Owlet Inc (OWLT) 2022 Q4 法說會逐字稿

Good afternoon. Thank you for attending the Owlet Earnings Conference Call. My name is Matt, and I will be your moderator for today's call. (Operator Instructions) I would now like to pass the conference over to our host, Mike Cavanaugh, Investor Relations. Mike, please go ahead.

下午好。感謝您參加 Owlet 收益電話會議。我叫馬特，我將擔任今天電話會議的主持人。 （操作員說明）我現在想將會議轉交給我們的主持人 Mike Cavanaugh，投資者關係部。邁克，請繼續。

Thanks, Matt. Good afternoon, and thank you all for joining us today. Earlier today, Owlet Incorporated released financial results for the quarter ended December 31, 2022. The release is currently available on the company's website at investors.owletcare.com. Kurt Workman, Owlet's Co-Founder, President and Chief Executive Officer; and Kate Scolnick, Chief Financial Officer, will host this afternoon's call.

謝謝，馬特。下午好，感謝大家今天加入我們。今天早些時候，Owlet Incorporated 發布了截至 2022 年 12 月 31 日的季度財務業績。該發布目前可在公司網站 investors.owletcare.com 上獲取。 Owlet 的聯合創始人、總裁兼首席執行官 Kurt Workman；首席財務官 Kate Scolnick 將主持今天下午的電話會議。

Before we get started, I would like to remind everyone that certain matters discussed in today's conference call and/or answers that may be given to questions asked are forward-looking statements that are subject to risks and uncertainties related to future events and/or the future financial performance of the company.

在我們開始之前，我想提醒大家，今天電話會議中討論的某些事項和/或可能對所提問題的回答是前瞻性陳述，受與未來事件和/或未來事件相關的風險和不確定性的影響。公司未來的財務表現。

Actual results could differ materially from those anticipated in these forward-looking statements.

實際結果可能與這些前瞻性陳述中預期的結果存在重大差異。

The risk factors that may affect results are detailed in the company's most recent public filings with the U.S. Securities and Exchange Commission, including its quarterly report filed November 14, 2022, and other reports filed with the SEC, which can be found on its website at investors.owletcare.com or on the SEC's website at www.sec.gov. The information provided in this conference call speaks only as of today's live call. Owlet disclaims any intention or obligation, except as required by law to update or revise any information, financial projections or other forward-looking statements, whether because of new information, future events or otherwise.

可能影響結果的風險因素在公司最近向美國證券交易委員會提交的公開文件中有詳細說明，包括其於 2022 年 11 月 14 日提交的季度報告，以及向美國證券交易委員會提交的其他報告，可在其網站上找到investors.owletcare.com 或 SEC 網站 www.sec.gov。本次電話會議中提供的信息僅代表今天的現場電話會議。 Owlet 不承擔任何意圖或義務，除非法律要求更新或修改任何信息、財務預測或其他前瞻性陳述，無論是因為新信息、未來事件或其他原因。

Please also note that Owlet will refer to certain non-GAAP financial information on today's call. You can find reconciliations of the non-GAAP financial measures to the most comparable GAAP measures in the company's earnings release, which is also available on the company's quarterly results page of its website.

另請注意，Owlet 將在今天的電話會議上參考某些非 GAAP 財務信息。您可以在公司的收益發布中找到非 GAAP 財務指標與最具可比性的 GAAP 指標的對賬，也可以在公司網站的季度業績頁面上找到。

I will now turn the call over to Kurt Workman.

我現在將把電話轉給 Kurt Workman。

Thanks, Mike. Good afternoon to everyone joining us today. During our call today, you're going to hear a lot of conviction about Owlet's fundamentals and our vision for the future. I recognize that our confidence in our business conflicts with our reported financial results in 2022 due to the efforts required to rebuild our business. I'd like to take a minute upfront to address this.

謝謝，邁克。大家下午好今天加入我們。在我們今天的通話中，您會聽到很多關於 Owlet 的基本面和我們對未來的願景的信念。我認識到，由於重建業務所需的努力，我們對業務的信心與我們報告的 2022 年財務業績存在衝突。我想先花一分鐘時間來解決這個問題。

Throughout 2022, we made tremendous progress positioning Owlet for sustainable, profitable growth in 2023 and years into the future. We rebuilt our brand health, rebased our operating expenses, focused on rebuilding channel health and made milestone progress towards regulatory approval for both our medical device and de novo product applications.

在整個 2022 年，我們在定位 Owlet 以實現 2023 年和未來幾年的可持續盈利增長方面取得了巨大進展。我們重建了我們的品牌健康狀況，重新調整了我們的運營費用，專注於重建渠道健康狀況，並在我們的醫療設備和從頭產品應用的監管批准方面取得了里程碑式的進展。

A few weeks ago, with Owlet's underlying business properly positioned, we raised $30 million of additional capital from both insiders and new investors ensuring that we have the balance sheet to execute in 2023 from a position of strength. The investors who provided us with this new capital base their confidence on the fundamental improvements and strategy I'm going to discuss with you today.

幾週前，在 Owlet 的基礎業務定位正確的情況下，我們從內部人士和新投資者那裡籌集了 3000 萬美元的額外資金，確保我們在 2023 年的資產負債表上處於有利地位。為我們提供這筆新資金的投資者對我今天要與您討論的基本改進和戰略充滿信心。

Our plan for 2023 is clear: positioning Owlet on the pathway to cash flow positive, profitable and long-term sustainable growth through category-defining products. There are a few underlying trends in our business that give me confidence that Owlet is on track to deliver this.

我們 2023 年的計劃很明確：通過定義類別的產品，使 Owlet 走上正現金流、盈利和長期可持續增長的道路。我們業務中的一些潛在趨勢讓我相信 Owlet 有望實現這一目標。

Our brand health has returned to all-time highs, levels not seen since 2021. NPS is at all-time highs and marketing spend CPA has declined 80% since the start of 2022. Our channel sell-through growth quarter-over-quarter reaching nearly $20 million in gross revenue of sell-through in Q4.

