Q4 2024 Owlet Inc Earnings Call

Unnamed Moderator: Good afternoon. Thank you for attending the Owlet fourth quarter 2024 earnings conference call.

Good afternoon. Thank you for attending our fourth quarter 'twenty before earnings Conference call. My name is Cameron and I will be your moderator for today at.

Unnamed Moderator: My name is Cameron and I'll be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end.

Speaker Change: All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end he would like to ask a question Chris start blindly telephone keypad and I would now like to pass the comfort core.

Jay Gentzkow: If you would like to ask a question, press star one on your telephone keypad and I would now like to pass the conference over to our host, Jay Gentzkow, Investor Relations.

Speaker Change: It gets cold Investor Relations you May proceed.

Jay Gentzkow: You may proceed.

Kurt Workman: Good afternoon everyone and thank you for joining us. Earlier today Owlet released financial results for the fourth quarter and full year ended December 31st, 2024.

Speaker Change: Good afternoon, everyone and thank you for joining US earlier today I went released financial results for the fourth quarter and full year ended December 31 2024.

Kurt Workman: I'm pleased to be joined today by Kurt Workman, Owlet's co-founder and CEO, Jonathan Harris, President and Chief Revenue Officer, and Amanda Tweed Crawford, our CFO. Before we begin, please note that our financial results, press release, and presentation slides referred to on this call are available under the events and presentation section of our investor relations website at investors.alloccare.com. This call is also being webcast live with a link at the same website. The webcast and accompanying slides will be available for replay for 12 months following this call. The content on today's call is the property valid.

Speaker Change: Pleased to be joined today by Curt Workman Allen <unk> co founder and CEO, Jonathan Harris, President and Chief revenue Officer, and Amanda Tweed Crawford our CFO.

Speaker Change: Before we begin please note that our financial results press release and presentation slides referred to on this call are available under the events and presentations section of our Investor Relations website at investors <unk> Alan Kerr Dotcom.

Speaker Change: This call is also being webcast live with a link at the same website the webcast and accompanying slides will be available for replay for 12 months. Following this call. The content on today's call is the property of our it cannot be reproduced or transcribed without our prior consent.

Kurt Workman: It cannot be reproduced or transcribed without our prior Before we begin, I'd like to refer you to our Safe Harbor disclaimer on slide three of the presentation. Today's discussion will contain forward-looking statements based on the company's current views and expectations as of today's date. These statements are only predictions and are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, but are not limited to, those described in our most recent filings with the SEC and in the risk factors section of our annual report on Form 10.

Speaker Change: Before we begin I'd like to refer you to our safe Harbor disclaimer on slide three of the presentation. Today's discussion will contain forward looking statements based on the Companys current views and expectations as of today's date.

These statements are only predictions and are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.

Speaker Change: These risks and uncertainties include but are not limited to those described in our most recent filings with the SEC and in the risk factors section of our annual report on Form 10-K.

Kurt Workman: Please note that the company assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Speaker Change: Please note that the company assumes no obligation to update any forward looking statements, whether as a result of new information future events or otherwise except as required by law.

Kurt Workman: With that, it's my pleasure to turn the call over to our CEO, Kurt Workman. Kurt? Thanks, Jay, and good afternoon, everyone. Thank you for joining Owlet's fourth quarter and full year 2024 financial results call today. As always, we sincerely appreciate your continued support.

Speaker Change: With that it's my pleasure to turn the call over to our CEO Kurt Workman Kurt.

Speaker Change: Thanks, Jay and good afternoon, everyone. Thank.

Speaker Change: Thank you for joining <unk> fourth quarter and full year 2024 financial results call today as always we sincerely appreciate your continued support.

Kurt Workman: I will begin on slide five. 2024 was a pivotal year for Owlet. Building off momentum from creating the first and only FDA-cleared baby monitor, we kicked off 2024 by launching both of our FDA-cleared devices, DreamSock and BabySat, defining a new category of medical-grade infant health monitor. We leverage the powerful endorsements of our technologies to expand our global footprint throughout 2024 with CE medical approval in Europe, taking us to 26 total countries by year end, contributing to 98% of international revenue growth in 2024 versus 2023. Capitalizing on BabySats FDA clearance, we began to lay the groundwork in 2024 to open up the large, long-term opportunity for insurance reimbursement in the medical market.

Speaker Change: I will begin on slide five.

Speaker Change: 2024 was a pivotal year for our building on momentum from creating the first and only FDA cleared baby monitor we kicked off 2024 by launching both of our FDA cleared devices dream Sock and babysat defining a new category of medical grade infant health monitors.

Speaker Change: We leverage these powerful endorsement of our technology to expand our global footprint throughout 2024 with CE medical approval in Europe, taking.

Speaker Change: Taking us to 26 total countries by yearend contributing to 98% of international revenue growth in 2024 versus 2023.

Speaker Change: Capitalizing on babysat FDA clearance, we began to lay the groundwork in 2024 to open up the large long term opportunity for insurance reimbursement in the medical market.

Kurt Workman: Owlet expanded our medical distribution channels throughout the year, ending 2024 with six DMEs and began rolling out to 12 Medicaid states. Finally, we crossed a significant milestone with the development and deployment of our new Owlet 360 subscription service last year with the full marketing launch at the end of January. Owlet360 is the beginning of our vision of moving the center of care to the home, enabling parents to better navigate health and sleep challenges without needing to travel to the doctor. Alongside our 2024 product sales and partnership successes, we significantly improved our financial capping off the year with exceptional fourth quarter results.

Speaker Change: I'll, let expanded our medical distribution channels throughout the year, ending 2024 with <unk>.

Speaker Change: We began rolling out to 12 Medicaid states.

Speaker Change: Finally, we crossed a significant milestone with the development and deployment of our new outlet $3 60 subscription service last year with the full marketing launch at the end of January.

Speaker Change: I'll, let 360 at the beginning of our vision of moving the center of care to the home, enabling parents to better navigate health and sleep challenges without needing to travel to the doctor.

Speaker Change: Alongside our 2020 for product sales and partnership successes, we significantly improved our financial performance.

Speaker Change: Capping off the year with exceptional fourth quarter results.

Kurt Workman: 2024 was truly a breakout financial year for Owlet, the best in company history.

Speaker Change: 2024 was truly a breakout financial year for outlet.

Speaker Change: Best in company history.

Kurt Workman: We established financial guidance for the first time in three years on the second quarter 2024 earnings. including strong Q4 results released today, we exceeded the high end of all guidance ranges for revenue, gross profit, gross margin, and adjusted EBITDA. This coincided with company records for revenue, gross profit, gross margin, and adjusted EBITDA for full year 2024. 2024 revenue was $78.1 million, representing 45% growth compared to 2023. We continued to improve our cost profile throughout the year, and in combination with strong top line growth, significantly expanded gross margins to over 50% for the full year 2024, the best annual gross margin in Owlet history.

