Owlet Reports $12.5 Million Net Loss in 2024, Revenue Increases 44.5%

Owlet, Inc. reported a net loss of $12.5 million for the year ended December 31, 2024, compared to a net loss of $32.9 million in 2023. Revenue increased by 44.5% year-over-year, rising from $54.0 million to $78.1 million. This increase was primarily attributed to higher sales of Dream Sock products, reflecting increased consumer demand. Gross profit significantly improved, jumping from $22.6 million to $39.3 million, resulting in a gross margin increase from 41.8% to 50.4%. This improvement stemmed from higher revenue, favorable product mix, lower returns, better fixed cost absorption, and reduced direct product and fulfillment costs.

Operating expenses also saw changes. General and administrative expenses increased by 24.2% to $33.9 million, primarily due to litigation settlements, asset impairment charges, and higher compensation. Sales and marketing expenses rose by 16.5% to $15.8 million, driven by increased compensation and marketing spending. Research and development expenses decreased by 5.3% to $9.8 million, mainly due to lower stock-based compensation and higher capitalized software costs. The company achieved positive adjusted EBITDA in the final three quarters of 2024, improving adjusted EBITDA profitability by $14.3 million compared to 2023. Adjusted EBITDA, a non-GAAP measure, reached -$1.97 million for the full year 2024.

Significant strategic developments during the year included the FDA clearance of the BabySat product in June 2023 and the de novo authorization for Dream Sock in November 2023. Owlet also launched Dream Sock in the European Union and the United Kingdom in 2024, expanding its global presence to 26 countries by year-end. This resulted in a 98% increase in international revenue compared to 2023. The company also launched its Owlet360 subscription service in January 2025, following a beta test in 2024. The company employed 80 full-time and 5 part-time employees as of December 31, 2024.

Owlet's 2024 financial performance reflects the impact of its FDA clearances and product launches. The company's strategy for 2025 focuses on driving growth through increased market penetration, leveraging its data platform via the Owlet360 subscription service, and expanding its presence in the medical market. The company acknowledges substantial doubt about its ability to continue as a going concern within one year, citing recurring operating losses and negative cash flows. Owlet plans to address this by pursuing additional funding opportunities, but notes that such funding may not be available on acceptable terms or at all. The company also highlights various risks related to its reliance on third-party manufacturers, distributors, and technology providers, as well as regulatory uncertainties and potential legal challenges.