Owlet (OWLT) Q4 2024 earnings summary

Executive summary

• Achieved record financial performance in 2024, exceeding guidance for revenue, gross profit, gross margin, and adjusted EBITDA, with strong Q4 results.

• Launched FDA-cleared Dream Sock and BabySat, and expanded into 26 countries with CE medical approval, driving 98% international revenue growth year-over-year.

• Introduced the Owlet 360 subscription service, leveraging pediatric health and sleep data for personalized insights and recurring revenue.

Financial highlights

• Full year 2024 revenue reached $78.1 million, up 45% year-over-year, with Q4 revenue at $20.5 million.

• Gross margin for 2024 was 50.4%, up 850 basis points from 2023; Q4 gross margin was 53.5%, up 650 basis points year-over-year.

• Adjusted EBITDA for Q4 was $0.5 million, a $1.2 million improvement over Q4 2023; full year adjusted EBITDA was -$2 million, improving $14.3 million from 2023.

• FY 2024 net loss narrowed to $12.5 million from $32.9 million year-over-year; Q4 net loss was $9.1 million.

• Cash and cash equivalents at year-end were $20.2 million, up from $16.6 million year-over-year.

Outlook and guidance

• 2025 revenue guidance is $88–$92 million, with gross margins expected between 50–52%.

• Adjusted EBITDA profitability targeted for full year 2025.

• Revenue growth expected to be split equally between U.S. and international markets, with international growing faster proportionally.

• No material revenue from Owlet 360 or BabySat assumed in 2025 guidance.