Speaker Change: We established financial guidance for the first time in three years on the second quarter 2024 earnings call.

Speaker Change: Including strong Q4 results released today, we exceeded the high end of all guidance ranges for revenue gross profit gross margin and adjusted EBITDA.

Speaker Change: This coincided with company records for revenue gross profit gross margin and adjusted EBITDA for full year 2024.

Speaker Change: 2024 revenue was $78 1 million, representing 45% growth compared to 2023, we continued to improve our cost profile throughout the year and in combination with strong topline growth significantly expanded gross margins to over 50% for the full year 2024.

Speaker Change: Annual gross margin in outlet history.

Kurt Workman: Finally, we turn the corner on profitability with the final three quarters of 2024 at positive adjusted EBITDA. This included significantly improving adjusted EBITDA by over $14 million in 2024 versus 2023. It's clear 2024 was a turning point for Owlet and I could not be prouder of the incredible amount this team has accomplished and a huge step forward as a company.

Speaker Change: Finally, we turned the corner on profitability with the final three quarters of 2024 at positive adjusted EBITDA.

Speaker Change: This included significantly improving adjusted EBITDA by over $14 million in 2024 versus 2023.

Speaker Change: It's clear 2024 was a turning point for outlet.

Speaker Change: I could not be prouder of the incredible amount. This team has accomplished in a huge step forward as a company.

Kurt Workman: Now, zooming into our fourth quarter 2024 performance on slide six. Owlet delivered an exceptional quarter, exceeding expectations across all key metrics. We achieved revenue of $20.5 million in the fourth quarter of 2024.

Speaker Change: Now zooming into our fourth quarter 2020 for performance on slide six I'll, let delivered an exceptional quarter exceeding expectations across all key metrics.

Speaker Change: We achieved revenue of $20 5 million in the fourth quarter of 2024 adjusting for revenue associated with the new Amazon distribution partner agreement, we signed last year that shifted $6 million in revenue from Q3 to Q4 and 2023 year over year revenue growth was 37%.

Kurt Workman: Adjusting for revenue associated with the new Amazon Distribution Partner Agreement we signed last year that shifted $6 million in revenue from Q3 to Q4 in 2023. Year over year, revenue growth was 37 percent. Fourth quarter 2024 gross margins were 53.5%, increasing 650 basis points versus prior year. Q4 2024 represents our seventh consecutive quarter of year-over-year gross margin expansion. Adjusted EBITDA was $0.5 million in Q4, an improvement of $1.2 million versus fourth quarter 2023. We completed the year with three consecutive quarters of positive Adjusted EBITDA as we look toward expanding profitability going forward. Our strong Q4 results underscore the significant momentum we have in the business.

Speaker Change: Fourth quarter 2024, gross margins were 53, 5%, increasing 650 basis points versus prior year.

Speaker Change: Q4, 2024 represents our seventh consecutive quarter of year over year gross margin expansion.

Speaker Change: Adjusted EBITDA was <unk> 5 million in Q4, an improvement of $1 $2 million versus fourth quarter 2023 weeks.

Speaker Change: We completed the year with three consecutive quarters of positive adjusted EBITDA as we look toward expanding profitability going forward.

Speaker Change: Our strong Q4 results underscore the significant momentum we have in the business.

Kurt Workman: Owlet has never been better positioned as a company.

Speaker Change: I'll, let has never been better positioned as a company.

Kurt Workman: We kicked off 2025 by announcing a major milestone in our evolution into a comprehensive pediatric health platform, the official launch of our new subscription service, Owlet360. Owlet360 puts the value from Owlet's massive data set of pediatric health and sleep information directly into the hands of parents and caregivers.

Speaker Change: We kicked off 2025 by announcing a major milestone in our evolution into a comprehensive pediatric health platform. The official launch of our new subscription service I'll, let 360.

Speaker Change: Call. It 360 puts the value from Alex massive data set of pediatric health and sleep information directly into the hands of parents and caregivers.

Kurt Workman: A reminder that the cost of health care in the first five years of life is quite staggering. In the United States alone, there are 12 million annual pediatric ER 80 million pediatric offices. and hundreds of thousands of babies who stay in the NICU. This adds up to over $30 billion in pediatric health care costs every single year just in the U.S. Owlet360 is aimed to empower parents at home with information that can help them better manage care for their children. We believe that unlocking care at home is the key to improving overall infant health outcomes and reducing costs.

Speaker Change: A reminder, that the cost of health care in the first five years of life is quite staggering.

Speaker Change: In the United States alone there are $12 million annual pediatric ER visits.

Speaker Change: 80 million pediatric office visits and hundreds of thousands of babies, who stay in the NICU.

Speaker Change: Adds up to over $30 billion in pediatric health care costs every single year just in the U S.

Speaker Change: I'll, let 360 is aimed to empower parents at home with information that can help them better managed care for their children.

Speaker Change: We believe that unlocking care at home is the key to improving overall infant health outcomes and reducing costs.

Kurt Workman: The launch of Owlet360 also positions us closer to delivering on the potential of telehealth than we've ever been. Leveraging the information from Owlet360, parents will be able to chat with their pediatricians, nurses, sleep coaches, and maternal health professionals while sharing their infant's data from the app in order to provide more personalized, actionable remote care. will begin testing our first in-app telehealth visits in the second quarter of this year before releasing more broadly throughout 2025 as we refine the opportunity. Initial subscription metrics are trending very positive, exceeding our expectations with attach rates for the January cohort at approximately 12% in just the first month.

Speaker Change: The launch of <unk> hundred 60, <unk> also positions us closer to delivering on the potential of telehealth than we've ever been.

Speaker Change: Leveraging the information from our 360 parents will be able to chat with their pediatricians nurses sleep coaches in maternal health professionals, while sharing their instance data from the App and.

Speaker Change: In order to provide more personalized actionable remote care.

Speaker Change: We will begin testing our first in App telehealth visits in the second quarter of this year before releasing more broadly throughout 2025, because we refined the opportunity.

Speaker Change: Initial subscription metrics are trending very positive exceeding our expectations with the attach rates for the January cohort at approximately 12% in just the first month. We expect this cohorts attach rate will continue to increase.

Kurt Workman: We expect this cohort's attach rate will continue to increase. And note that AttachRate is before official launch on January 28th without any real marketing spend supporting our confidence in the adoption potential.

Speaker Change: And note that attach rate is before official launch on January 28th without any real marketing spend supporting our confidence in the adoption potential.

Jonathan Harris: Jonathan will dive into more details of this innovative service we're so proud of.

Speaker Change: Jonathan will dive into more details of this innovative service, we're still proud of from a strategic standpoint, I'll, let 360 launch marks a significant step in our evolution into a comprehensive pediatric health platform that I'd like to unpack.

Jonathan Harris: From a strategic standpoint, Owlet 360's launch marks a significant step in Owlet's evolution into a comprehensive pediatric health platform that I'd like to unpack. First, this is an additional growth lever driving more predictable recurring revenue for Owlet. We already have an established, loyal customer base to initially roll Owlet360 out to with over half a million OwletCare monthly app users and growing. We believe we've aggregated the largest pediatric health population on the planet.

