 million
“Owlet is demonstrating significant momentum as we delivered another quarter of strong revenue growth and meaningful margin expansion,” said Kurt Workman, Owlet’s Chief Executive Officer and Co-Founder. “We continue to leverage our differentiated infant monitoring solutions, including FDA approval and CE clearance, to grow adoption, capture market share, and address the fundamental needs of parents around the world.”
Workman continued, “In the quarter, we also successfully completed a follow-on equity offering and comprehensive debt refinancing, strengthening our balance sheet and supporting improved operational flexibility as we hit an exciting inflection point in the business.”
Workman concluded, “The Owlet team is focused on finishing the year strong, executing on the growth opportunities in our core products, and capitalizing on the long-term potential for our BabySat medical offering and Owlet’s subscription service. We believe Owlet has never been better positioned as a business to deliver significant value for our customers, partners, and all stakeholders.”
Financial Results for the Third Quarter Ended September 30, 2024
Revenue for the third quarter of 2024 was
Cost of revenue for the third quarter of 2024 was
Operating expenses, including stock-based compensation, were
Operating loss was
Net loss was
In the third quarter of 2024, we recognized a
Adjusted EBITDA was
Net loss per share was
Updated 2024 Financial Outlook
For full year 2024, we now expect net revenue to be in the range of
Conference Call and Webcast Information
Owlet will host a conference call and webcast today, November 13, 2024, at 4:30 p.m. ET to discuss these results and provide a business update.
Participants may access the call at 833-470-1428 (domestic) or 404-975-4839 (international) and reference Access Code 626609. A simultaneous webcast may be accessed online at the Events section of Owlet’s Investor Relations website at investors.owletcare.com. A replay will be available shortly after the webcast concludes.
About Owlet, Inc.
Owlet’s digital health infant monitoring platform is transforming the journey of parenting. Owlet, Inc. (NYSE:OWLT), a small-cap healthcare growth equity, offers FDA-authorized medical and consumer pediatric wearables and an integrated HD visual and audio camera that provide real-time data and insights to parents who safeguard health, optimize wellness, and ensure peaceful sleep for their children.
Since 2012, over 2 million parents worldwide have used Owlet’s platform contributing to one of the largest collections of consumer infant health and sleep data. The Company continues to develop software and digital data solutions to bridge the current healthcare gap between hospital and home and bring new insights to parents and caregivers globally. Owlet believes that every child deserves to live a long, happy, and healthy life.
To learn more, visit www.owletcare.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding the Company’s expected financial performance, including the Company’s financial outlook, outlook based upon regulatory authorizations or product enhancements, growth prospects, and future operational efficiencies or results and expected market opportunity and acceptance. In some cases, you can identify forward-looking statements by terms such as “estimate,” “may,” “believes,” “plans,” “expects,” “anticipates,” “intends,” “goal,” “potential,” “upcoming,” “outlook,” “guidance,” the negation thereof, or similar expressions, although not all forward-looking statements contain these identifying words. Forward-looking statements are based on the Company’s expectations at the time such statements are made, speak only as of the dates they are made and are susceptible to a number of risks, uncertainties and other factors. For all such forward-looking statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. The Company’s actual results, performance or achievements may differ materially from any future results, performance or achievements expressed or implied by our forward-looking statements. Many important factors could affect the Company’s future results and cause those results to differ materially from those expressed in or implied by the Company’s forward-looking statements. Such factors include, but are not limited to, (i) the regulatory pathway for Owlet’s products, including submissions to, actions taken by and decisions and responses from regulators, such as the FDA and similar regulators outside of
Disclosure Regarding Non-GAAP Financial Measures
In addition to the financial measures presented in this release in accordance with
The Company uses such non-GAAP financial measures as internal measures of business operating performance and as performance measures for benchmarking against the Company’s peers and competitors. The Company believes its presentation of EBITDA, adjusted EBITDA, adjusted net income (loss) and adjusted net income (loss) per share provide a meaningful perspective of the underlying operating performance of the Company’s current business and enables investors to better understand and evaluate its historical and prospective operating performance. The Company believes that these non-GAAP financial measures are important supplemental measures of operating performance because they exclude items that vary from period to period without correlation to the Company’s core operating performance and highlight trends in its business that may not otherwise be apparent when relying solely on GAAP financial measures. Due to the nature of the items being excluded, such items do not reflect future gains, losses, expenses or benefits and are not indicative of the Company’s future operating performance. The Company believes investors, analysts and other interested parties use EBITDA, adjusted EBITDA, adjusted net income (loss) and adjusted net income (loss) per share in evaluating issuers, and the presentation of these measures facilitates a comparative assessment of the Company’s operating performance in addition to the Company’s performance based on GAAP results.