我們的品牌健康度已恢復到歷史最高水平，這是自 2021 年以來的最高水平。NPS 處於歷史最高水平，營銷支出 CPA 自 2022 年初以來下降了 80%。我們的渠道銷售率環比增長達到第四季度的銷售總收入接近 2000 萬美元。

Inventory and channel is normalizing, and we expect sell-through to match sell-in by the end of Q2 with improvements in Q1.

庫存和渠道正在正常化，我們預計到第二季度末銷售量將與第一季度的改善相匹配。

Our expenses are rightsized and this will demonstrate our rebased operating expenses in Q1 and Q2 with the plan to spend no more than $40 million in 2023 adjusted operating expenses, excluding stock-based compensation.

我們的費用經過適當調整，這將表明我們在第一季度和第二季度調整後的運營費用，計劃在 2023 年調整後的運營費用中花費不超過 4000 萬美元，不包括基於股票的薪酬。

We are aggressively focused on achieving profitability and improving working capital. We're targeting to be EBITDA breakeven in the back half of the year and to see working capital continue to improve each quarter.

我們積極專注於實現盈利能力和改善營運資金。我們的目標是在今年下半年實現 EBITDA 收支平衡，並看到營運資金每個季度都在繼續改善。

Owlet weathered a lot of change in 2022. Today, Owlet is now in a position to focus on execution, and we understand the best way to build trust with the market is to deliver results each quarter. As we progress through the year, we expect to deliver results that demonstrate that what we see internally, an organization that is on track to be profitable and growing with numerous avenues for future growth, including organic marketplace opportunities, regulatory clearances and new products for our connected nursery portfolio.

Owlet 在 2022 年經歷了很多變化。今天，Owlet 現在可以專注於執行，我們了解與市場建立信任的最佳方式是每個季度交付結果。隨著我們這一年的進步，我們希望交付的結果能夠證明我們在內部所看到的，一個有望實現盈利並在未來增長的眾多途徑中不斷發展的組織，包括有機市場機會、監管許可和我們的新產品連接的托兒所組合。

Turning to our 2022 business results. After relaunching our flagship stock monitoring product in the U.S. in January and transitioning from our Cam 1 to Cam 2 in July, we achieved full year product portfolio revenues of $69.2 million within our targeted range, while retaining strong satisfaction. It's notable that since January 2022, we've reduced the cost of our media acquisition spend, CPA by 80%.

轉向我們 2022 年的業務成果。在 1 月份在美國重新推出我們的旗艦股票監控產品並在 7 月份從我們的 Cam 1 過渡到 Cam 2 之後，我們在目標範圍內實現了 6920 萬美元的全年產品組合收入，同時保持了很高的滿意度。值得注意的是，自 2022 年 1 月以來，我們將媒體獲取支出的成本 CPA 降低了 80%。

Owlet is now the #1 selling monitor on Amazon year-to-date in 2023. After effectively marketing and advertising our Dream portfolio relaunch in early 2022, we believe consumer satisfaction of our product and trust and belief in the Owlet brand is strong. The NPS of our product continues to improve throughout the course of the year with successful introduction of Dream Sock and our Cam 2 product transition. NPS across our portfolio is now at or above 2021 levels.

Owlet 現在是 2023 年年初至今亞馬遜上銷量第一的顯示器。在有效營銷和宣傳我們於 2022 年初重新推出的 Dream 產品組合之後，我們相信消費者對我們產品的滿意度以及對 Owlet 品牌的信任和信念是強大的。隨著 Dream Sock 的成功推出和我們的 Cam 2 產品過渡，我們產品的 NPS 在整個一年中不斷提高。我們投資組合中的 NPS 現在處於或高於 2021 年的水平。

Our Q4 reported revenue does not represent the current sell-through of our business. That is because the first half of 2022, sell-in was materially greater than sell-through as we reentered the market and initially stocked all retail and distribution channels with our Dream products.

我們第四季度報告的收入並不代表我們業務的當前銷售情況。這是因為 2022 年上半年，隨著我們重新進入市場並最初用我們的 Dream 產品庫存所有零售和分銷渠道，銷售量大大超過銷售量。

As we rebuild brand health through 2022, sell-through continued to improve growing nearly 47% from the first half to the second half of 2022 and giving us confidence that our brand and products resonate with consumers. However, inventory and channel is substantially greater than our targeted 10 to 14 weeks, which resulted in materially less sell-in in Q4. As a result, our reported revenue does not represent the current sell-through across our channels.

隨著我們重建品牌健康到 2022 年，銷售率繼續提高，從 2022 年上半年到下半年增長了近 47%，這讓我們相信我們的品牌和產品會引起消費者的共鳴。然而，庫存和渠道大大超過我們的目標 10 到 14 週，這導致第四季度的銷售量大幅減少。因此，我們報告的收入並不代表我們渠道的當前銷售率。

We expect a similar effect in Q1 2023 as inventory and channel normalizes. Looking to Q2, we expect sell-in to begin to align with sell-through. In partnership with our retailers, we are highly focused on sell-through and recognize managing inventory in the channel is essential to maintaining strong brand health, better margins and delivering consistent results.

隨著庫存和渠道正常化，我們預計 2023 年第一季度會產生類似的影響。展望第二季度，我們預計銷售量將開始與銷售量保持一致。通過與我們的零售商合作，我們高度關註銷售率，並認識到管理渠道中的庫存對於保持強大的品牌健康、更高的利潤率和提供一致的結果至關重要。

2022 gross margins were 34% and within our targeted range for the year. There were multiple factors that adversely affected gross margins in 2022, which we believe will not be present in 2023. Headwinds for margins last year were primarily related to the return to vendor program we offer to all domestic retailers as a result of the FDA warning letter, the substantial write-off of prior generation inventory deemed obsolete, additional promotions to support the launch of our dream portfolio, elevated PPV costs incurred due to supply chain shortages in 2021 and inventory adjustments and reconciliations cleanup.