Speaker Change: First this is an additional growth lever driving more predictable recurring revenue for outlet.

Speaker Change: We already have an established loyal customer base to initially roll I'll, let 360 out too with over half a million outlet care monthly app users and growing we believe we have aggregated the largest pediatric health population on the planet.

Jonathan Harris: Second, Owlet360 supports our goal of growing long-term profitability. Subscription margins are accretive to current margins, and the service does not require substantial ongoing costs or capital expenditure.

Speaker Change: Second I'll, let 360 supports our goal of growing long term profitability subscription margins are accretive to current margins and the service does not require substantial ongoing cost or capital expenditures.

Jonathan Harris: Third, Owlet 360 represents a major shift in LTV potential for Owlet. Owlet has been very focused on infants and will continue to be, but the pains of parenthood don't stop at 18 months, as healthcare utilization remains very high in the early childhood years. Owlet wants to be an important part of the parent-child journey. and a compelling subscription service extends the longevity of Owlet's potential relationship with family.

Speaker Change: Third outlet $3 60 represents a major shift in LTV potential for outlet.

Alex: Alex has been very focused on infants and will continue to be.

Alex: But the pains of parents, who don't stop at 18 months, that's health care utilization remains very high in the early childhood years.

Speaker Change: Ill, let wants to be an important part of the parent child journey.

Speaker Change: And a compelling subscription service extends the longevity of outlets potential relationship with families.

Jonathan Harris: Finally, Owlet360 enhances our competitive differentiation as the category leader in pediatric health and safety. Our massive and growing data set is unique in the market today. Unlocking these tools for parents and caregivers through subscription makes it harder for competitors to match our value, which increases the value proposition for our full product suite, which in turn increases our scale to drive more data to deliver better solutions.

Speaker Change: Finally, I'll, let 360 enhances our competitive differentiation as the category leader in pediatric health and safety, our massive and growing data set is unique in the market today.

Speaker Change: Locking these tools for parents and caregivers through subscription makes it harder for competitors to match, our value, which increases the value proposition for our full product suite, which in turn increases our scale to drive more data to deliver better solutions. In addition, as we begin to add features to the outlet $3 50 platforms, such as integrating professional service partners.

Jonathan Harris: In addition, as we begin to add features to the Owlet360 platform, such as integrating professional service partners, telehealth capabilities, and other enhancements in the works, the value proposition will continue to We could not be more excited about this next phase for Owlet.

Speaker Change: Telehealth capabilities and other enhancements in the works the value proposition will continue to strengthen.

Speaker Change: We could not be more excited about this next phase for all it I'd now like to turn the call over to Jonathan to walk through our recent progress against our strategic focus areas.

Jonathan Harris: I'd now like to turn the call over to Jonathan to walk through a recent progress against our strategic focus area. Thanks, Kurt. We're thrilled to embark on this next chapter for Owlet.

Jonathan: Thanks, Kurt we're thrilled to embark on this next chapter for outlet the launch of outlet <unk> marks an exciting inflection point positioning us to deliver long term value as a leading pediatric health platform. Our success hinges on purposeful execution across our three strategic focus areas for growth.

Jonathan Harris: The launch of Owlet 360 marks an exciting inflection point, positioning us to deliver long-term value as a leading pediatric health platform. Our success hinges on purposeful execution across our three strategic focus areas for growth. First, driving continued global adoption of DreamSoc. Second, expanding medical and healthcare channels to offer an insurance-reimbursed monitor. And third, transitioning Owlet into a service through the Owlet 360 subscription. supporting parents from infancy into their toddler years and increasing customer lifetime value. These three priorities will remain consistent with 2024 and we believe they are the right areas to continue to stay hyper focused on this year.

Jonathan: First driving continued global adoption of Dream Sock second expanding medical and health care channels to offer an insurance reimbursed monitor and third transitioning outlet into a service through the outlet through 60 subscription supporting parents from infancy into their toddler years, and increasing customer lifetime value.

Jonathan: These three priorities will remain consistent with 2024, and we believe they are the right areas to continue to stay hyper focused on this year.

Jonathan Harris: In the U.S., DreamSock demand remains robust, with another strong quarter of domestic sell-through growth of 34% versus Q4 2023. We also continue to gain market share. According to consumer research firms Cercana and Owlet's own data, Owlet now has the largest share of total dollar spent in the baby monitor category. Brand health remains strong. Dreamsocks Net Promoter Score closed the year at 73, reflecting high customer satisfaction. We're also seeing positive sentiment in our registry trends, with Q4 showing a 72% year-over-year increase in DreamSoc additions to all registries. with new parents increasingly prioritizing Dream Sock on their nursery list.

Jonathan: In the U S dream soft demand remains robust with another strong quarter of domestic sell through growth of 34% versus Q4 2023.

Jonathan: Also continued to gain market share according to consumer research firms to Kona and al its own data I'll. Let now has the largest share of total dollar spent and the baby monitor category.

Jonathan: Brand Health remains strong Dream Sox net promoter score closed the year at 73, reflecting high customer satisfaction. We're also seeing positive sentiment in our registry trends with Q4, showing a 72% year over year increase in dream sock additions to all registered to be track with new parents increase.

Jonathan: Singly prioritizing dream stock on their nursery less.

Jonathan Harris: This customer enthusiasm has continued to maintain return rates down consistently lower than our historical average. Looking at domestic growth potential, we see a clear path forward. Products that enhance baby health and safety, like car seats or breast pumps, often achieve category-level adoption. We believe every baby will eventually have access to health monitoring, and Owlet is the category leader and the only FDA-cleared monitor on the market. Currently, DreamSock only has a 10% adoption rate broadly across the U.S., but states like Iowa, Nebraska, and Utah show a significantly higher penetration. These markets, with smaller birth populations and generally more price sensitive, demonstrate the power of word amount amongst parents.

Jonathan: This customer enthusiasm has continued to maintain return rates down consistently lower than our historical averages.

Jonathan: Looking at domestic growth potential we see a clear path forward products that enhance baby health and safety car seats a breath.

Jonathan: Often achieve category level adoption. We believe every baby will eventually have access to health monitoring and outlet as the category leader and the only FDA cleared monitor on the market.

Jonathan: Currently <unk> only has a 10% adoption rate broadly across the U S.

Jonathan: <unk>, Iowa, Nebraska, and Utah, so significantly higher penetration these markets with smaller birth populations and generally more price sensitive demonstrate the power of word of mouth amongst parents as awareness continues to grow and larger states like California, Florida, New Jersey, and Texas, We expect adoption to have.

Jonathan Harris: As awareness continues to grow in larger states like California, Florida, New Jersey, and Texas, we expect adoption to align with our top-performing resources.

Jonathan: Aligned with our top performing regions.

