In This Story
Owlet Inc. (OWLT+1.37%) Class A has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in revenues to $22.1 million from $9.2 million in the same quarter the previous year. This increase is attributed to higher sales of Dream Sock products.
Cost of revenues for the quarter was $10.6 million, representing 48% of sales, compared to 64% in the same quarter of the previous year. This decrease in cost ratio is due to higher revenue and lower direct product costs.
The company reported a gross profit of $11.5 million for the quarter, compared to $3.3 million in the previous year, with the increase attributed to higher sales and improved cost management.
General and administrative expenses increased to $9.8 million from $5.4 million, driven primarily by impairment charges related to intangible assets and higher compensation expenses.
Sales and marketing expenses rose to $4.0 million from $3.3 million, primarily due to higher compensation expenses and increased spending on brand and content.
Research and development expenses were $2.6 million, slightly up from $2.4 million, driven by higher compensation expenses.
Net loss for the quarter was $5.6 million, compared to $5.6 million in the previous year. After preferred dividends, net loss attributable to common stockholders was $6.8 million, compared to $7.0 million in the previous year.
Cash used in operating activities was $14.5 million, while cash used in investing activities was $0.7 million. Cash provided by financing activities was $20.6 million.
Owlet had cash and cash equivalents of $21.5 million as of September 30, 2024. The company highlights its need for additional financing to meet future obligations.
The filing also details new financial agreements, including a loan facility with WTI Fund X, Inc. and a revolving credit facility with ABL OPCO LLC.
Owlet does not anticipate cash dividend payments to common stockholders in the near future.
The company identified material weaknesses in its internal controls over financial reporting, including ineffective controls over journal entries and inventory accounting.
Owlet continues to focus on expanding its product offerings and improving its financial position through strategic initiatives and cost management.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Owlet Inc. Class A quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.