LEHI, Utah – Owlet, Inc. (NYSE:OWLT), a company specializing in measuring and controlling devices, announced on Monday that holders of its Series A convertible preferred stock have elected to convert 15,721 shares into 2,291,686 shares of Class A common stock. This strategic move is part of an effort to simplify the company's capital structure and regain compliance with the New York Stock Exchange's global market capitalization requirement.
The conversion, outlined in the company's recent SEC filing, follows the positive trajectory of Owlet's business and operating results. The company's market capitalization, as of Tuesday, reached approximately $54 million, surpassing the NYSE's minimum requirement of $50 million over a consecutive 30 trading-day average.
Before the conversion, Owlet had 11,710,310 shares of common stock, 11,479 shares of Series A Preferred Stock, and 9,250 shares of Series B convertible preferred stock issued and outstanding. The converting shareholders' decision reflects confidence in the company's continued progress and is seen as a step towards streamlining Owlet's financial framework.
This news is based on a recent press release statement.
In other recent news, Owlet Inc. reported strong second-quarter results, surpassing revenue expectations with a total of $20.7 million, notably higher than the forecasted $18.5 million. The company also reported an adjusted EBITDA of $0.1 million, showing a significant improvement from the anticipated -$1.4 million.
These results were largely due to Owlet's most successful Amazon (NASDAQ:AMZN) Prime Day to date, a new partnership with AdaptHealth (NASDAQ:AHCO) Corp., and substantial international growth.
Furthermore, Owlet introduced revenue and EBITDA guidance, indicating an expected revenue growth of approximately 40% in 2024. This guidance reflects the company's optimism about its ongoing momentum and the successful introduction of new products and services. In line with this, Owlet expects to generate net revenue between $37 million and $42 million in the second half of 2024, despite an anticipated adjusted EBITDA loss of $3 million to breakeven.
In addition to these developments, Owlet launched new products that contributed to its robust quarter, such as the Dream Sock, a device for monitoring infants' sleep, and BabySat, a device for monitoring oxygen levels.
The company's recent developments also include a focus on expanding into medical and healthcare channels and driving the adoption of Dream Sock. This strategy is part of Owlet's commitment to supporting parents from infancy through toddler years with its services. As a result of these strategic initiatives, the company's management believes Owlet is well-positioned for continued success in 2025 and beyond.
InvestingPro Insights
As Owlet, Inc. (NYSE:OWLT) navigates its strategic financial maneuvers, including the conversion of its Series A convertible preferred stock, the company's financial health and outlook can be further illuminated by recent data and analytics. According to InvestingPro, Owlet's market capitalization currently stands at $43.11 million, reflecting the company's valuation in the market after recent events.
While Owlet is making strides in its business operations, InvestingPro Tips suggest that the company is quickly burning through cash and has not been profitable over the last twelve months. These factors contribute to the volatility in the stock price, which could be of interest to investors looking for potential growth opportunities or considering the risks associated with the company's financial stability.
From a performance perspective, Owlet has demonstrated strong revenue growth of 23.52% over the last twelve months as of Q2 2024, with a notable quarterly increase of 58.15% in Q2 2024. This growth, coupled with a significant gross profit margin of 45.71%, paints a picture of a company that is successfully increasing its sales and maintaining a solid profit on its products. However, with an operating income margin of -28.87%, it is clear that expenses are still outstripping revenues, which aligns with the InvestingPro Tip indicating that analysts do not anticipate the company will be profitable this year.
For investors seeking additional insights, there are 6 more InvestingPro Tips available for Owlet, providing a deeper analysis of the company's financial health and market performance. These tips can be accessed at https://www.investing.com/pro/OWLT, offering a comprehensive view of Owlet's financial landscape and the factors influencing its stock valuation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.