2022 年的毛利率為 34%，在我們當年的目標範圍內。有多種因素對 2022 年的毛利率產生不利影響，我們認為 2023 年不會出現這種情況。去年的毛利率不利因素主要與我們因 FDA 警告信而向所有國內零售商提供的供應商返還計劃有關，被視為過時的上一代庫存的大量註銷，額外的促銷活動以支持我們夢想的產品組合的推出，由於 2021 年供應鏈短缺導致的 PPV 成本增加以及庫存調整和對賬清理。

In retrospect, this was an unprecedented and costly operational challenge for a company of our size to execute, and we did our best under very difficult circumstances.

回想起來，對於我們這樣規模的公司來說，這是前所未有的、代價高昂的運營挑戰，我們在非常困難的情況下竭盡全力。

Moving forward, one of our biggest operating priorities is working towards getting back to 40% to 50% gross margin in future periods through tighter management of promotional spend and supply chain costs. It's important to note that the contract cost of manufacturing our products has not increased, which gives us confidence in our ability to return to these prior gross margin levels in the future.

展望未來，我們最大的運營重點之一是通過更嚴格地管理促銷支出和供應鏈成本，努力在未來恢復到 40% 至 50% 的毛利率。值得注意的是，製造我們產品的合同成本沒有增加，這讓我們有信心在未來恢復到之前的毛利率水平。

For 2022, total operating expenses were $95 million -- $95.1 million, excluding stock-based compensation sequentially declining each quarter through the year. In the first half of 2022, our focus was getting our Dream product portfolio into the market, and we spent heavily in marketing and promotions to build back and reposition effectively in the marketplace. We were able to successfully position our Dream portfolio back into the #1 position in key retailers by midyear and have also been able to improve customer experience and satisfaction with our products to previous levels while putting together 2 FDA submissions and 2 European submissions for medical device clearance.

2022 年，總運營費用為 9500 萬美元至 9510 萬美元，不包括全年每個季度連續下降的股票薪酬。 2022 年上半年，我們的重點是將我們的 Dream 產品組合推向市場，我們在營銷和促銷方面投入了大量資金，以在市場上有效地重建和重新定位。到年中，我們能夠成功地將我們的 Dream 產品組合重新定位到主要零售商的第一位，並且還能夠將客戶體驗和對我們產品的滿意度提高到以前的水平，同時將 2 項 FDA 提交和 2 項歐洲提交的醫療設備提交清除。

Over the last 2 quarters, we've taken multiple steps to significantly reduce our day-to-day operational spending. The effects of these expense run rate improvements, including headcount reductions, variable spend controls and finishing programs related to regulatory clearances were somewhat masked in Q3 and Q4 due to cleanup adjustments such as bad debt reserves and other items incurred in prior periods, and as such, the improvements we've made are not yet fully reflected in the financial statements.

在過去的兩個季度中，我們採取了多項措施來大幅減少日常運營支出。由於壞賬準備金和前期發生的其他項目等清理調整，這些費用運行率改善的影響，包括裁員、可變支出控制和與監管許可相關的完成計劃在第三季度和第四季度有所掩蓋，我們所做的改進尚未完全反映在財務報表中。

We exited the fourth quarter with operating expenses, excluding stock-based compensation of $19.6 million. When factoring out bad debt reserves and onetime expenses such as costs from our financing activities, severance, regulatory clearances and out-of-period expenses, the underlying spend to operate the company was $15.2 million, marking a significant improvement to prior periods.

我們以運營費用結束了第四季度，不包括 1960 萬美元的股票薪酬。剔除壞賬準備金和一次性費用（例如我們的融資活動成本、遣散費、監管許可和期外費用）後，運營公司的基本支出為 1520 萬美元，與前期相比有了顯著改善。

As we shared in our last call, due to the changing macroeconomic conditions in the market, we adjusted our operating plan to drive the business to breakeven adjusted EBITDA in 2023. We've streamlined our organizational structure from 227 employees last year to under 100 employees today. We are targeting run rate operational expenses under $13 million in Q1, excluding stock-based compensation and adjustments and financing transaction costs.

正如我們在上次電話會議中分享的那樣，由於市場宏觀經濟狀況的變化，我們調整了運營計劃，以推動業務在 2023 年實現調整後 EBITDA 的收支平衡。我們已將組織結構從去年的 227 名員工精簡到不到 100 名員工今天。我們的目標是第一季度的運行率運營費用低於 1300 萬美元，不包括基於股票的補償和調整以及融資交易成本。

We will continue to find opportunities to reduce costs in the first half of 2023 to maintain operating expenses under $40 million in 2023, excluding stock-based compensation and Q1 financing transaction costs.

我們將在 2023 年上半年繼續尋找降低成本的機會，以將 2023 年的運營費用維持在 4000 萬美元以下，不包括基於股票的薪酬和第一季度融資交易費用。

Over the past 12 months, Owlet has shown operational resilience with the vision and commitment to be the long-term leader impacting pediatric health.

在過去的 12 個月裡，Owlet 表現出了運營彈性，其願景和承諾是成為影響兒科健康的長期領導者。

In February, as I previously mentioned, we raised $30 million in capital to support our balance sheet, and we are working to restructure our lending commitments for access to working capital. Our 2023 planning will be to limit cash burn under $15 million as we strive for profitability and cash flow positive in the back half of the year. As we set the foundation for profitability and gain FDA appearances, we believe Owlet has a very healthy high-growth opportunity.

正如我之前提到的，我們在 2 月籌集了 3000 萬美元的資金來支持我們的資產負債表，我們正在努力重組我們的貸款承諾以獲得營運資金。我們的 2023 年計劃是將現金消耗限制在 1500 萬美元以下，因為我們力求在下半年實現盈利和現金流為正。隨著我們為盈利能力奠定基礎並獲得 FDA 的認可，我們相信 Owlet 擁有非常健康的高增長機會。

The most critical accomplishments towards Owlet digital health care future is the work we've done to pursue regulatory clearances for our products in 2022. As stated in prior calls, we believe in making the highest quality care available to every baby by democratizing access to technology and information that has previously been limited to clinical settings.