Jonathan Harris: Internationally, adoption remains a bright spot. Despite a breakout 2024, we're just scratching the surface globally. Europe's birth rate slightly exceeds those in the U.S., and with continued execution, achieving adoption rates closer to our 10% U.S. benchmarks could unlock significant growth. In Q4, international revenue grew 45% year-over-year. Black Friday was a standout, with Amazon sell-through up 72% in the UK and up 147% in Germany compared to Q4 2020.

Jonathan: Internationally adoption remains a bright spot despite a breakout 2024, we're just scratching the surface globally.

Jonathan: Europe's birth rate slightly exceeds those in the U S and with continued execution achieving adoption rates closer to our 10% U S benchmarks could unlock significant growth.

Jonathan: In Q4 International revenue grew 45% year over year Black Friday was a standout with Amazon sell through up 72% in the U K and up 147% in Germany compared to Q4 2023.

Jonathan Harris: For 2025, driving global adoption remains critical. We intend to continue to expand the opportunities for DreamSoc global. capitalizing on the momentum from 2024 as more parents worldwide choose out.

Jonathan: For 2025, driving global adoption remains critical.

Jonathan: Tend to continue to expand the opportunities for dream soft globally capitalizing on the momentum from 2024 as more parents worldwide choose outlet.

Jonathan Harris: In U.S. healthcare, we're making solid progress in expanding BabySat into medical and healthcare channels. In 2024, we ramped up commercialization to tap into the large accretive healthcare market in order to elevate the standard of care for higher risk and As a reminder, BabySat, our FDA-cleared, prescription-eligible device, targets babies at higher risk, such as those discharged from the NICU or with serious conditions. This market includes over 570,000 U.S. babies annually and over 16% of all U.S. All of whom could benefit from medical-grade at-home monitoring. We see no reason why every one of these infants shouldn't leave the hospital with a prescribed reimbursable babysitter.

Jonathan: In U S health care, we're making solid progress in expanding babysat into medical and health care channels in 2024, we ramped up commercialization to tap into the large accretive health care market in order to elevate the standard of care for higher risk infants.

Jonathan: As a reminder, babies that are FDA cleared prescription eligible device targets babies at higher risks such as those discharged from the NICU or with serious conditions.

Jonathan: This market includes over 570000 U S babies annually and over 16% all U S versus all of whom could benefit from medical grade at home monitoring we see no reason why every one of these infants shouldn't leave the hospital with a prescribed reimbursable babysat.

Jonathan Harris: In Q4, we continue to onboard and train our new DME partners added in 2024. We're working on expanding commercial insurance coverage and began rolling out Medicaid reimbursement with 12 states signed up, who will be fully operational by mid-2025. This channel will take time to scale and that work will continue through 2025. But the feedback we're receiving from parents and clinicians alike reinforces BabySat's value and the potential long-term opportunity.

Jonathan: In Q4, we continued to onboard and train our new <unk> partners added in 2024.

Jonathan: We are working on expanding commercial insurance coverage and began rolling out Medicaid reimbursement with 12 States signed out who will be fully operational by mid 2025. This channel will take time to scale and that work will continue through 2025.

Feedback, we're receiving from parents and clinicians alike, reinforces babysat value and the potential long term opportunity.

Jonathan Harris: Finally, I'd like to add on to Kurt's introduction of Owlet 3.0. The launch of Owlet360 is a pivotal milestone in our evolution from a hardware company to a comprehensive pediatric health platform, supporting parents from day one through the toddler year. Building on our data set that has monitored millions of babies and trillions of heartbeats, Owlet360 delivers personalized, actionable insights into key health methods. Pulse rate, oxygen levels, movement, and comfort temperature. Parents can compare their baby's trends against our vast pediatric database, gaining daily and weekly insights into health and sleep patterns to understand what's normal and when attention may be needed.

Kurt Workman: Finally, I'd like to add onto Kurt introduction of outlet <unk>. The launch of outlet 360 is a pivotal milestone in our evolution from a hardware company to a comprehensive pediatric health platform.

Jonathan: <unk> parents from day, one through the toddler years.

Jonathan: Building on our data set is monitored millions of babies and trillions of Heartbeats I'll, let 360 delivers personalized actionable insights into key health metrics pulse rate oxygen levels movement and comfort temperature.

Jonathan: Parents can compare their babies trends against our vast pediatric database, gaining daily and weekly insights into health and sleep patterns to understand what's normal and when attention maybe needed no. Other platform offers this level of at home and insights.

Jonathan Harris: No other platform offers this level of at-home infant insight. We've already onboarded over 25,000 paying subscribers with fantastic early feedback. Parents report greater reassurance and confidence. some noting reduced unnecessary health care visits. Retention rates remain strong at approximately 85% after the first month, consistent with Q3, and 60% of subscribers are active daily users. Attach rates from the January cohort hit 12% pre-launch, exceeding expectations, and we anticipate even stronger results with marketing efforts already underway. Priced at an introductory $5.99 per month, Owlet 360 will see additional features, enhancements, and international expansion later this year. This service bridges the gap between hospital and home care, driving predictable recurring revenue, boosting LTV, and growing our connected ecosystem.

Jonathan: We've already on boarded over 25000 paying subscribers with fantastic early feedback.

Jonathan: <unk> report greater reassurance and confidence with some noting reduced unnecessary health care visits retention rates remained strong at approximately 85%. After the first month consistent with Q3 and 60% of subscribers are active daily users.

Jonathan: Attach rates from the January cohort hit, 12% prelaunch exceeding expectations, and we anticipate even stronger results with marketing efforts already underway.

Jonathan: Price at an introductory $5 99 per month I'll, let 360, we will see additional features enhancements and international expansion later this year.

Jonathan: This service bridges, the gap between hospital, and homecare driving predictable recurring revenue boosting LTV and growing our connected ecosystem.

Jonathan Harris: Owlet is firing on all cylinders across our strategic initiatives, and as we enter 2025 at this critical inflection point, our priorities are clear. Sustain Dream Socks Core Growth, Scale Babysat, and Owlet360, and execute with operational efficiency to deliver meaningful value for all of our stakeholders.

Jonathan: I'll, let is firing on all cylinders across our strategic initiatives and as we enter 2025 at this critical inflection point our priorities are clear.

Speaker Change: Sustained dream socks core growth scale, babysat, an outlet $3 60, and execute with operational efficiency to deliver meaningful value for all of our stakeholders. We're excited about the road ahead and remain committed to empowering parents, while advancing infant health and wellbeing worldwide I will now pass the call to <unk>.

Jonathan Harris: We're excited about the road ahead and remain committed to empowering parents while advancing infant health and well-being worldwide.

Amanda Crawford: I'll now pass the call to Amanda to discuss our results in more detail, as well as our 2025 outlook. Amanda, over to you. Thank you, Jonathan, and good afternoon everyone. I'll begin on slide 15.

Speaker Change: Amanda to discuss our results in more detail as well as our 2025 outlook Amanda over to you.

