Owlet Announces Strong Preliminary Fourth Quarter 2023 Results and to Report Fourth Quarter 2023 Financial Results on March 7, 2024
Preliminary Unaudited Q4 2023 Financial Highlights
-
Q4 Gross Sales is expected to be approximately
$32.9 million , up 114% year over year. -
Q4 Net Revenue is expected to be approximately
$21.0 million , up 75% year over year. - Q4 Gross Margin is expected to be approximately 47%, up over 1,900 basis points from 27.8% year over year.
-
Q4 Net Loss is expected to be approximately
$6.9 million , down 65% from$19.5 million year over year. -
Q4 adjusted EBITDA loss is expected to be approximately
$0.7 million , down 95% from$15.2 million year over year.
“We delivered on our promise to gain FDA clearances, improve operations, reduce costs, and bring the business near Adjusted EBITDA break even in the fourth quarter of 2023,” said
Workman continued, “It’s worth noting that Q4 gross margin & adjusted EBITDA loss were negatively impacted by non-recurring items associated with the transition of the US channel to Amazon 1P. Excluding these items, gross margin would have been just north of 50% and Adjusted EBITDA would have been positive for the quarter. This channel transition is behind us and we are realizing the full financial and operation benefits from this transition now. I’m proud of the immense progress our team has made in re-shaping the company in 2023.”
The Company will report its full fourth quarter and year-end 2023 financial results after the market closes on
To access the conference call by telephone, please dial (404) 975-4839 (domestic) or +833-470-1428 (international) and reference Access Code 102390. To listen to the conference call via live audio webcast, please visit the Events section of Owlet’s Investor Relations website at investors.owletcare.com.
The archived webcast will also be available on Owlet’s Investor Relations website mentioned above.
Note Regarding Preliminary Unaudited Results
The preliminary unaudited results for the three-months ended
Preliminary return and chargeback allowances for the quarter, which impact the Company’s net revenue, have been estimated based upon historical averages and an initial analysis of claims received and are preliminary and subject to the completion of financial closing procedures and any potential receipt of new information. As a result, preliminary unaudited net revenue for the quarter ended
About
Owlet was founded by a team of parents in 2012. Owlet’s mission is to empower parents with the right information at the right time, to give them more peace of mind and help them find more joy in the journey of parenting. Owlet’s digital parenting platform aims to give parents real-time data and insights to help parents feel calmer and more confident. Owlet believes that every parent deserves peace of mind and the opportunity to feel their well-rested best. Owlet also believes that every child deserves to live a long, happy, and healthy life, and is working to develop products to help further that belief. 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 estimated financial results for the fourth quarter ended
Disclosure Regarding Non-GAAP Financial Measures
The Company has included a preliminary estimate of adjusted EBITDA, a financial measure that is not presented in accordance with
The Company adjusted EBITDA as an internal measure of business operating performance and as a performance measure for benchmarking against the Company’s peers and competitors. The Company believes its presentation of adjusted EBITDA provides 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 this non-GAAP financial measure is an important supplemental measure of operating performance because it excludes items that vary from period to period without correlation to the Company’s core operating performance and highlights 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 adjusted EBITDA in evaluating issuers, and the presentation of adjusted EBITDA 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 measure should not be considered as an alternative to net loss 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.
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, restructuring costs, warrant liability adjustments, gain on loan forgiveness, stock-based compensation, and transaction costs.
Adjusted EBITDA is not a recognized term under GAAP, and the Company’s presentation of adjusted EBITDA does not replace the presentation of the Company’s financial results in accordance with GAAP. Because all companies do not use adjusted EBITDA (and similarly titled financial measures) in the same way, this measure as used by other companies may not be consistent with the way the Company calculates such measure. Adjusted EBITDA should not be construed as a substitute for or a better indicator of the Company’s performance than the most directly comparable GAAP financial measure. See the reconciliation tables that accompany this release for additional information regarding certain of the non-GAAP financial measures included herein.
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|||||||
Reconciliation of GAAP to Non-GAAP Measures - Preliminary, Unaudited1 | |||||||
(in millions) | |||||||
Three Months Ended |
|||||||
2023 |
2022 |
||||||
Net loss |
$ |
(6.9 |
) |
$ |
(19.5 |
) |
|
Income tax provision |
|
— |
|
|
— |
|
|
Interest expense, net |
|
0.2 |
|
|
0.3 |
|
|
Depreciation and amortization |
|
0.1 |
|
|
0.4 |
|
|
EBITDA |
$ |
(6.6 |
) |
$ |
(18.9 |
) |
|
Restructuring costs |
|
— |
|
|
0.2 |
|
|
Common stock warrant liability adjustment |
|
3.6 |
|
|
(1.5 |
) |
|
Stock-based compensation |
|
2.3 |
|
|
4.4 |
|
|
Transaction costs |
|
— |
|
|
0.6 |
|
|
Adjusted EBITDA |
$ |
(0.7 |
) |
$ |
(15.2 |
) |
|
Three Months Ended |
|||||||
2023 |
2022 |
||||||
Revenue |
$ |
21.0 |
|
$ |
12.0 |
|
|
Customer discounts |
|
5.9 |
|
|
2.0 |
|
|
Returns & allowances |
|
5.7 |
|
|
1.5 |
|
|
Net change in deferred revenue |
|
0.3 |
|
|
(0.2 |
) |
|
Gross Billings |
$ |
32.9 |
|
$ |
15.4 |
|
|
1 Amounts may not sum due to rounding |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240222283108/en/
Investor Contacts:
ICR Westwicke
Phone: +1.617.877.9641
mike.cavanaugh@westwicke.com
Media Contacts:
pr@owletcare.com
owlet@diffusionpr.com
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