Owlet 數字醫療保健未來最重要的成就是我們為在 2022 年為我們的產品爭取監管許可所做的工作。如之前的電話會議所述，我們相信通過使技術獲取民主化，為每個嬰兒提供最高質量的護理以及以前僅限於臨床環境的信息。

Our team has completed significant work, which enabled us to file FDA submissions for our monitoring platforms, which if cleared will unlock further long-term opportunity and growth for Owlet.

我們的團隊已經完成了重要的工作，這使我們能夠為我們的監控平台提交 FDA 的申請，如果獲得批准，將為 Owlet 帶來更多的長期機會和增長。

Over the past year, we've greatly increased our communication with the FDA, maintaining frequent conversations and meetings and developing 2 clear distinct paths forward for our submission.

在過去的一年裡，我們大大增加了與 FDA 的溝通，保持頻繁的對話和會議，並為我們的提交制定了 2 條明確的不同路徑。

In October of 2022, we filed a 510(k) premarket notification to the FDA for a new prescription monitoring device for infants. The device, which we internally call BabySat uses pulse oximetry technology and is intended to be prescribed by physicians to assist with the in-home monitoring of babies under a physician's care.

2022 年 10 月，我們向 FDA 提交了一份 510(k) 上市前通知，申請一種新的嬰兒處方監測設備。我們在內部將其稱為 BabySat 的設備使用脈搏血氧儀技術，旨在由醫生開具處方，以協助在醫生護理下對嬰兒進行家庭監測。

The device provides alerts to parents in their baby's heart rate or oxygen saturation level or SpO2, fall -- does not fall within prescribed ranges. BabySat represents significant advantages to the large, wired hospital monitoring technologies on the market today with its wireless wearable form factor and cloud-connected data integration designed for home use.

該設備會在嬰兒的心率或氧飽和度水平或 SpO2 跌倒不在規定範圍內時向父母發出警報。 BabySat 憑藉其無線可穿戴外形和專為家庭使用而設計的雲連接數據集成，代表了當今市場上大型有線醫院監控技術的顯著優勢。

In December, we filed a second submission to the FDA for a software as a medical device as an over-the-counter product that offers heart rate and oxygen notifications in conjunction with the existing Dream Sock's sleep monitoring capabilities. The de novo application includes both the display of heart rate and oxygen currently in the Dream Sock and additional notification features as software as a medical device. We are currently in the review process with the FDA and are working to respond promptly to any questions or clarifications that come on.

去年 12 月，我們向 FDA 提交了第二次申請，希望將一款軟件作為一種醫療設備作為非處方產品，提供心率和氧氣通知以及現有 Dream Sock 的睡眠監測功能。 de novo 應用程序包括 Dream Sock 當前的心率和氧氣顯示以及作為醫療設備軟件的附加通知功能。我們目前正在與 FDA 進行審查，並努力迅速回應出現的任何問題或澄清。

We've also made substantial progress towards our U.K. and CE medical applications and continue to maintain our MDSAP and ISO 1345 certification passing several audits in 2022. I look forward to sharing more updates on these submissions when we have news to share. We believe the FDA authorizations will position Owlet to better help parents navigate the gap between hospital and the home and increase our ability to use our large and growing data set as a critical tool for pediatric care.

我們在英國和 CE 醫療應用方面也取得了實質性進展，並繼續保持我們的 MDSAP 和 ISO 1345 認證，並在 2022 年通過了多項審核。我期待在有消息要分享時分享這些提交的更多更新。我們相信 FDA 的授權將使 Owlet 能夠更好地幫助父母彌合醫院和家庭之間的差距，並提高我們使用我們不斷增長的龐大數據集作為兒科護理關鍵工具的能力。

We are determined to execute as best we can through this near-term macroeconomic uncertainty and remain focused on the milestones that will best position us for the strongest long-term potential for a healthy, profitable business. Thank you for your continued support of Owlet.

我們決心在近期的宏觀經濟不確定性中盡最大努力執行，並繼續專注於最能使我們處於健康、盈利業務的最強長期潛力的里程碑。感謝您一直以來對 Owlet 的支持。

Kate, over to you.

凱特，交給你了。

Thank you, and good afternoon, everyone. Turning to our Q4 and fiscal 2022 results. Gross billings for the fourth quarter were $15.4 million, down from $23.4 million in Q3 sequentially. Q4 product promotions and discounts were $2 million, primarily associated with seasonal and promotional activity for owlet.com and Q1 retail promotional discounts. This compares to product promotions and discounts of $3.2 million sequentially in Q3.

謝謝，大家下午好。轉向我們的第四季度和 2022 財年業績。第四季度的總收入為 1540 萬美元，低於第三季度的 2340 萬美元。第 4 季度產品促銷和折扣為 200 萬美元，主要與 owlet.com 的季節性促銷活動和第 1 季度零售促銷折扣有關。相比之下，第三季度連續進行了 320 萬美元的產品促銷和折扣。

Returns and allowance reserves for Q4 2022 were $1.5 million, 10.7% of gross billings. This compares to reserves sequentially in Q3 of $2.7 million, 11.5% of gross billings. Q4 revenues were $12 million, including the impact of adjustments such as promotions, discounts, returns and other allowances.

2022 年第四季度的退貨和津貼準備金為 150 萬美元，佔總賬單的 10.7%。相比之下，第三季度的連續儲備金為 270 萬美元，佔總賬單的 11.5%。第四季度收入為 1200 萬美元，包括促銷、折扣、退貨和其他津貼等調整的影響。

Cost of goods sold in Q4 was $8.6 million and gross profit was $3.3 million. Q4 gross margin was 27.5% compared to 26.6% gross margin sequentially. Costs and other items impacting our gross margin unfavorably in Q4 were from inventory adjustments and obsolete inventory, PPV and promotions.

