Owlet Announces Fourth Quarter and Full Year 2024 Results
Q4 2024 Financial Highlights
-
Q4 Revenue of
$20.5 million $21.0 million $6 million 37% compared to Q4 2023 -
Q4 Gross Margin of
53.5% , up 650 basis points from Q4 2023 -
Q4 Net Loss of
$(9.1) million $(6.9) million -
Q4 Adjusted EBITDA of
$0.5 million $1.2 million
Full Year 2024 Financial Highlights
-
FY 2024 Revenue of
$78.1 million 45% from 2023 -
FY 2024 Gross Margin of
50.4% , up 850 basis points from 2023 -
FY 2024 Net Loss of
$(12.5) million $(32.9) million -
FY 2024 Adjusted EBITDA of
$(2.0) million $14.3 million
“2024 was a pivotal year for Owlet, marking our strongest financial performance in company history,” said Kurt Workman, Owlet’s Chief Executive Officer and Co-Founder. “We finished the year strong with fourth quarter results that exceeded our guidance across all key metrics. We made significant progress in the year, including launching the first and only FDA-cleared baby monitoring device, expanding internationally, and capturing market share, positioning Owlet as a clear leader in connected pediatric health.”
Workman continued, “We continued our momentum entering 2025, launching Owlet360, our new subscription service leveraging Owlet’s massive pediatric health and sleep data set to deliver personalized, actionable insights to parents. Owlet360 represents a major step in our evolution into a comprehensive pediatric health platform, empowering families with the tools to bridge the gap between hospital and home care.”
Workman concluded, “Looking ahead, we remain focused on scaling our core business, positioning for the large medical reimbursement opportunity, and accelerating growth in the Owlet360 subscription business. With a differentiated product portfolio, growing adoption, and a clear vision for the future, we believe Owlet is well-positioned to drive long-term, profitable growth while making a significant impact on pediatric health worldwide. I couldn’t be prouder of our team’s achievements, and I’m excited for what’s ahead.”
Financial Results for the Fourth Quarter and Full Year Ended December 31, 2024
Fourth Quarter 2024 Results
Revenue for the fourth quarter of 2024 was
Cost of revenue for the fourth quarter of 2024 was
Operating expenses were
Operating loss and net loss were
Adjusted EBITDA was
Net loss per share was
Full Year 2024 Results
For fiscal year 2024, revenue was
Cost of revenue for the fiscal year 2024 was
For fiscal year 2024, gross margin was
Operating expenses for fiscal year 2024 were
Operating loss and net loss for fiscal year 2024 were
EBITDA loss for fiscal year 2024 was
Adjusted EBITDA loss for fiscal year 2024 was
Net loss per share for fiscal year 2024 was
2025 Financial Outlook
For the full year 2025, we expect revenue in the range of
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, growth prospects and future operational efficiencies or results and expected market 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 Company’s limited operating history and ability to continue as a going concern; (ii) the Company’s ability to manage its growth and competition; (iii) 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 loss and adjusted net 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 loss and adjusted net 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, depreciation and amortization, and impairment of intangible assets related to internally developed software.
Adjusted EBITDA is defined as net loss adjusted for income tax provision, interest expense, net, depreciation and amortization, impairment of intangible assets related to internally developed software, common stock warrant liability adjustments, stock-based compensation, transaction costs, charges related to certain legal matters, and restructuring costs.
Adjusted net loss is defined as net loss adjusted for common stock warrant liability adjustments, stock-based compensation, transaction costs, charges related to certain legal matters, impairment of intangible assets related to internally developed software, and restructuring costs. Adjusted net loss per share is defined as adjusted net loss divided by weighted-average shares of common stock.
EBITDA, adjusted EBITDA, adjusted net loss and adjusted net 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 loss and adjusted net 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.
Conference Call and Webcast Information
Owlet will host a conference call and audio webcast today, March 4, 2025, at 4:30 p.m. ET to discuss these results.
To access the conference call by telephone, please dial (833) 470-1428 (domestic) or (404) 975-4839 (international) and reference Access Code 492081. To listen to the conference call via live audio webcast and to access the accompanying presentation materials, please visit the Events section of Owlet’s Investor Relations website at investors.owletcare.com.
The archived webcast and presentation materials will also be available on Owlet’s Investor Relations website mentioned above.
About Owlet, Inc.
Owlet’s digital health infant monitoring platform is transforming the journey of parenting. The Company (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 two 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.
