All right. Hi, everyone. Good afternoon. Thanks for joining the final session of the Wednesday at our Growth Conference. We're very happy to have the team from Owlet joining us. We've got Amanda and Jay. Amanda's the CFO. Jay is in Investor Relations. Amanda will go through some prepared remarks in the investor presentations. We'll cut the webcast, and when we'll do a little bit of Q&A in this room. With that, one last thing, I am required to tell you that for a full list of research disclosures, please visit williamblair.com. I'll turn it over to Amanda. Thank you. Thanks for having us. Thanks to all of you for being here. We have our own disclaimer as well, if you would like to read it. All right, first I wanted to start off by introducing Owlet to those of you who aren't quite familiar with what we do. Owlet is a holistic pediatric health platform, really arming parents with data and insights to help them. We have a few key pillars. The first is safety. Our hero product is the Dream Sock. It is FDA cleared, which means it's a medical device. It's not just a silly gadget. It actually works. It's comparable to a hospital-grade monitor that parents can use at home to monitor their child. The technology behind it is pulse oximetry, so it measures pulse rate and oxygen and alerts parents when their baby needs them, so if it falls outside of a preset range. Beyond that, safety is our foundation, but we've been able to pivot into more of a health platform. Think about the explosion of wearables. You see a lot of adults with their Oura Ring, their WHOOP Bands. They want to know about their own health and wellness. What's most interesting is I know if I went out and had drinks last night, I'm going to sleep terrible, right? I'm not saying a baby was going to have drinks last night, but we don't know if our child didn't sleep well or if maybe they're starting to get sick. What's really interesting is that using the data from our Dream Sock, we're able to give parents additional insights so that they can help their baby. What that means for parents is that they're more informed and they can get better sleep. Lastly, we have our camera. Most parents who have a Dream Sock, they also want to have a video monitor. We have our third generation Dream Sight camera that was just launched last year that gives you the visual view of your baby. When you open up the app, you can see the real-time vitals information as well as a picture of your baby, or a video, I should say, of your baby. We think that this is a really interesting advantage, especially with the new generation of parents coming through. They're used to this health technology for themselves, which really gives us a competitive advantage because we are the only monitor on the market that is medically cleared for at-home use. There's just a few key stats. I'm not going to read through all of them. A lot of these bragging rights. We're the number one baby monitor in dollar share, first and only FDA-cleared monitor. We also have clearances in Europe and the U.K., as well as Australia and a few other countries. That really gives us a competitive moat just because we're the only player in this space. From an active user perspective, we have almost 700,000 users on our network every single night. Last year, we grew our revenue 35%, and we have the largest set of infant health data, which has enabled us to provide those insights through our app. What's really exciting and new for the company is historically, we've been a one-time sale, so just the hardware, but we've moved to a services platform called Owlet360. It's our subscription offering. We launched this early last year. We had 115,000 paying subscribers to close out Q1. That was about a 34% penetration rate on Dream Sock users in the United States. The subscription fee is $9.99. Where we have an opportunity to extend LTV further is through launching into other geos. Currently, it's only available in English-speaking countries. We'll be launching that in some of our other markets here shortly this year. The other side of it is that our initial subscription has really been focused on the sock, but we're working on developing additional features for the camera, which really presents a strong LTV opportunity since customers will use their cameras for three to five years. Those are up and coming. Our new camera is AI-ready. It's got an AI-enabled chip, so the capabilities are there. It would just be a software push. Here's a little bit about our journey. It's kind of where we're at today. What's really exciting about Owlet is we look back, and the FDA clearance was a huge milestone for us. We achieved adjusted EBITDA profitability last year. We launched our subscription, our new generation product. We cleaned up our cap structure a little bit last year. Now where we're headed, we're growing that high-margin subscription business. We continue to see our subscribers grow every single month, and our churn rate has improved every quarter. The monthly churn rate is in the single digits and improving. Our focus here for the company moving forward, and looking at 2026 is to really sharpen our focus. We're focused on our subscription offering and a new telehealth offering, which I'll talk about in a minute. We really want to win the markets that we're in. We're really excited about the opportunity right in front of us, and then we're focused on operating efficiency and profitable growth. A little bit more details on subscription. It is a higher overall blended margin for us. Our blended margin for 2025 was 50%, so our subscription margins are much higher, and we see this as a multi-year opportunity. Most parents who have children will have two, and we see this as a multi-year opportunity. Baby number one arrives. They're on our platform for about two years, then baby number two arrives, and we've got another two years for a full four-year relationship with parents. Another thing that's really unique for Owlet is we just launched to a limited user set our telehealth. We could call it Owlet OnCall. What's interesting is that parents every year, for the first year of a child's life, parents have at least one ER visit. 95% of the time they're sent home with Tylenol, it's treat and release, so there's really no emergency. What is exciting about the telehealth opportunity is we actually have vital signs and biometric data that can be shared with a pediatrician in our app, saving our customers, and the healthcare system some costs by being able to tria ge some of this at home, helping parents determine if they actually need to go in. We see that as a big opportunity for us. For this year, it's more of a test and learn. It's not a big revenue driver in our guide, but we do see it as a big part of our long-term strategy. Here we are winning the markets that we're in. In the United States, we have about 11% of births are using our Dream Sock. While that penetration rate is really strong, we see some states with rates above 20%, whereas there's other states that are in that lower, below single digits. We have an opportunity to narrow focus and really win the markets that we're in and expand our penetration in the U.S. We still think there's a big opportunity here for the core business. On the international side, in Europe, we have low single digit penetration, with some countries like the Czech Republic over 10%. We see a big opportunity there internationally, in the markets that we're in. We've talked a lot about our global clearances in the past, and while they're still important for our long-term strategy, we're really just focusing on the geos that we're in as opposed to doing simultaneous country launches this year. Lastly is operational efficiency and profitable growth. This is our revised guidance that we issued on the Q1 call. Revenues of $118 million to $122 million, so 12%-15% year-over-year growth. We've expanded our gross margin guide to 50%-52%. From an adjusted EBITDA perspective, we're guiding $7 million to $9 million. Really driving that operating leverage. If we compare to last year, we were at $2 million approximately in adjusted EBITDA, so this is substantial growth and we're committed to sustainable, profitable growth. Really the key drivers of this updated guide, it's pausing those global clearances, focusing on where we already are. We want to have AI driven headcount efficiency. Originally in our plans this year, we're a little over a 100 person company. Our revenue per FTE is over $1 million. We had plans to add about 40 headcount for our growth initiatives. We've pulled back on that, not because we're not investing in the business, but because we have so many AI capabilities broadly across the organization. We're focused on driving efficiency over adding headcount, which has helped us improve our adjusted EBITDA guide. Lastly, we're deferring lower ROI projects outside of the key areas of focus. We have an exciting year ahead. That's all I have. Thank you
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