第四季度的銷售成本為 860 萬美元，毛利潤為 330 萬美元。第四季度毛利率為 27.5%，上一季度為 26.6%。第四季度對我們的毛利率產生不利影響的成本和其他項目來自庫存調整和過時庫存、PPV 和促銷活動。

Year-to-date 2022, our gross margin was approximately 33.7% within our targeted range. As Kurt detailed, the largest nonrecurring cost impacts we experienced in 2022 were related to the return to vendor program, elevated promotional discounts and product costs related to our FDA warning letter and launching our dream products. One of our highest operational priorities in 2023 is gross margin improvement and we are actively working to put the volatility of the FDA warning letter impact behind us.

2022 年初至今，我們的毛利率約為 33.7%，處於我們的目標範圍內。正如 Kurt 詳述的那樣，我們在 2022 年經歷的最大的非經常性成本影響與返回供應商計劃、提高促銷折扣以及與我們的 FDA 警告信和推出我們夢想的產品相關的產品成本有關。我們在 2023 年的最高運營優先事項之一是提高毛利率，我們正在積極努力將 FDA 警告信影響的波動拋諸腦後。

In addition to the nonrecurring aspects of the cost this past year, we are highly focused on the operational efficiency levers within our control to improve margins with the goal of returning to 40% to 50% gross margins in the future. Q4 operating expenses were $24.1 million compared to $26.4 million sequentially. Excluding stock-based compensation, Q4 operating expenses were $19.6 million. Within our Q4 expenses, we had a few discrete expenses worth noting. Q4 operating expenses included $2.4 million in preliminary bad debt reserves subject to change, $600,000 in fundraising transaction costs, $500,000 in spend toward the regulatory submissions and approximately $400,000 in partner marketing expenses from prime periods, which we don't expect to see in the future.

除了過去一年的非經常性成本外，我們還高度關注我們控制範圍內的運營效率槓桿，以提高利潤率，目標是在未來恢復到 40% 至 50% 的毛利率。第 4 季度運營費用為 2410 萬美元，上一季度為 2640 萬美元。不包括基於股票的薪酬，第四季度的運營費用為 1960 萬美元。在我們第四季度的支出中，我們有一些值得注意的離散支出。第 4 季度運營費用包括 240 萬美元的初步壞賬準備金（可能會發生變化）、600,000 美元的籌款交易成本、500,000 美元的監管提交費用以及大約 400,000 美元的黃金時期合作夥伴營銷費用，我們預計未來不會出現這些費用.

We also took a $300,000 write-off for retail store displays related to buybuy Baby stores and we are monitoring their financial situation closely.

我們還註銷了與 buybuy Baby 商店相關的零售店展示 300,000 美元，我們正在密切關注他們的財務狀況。

Excluding stock-based compensation items, we believe are onetime in nature, operating expenses were $15.2 million in Q4. Operating loss and net loss for Q4 2022 were $20.7 million and $19.5 million. Q4 adjusted EBITDA loss was $15.2 million.

不包括基於股票的補償項目，我們認為是一次性的，第四季度的運營費用為 1520 萬美元。 2022 年第四季度的運營虧損和淨虧損分別為 2070 萬美元和 1950 萬美元。第 4 季度調整後的 EBITDA 虧損為 1520 萬美元。

Turning to the balance sheet. Cash and cash equivalents as of December 31 were approximately $11.2 million. Accounts receivables were $16 million, down $4.5 million sequentially from $20.5 million in Q3. Inventory at the end of Q4 was $18.5 million, down $5.3 million sequentially from $23.8 million in Q3.

轉向資產負債表。截至 12 月 31 日的現金和現金等價物約為 1120 萬美元。應收賬款為 1600 萬美元，比第三季度的 2050 萬美元減少了 450 萬美元。第四季度末的庫存為 1850 萬美元，比第三季度的 2380 萬美元減少了 530 萬美元。

Looking ahead, over the course of 2022, we actively work to best position our Dream portfolio for success in the connected nursery category and made 2 regulatory submissions of our products that have the opportunity to open new markets and empower more parents globally.

展望未來，在 2022 年期間，我們積極努力使我們的 Dream 產品組合在互聯托兒所類別中取得成功，並提交了 2 份我們產品的監管申請，這些產品有機會打開新市場並為全球更多父母提供支持。

For the areas with that are within our control, we are focused on driving the activities that maximize supporting and achieving sell-through of our core products and therefore, driving balance in retail inventory for future selling opportunities, making strides in our medical device clearances and officially managing our operating plan towards breakeven and profitability.

對於我們控制範圍內的領域，我們專注於推動最大限度地支持和實現核心產品銷售的活動，因此，為未來的銷售機會推動零售庫存平衡，在我們的醫療器械清關和正式管理我們的運營計劃以實現收支平衡和盈利。

We navigated through very difficult circumstances over the last 12 months, and we will continue to find the best ways to adapt to any uncertainty in this macroeconomic environment.

在過去的 12 個月裡，我們度過了非常艱難的時期，我們將繼續尋找最佳方法來適應這種宏觀經濟環境中的任何不確定性。

Recently, we successfully raised $30 million in capital to support our balance sheet and meet our operational goals in 2023. We've been customers of Silicon Valley Bank for a long time, and we were impacted along with everyone else given this past week's events. Based upon recent announcements from SVB, they have confirmed their loan agreement and credit facility remain in place. We currently have access to our deposits, and we are in the process of amending our loan agreement and line of credit as previously disclosed.

最近，我們成功籌集了 3000 萬美元的資金來支持我們的資產負債表並實現 2023 年的運營目標。我們長期以來一直是矽谷銀行的客戶，鑑於上週發生的事件，我們和其他所有人一樣受到了影響。根據 SVB 最近的公告，他們已確認他們的貸款協議和信貸額度仍然存在。我們目前可以使用我們的存款，並且我們正在修改我們之前披露的貸款協議和信用額度。

For 2023, given current inventory levels and expectations for our Q2 promotions, we're currently forecasting Q1 revenues to be sequentially down from Q4 as we support continued sell-through inventory momentum with our retailers. We anticipate selling revenue will sequentially improve through the year after Q1. We'll provide additional outlook when we report our Q2 earnings call.