The Company’s non-GAAP financial measures should not be considered as an alternative to net loss or net loss per share as a measure of financial performance or any other performance measure derived in accordance with GAAP and should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items.
EBITDA is defined as net loss adjusted for income tax provision and interest expense, net and depreciation and amortization.
Adjusted EBITDA is defined as net loss adjusted for income tax provision, interest expense, interest expense from contingent beneficial conversion feature, interest income, depreciation and amortization, intangible asset impairment, restructuring costs, warrant liability adjustments, gain on loan forgiveness, stock-based compensation, and transaction costs.
Adjusted net income (loss) is defined as net income (loss) adjusted for restructuring costs, common stock warrant liability adjustments, stock-based compensation, transaction costs, and intangible asset impairment. Adjusted net income (loss) per share is defined as adjusted net income (loss) divided by the weighted-average shares of common stock outstanding.
EBITDA, adjusted EBITDA, adjusted net income (loss) and adjusted net income (loss) per share are not recognized terms under GAAP, and the Company’s presentation of these non-GAAP measures does not replace the presentation of the Company’s financial results in accordance with GAAP. Because all companies do not use EBITDA, adjusted EBITDA, adjusted net income (loss) and adjusted net income (loss) per share (and similarly titled financial measures) in the same way, those measures as used by other companies may not be consistent with the way the Company calculates such measures. The non-GAAP financial measures included in this release should not be construed as substitutes for or better indicators of the Company’s performance than the most directly comparable GAAP financial measures. See the reconciliation tables that accompany this release for additional information regarding certain of the non-GAAP financial measures included herein.
A reconciliation of the Company's guidance with respect to non-GAAP financial measures to the most directly comparable GAAP financial measure cannot be provided without unreasonable efforts and is not provided herein because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, the amounts of which could be material.
Owlet, Inc.
Condensed Consolidated Balance Sheets - Preliminary, Unaudited1
(in millions)
Assets |
|
September 30, 2024 |
|
December 31, 2023 |
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
21.5 |
|
|
$ |
16.6 |
|
Restricted Cash |
|
|
0.3 |
|
|
|
— |
|
Accounts receivable, net |
|
|
17.2 |
|
|
|
14.0 |
|
Inventory |
|
|
10.6 |
|
|
|
6.5 |
|
Prepaid expenses and other current assets |
|
|
2.7 |
|
|
|
2.9 |
|
Total current assets |
|
|
52.3 |
|
|
|
39.9 |
|
Property and equipment, net |
|
|
0.2 |
|
|
|
0.4 |
|
Right of use assets, net |
|
|
0.1 |
|
|
|
0.9 |
|
Intangible assets, net |
|
|
0.9 |
|
|
|
2.2 |
|
Other assets |
|
|
2.8 |
|
|
|
0.7 |
|
Total assets |
|
$ |
56.1 |
|
|
$ |
44.1 |
|
Liabilities, Mezzanine Equity, and Stockholders’ Deficit |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
11.5 |
|
|
$ |
13.7 |
|
Accrued and other expenses |
|
|
12.4 |
|
|
|
15.1 |
|
Current portion of deferred revenues |
|
|
1.4 |
|
|
|
1.2 |
|
Line of credit |
|
|
9.9 |
|
|
|
9.3 |
|
Current portion of long-term debt and other debt |
|
|
0.5 |
|
|
|
5.9 |
|
Total current liabilities |
|
|
35.7 |
|
|
|
45.1 |
|
Long-term debt, net |
|
|
4.6 |
|
|
|
— |
|
Common stock warrant liabilities |
|
|
25.1 |
|
|
|
27.8 |
|
Other long-term liabilities |
|
|
0.1 |
|
|
|
0.9 |
|
Total liabilities |
|
|
65.5 |
|
|
|
73.8 |
|
Total mezzanine equity |
|
|
12.1 |
|
|
|
7.9 |
|
Total stockholders’ deficit |
|
|
(21.5 |
) |
|
|
(37.5 |
) |
Total liabilities, mezzanine equity, and stockholders’ deficit |
|
$ |
56.1 |
|
|
$ |
44.1 |
|
1 Amounts may not sum due to rounding |
Owlet, Inc.
