Owlet (OWLT, Financial) reported robust financial results for the first quarter, surpassing market predictions. The company achieved revenue of $21.1 million, outperforming the consensus estimate of $18.14 million. This marks a significant year-over-year revenue growth of over 43%.
Driving its impressive financial performance, Owlet also delivered its fourth consecutive quarter of breakeven or better adjusted EBITDA. The company continues to execute its business strategy effectively, maintaining high operational standards.
In addition to its financial success, Owlet recently initiated a distribution partnership with Children's Hospital of The King's Daughters, marking a first in allowing babies to leave the hospital with either a BabySat or Dream Sock.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Owlet Inc (OWLT, Financial) is $10.17 with a high estimate of $15.00 and a low estimate of $7.00. The average target implies an upside of 143.80% from the current price of $4.17. More detailed estimate data can be found on the Owlet Inc (OWLT) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Owlet Inc's (OWLT, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Owlet Inc (OWLT, Financial) in one year is $4.36, suggesting a upside of 4.56% from the current price of $4.17. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Owlet Inc (OWLT) Summary page.
OWLT Key Business Developments
Release Date: March 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Owlet Inc (OWLT, Financial) achieved a record revenue of $78.1 million in 2024, marking a 45% growth compared to 2023.
- The company successfully launched its FDA-cleared devices, DreamSock and BabySat, expanding its global footprint to 26 countries.
- Owlet Inc (OWLT) reported a significant improvement in gross margins, reaching over 50% for the full year 2024.
- The launch of Owlet 360, a new subscription service, aims to empower parents with pediatric health data, enhancing customer engagement.
- The company achieved three consecutive quarters of positive adjusted EBITDA, indicating a turn towards profitability.
Negative Points
- Owlet Inc (OWLT) faced increased operating expenses due to $6.2 million in legal charges related to past litigation.
- Despite strong growth, the company anticipates a shift in revenue from Q3 to Q4 in 2025 due to changes in retailer purchasing patterns.
- The international market, while promising, is still emerging and requires further development to match U.S. growth rates.
- The company is cautious about projecting significant revenue from new products like Owlet 360 and BabySat in 2025.
- Owlet Inc (OWLT) continues to face challenges in expanding insurance reimbursement for its Babysat device, which is a slow process.