對於 2023 年，鑑於當前的庫存水平和對我們第二季度促銷活動的預期，我們目前預測第一季度的收入將比第四季度連續下降，因為我們支持零售商的持續銷售庫存勢頭。我們預計銷售收入將在第一季度後的一年中依次改善。我們將在報告第二季度財報電話會議時提供更多展望。

For the full year, we plan to improve gross margins above 2022 levels. In 2022, we estimate that nonrecurring costs from the FDA warning letter activity to have impacted our margins by at least 800 to 900 basis points, and we plan to reduce our operating expenses for the full year below $40 million, excluding stock-based compensation. We have the objective of turning the business towards adjusted EBITDA margin breakeven between Q3 and Q4 in 2023. Thank you for the time today.

對於全年，我們計劃將毛利率提高到 2022 年的水平以上。到 2022 年，我們估計來自 FDA 警告信活動的非經常性成本至少影響了我們的利潤率 800 到 900 個基點，我們計劃將全年的運營費用減少到 4000 萬美元以下，不包括基於股票的補償。我們的目標是在 2023 年第三季度和第四季度之間將業務轉向調整後的 EBITDA 利潤率盈虧平衡。感謝您今天的時間。

Operator, let's open up for questions.

接線員，讓我們開始提問。

(Operator Instructions) The first question is from the line of Charles Rhyee with TD Cowen.

（操作員說明）第一個問題來自 Charles Rhyee 和 TD Cowen。

Kate, I just want to talk through this, the sell-through and sell-in issue. Obviously, the guidance range you gave for 4Q was fairly wide it was like roughly [12 to 17]. And if we think between the bond to top end there, that's like call it in there $5 million. And you attribute a lot of it to the first half, the sell-in was huge and it accounts for that [21.5], let's say, the [18] in the second quarter.

凱特，我只想談談銷售和銷售問題。顯然，您為 4Q 提供的指導範圍相當廣泛，大約是 [12 到 17]。如果我們考慮債券與高端之間的關係，那就像在那裡稱它為 500 萬美元。你把它歸因於上半年，賣出量很大，它佔了 [21.5]，比方說，第二季度的 [18]。

What was the sell through that in the first half of the year -- like can you give us a sense like the magnitude -- I mean, were we selling through maybe $5 million, $6 million in the first quarter? Because it seems like a lot to rightsize in the back half of this year and into the first quarter. If you can just kind of give us a sense of that.

今年上半年的銷量是多少——你能給我們一個感覺嗎——我的意思是，我們第一季度的銷量是 500 萬美元還是 600 萬美元？因為在今年下半年和第一季度調整規模似乎很多。如果你能給我們一個感覺。

Yes. I don't -- Kurt, do you want to make any comments on that. I think from a color perspective, if you recall, our initial launch into the market was at the very end, the sell-in was at the very end of Q1, as we talked about loading into retailers and the distribution into Q1. And so really sell-through did not take place until Q2. Kurt, I don't know if you want to make another comment beyond that.

是的。我沒有-- Kurt，你想對此發表任何評論嗎？我認為從顏色的角度來看，如果你還記得的話，我們最初進入市場是在最後，銷售是在第一季度末，因為我們談到加載到零售商和分銷到第一季度。所以真正的銷售直到第二季度才發生。 Kurt，除此之外我不知道你是否還想發表其他意見。

Yes. I would just say it was substantial, right? So we -- after the warning letter, we took all the products back to repackage reprogram those units to position for the Dream Sock launch. And we did that, but it was sort of throughout the first quarter, right? So we didn't get into all of our retailers by the end, but there were significant load-in to get back to previous levels of Smart Sock inventory in retail. But our sell-through did not start off as strongly as our previous Smart Sock sell-through was moving in Q3 of 2021. And so that created an inventory imbalance.

是的。我只想說這是實質性的，對吧？因此，我們 - 在收到警告信後，我們將所有產品帶回重新包裝並重新編程這些單元，以便為 Dream Sock 發布定位。我們做到了，但整個第一季度都是這樣，對吧？所以到最後我們並沒有進入我們所有的零售商，但是有大量的加載可以恢復到零售業之前的 Smart Sock 庫存水平。但是我們的銷售開始時並不像我們之前的 Smart Sock 銷售在 2021 年第三季度那樣強勁。因此造成了庫存失衡。

We did everything we could in Q1 and Q2 to push sell-through as fast as we could and continue to sell into retailers in Q2. And the sell-through just took a little longer to materialize. I think the good news is that by Q4 and now moving into this year, sell-through levels are getting back to those previous levels that we had before.

我們在第一季度和第二季度竭盡全力盡快推動銷售，並在第二季度繼續向零售商銷售產品。而銷售只是花了一點時間才實現。我認為好消息是，到第四季度，現在進入今年，銷售水平正在回到我們之前的水平。

Okay. So does that mean, right? So if you're saying in the first quarter, you expect it to be sequentially down to support the sell-through. Does that -- will our inventory levels be back to then 10 to 14 weeks? And then if that's the case, should we expect then a significant step-up in revenue in the second quarter or in the rest of the year? I mean is that -- or is it still more kind of a slope up?

好的。那是不是意味著，對吧？因此，如果你在第一季度說，你預計它會連續下降以支持銷售。那是——我們的庫存水平會回到 10 到 14 週後的水平嗎？如果是這樣的話，我們是否應該期待第二季度或今年剩餘時間的收入大幅增加？我的意思是 - 還是更像是一種向上傾斜？

I think what you'll see is a step function Q1 to Q2. And part of that is that we're reducing inventory levels this quarter and moving forward by 15% to 20%. We're also growing sell-through. And as we move into Q2 with Mother's Day and Father's Day, we expect that to grow with Prime Day -- heading into Prime day in July, and so there's inventory needs for Prime Day as well. So there's quite a few catalysts in Q2 based on reducing inventory levels, growing sell-through and the promotional events that support it. So we do expect a step up, a nice step up from Q1 to Q2.

