The following is a summary of the Owlet, Inc. (OWLT) Q4 2023 Earnings Call Transcript:
Financial Performance:
Owlet reported Q4 revenue of $21 million.
The company achieved nearly breakeven adjusted EBITDA by the end of 2023.
Operating expenses were significantly reduced by 60% and marketing expenses by 70%.
There was a 1,900 basis points year-over-year improvement in gross margins to 47% in Q4.
Gross billings for Q4 and full year were $32.9 million and $73.2 million, respectively.
Operating expenses in Q4 were at $13 million, a 46% decrease year-over-year.
Net loss for Q4 was $6.9 million, a 65% decrease from Q4 2022.
The company has a target gross margin within the range of 45% to 50% through unit volume, product mix, and ongoing operational efficiencies.
Business Progress:
Owlet launched BabySat and Dream Sock with medical-grade features and secured FDA clearances.
Owlet became the 1st and only FDA cleared baby monitor in its category.
Key channels reduced weeks on hand and improved sell-through, improving by over 45% over the year.
Plans for European expansion in 2024, beginning with CE Medical clearance, are in place.
Owlet intends to launch new software and services to better leverage their extensive infant health data.
The company is focusing on maximizing Dream products and maintaining sell-in and sell-through retail inventory balance.
New DME partnerships are expected to increase revenue as these partnerships solidify in 2024.
The company is financially supported by its largest investors and banking and trade partners.
More details: Owlet inc IR
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