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Owlet expands Dream Sock availability in Europe

Published 03/09/2024, 14:46
OWLT
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LEHI, Utah - Owlet, Inc. (NYSE:OWLT), known for its smart infant monitoring technology, announced at the Kind + Jugend trade show in Cologne, Germany, the expansion of its Dream Sock baby monitor to new European markets. The device, which is medically certified in the EU and UK, will soon reach parents in Poland, Greece, and the Czech Republic, among others.

The Dream Sock is designed to wrap comfortably around an infant's foot, providing real-time monitoring of vital signs such as pulse rate and oxygen saturation levels, as well as sleep patterns. The accompanying Owlet Dream App sends live health readings to mobile devices, and the Base Station included with the product will alert users to any issues with the baby's readings.

Owlet's CEO and Co-Founder, Kurt Workman, expressed enthusiasm for the impact the Dream Sock has had on families since its global launch and the company's commitment to rolling out their medical-grade technology to more parents worldwide.

The Dream Sock meets stringent regulatory standards, being CE and UKCA marked as per EU and UK medical device regulations. It is clinically proven to accurately monitor infants' vital signs and is intended for healthy babies from 0-18 months and weighing 2.5-13.6 kg. The device can also integrate with the Owlet Cam® 2, allowing caregivers to see and hear the baby from anywhere.

Currently available for purchase in the UK and select European markets, the Dream Sock will be offered through Owlet's localized websites and key retailers in additional countries, including Slovakia, Hungary, Romania, Bulgaria, and Greece in the coming weeks.

Owlet, a small-cap healthcare growth equity, has been providing parents with FDA-authorized medical and consumer pediatric wearables and integrated HD cameras since 2012, assisting over 2 million parents globally. The company aims to bridge the healthcare gap between hospital and home care and continues to develop digital data solutions for parents and caregivers.

The information in this article is based on a press release statement from Owlet, Inc.

In other recent news, Owlet Inc. reported an expansion of its stock incentive plan by 400,000 shares and robust second-quarter results with revenues reaching $20.7 million, surpassing the projected $18.5 million. This financial growth was attributed to a successful Amazon (NASDAQ:AMZN) Prime Day, a new partnership with AdaptHealth (NASDAQ:AHCO) Corp., and substantial international growth. The company also introduced new products such as the Dream Sock and BabySat, which monitor infants' sleep and oxygen levels respectively.

In a strategic move, Owlet converted 15,721 shares of its Series A convertible preferred stock into 2,291,686 shares of Class A common stock, surpassing the New York Stock Exchange's global market capitalization requirement of $50 million. Owlet maintains a Buy rating with a steady stock price target of $15.00 following these recent developments and strategic initiatives.

In addition, Owlet provided revenue and EBITDA guidance for 2024, projecting a revenue growth of approximately 40% and an expected net revenue between $37 million and $42 million in the second half of the year. Owlet's recent developments include a focus on driving adoption of Dream Sock and expanding into medical and healthcare channels. These are the latest developments in the company's ongoing efforts to align its executive compensation with long-term shareholder interests and ensure strong governance practices.

InvestingPro Insights

As Owlet, Inc. (NYSE:OWLT) expands its Dream Sock baby monitor to new European markets, investors and potential shareholders may be keen on understanding the company's financial health and market performance. According to InvestingPro, Owlet has a market capitalization of $41.98 million, which places it in the small-cap category, aligning with the company's description in the article. Despite Owlet's innovation in healthcare technology, InvestingPro Tips suggest that the company is quickly burning through cash and its stock price movements have been quite volatile, which could be of interest to investors looking for growth opportunities with a higher risk tolerance.

In terms of financial metrics, Owlet's revenue for the last twelve months as of Q2 2024 stood at $65.64 million, indicating a substantial growth of 23.52% compared to the same period last year. This growth is further accentuated by a quarterly revenue increase of 58.15% in Q2 2024, which may reflect the company's expanding market reach and product adoption. However, the company's profitability is still in question, with an adjusted operating income of -$18.95 million and a negative operating income margin of -28.87% for the same period. These figures suggest that while Owlet is growing its top line, it has yet to translate that growth into bottom-line profitability.

For investors considering Owlet's stock, it's worth noting that the company has experienced a strong return over the last three months, with a price total return of 24.72%. Nonetheless, Owlet does not pay dividends to shareholders, which aligns with many growth-focused companies that prefer to reinvest earnings back into the business. For additional insights and metrics on Owlet's financial performance and stock analysis, there are more InvestingPro Tips available at: https://www.investing.com/pro/OWLT.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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