Wed, Aug 14, 8:47 PM (153 days ago)
In the second quarter of 2024, Owlet, Inc. reported significant revenue growth, with revenues increasing 58.2% year-over-year to $20.7 million, driven by higher sales of Owlet Sock products. Gross profit surged 95.9% to $10.3 million, leading to an improved gross margin of 49.5%. However, the company incurred an operating loss of $2.2 million, though this was an improvement from the previous year’s loss of $6.7 million. Owlet's cash position decreased slightly to $15.4 million, with negative cash flows from operations totaling $6.7 million for the first half of 2024, a notable improvement from $16.8 million in the same period last year. The company continues to face uncertainties regarding its ability to maintain compliance with NYSE listing requirements, following prior notifications of non-compliance. Despite these challenges, management has initiated actions to improve liquidity, including recent preferred stock offerings totaling $39.3 million. However, ongoing operating losses and reliance on external financing raise concerns about the company’s future viability.