Thank you Jonathan and good afternoon, everyone I'll begin on slide 15, unless noted otherwise I will be comparing our fourth quarter 2024 results to the fourth quarter of 2023.

Amanda Crawford: Unless noted otherwise, I will be comparing our fourth quarter 2024 results to the fourth quarter of 2025. Financial results are preliminary until our 10-K filing. Q4 was another strong quarter as we exceeded the high end of the raised guidance we provided on the third quarter 2024 earnings call across all key metrics, revenue, gross profit, growth margin, and adjusted EBITDA. Revenue in the fourth quarter was $20.5 million. Excluding the revenue impact from the prior year Amazon distribution partner transition, which shifted $6 million of revenue from Q3 to Q4 2023, revenue was up 37% compared to Q4 2023.

Speaker Change: Results are preliminary until our 10-K filing.

Speaker Change: Q4 was another strong quarter as we exceeded the high end of the raised guidance. We provided on the third quarter 2024 earnings call across all key metrics revenue gross profit gross margin and adjusted EBITDA.

Speaker Change: Revenue in the fourth quarter was $20 5 million, excluding the revenue impact from the prior year Amazon distribution partner transition with $56 million of revenue from Q3 to Q4 2023 revenue was up 37% compared to Q4 2023 revenue growth was driven primarily by.

Amanda Crawford: Revenue growth was driven primarily by sales of DreamSoft and Duo. Full year 2024 revenue was a record at $78.1 million, growth of 45% versus prior year, exceeding the high end of our guidance. Growth margin in the fourth quarter was 53.5%, an increase of 650 basis points over prior year. This was our seventh consecutive quarter of year-over-year growth margin expansion. The significant growth margin improvement reflects strong volume growth, favorable product mix toward DreamSock, a reduction in return rates and improved fixed cost absorption. Full year 2024 gross margin was a record for Owlet at 50.4%, expanding 850 basis points versus 2023, and exceeding the high end of our guidance expectations.

Speaker Change: Sales of Green Sock and duo.

Speaker Change: Full year 2020 for revenue was a record at $78 1 million growth of 45% versus prior year exceeding the high end of our guidance.

Speaker Change: Gross margin in the fourth quarter was 53, 5% an increase of 650 basis points over prior year. This was our seventh consecutive quarter of year over year gross margin expansion.

Speaker Change: This significant gross margin improvement reflects strong volume growth favorable product mix towards dream sock, a reduction in return rates and improved fixed cost absorption.

Speaker Change: Full year 2024 gross margin was a record for outlet at 54% expanding 850 basis points versus 2023 and exceeding the high end of our guidance expectations.

Amanda Crawford: Total operating expenses in the fourth quarter were $18.4 million, including stock-based compensation of $1.6 million, representing an increase of $5.4 million versus the same period last year. Operating costs increased in Q4 primarily due to 6.2 million of charges related to certain legal matters. These charges were primarily related to the settlement and legal costs associated with two outstanding cases related to our 2021 SPAC offering in which plaintiffs alleged we made false or misleading statements and failed to disclose certain information regarding the FDA's potential classification of our smart sock as a medical device requiring marketing authorization. We have been vigorously defending these cases ever since they were filed, and while we do not admit any wrongdoing and continue to strongly disagree with the allegations, the cost and resource strain of continuing to fight these cases has outweighed the benefits of settlement.

Speaker Change: Total operating expenses in the fourth quarter were $18 4 million, including stock based compensation of $1 6 million, representing an increase of $5 4 million versus the same period last year.

Speaker Change: Operating costs increased in Q4, primarily due to $6 2 million of charges related to certain legal matters. These charges were primarily related to the settlement and legal cost associated with two outstanding cases related to our 2021 spec offering and which plaintiff's alleged we made false and misleading.

Speaker Change: Statements and failed to disclose certain information regarding the fda's potential classification of our smart sock I think medical device requiring marketing authorization.

Speaker Change: Have been vigorously defending these cases ever since they were filed and while we do not admit any wrongdoing and continue to strongly disagree with the allegations that cost and resource strain of continuing to fight. These cases has outweighed the benefits of settlement.

Amanda Crawford: We expect insurance will cover a portion of the settlement costs, however, any potential insurance recovery has not been included in our 2024 results. Operating loss in the fourth quarter was $7.4 million compared to $3.1 million the same period last year. Net loss in the fourth quarter was $9.1 million versus $6.9 million in the same period last Fourth quarter adjusted EBITDA was positive 0.5 million, an improvement of 1.2 million compared to the same period last year. Top-line growth, in combination with our focus on operational efficiency, drove the increase, as we concluded the year with three consecutive quarters of positive adjusted EBITDA.

Speaker Change: We expect insurance will cover a portion of the settlement costs. However, any potential insurance recovery has not been included in our 2024 results.

Speaker Change: Operating loss in the fourth quarter was $7 4 million compared to $3 1 million the same period last year.

Speaker Change: Net loss in the fourth quarter was $9 1 million versus $6 9 million in the same period last year.

Speaker Change: Fourth quarter adjusted EBITDA was positive <unk> 5 million, an improvement of $1 2 million compared to the same period last year.

Speaker Change: Top line growth in combination with our focus on operational efficiency drove the increase as we concluded the year with three consecutive quarters of positive adjusted EBITDA.

Amanda Crawford: Full year 2024 adjusted EBITDA was negative $2 million, improving $14.3 million compared to 2023. 2024 Adjusted EBITDA exceeded the high end of our guidance.

Speaker Change: Full year 2024, adjusted EBITDA was negative $10 million, improving $14 3 million compared to 2023.

Speaker Change: 2024, adjusted EBITDA exceeded the high end of our guidance expectations.

Amanda Crawford: Turning to our balance sheet, cash and cash equivalents as of quarter end December 31st, 2024 were 20.2 million, down slightly from 21.5 million in the third quarter, 2024.

Speaker Change: Turning to our balance sheet cash and cash equivalents as of quarter end December 31, 2024, or $20 2 million down slightly from $21 5 million in the third quarter 2024.

Amanda Crawford: Shifting to our 2025 Financial Outlook on slide 19. As Jonathan mentioned, 2025 will be about capitalizing on the momentum exiting 2024 and purposeful execution to deliver on our strategic areas for growth. For the full year 2025, we expect to generate revenue in the range of $88 to $92 million. Our first half revenue seasonality is expected to be consistent with 2024. In the second half, we're observing a change in retailer purchasing patterns. Specifically, key partners are holding fewer weeks of inventory and pushing Black Friday related orders into Q4.

Speaker Change: Shifting to our 2025 financial outlook on slide 19.

Speaker Change: As Jonathan mentioned 2025 will be about capitalizing on the momentum exiting 2024, and purposeful execution to deliver on our strategic areas for growth.

Speaker Change: For the full year 2025, we expect to generate revenue in the range of $88 million to $92 million.

Speaker Change: Our first half revenue seasonality is expected to be consistent with 2024.