Condensed Consolidated Statements of Cash Flows - Preliminary, Unaudited1
(in millions)
|
Nine Months Ended September 30, |
||||
|
2024 |
|
2023 |
||
Net cash used in operating activities |
(14.5 |
) |
|
(22.0 |
) |
Net cash used in investing activities |
(0.7 |
) |
|
— |
|
Net cash provided by financing activities |
20.6 |
|
|
25.9 |
|
Net change in cash, cash equivalents, and restricted cash |
5.3 |
|
|
3.9 |
|
1 Amounts may not sum due to rounding |
Owlet, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - Preliminary, Unaudited1
(in millions, except share and per share amounts)
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenues |
$ |
22.1 |
|
|
$ |
9.2 |
|
|
$ |
57.6 |
|
|
$ |
33.0 |
|
Cost of revenues |
|
10.6 |
|
|
|
5.9 |
|
|
|
29.2 |
|
|
|
20.3 |
|
Gross profit |
|
11.5 |
|
|
|
3.3 |
|
|
|
28.3 |
|
|
|
12.7 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
General and administrative |
|
9.8 |
|
|
|
5.4 |
|
|
|
22.1 |
|
|
|
20.4 |
|
Sales and marketing |
|
4.0 |
|
|
|
3.3 |
|
|
|
11.8 |
|
|
|
9.8 |
|
Research and development |
|
2.6 |
|
|
|
2.4 |
|
|
|
7.3 |
|
|
|
8.1 |
|
Total operating expenses |
|
16.4 |
|
|
|
11.2 |
|
|
|
41.2 |
|
|
|
38.3 |
|
Operating loss |
|
(4.8 |
) |
|
|
(7.9 |
) |
|
|
(12.8 |
) |
|
|
(25.6 |
) |
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Interest income (expense), net |
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
(0.3 |
) |
|
|
(3.0 |
) |
Common stock warrant liability adjustment |
|
(0.7 |
) |
|
|
2.4 |
|
|
|
9.5 |
|
|
|
2.7 |
|
Other income (expense), net |
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
(0.1 |
) |
Total other income (expense), net |
|
(0.8 |
) |
|
|
2.2 |
|
|
|
9.4 |
|
|
|
(0.4 |
) |
Loss before income tax provision |
|
(5.6 |
) |
|
|
(5.6 |
) |
|
|
(3.5 |
) |
|
|
(26.0 |
) |
Income tax provision |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss and comprehensive loss |
|
(5.6 |
) |
|
|
(5.6 |
) |
|
|
(3.5 |
) |
|
|
(26.0 |
) |
Accretion on convertible preferred stock |
|
(1.2 |
) |
|
|
(1.3 |
) |
|
|
(4.1 |
) |
|
|
(3.3 |
) |
Accretion on redeemable common stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Allocation of net loss attributable to redeemable common stockholders |
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss attributable to common stockholders |
|
(6.8 |
) |
|
|
(7.0 |
) |
|
|
(7.5 |
) |
|
|
(29.3 |
) |
Net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.61 |
) |
|
$ |
(0.84 |
) |
|
$ |
(0.79 |
) |
|
$ |
(3.56 |
) |
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted |
|
11,042,602 |
|
|
|
8,310,965 |
|
|
|
9,555,467 |
|
|
|
8,212,268 |
|
Net loss per share attributable to redeemable common stockholders, basic and diluted |
$ |
(0.57 |
) |
|
$ |
— |
|
|
$ |
(0.66 |
) |
|
$ |
— |
|
Weighted-average number of shares outstanding used to compute net loss per share attributable to redeemable common stockholders, basic and diluted |
|
122,283 |
|
|
|
— |
|
|
|
41,058 |
|
|
|
— |
|
1 Amounts may not sum due to rounding |
Owlet, Inc.