Owlet, Inc. Condensed Consolidated Balance Sheets - Preliminary, Unaudited1 (in millions) |
||||||||
Assets |
|
December 31, 2024 |
|
December 31, 2023 |
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
20.2 |
|
|
$ |
16.6 |
|
Restricted cash |
|
|
0.4 |
|
|
|
— |
|
Accounts receivable, net |
|
|
12.1 |
|
|
|
14.0 |
|
Inventory |
|
|
10.5 |
|
|
|
6.5 |
|
Prepaid expenses and other current assets |
|
|
2.8 |
|
|
|
2.9 |
|
Total current assets |
|
|
46.1 |
|
|
|
39.9 |
|
Property and equipment, net |
|
|
0.1 |
|
|
|
0.4 |
|
Right of use assets, net |
|
|
0.1 |
|
|
|
0.9 |
|
Intangible assets, net |
|
|
1.0 |
|
|
|
2.2 |
|
Other assets |
|
|
2.2 |
|
|
|
0.7 |
|
Total assets |
|
$ |
49.5 |
|
|
$ |
44.1 |
|
Liabilities, Mezzanine Equity, and Stockholders’ Deficit |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
11.3 |
|
|
$ |
13.7 |
|
Accrued and other expenses |
|
|
16.4 |
|
|
|
15.1 |
|
Current portion of deferred revenues |
|
|
1.4 |
|
|
|
1.2 |
|
Line of credit |
|
|
6.3 |
|
|
|
9.3 |
|
Current portion of long-term and other debt |
|
|
1.4 |
|
|
|
5.9 |
|
Total current liabilities |
|
|
36.8 |
|
|
|
45.1 |
|
Long-term debt, net |
|
|
4.0 |
|
|
|
— |
|
Common stock warrant liabilities |
|
|
25.3 |
|
|
|
27.8 |
|
Other long-term liabilities |
|
|
0.2 |
|
|
|
0.9 |
|
Total liabilities |
|
|
66.3 |
|
|
|
73.8 |
|
Total mezzanine equity |
|
|
12.9 |
|
|
|
7.9 |
|
Total stockholders’ deficit |
|
|
(29.8 |
) |
|
|
(37.5 |
) |
Total liabilities, mezzanine equity, and stockholders’ deficit |
|
$ |
49.5 |
|
|
$ |
44.1 |
|
Owlet, Inc. Condensed Consolidated Statements of Cash Flows - Preliminary, Unaudited1 (in millions) |
|||||||
|
Year Ended December 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Net cash used in operating activities |
$ |
(11.7 |
) |
|
$ |
(23.5 |
) |
Net cash used in investing activities |
|
(0.8 |
) |
|
|
(0.1 |
) |
Net cash provided by financing activities |
|
16.6 |
|
|
|
28.9 |
|
Net change in cash, cash equivalents, and restricted cash |
$ |
4.1 |
|
|
$ |
5.3 |
|
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
|
|
Year Ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
$ |
20.5 |
|
|
$ |
21.0 |
|
|
$ |
78.1 |
|
|
$ |
54.0 |
|
Cost of revenues |
|
9.5 |
|
|
|
11.1 |
|
|
|
38.7 |
|
|
|
31.4 |
|
Gross profit |
|
11.0 |
|
|
|
9.9 |
|
|
|
39.3 |
|
|
|
22.6 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
General and administrative |
|
11.8 |
|
|
|
6.9 |
|
|
|
34.0 |
|
|
|
27.3 |
|
Sales and marketing |
|
4.0 |
|
|
|
3.8 |
|
|
|
15.8 |
|
|
|
13.5 |
|
Research and development |
|
2.5 |
|
|
|
2.3 |
|
|
|
9.8 |
|
|
|
10.3 |
|
Total operating expenses |
|
18.4 |
|
|
|
13.0 |
|
|
|
59.5 |
|
|
|
51.2 |
|
Operating loss |
|
(7.4 |
) |
|
|
(3.1 |
) |
|
|
(20.2 |
) |
|
|
(28.6 |
) |
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
(1.4 |
) |
|
|
(0.2 |
) |
|
|
(1.6 |
) |
|
|
(3.2 |
) |
Common stock warrant liability adjustment |
|
(0.2 |
) |
|
|
(3.6 |
) |
|
|
9.3 |
|
|
|
(0.9 |
) |
Other income (expense), net |
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
(0.1 |
) |
Total other income (expense), net |
|
(1.6 |
) |
|
|
(3.8 |
) |
|
|
7.7 |
|
|
|
(4.3 |
) |
Loss before income tax provision |
|
(9.0 |
) |
|
|
(6.9 |
) |
|
|
(12.5 |
) |
|
|
(32.9 |
) |
Income tax provision |
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
Net loss and comprehensive loss |
|
(9.1 |
) |
|
|
(6.9 |
) |
|
|
(12.5 |
) |
|
|
(32.9 |
) |
Accretion on convertible preferred stock |
|
(0.8 |
) |
|
|
(1.3 |
) |
|
|
(4.9 |
) |
|
|
(4.6 |
) |