Speaker Change: In the second half, we're observing a change in retailer purchasing patterns, specifically key partners are holding fewer weeks of inventory and pushing black Friday related orders into Q4, we expect that there will be a shift in revenue from Q3 to Q4 compared to the prior year, making Q4, our highest revenue contribution.

Amanda Crawford: We expect that there will be a shift in revenue from Q3 to Q4 compared to the prior year, making Q4 our highest revenue contribution quarter. We also expect growth margins in the range of 50 to 52 percent, demonstrating expansion over 2024.

Speaker Change: <unk> quarter.

Speaker Change: We also expect gross margins in the range of 50% to 52% demonstrating expansion over 2024.

Amanda Crawford: And finally, we are striving to achieve adjusted EBITDA profitability for the full year 2025, which would represent strong improvement over 2024.

Speaker Change: And finally, we are striving to achieve adjusted EBITDA profitability for the full year 2025, which would represent strong improvement over 2024.

Unnamed Moderator: And with that, we will now take your questions. We will now begin the question and answer session. If you would like to ask a question, please press star followed by 1 on your telephone keypad. If for any reason you would like to remove that question, please press star followed by 2. Again, to ask a question, press star 1. And as a reminder, if you are using a speakerphone, please remember to pick up your handset before asking a question. We'll pause here briefly as questions are registered.

Speaker Change: And with that we will now take your questions.

Speaker Change: We will now begin the question and answer session. If you would like to ask a question. Please press star followed by one on your telephone keypad. If for any reason you would like to remove a question. Please press star followed by two again to ask a question Chris Star One as a reminder, if you are you.

Speaker Change: Using a speaker phone please remember to pick up your handset before asking a question, we'll pause here briefly his questions registered.

Charles Rhyee: The first question is from the line of Charles Rhyee with T.D. Cohen. You may proceed.

Speaker Change: The first question is from the line of Charles <unk> with TD.

Speaker Change: May proceed.

Lucas Humphrey-Charles: Hi, this is Lucas Humphrey-Charles. Thanks for taking the questions and congrats on the quarter. In your guidance, you're guiding to revenue growth of excuse me, about 13 to I believe 18% if I have that right. I guess, can you help us understand how much of this is expected to come from the Dream Sock and Duo as well as other products like BabySat and then obviously understand it's early days for Owlet 360, but can you help us understand what's baked into the guide in relation from contribution from that subscription offering? Yeah, so as far as the guidance goes related to Owlet360, which we just launched, we're being pretty careful in what we model internally.

Speaker Change: Hi, This is Lucas on for Charles Thanks for taking the questions and congrats on the quarter.

Speaker Change: In your guidance, you're guiding to revenue growth.

Speaker Change: <unk>.

Speaker Change: Excuse me about 13 two.

Speaker Change: 18%, if I have that right I guess can you help us understand how much of this is expected to come from the dream <unk> and duo.

Speaker Change: Well as other products like Babysat and then obviously I understand it's early days for outlet 360, but can you help us understand what's baked into the guide in relation from.

Speaker Change: <unk> contribution from that subscription offering.

Speaker Change: Yes, so as far as the guidance goes.

Speaker Change: Related to our 360, which we just launched we're being pretty careful in what we model internally well early indicators are looking really positive it's still early so far.

Lucas Humphrey-Charles: While early indicators are looking really positive, it's still early. So for both Owlet360 and BabySat, we're not assuming any material revenue in 2025.

Speaker Change: <unk> I'll, let 360 and babysat, we're not assuming any material revenue in 2025.

Lucas Humphrey-Charles: Okay, appreciate that. And then maybe if I can just ask the same question in terms of what kind of, you know, in international, you guys saw pretty strong growth. in 2024 and you know ending 24 with 45% growth in 4Q. Can you help us understand you know maybe what's assumed in the guidance from international and U.S. Yes, so currently there is a little bit of a difference between how we look at the U.S. versus international, just because the international markets are still emerging, so it does represent a little bit of a bigger opportunity in terms of growth.

Speaker Change: Okay I appreciate that and then maybe if I can just ask the same question in terms of what kind of.

Speaker Change: In International you guys saw pretty strong growth.

Speaker Change: In 2024, and ending 2004 with 45% growth in <unk> can you help us understand maybe what's assumed in the guidance from international and U S.

Speaker Change: Yeah.

Speaker Change: Yes. So currently there is a little bit of a difference between how we look at the U S versus international just because the international markets are still emerging so it does represent a little bit of a bigger opportunity in terms of growth. So.

Lucas Humphrey-Charles: So the growth is expected to come equally from both the U.S. and international, but as a relative proportion for international baseline, international is going to grow more. So if you split the growth, if that makes sense, in that range, half of that dollar value growth would come from the U.S. and half would come from interstate.

The growth is expected to come equally from both the U S and international but as a relative proportion for international baseline international is going to grow more.

Speaker Change: So if you split the growth if that makes sense.

Speaker Change: In that range half of that dollar value growth would come from the U S and half would come from international.

Lucas Humphrey-Charles: Okay, that's helpful. And then I guess focusing on the US, obviously, you guys are doing really well in, you know, the three states, Iowa, Utah, Nebraska, that you had named out specifically, you know, that word of mouth is, you know, an integral part of seeing higher adoption rate in these states. I guess how do we get states, you know, more populated states, like California, Texas, and Florida to see higher adoption rates? I guess what's the strategy for, you know, attacking those populations? Yeah, for sure. I think the biggest thing to note is that the awareness is the highest correlation with adoption.

Speaker Change: Okay. That's helpful.

Speaker Change: And then I guess focusing on the U S. Obviously, you guys are doing really well and.

Speaker Change: The three states, Iowa, Utah, Nebraska that you had made that specifically.

Speaker Change: That word of mouth is.

Speaker Change: So part of seeing higher adoption rate in the states.

Speaker Change: I guess, how do we get state.

Speaker Change: Populated states like California, Texas.

Speaker Change: In Florida to see higher adoption rates I guess, what's the strategy for.

Attacking those populations.

Speaker Change: Yeah for sure I think.

Speaker Change: The biggest thing to note is that the awareness has the highest correlation with adoption in these states. So the three states you mentioned have the highest levels of awareness.

Lucas Humphrey-Charles: So the three states you mentioned have the highest levels of awareness for Owlet. And so it's really about driving credible awareness in each of those states. And we're doing that not only through partnerships, expanding our reach with partners and influencers, social media, and digital marketing, but we're also really driving more engagement in the product. I think one of the biggest opportunities this next year is with Owlet 360. There's going to be a lot more value driving into the product every single month this year. And that's going to continue to turn that word of mouth, which we think will help us in those states.

Speaker Change: And so it's really about driving incredible awareness in each of those states and we're doing that not only through partnerships and expanding our reach with partners and Influencers.

Speaker Change: Social media and digital marketing, but we're also really driving.