我認為您會看到 Q1 到 Q2 的階躍函數。部分原因是我們在本季度降低了庫存水平，並向前推進了 15% 至 20%。我們也在增加銷售量。當我們進入第二季度的母親節和父親節時，我們預計隨著 Prime Day 的到來而增長——7 月進入 Prime 日，因此 Prime 日也有庫存需求。因此，基於降低庫存水平、增加銷售量以及支持它的促銷活動，第二季度有很多催化劑。因此，我們確實希望從第一季度到第二季度有一個進步，一個很好的進步。

Okay. And then my last question would be, in this $40 million OpEx excluding stock-based comp, what is your assumption a, for stock-based compensation, I guess? But secondly, what do you -- what would you expect for the exit rate? Like I mean because you talked about breaking even. So it's kind of like would we expect fourth quarter to be actually positive so we're basically front-loading the OpEx loss? And is that all coming from gross margin then versus...

好的。然後我的最後一個問題是，在這 4000 萬美元的運營支出中，不包括基於股票的補償，我猜你對基於股票的薪酬的假設是什麼？但其次，您對退出率有何期望？就像我的意思是因為你談到了收支平衡。所以這有點像我們是否希望第四季度實際上是積極的，所以我們基本上是在前期加載 OpEx 損失？是不是所有的毛利率都來自於……

Yes. So the OpEx is higher in the front half and then lower in the back half, Yes. That is true.

是的。所以 OpEx 在前半部分較高，然後在後半部分較低，是的。那是真實的。

And the change is that largely gross margin improvement then?

那麼變化主要是毛利率提高了嗎？

No. We have a decrease again sequentially in operating expense from Q4 to Q1 and then again in Q2. So we have additional tapering. We do have some expense -- a little bit of expense related to clearances in Q1 and then some additional optimization that we're doing around expenses.

不。從第四季度到第一季度，我們的營業費用再次連續下降，然後在第二季度再次下降。所以我們有額外的錐度。我們確實有一些費用——一些與第一季度清關相關的費用，然後我們正在圍繞費用進行一些額外的優化。

So we've had this 4-quarter trend of taking on expenses, and we still have identified some additional rationalization that we're doing. So that is still around operating expense, but we are also expecting gross margin improvement. So both of the levers we're using to get there.

所以我們有這個 4 季度的支出趨勢，我們仍然確定了我們正在做的一些額外的合理化。所以這仍然與運營費用有關，但我們也預計毛利率會有所改善。因此，我們使用的兩個槓桿都可以到達那裡。

And stock-based compensation assumption, should we think about 2022 as the right amount? Or would you expect that to be more or less?

以及基於股票的薪酬假設，我們是否應該將 2022 年視為合適的數額？還是您希望它或多或少？

It's about the right amount.

適量就好了。

The next question is from the line of Allen Lutz with Bank of America.

下一個問題來自美國銀行的 Allen Lutz。

Kurt, you mentioned the cost per acquisition down 80% since the beginning of 2022, that's clearly a really good form of operating leverage here. I guess what is that due to? And then as you think about sort of the run rate of sales and marketing spend in 4Q, just trying to understand if there's more juice to squeeze on that line or if most of the leverage is going to come from G&A.

庫爾特，你提到自 2022 年初以來每次收購成本下降了 80%，這顯然是一種非常好的經營槓桿形式。我猜那是因為什麼？然後，當你考慮第四季度銷售和營銷支出的運行率時，只是想了解這條線上是否有更多的果汁可以榨取，或者大部分槓桿是否來自 G&A。

Yes, great question. I would think about that in kind of 2 ways. First, getting the Dream Sock portfolio launched, we spent aggressively to do that. So we had to reposition all of our products. We had to get our rankings online, which is a key indicator of sales and sell-through back up. We had to start moving just a lot of momentum to get back out there in the marketplace.

是的，很好的問題。我會以兩種方式考慮這一點。首先，為了推出 Dream Sock 產品組合，我們投入了大量資金。所以我們不得不重新定位我們所有的產品。我們必須在線獲得我們的排名，這是銷售和銷售率備份的關鍵指標。我們必須開始動用很大的動力才能回到市場上。

And then there's a lot of confusion around does Owlet sell products or not? What's in the product? And so we did a lot of education. So I think the first half spend was heavy. But in the second half, we did find a lot of efficiencies and optimizations that areas of spend that we've spent for years. And as we tested and optimized and turned things off, we realized they weren't contributing and they weren't efficient. And I would say that the other piece of driving that efficiency is the product satisfaction improvements. We launched our Cam 2. We launched Predictive Sleep. In the second half of the year, we launched a new app submission update almost every week. to improve that product experience. 53% of our purchases come from word of mouth. And so really using that word of mouth and finding other organic ways to get people to consider the product. We're talking organic on TikTok and social to the tune of tens of millions of views and interactions that we didn't have to pay for. So I think the team got really creative, which is the kind of the second piece to this.

然後有很多關於 Owlet 是否銷售產品的困惑？產品中有什麼？所以我們做了很多教育。所以我認為上半年的支出很大。但在下半年，我們確實發現了很多我們多年來花費的支出領域的效率和優化。當我們測試和優化並關閉一些東西時，我們意識到它們沒有貢獻而且效率不高。我想說，提高效率的另一個因素是產品滿意度的提高。我們推出了 Cam 2。我們推出了 Predictive Sleep。下半年，我們幾乎每週都會推出新的應用提交更新。以改善該產品體驗。我們 53% 的購買來自口耳相傳。因此，真正利用口口相傳並尋找其他有機方式讓人們考慮該產品。我們正在談論 TikTok 上的有機和社交，以達到我們無需付費的數千萬次觀看和互動。所以我認為團隊非常有創意，這是第二部分。

As we move forward, there will be a decrease Q4 to Q1 with marketing spend. And where we're at today is more efficient than we were in Q4. And I think that will start to stabilize through 2023. I don't know that Q1 to Q2, you'll see a lot more efficiency decrease, but you will Q4 to Q1 from a sales and marketing perspective in terms of variable marketing expense.

