Owlet announces strong first quarter 2024 results

Owlet, Inc. reports financial results for the first quarter ended March 31, 2024.

“We’ve started off 2024 by delivering solid year over year growth. Consumer sell-through demand is up 60% year over year for our Dream Sock and Dream Duo products following FDA clearance, and the initial feedback on our groundbreaking medical device has been overwhelmingly positive. Parents are benefiting from the expanded health information our Dream Sock now provides and this is translating into higher NPS scores, healthy demand and sell-through across our consumer channels. In addition, parents are now able to contact their healthcare providers for prescriptions and seek support through Owletcare.com with growing reimbursement coverage from insurance providers which is a bright opportunity in 2024 and 2025.” said Kurt Workman, Owlet’s Chief Executive Officer and Co-Founder.

Workman continued, “As we’ve surpassed over 2 million infants monitored on our platform, the unequaled insights from our digital data capabilities are strengthening. Globally, parents and caregivers want accessible health insights between hospital and home and Owlet is uniquely addressing this demand. We believe our growing market position and operational health are strong momentum indicators for continued success in 2024.”

Financial results for the first quarter ended March 31, 2024
Revenues for the first quarter of 2024 were approximately $14.8 million compared to revenue in the first quarter of 2023 of approximately $10.7M. The increase was primarily due to higher sales of Dream Sock products, reflecting an increase in consumer demand and sell-through as compared to the same period in the prior year.

Cost of revenues for the first quarter of 2024 was approximately $8.2 million with a gross margin of 44.4%. Gross margin increased year over year primarily due to higher revenue and lower direct product and fulfillment costs.

Operating expenses, including stock-based compensation, were approximately $12.3 million for the first quarter of 2024, compared to approximately $15.1 million for the same period in 2023. Operating costs decreased year over year primarily due to transaction costs and lower spend on G&A costs to support the business.

Operating loss was approximately $5.7 million for the first quarter of 2024, compared to approximately $11.0 million for the first quarter of 2023.

Net income was approximately $3.3 million for the first quarter of 2024, compared to net loss of approximately $11.9 million for the first quarter of 2023. Net income in the first quarter of 2024 is primarily driven by Owlet demonstrating stronger operating results year over year and a gain related to the Company’s common stock warrants outstanding.

A gain of approximately $9.2 million in the first quarter of 2024 resulted from a decrease in the fair value of common stock warrants outstanding as compared to a gain of approximately $1.9 million in the first quarter of 2023.

Adjusted EBITDA loss was approximately $3.1 million for the first quarter of 2024, compared to approximately $5.8 million for the first quarter of 2023.

Basic earnings per share was $0.15 for the first quarter of 2024, compared to basic net loss per share of ($1.54) for the first quarter of 2023. Diluted net loss per share was ($0.51) for the first quarter of 2024, compared to diluted net loss per share of ($1.54) for the same period in 2023. Adjusted net loss per share was ($0.39) for the first quarter of 2024, compared to adjusted net loss per share of ($1.10) for the same period in 2023.
MB Bureau