Speaker Change: More engagement in the product I think one of the biggest opportunities. This next year is with all of that 360, theres going to be a lot more value driving the product every single month this year and thats going to continue to churn that word of mouth, which we think will help us in those days, we're already seeing that tipping point happen.

Lucas Humphrey-Charles: We're already seeing the tipping point happen. you know, some of the high-awareness states. As we get the rest of the states on board, we think that the opportunity here to create a standard of care and a new category with health monitoring is absolutely.

Speaker Change: In some of the high awareness dates as we get the rest of the states on board, we think that the opportunity here to create a standard of care in a new category with health monitoring is absolutely massive.

Lucas Humphrey-Charles: Understood.

Lucas Humphrey-Charles: And then maybe another question on the guidance I want to ask about gross margin. In 4Q, we saw gross margin nearly get up to 54%, but in 2025, we're guiding to 50 to 52%. You know, obviously, 4Q saw, you know, strong mix, heavier mix of green stock, as well as improved fixed cost absorption. So I guess, can you kind of detail why we're assuming, you know, gross margin steps down? Is that largely conservatism? Or should we be thinking about something else driving that delta? Yeah, when it comes to gross margin, when we're looking at it for the full year, our guidance is actually stepping up.

Speaker Change: Understood and then maybe another question on the guidance I wanted to ask about gross margin and <unk>. We saw gross margin nearly get up to 54% in 2025, we're guiding to 50% to 52%.

Speaker Change: Obviously <unk> saw.

Speaker Change: Strong mix heavier mix of green stock as.

Speaker Change: As well as improved fixed cost absorption. So I guess can you kind of detail why were assuming.

Speaker Change: Gross margin steps down is that largely conservatism or should we be thinking about something else driving that delta.

Speaker Change: Yeah, when it comes to gross margin when we're looking at it for the full year.

Speaker Change: Our guidance is actually stepping up we had a blended margin of around 50% FERC full year 2024. So for 25, we are guiding for that to go.

Lucas Humphrey-Charles: We had a blended margin of around 50% for full year 2024. So for 2025, we are guiding for that to go up. We do see a little bit of like seasonality within our quarters as far as our gross margin percentage goes. And that's really driven by promotional activity. So we are expecting margins to grow.

Speaker Change: We do see a little bit.

Speaker Change: Seasonality within our quarters as far as our gross margin percentage goes and that's really driven by promotional activity.

Speaker Change: So we are expecting margins to grow next year.

Lucas Humphrey-Charles: Gotcha, understood.

Speaker Change: Got you understood and then I guess my last question here, and then I'll hop back into the queue.

Lucas Humphrey-Charles: And then I guess my last question here, and then I'll hop back into the queue, you guys noted making progress with payers, you know, now having 12 Medicaid states. Last quarter, you announced Cigna was covering Babysat. Can you maybe give us a little, you know, color on what kind of progress you're seeing with other types of payers? You guys noted making progress with payers. Can you maybe give us a little, you know, color on what kind of progress you're seeing with other types of payers? I'd love to hear just kind of how those conversations are progressing.

Speaker Change: You guys noted.

Speaker Change: Progress with payers.

Speaker Change: Now, having 12 Medicaid States last quarter, you announced.

Speaker Change: Cigna, what's covering babysat can you.

Speaker Change: Maybe give us a little.

Speaker Change: Color on what kind of progress you're seeing with other types of payers.

Speaker Change: Love to hear just kind of how those conversations are progressing.

Lucas Humphrey-Charles: Yeah, great, great question. We're really making great strides working with ADAPT Health, our partner, DME partner, working directly with their sales team that are calling on hospitals, as well as their reimbursement team. So we're really focused on states where they're extremely strong and really driving that Medicaid reimbursement. So it's a slow process, but we're making strides and driving success on there. And we're continuing to push and work closely with our partners.

Speaker Change: Yes, great Great question, we're really making great strides working with adapt helped our partner <unk> partner.

Speaker Change: Working directly with their sales team that are calling in and hospitals as well as their reimbursement team.

Speaker Change: So we're really focused on straight states, where they're extremely strong.

Speaker Change: And really driving that Medicaid reimbursement so.

Speaker Change: It's a slow process, but we're making.

Speaker Change: <unk> and driving success on their <unk>.

Speaker Change: And we're continuing to push and work closely with our partner on this.

Lucas Humphrey-Charles: Okay, great, thank you, and congrats again on the quarter.

Speaker Change: Okay great.

Speaker Change: Great. Thank you.

Speaker Change: Congrats again on the quarter.

Speaker Change: Thank you.

Ben Hainer: The next question is from the line of Ben Hainer with Lake Street Capital Markets. May proceed. Good afternoon, folks. Thanks for taking the questions. First off for me, just on the Owlet360, it sounds like the early returns are quite exciting. I was wondering, do you have a sense on where retention can kind of asymptote?

Speaker Change: The next question is really one of behavior with Lake Street capital markets. Please proceed.

Speaker Change: Good afternoon, I guess good.

Speaker Change: Good afternoon, thanks for taking the questions.

Speaker Change: First off for me just on the 360 it sounds like the early returns are quite exciting because I was wondering if you have a sense on where retention can kind of asset.

Ben Hainer: Jonathan, I mean, is there something in your historical experience at other firms or what you've seen on subscriptions already with the you know, kind of bottom out at? Yeah, I see us continuing to drive quite a bit of success with the features that we've rolled out so far. We're seeing quite a bit of engagement on subscription, so with greater engagement drives greater retention. Also, we believe it can really drive momentum and extend that word of mouth as parents share their stories with other parents and really start building on itself. And as we and helping to address that $30 billion that are spent every year in pediatric care for children zero to five.

Speaker Change: Jonathan.

Speaker Change: Is there something in your historical experience.

Speaker Change: Other firms or what are you seeing on subscriptions already with the daily active users on on where that could bottom out at.

Speaker Change: Hello.

Speaker Change: I see.

Speaker Change: He is continuing to drive quite a bit of success with that.

Speaker Change: The features that we've rolled out so far we're seeing quite a bit of engagement on subscription so with greater engagement drives greater retention also we believe that can really drive momentum and extend that word of mouth as parents share their stories with other parents and really start building on itself.

Speaker Change: As we get later into the year, we're going to really be investing in telehealth.

Speaker Change: In helping to address that $30 billion that are spent every year and pediatric care for children zero to five so we believe that.

Ben Hainer: So we believe that we're in the super early days of providing true value on our subscription, which will continue to drive that momentum and execute against a great year.

Speaker Change: We are in the Super early days of providing true value on our subscription, which will continue to drive that momentum and execute against the great year.

Ben Hainer: Got it. And then on the, I think you said January 28th and January 26th launch, I guess that's when kind of the marketing kicked off for Owlet360 or what's the right way to think about that and anything anecdotal you can share on how that's progressed since the 28th and 26th? Yeah, I mean, really at the end of January, we were in a beta before that. So that was really our first launch, like true public launch. We had a subset of users prior to that. So now we're fully active and engaged and we're pushing with in-app communication.

