Owlet Inc (OWLT) Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amidst Tariff Challenges

GuruFocus News

Fri, May 9, 2025, 12:44 AM 3 min read

Release Date: May 08, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Owlet Inc (NYSE:OWLT) reported a 43% year-over-year gross maturation successful Q1 2025, driven by beardown income of DreamSock and Dream Duo products.

• The institution achieved its 4th consecutive 4th of break-even oregon amended adjusted EBITDA, showcasing fiscal stability.

• Owlet Inc (NYSE:OWLT) signed a caller organisation concern with Children's Hospital of the King's Daughters, enhancing its marketplace presence.

• The Owlet 360 subscription work saw important growth, reaching implicit 50,000 subscribers, indicating beardown lawsuit adoption.

• International gross maturation was robust, with a 104% year-over-year increase, peculiarly beardown successful France and Germany.

• The institution faces imaginable challenges from recently implemented 10% tariffs connected imports from Thailand and Vietnam, impacting gross borderline expectations.

• Operating expenses accrued by $1.7 cardinal compared to the aforesaid play past year, partially owed to stock-based compensation and litigation colony costs.

• Despite beardown gross growth, the nett income successful Q1 2025 was somewhat little than the aforesaid play past year, affected by a summation connected warrant people to market.

• The macroeconomic situation remains uncertain, with imaginable changes successful tariff policies creating immoderate unpredictability.

• Owlet Inc (NYSE:OWLT) continues to look contention successful the babe wellness monitoring market, which could interaction its marketplace stock and growth.

• Warning! GuruFocus has detected 3 Warning Signs with OWLT.

Q: Can you supply much details astir the concern with the Children's Hospital of the King's Daughters and immoderate plans for akin partnerships? A: The concern allows babies to permission the infirmary with an Owlet babe wellness monitor, integrating Owlet information into distant diligent monitoring workflows. This is the archetypal concern facilitated by AdaptHealth, and determination are plans for much specified collaborations. (Respondent: Jonathan Harris, President)

Q: What is driving the beardown uptake of the Owlet 360 subscription, and however bash you spot its publication moving forward? A: Parents admit the insights into their babies' wellness and slumber provided by Owlet 360. The subscriber basal grew from 25,000 to implicit 50,000 successful a fewer months. The subscription is expected to marque important contributions arsenic the subscriber basal expands. (Respondent: Kurt Workman, CEO)

Q: How should we deliberation astir the gross cadence passim the twelvemonth pursuing the raised guidance? A: We expect sequential maturation each quarter, with Q4 being the largest owed to the vacation season. (Respondent: Amanda Tweed Crawford, CFO)