Baby tech company Owlet reported a drop in revenue to $13.1 million in the second quarter of 2023, compared to $18.3 million for the same period last year. It also reached a milestone, garnering FDA clearance in June for BabySat, its medical pulse oximetry wire-free sock for infants.
The company reported a net loss of $8.5 million in Q2 2023, compared to $11.7 million in Q2 2022, and an operating loss of $6.7 million in the second quarter of this year, compared to $20.4 million last year.
Operating expenses in the second quarter decreased to approximately $11.9 million, compared to $27 million in the same period last year, which the company attributes to reduced employee costs and marketing spending.
In the second quarter, the company had an Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of approximately $4.3 million, a considerable drop from the $16.7 million in Q2 2022.
Owlet said it would continue to focus on reducing costs, achieving EBITDA profitability and completing regulatory submissions in 2023.
“Our conviction in Owlet’s future remains steadfast as our objectives to strengthen our business remain on track. During the quarter, we sequentially increased gross sales, continued to stabilize gross margins and further reduced operating expenses,” Kurt Workman, Owlet’s CEO, said in a statement.
THE LARGER TREND
Owlet went public in 2021 after merging with a special purpose acquisition company. Later that year, it pulled its Smart Sock wearables from the market after receiving a warning letter from the FDA. The agency said Owlet was marketing the products as “diagnosis” tools, which would require 510(k) clearance.
Last year the company posted a net loss of $79.3 million, compared to $71.7 million in 2021.
In February Owlet announced it had raised $30 million in private-placement financing.
During the second quarter of this year, alongside its FDA clearance for its pulse-oximetry device, the company announced that its continued listing compliance plan with NYSE had been approved. In July it completed a 1:14 reverse stock split.
Owlet is currently trading on the NYSE around $4.60, a substantial drop from its high of $150.78 in 2021.