Speaker Change: Got it and then.

Speaker Change: I think you said January 2008 six launch.

Speaker Change: Sure.

Speaker Change: I guess, that's what I'm kind of a marketing kicked off for our 360 or what's the right way to think about that and any anything anecdotal you can share.

Speaker Change: On how that's progressed.

The 2008 2000.

Speaker Change: Yes, I mean really at the end of January we are in a beta before that so that was really our first launch.

Speaker Change: Like true public launch, we had a subset of users prior to that so now we're fully active and engaged and we're pushing with communication and we're really starting in the first phases of really seeing an overall outlet and marketing campaign driving not only the benefits of the dream socket itself, but the value.

Ben Hainer: And we're really starting, you're in the first phases of really seeing an overall Owlet marketing campaign driving not only the benefits of the DreamSock itself, but the value of this data platform that we're starting to build out with the Owlet360. So again, super early, but initial feedback is extremely positive from our user base. And we believe that they're going to be telling their friends and family and peer group about this to extend the value.

This data platform that we're really starting to build out with the outlet 360. So again super early but initial feedback is extremely positive from our from our user base and.

Speaker Change: And we believe that theyre going to be telling their friends and family and peer group about this to extend the value.

Ben Hainer: Okay, that's great. And then on kind of the adoption dynamics that you see, you know, in Europe or outside the U.S., do you have any any sort of experiences that you can point to, like you've seen in some of the states where you kind of get to a critical mass and all of a sudden adoption accelerates or is it just too early in most of these countries? I'd say it's still pretty early, but, you know, I'll give you Germany as a great example. Like getting the CE clearance in Germany, Germany was always a strong market, but as you know, like Germany is probably the strongest GDP throughout Europe.

Speaker Change: Okay.

Speaker Change: Great.

Speaker Change: And then on.

Speaker Change: Kevin.

Speaker Change: Adoption dynamics that you've seen.

Europe or outside the U S. Do you have any any sort of.

Speaker Change: Maybe you can point to like you've seen in some of the states, where you just kind of get to a critical mass.

Speaker Change: All of a sudden adoption accelerates or is it just too early and most of these countries.

Speaker Change: I'd say, it's still pretty early but I'll give you a Germany is a great example, like getting the CE clearance in Germany, Germany was always a strong mark but market, but as you know like Germany is probably the strongest GDP throughout Europe, and then getting the CE Mark we saw a big surge.

Ben Hainer: And then getting that CE med mark, we saw a big surge just because, you know, it's sort of the prove it to me. So we're really beginning to see strong strength throughout Germany, which is a great sign because that's a newer market within Europe for us. Like the UK has always been a strong market, but we're really starting to see good momentum in Germany, which is a strong GDP, which will continue to grow across Northern Europe for us.

Speaker Change: Just because it's sort of a prove it to me. So we're really beginning to see strong strength throughout Germany, which is a great sign for us because that's a newer market within Europe for us like the U K has always been a strong market, but we're really starting to see good momentum in in Germany, which is a strong GDP, which will continue to grow.

Speaker Change: Across northern Europe for us.

Ben Hainer: Okay, great. And then lastly, for me, I think you mentioned last quarter, the success you had in kind of developing relationships with McHugh's and hospitals and such, any updates there on, you know, how those sorts of conversations have progressed? Yeah, ADAPT Health has been really helpful getting us into these NICUs and these hospitals. In fact, for the first time, we're hearing from people across the country that their physicians are actually recommending Owlet. So NICU neonatologists are instructing parents to get a DreamSock or a BabySat as the babies are leaving the hospital. So again, we've had essentially a full year of that FDA clearance, and that is rolling out through the pediatric community and continuing to gain momentum.

Speaker Change: Okay, Great and then lastly for me.

Speaker Change: You mentioned the last quarter.

Speaker Change: So kind of developing.

Speaker Change: Push with <unk>.

Speaker Change: Totals as such.

Speaker Change: Any updates there on how the.

Speaker Change: Those sorts of conversations have progressed.

Speaker Change: Yeah adapt health has been really helpful getting us into these Nick used in these hospitals.

Speaker Change: For the first time, we're hearing from people across the country that their physicians are actually recommending outlet.

Speaker Change: So Nick Union Otologist are instructing parents to get a dream soccer babysat as there as the babies are leaving the hospital. So again, we had essentially a full year of that FDA clearance and that is rolling out through the pediatric community and continuing to gain momentum. So it's not just us.

Ben Hainer: So it's not just us or other families, but now the pediatricians and the neonatologists are starting to recommend. So very good sign for us.

Speaker Change: Our other families, but now the pediatricians.

Speaker Change: And the Neonatologist are starting to recommend so very good sign for us.

Ben Hainer: Excellent. Well, that's all I have, folks, and thanks for taking the questions. Congrats on the progress. Thank you.

Speaker Change: Excellent well that's all airports.

Speaker Change: For taking the questions and congrats on the progress.

Speaker Change: Thank you.

Unnamed Moderator: There are currently no questions registered, so as a brief reminder, it is star one to ask a question. There are no additional questions waiting at this time.

Speaker Change: There are currently no questions registered so as a brief reminder, it is star one to ask a question.

Speaker Change: There are no additional questions waiting at this time I would now like to pass the call.

Kurt Workman: I would now like to pass the conference back over for closing remarks. Yeah, well, I'm really glad that we can, you know, be here today. And I want to thank the Owlet team for continuing to outperform and execute. Really proud of our team. We are witnessing a fundamental shift with medical professional. Increasingly recommending Owlet products, reinforcing our vision of making health monitoring a standard of care for everybody. As we look ahead, we're committed to leveraging our technology and our data to revolutionize pediatric telehealth, and we really want to address the critical need for earlier detection and improved health at home.

Speaker Change: Back over for closing remarks.

Speaker Change: Yeah, well, who I'm really glad that we can be.

Speaker Change: Be here today, and I want to thank you I'll, let team for continuing to outperform and execute really proud of our team we are witnessing a fundamental shift with medical professionals.

Speaker Change: Increasingly recommending alif product reinforcing our vision of making health monitoring of standard of care for every baby.

Speaker Change: As we look ahead, we are committed to leveraging our technology and our data to revolutionize pediatric telephone and we really want to address the critical need for earlier detection and improved health at home. We believe this will not only improve outcomes for babies, but also transform the way parents are able to navigate care. So thank you for joining us today.

Kurt Workman: We believe this will not only improve outcomes for babies, but also transform the way parents are able to navigate care. So thank you for joining us today, and we are very grateful for your.

Speaker Change: And we are very grateful for your continued support.

Unnamed Moderator: That concludes the Owlet Fourth Quarter 2024 Earnings Conference Call. Thank you for your participation and enjoy the rest of your day.

Speaker Change: That concludes the outlet fourth quarter 2024 earnings conference call. Thank you for your participation and enjoy the rest of your day.