Accretion on redeemable common stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Allocation of net loss attributable to redeemable common stockholders |
|
0.4 |
|
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
Net loss attributable to redeemable common stockholders |
|
(0.3 |
) |
|
|
— |
|
|
|
(0.2 |
) |
|
|
— |
|
Net loss attributable to common stockholders |
$ |
(9.6 |
) |
|
$ |
(8.2 |
) |
|
$ |
(17.2 |
) |
|
$ |
(37.5 |
) |
Net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.63 |
) |
|
$ |
(0.97 |
) |
|
$ |
(1.57 |
) |
|
$ |
(4.53 |
) |
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted |
|
15,108,332 |
|
|
|
8,467,028 |
|
|
|
10,951,270 |
|
|
|
8,276,481 |
|
Net loss per share attributable to redeemable common stockholders, basic and diluted |
$ |
(0.59 |
) |
|
$ |
— |
|
|
$ |
(1.42 |
) |
|
$ |
— |
|
Weighted-average number of shares outstanding used to compute net loss per share attributable to redeemable common stockholders, basic and diluted |
|
562,500 |
|
|
|
— |
|
|
|
172,131 |
|
|
|
— |
|
1 Amounts may not sum due to rounding |
|||||||||||||||
Owlet, Inc. Reconciliation of GAAP to Non-GAAP Measures - Preliminary, Unaudited1 (in millions, except share and per share amounts) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
GAAP net Loss |
$ |
(9.1 |
) |
|
$ |
(6.9 |
) |
|
$ |
(12.5 |
) |
|
$ |
(32.9 |
) |
Income tax provision |
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
Interest expense, net |
|
1.4 |
|
|
|
0.2 |
|
|
|
1.6 |
|
|
|
3.2 |
|
Depreciation and amortization |
|
0.1 |
|
|
|
0.1 |
|
|
|
0.5 |
|
|
|
0.8 |
|
Impairment of intangible assets related to internally developed software |
|
— |
|
|
|
— |
|
|
|
1.9 |
|
|
|
— |
|
Non-GAAP EBITDA |
$ |
(7.5 |
) |
|
$ |
(6.6 |
) |
|
$ |
(8.6 |
) |
|
$ |
(28.9 |
) |
Common stock warrant liability adjustment |
|
0.2 |
|
|
|
3.6 |
|
|
|
(9.3 |
) |
|
|
0.9 |
|
Stock-based compensation |
|
1.6 |
|
|
|
2.3 |
|
|
|
8.6 |
|
|
|
9.9 |
|
Transaction costs |
|
— |
|
|
|
— |
|
|
|
0.4 |
|
|
|
1.7 |
|
Charges related to certain legal matters |
|
6.2 |
|
|
|
— |
|
|
|
6.2 |
|
|
|
— |
|
Restructuring costs |
|
— |
|
|
|
— |
|
|
|
0.8 |
|
|
|
— |
|
Non-GAAP Adjusted EBITDA |
$ |
0.5 |
|
|
$ |
(0.7 |
) |
|
$ |
(2.0 |
) |
|
$ |
(16.3 |
) |
|
Three Months Ended
|
|
Year Ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
GAAP net loss |
$ |
(9.1 |
) |
|
$ |
(6.9 |
) |
|
$ |
(12.5 |
) |
|
$ |
(32.9 |
) |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
||||||||
Common stock warrant liability adjustment |
|
0.2 |
|
|
|
3.6 |
|
|
|
(9.3 |
) |
|
|
0.9 |
|
Stock-based compensation |
|
1.6 |
|
|
|
2.3 |
|
|
|
8.6 |
|
|
|
9.9 |
|
Transaction costs |
|
— |
|
|
|
— |
|
|
|
0.4 |
|
|
|
1.7 |
|
Charges related to certain legal matters |
|
6.2 |
|
|
|
— |
|
|
|
6.2 |
|
|
|
— |
|
Impairment of intangible assets related to internally developed software |
|
— |
|
|
|
— |
|
|
|
1.9 |
|
|
|
— |
|
Restructuring costs |
$ |
— |
|
|
$ |
— |
|
|
$ |
0.8 |
|
|
$ |
— |
|
Non-GAAP adjusted net income (loss) |
$ |
(1.0 |
) |
|
$ |
(1.0 |
) |
|
$ |
(4.0 |
) |
|
$ |
(20.3 |
) |
Non-GAAP adjusted net income (loss) per share |
$ |
(0.07 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.36 |
) |
|
$ |
(2.46 |
) |
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted |
|
15,108,332 |
|
|
|
8,467,028 |
|
|
|
10,951,270 |
|
|
|
8,276,481 |
|
1 Amounts may not sum due to rounding |
|||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250304062844/en/
Investor Relations: ir@owletcare.com
Media: pr@owletcare.com
Source: Owlet, Inc.
