This release contains certain statements that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). Conference call details are provided below and on the Company’s Investor Relations website at Cautionary Note Regarding Forward-Looking Statements and Projections The Company will speak to its financial outlook as part of the business update provided during Owlet’s conference call on at 4:30 p.m. Adjusted net loss per share was ($0.08) for first quarter 2023, compared to adjusted net loss per share of ($0.17) for the same period of 2022. Net loss per share was ($0.11) for the first quarter of 2023, compared to ($0.26) for the first quarter of 2022. Operating loss and net loss were approximately $11 million and $11.9 million, respectively, for the first quarter of 2023, compared to $21.7 million and $28.8 million, respectively, for the first quarter of 2022.Īdjusted EBITDA loss was approximately $5.8 million in first quarter 2023, compared to $18 million for the first quarter of 2022. The Company remains focused on reducing cost across the business, completing regulatory submissions and achieving adjusted EBITDA margin profitability in 2023. The decrease in year-over-year and sequential operating expenses was primarily attributed to reduced marketing spend and employee costs. Operating expenses were approximately $15.1 million in the first quarter of 2023, compared to $30.5 million for the same period in 2022 and $24.1 million in the fourth quarter of 2022. The first quarter 2023 gross margins were improved sequentially by lower purchase price variance costs and inventory obsolescence adjustments related to prior periods and promotional discounts. The first quarter of 2022 included the initial launch of Dream Sock and represented significant sell-in sales across all channel partners.Ĭost of revenues for the first quarter of 2023 was approximately $6.6 million with a gross margin of 39.3%. The first quarter 2023 revenues were sequentially muted by the Company continuing to manage to healthy inventory levels with retail partners prioritizing sell-through activation activities. This compares sequentially to revenues of $12 million the fourth quarter of 2022 and $21.5 million in the first quarter of 2022. Revenues for the first quarter of 2023 were approximately $10.7 million. Our focused strategy is beginning to generate the results we want to drive for the health of our business, establish our trajectory for profitability later this year and achieve regulatory clearances of our products.”įinancial Results for the First Quarter Ended March 31, 2023 Looking ahead, we do see signs of improving sell-in to retailers resuming a growth trajectory, as healthy consumer purchasing activity depletes retailer inventory on hand. In fact, parents continue to rate the Dream Sock as one of the best and most trusted wellness devices in the category. “Our Q1 inventory sell-in was sequentially muted as we continue to partner with retailers to support sell-through inventories of Dream Sock however, it is important to note that consumer support for the Dream Sock remains strong, as parents everywhere appreciate the peace of mind Owlet offers. During the quarter, we reduced operating expenses, increased gross margins, and continued to make timely progress on the ongoing regulatory review for both our medical device and de novo product applications,” said Kurt Workman, Owlet Chief Executive Officer. “Our conviction in Owlet’s future remains steadfast as we continue to rebuild our business and position it for profitability later this year. The Company continues to take steps to regain compliance with NYSE listing requirements in a timely manner. In February the Company raised $30 million in new capital from existing and new investors to support the balance sheet. Gross margin was 39.3% for the quarter, increasing significantly sequentially from 27.5% in Q4 2022.įDA reviews of the 510(k) submission for the BabySat TM remote pediatric monitoring device, and the de novo submission for the software-as-a-medical-device Health Notifications for use with the Dream Sock, are both on track. Operational expenses of $15.1 million declined 37% from $24.1 million in Q4 2022 as management positions Owlet for adjusted EBITDA margin break even in late 2023. Generated revenues of $10.7 million, as compared with $12 million in Q4 2022. Owlet’s Chief Executive Officer and President, Kurt Workman, and Chief Financial Officer, Kate Scolnick, will host a conference call to review the Company’s results and provide a business update today, May 11, 2023, at 4:30 p.m. (“Owlet” or the “Company”) (NYSE:OWLT) today reported financial results for the first quarter ended March 31, 2023.
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