Owlet, Inc.

Good afternoon and thank you all for attending the outlet Q1 2025 earnings conference call. My name is Brica and I will 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. If you wish to ask a question, please press star followed by one on your telephone keypad. And if you wish to remove that question, press star 2. And for operator assistance at any point, you press star then zero. Thank you. I would now like to pass the conference over to your host, Jay Gentile, Investor Relations. Thank you. You may proceed, Jay.

Good afternoon, everyone, and thank you for joining us. Earlier today, Allett released financial results for the first quarter ended March 31st, 2025. I'm pleased to be joined today by Curt Workman, Allett's CEO and co-founder, President Jonathan Harris, and CFO Amanda Tweed Crawford. 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.alletcare.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 of today's call is a property ballot. It cannot be reproduced or transcribed without our prior consent. 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-K. 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. With that, it's my pleasure to turn the call over to our CEO, Kurt Workman. Kurt?

Thanks, Jay, and welcome everyone to Owlet's first quarter 2025 financial results call. As you saw from our earnings release, we had a fantastic start to 2025 with strong results we announced today, reflecting the ongoing momentum we are driving as a business. We exceeded our expectations for first quarter 2025 results by executing on our growth strategies and leveraging our position as the only FDA and CE cleared infant health monitors on the market. As a result, we continue to capture market share. as parents increasingly choose Owlette to improve overall infant health, sleep, and safety, driving 43% year-over-year growth and our fourth consecutive quarter of break-even or better adjusted EBITDA. We also just signed a new distribution partnership with Children's Hospital of the King's Daughters, one of the premier hospitals on the East Coast. As part of the collaboration, for the first time ever, babies are now able to leave the hospital with a babysat or dream socks. Finally, another takeaway from the quarter was the exciting momentum for Owleth360 subscription. The early results and feedback continue to trend very positively as we differentiate ourselves from a hardware company to a comprehensive pediatric health platform. Q1 was an outstanding quarter, setting a foundation for growth in 2025, and despite a more dynamic macro backdrop, we're seeing very positive trends for our business. Before we detail the strong first quarter results, I'd like to highlight just one of many outlet stories that really underscores why our team is so passionate about our mission. My husband and I originally purchased our DreamStock for peace of mind. What we didn't know is how much this device would actually help us. One night at 1 a.m., we received a notification that my son's heart rate was 250 to 280 beats per minute, but he didn't seem to be in distress. We took him to the ER, which resulted in an inconclusive cardiac workup. We continued to monitor independently with our DreamStock at home, which allowed us to pick up two additional episodes of high heart rate. After another ER visit and hospital admission, we received a diagnosis of SVP. We never would have picked up on this without our DreamStock as my son never seemed to be in distress. With home monitoring, we were able to seek medical care quickly and are now managing with daily medication. We are so grateful to have had this technology. We received countless testimonials from parents and caregivers about the impact Owlet has made on their infants' lives and livelihoods. It's quarter our mission here at Owlet and makes me incredibly proud of what we're delivering to the world. Now, recapping Q1 results on slide six, we kicked off the year with a very strong quarter, exceeding expectations across all key metrics. Revenue was 21.1 million in the first quarter of 2025, up 43% versus first quarter of 2024. The top line strength drove gross margins of 53.7%, an improvement of 930 basis points compared to prior year, and our eighth consecutive quarter of year-over-year gross margin expansion. Revenue growth and margin strength supported break-even adjusted EBITDA, a $3.1 million improvement year-over-year, helping us outperform our expectations. This was our fourth consecutive quarter of break-even or better adjusted EBITDA. even with Q1 traditionally being our seasonally lowest revenue contribution quarter as we look to expand adjusted EBITDA profitability going forward. It was a very strong quarter of execution, and as a result, we're raising 2025 revenue guidance to account for first quarter outperformance and our outlook for the balance of the year. While the tariff situation and macro visibility remain limited, creating some uncertainty, we are incredibly well positioned to drive continued strong financial performance throughout 2025 and beyond. Amanda will go into more details about our guidance. In summary, Owlet continues to fire on all cylinders. We are seeing strong performance in our core DreamSoc and DreamDuo products. In addition, we are layering in three additional growth verticals of international expansion, Owlet 360 subscription, and healthcare channels that are changing the profile of the business and will propel durable, profitable growth in this next phase of Owlet's evolutions. I'd now like to pass the call to Jonathan to walk through recent progress against our strategic focus areas.