Reconciliation of GAAP to Non-GAAP Measures - Preliminary, Unaudited1
(in millions)
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
GAAP net Loss |
$ |
(5.6 |
) |
|
$ |
(5.6 |
) |
|
$ |
(3.5 |
) |
|
$ |
(26.0 |
) |
Income tax provision |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest expense, net |
|
0.1 |
|
|
|
0.1 |
|
|
|
0.3 |
|
|
|
3.0 |
|
Depreciation and amortization |
|
0.1 |
|
|
|
0.2 |
|
|
|
0.3 |
|
|
|
0.7 |
|
Impairment of intangible assets related to internally developed software |
$ |
1.9 |
|
|
$ |
— |
|
|
$ |
1.9 |
|
|
$ |
— |
|
Non-GAAP EBITDA |
$ |
(3.5 |
) |
|
$ |
(5.3 |
) |
|
$ |
(1.0 |
) |
|
$ |
(22.3 |
) |
Common stock warrant liability adjustment |
$ |
0.7 |
|
|
$ |
(2.4 |
) |
|
$ |
(9.5 |
) |
|
$ |
(2.7 |
) |
Stock-based compensation |
|
2.7 |
|
|
|
2.2 |
|
|
|
7.0 |
|
|
|
7.6 |
|
Transaction costs |
|
— |
|
|
|
— |
|
|
|
0.4 |
|
|
|
1.7 |
|
Restructuring costs |
$ |
0.7 |
|
|
$ |
— |
|
|
$ |
0.7 |
|
|
$ |
— |
|
Non-GAAP Adjusted EBITDA |
$ |
0.6 |
|
|
$ |
(5.5 |
) |
|
$ |
(2.4 |
) |
|
$ |
(15.6 |
) |
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
GAAP net loss |
$ |
(5.6 |
) |
|
$ |
(5.6 |
) |
|
$ |
(3.5 |
) |
|
$ |
(26.0 |
) |
Non-GAAP Adjustments: |
|
|
|
|
|
|
|
||||||||
Common stock warrant liability adjustment |
|
0.7 |
|
|
|
(2.4 |
) |
|
|
(9.5 |
) |
|
|
(2.7 |
) |
Stock-based compensation |
|
2.7 |
|
|
|
2.2 |
|
|
|
7.0 |
|
|
|
7.6 |
|
Transaction costs |
|
— |
|
|
|
— |
|
|
|
0.4 |
|
|
|
1.7 |
|
Impairment of intangible assets related to internally developed software |
$ |
1.9 |
|
|
$ |
— |
|
|
$ |
1.9 |
|
|
$ |
— |
|
Restructuring costs |
$ |
0.7 |
|
|
$ |
— |
|
|
$ |
0.7 |
|
|
$ |
— |
|
Non-GAAP adjusted net income (loss) |
$ |
0.4 |
|
|
$ |
(5.8 |
) |
|
$ |
(3.0 |
) |
|
$ |
(19.3 |
) |
Non-GAAP adjusted net income (loss) per share |
$ |
0.03 |
|
|
$ |
(0.70 |
) |
|
$ |
(0.31 |
) |
|
$ |
(2.35 |
) |
Weighted average number of shares outstanding |
|
11,042,602 |
|
|
|
8,310,965 |
|
|
|
9,555,467 |
|
|
|
8,212,268 |
|
1 Amounts may not sum due to rounding |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241113988770/en/
Investor Relations: ir@owletcare.com
Media: pr@owletcare.com
Source: Owlet, Inc.
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