隨著我們的前進，第四季度到第一季度的營銷支出將會減少。我們今天所處的位置比第四季度更有效率。我認為這將在 2023 年開始穩定下來。我不知道從第一季度到第二季度，你會看到更多的效率下降，但從銷售和營銷的角度來看，從可變營銷費用的角度來看，你將看到第四季度到第一季度。

Got it. And then one for Kate. On the gross margins, as we think about them over the course of 2023 and versus 2022, you mentioned that nonrecurring costs impacted margins by almost 1,000 basis points, 800 to 900. I guess as we think about those nonrecurring costs or just the impact over the course of 2023, should we think about where you ended 2022 as sort of the starting point? And then a step function over the course of the year higher. Just trying to get a sense because that's a pretty big range from where you ended 2022 to getting back to the 40%, 45% plus margins before. Just trying to understand the timing and then the size of the margin increase over the course of the year?

知道了。然後一個給凱特。關於毛利率，正如我們在 2023 年和 2022 年期間考慮的那樣，您提到非經常性成本對利潤率的影響將近 1,000 個基點，即 800 到 900。我想當我們考慮這些非經常性成本或只是影響2023 年的進程，我們是否應該考慮將 2022 年結束的地方作為起點？然後一年中的階躍函數更高。只是想了解一下，因為從 2022 年結束到回到 40%、45% 以上的利潤率，這是一個相當大的範圍。只是想了解一年中利潤增長的時間和規模？

Yes. What I would say is that our goal will be to be back in the range. Some of that, that came out was really just a lot of that rework costs that happened a lot of the -- just the back-and-forth nature of the entire liability that we took in working with the retailers. There's probably a little bit of step function at the very beginning of the year, but we should be able to have that type of range most of the year with that type of cost completely behind us.

是的。我要說的是，我們的目標將是回到範圍內。其中一些，實際上只是發生了很多返工成本——只是我們在與零售商合作時承擔的全部責任的來回性質。今年年初可能會有一些階躍功能，但我們應該能夠在一年中的大部分時間擁有這種類型的範圍，而這種類型的成本完全落後於我們。

There is some PPV associated or that cost that's associated depending on when the inventory specific is sold through. So it's not a complete snapback. But what I would say is that, that real cost related to the overall warning letter should be overall out. And then you just kind of see the opportunity for most of the year.

有一些相關的 PPV 或相關的成本取決於特定庫存的售出時間。所以這不是一個完整的快照。但我要說的是，與整體警告信相關的實際成本應該全部排除。然後你就會看到一年中大部分時間的機會。

Great. And then kind of a 2 pointed question. So Kurt, you mentioned the NPS is at all-time highs here. And if we sort of look at the model from a revenue perspective over the past couple of years, it's been clearly very challenging to kind of understand what type of normal seasonality of this business would have in a normal year. But you talked about Mother's Day, Father's Day kind of in Prime Day driving a lot of demand. I'm just curious as we think about sort of some of the onetime dynamics that are still playing out, how would you think about the seasonality of this business in a more normalized year? And would it be reasonable to assume that 2Q, 3Q should be kind of viewed as a more normalized year?

偉大的。然後是一個兩點問題。所以庫爾特，你提到這裡的 NPS 處於歷史最高水平。如果我們在過去幾年從收入的角度來看這個模型，那麼理解這個業務在正常年份會有什麼樣的正常季節性顯然是非常具有挑戰性的。但是你談到了母親節，父親節在 Prime Day 中推動了很多需求。我很好奇，當我們考慮一些仍在發揮作用的一次性動態時，您如何看待這個業務在更正常化的一年中的季節性？假設第二季度、第三季度應該被視為更正常化的一年是否合理？

Yes, that's a really good question because if you go back for the past 2 years, there's definitely quite a bit of nuance to the story with the warning letter and then getting Dream Sock back in the market. So I appreciate the question.

是的，這是一個非常好的問題，因為如果你回顧過去 2 年，那麼關於警告信和 Dream Sock 重返市場的故事肯定有相當多的細微差別。所以我很欣賞這個問題。

I think in a normal year, usually, what you see is Q1 is the lightest quarter. It's not as seasonal as like your normal consumer electronics companies where it's just -- it's 70% back half weighted. We're a little bit more even than that, but Q1 is generally down 10% to 15% from Q4. Q2 picks up really nicely because you have the Mother's Day, Father's Day, and then you do a load-in for Prime Day. Q3 baby safety month in September, and then you load in, in Q3 for your holiday promotions for Black Friday, Cyber Monday, Fall Prime Day any promotions you do in December, usually, that load-in happens in Q3. And then you see a little bit of a kind of a tail off in Q4 for us in terms of selling if you're tracking revenue. I think what you'll see -- you'll definitely see a step function in Q1 to Q2. I think it's -- we're still going to be getting healthy. So it's not going to be totally normal in Q3 -- I'm sorry, in Q2, I think it starts to normalize in Q3. So Kate, anything you'd add to that?

我認為在正常年份，通常，你看到的是 Q1 是最輕的季度。它不像普通的消費電子公司那樣具有季節性，它只是 - 它有 70% 的後半權重。我們比這更均勻一點，但第一季度通常比第四季度下降 10% 到 15%。 Q2 的表現非常好，因為你有母親節、父親節，然後你為 Prime Day 做了一個加載。 9 月的第 3 季度嬰兒安全月，然後您在第 3 季度為黑色星期五、網絡星期一、秋季 Prime 日的假期促銷加載任何您在 12 月進行的促銷活動，通常，加載發生在第 3 季度。然後，如果您跟踪收入，您會在第四季度看到我們在銷售方面的一些尾巴。我想你會看到什麼——你肯定會在 Q1 到 Q2 中看到階躍函數。我認為這是——我們仍然會變得健康。所以在第三季度不會完全正常——對不起，在第二季度，我認為它在第三季度開始正常化。凱特，你還有什麼要補充的嗎？

No, that's great.

不，那太好了。

Very helpful. Thank you very much.

很有幫助。非常感謝。

Thank you for your question. That is all the questions that we have registered in the queue.

謝謝你的問題。這是我們在隊列中登記的所有問題。

Thank you, Matt. We'd also like to take this time to answer a few questions that we've been getting from investors during recent conversations that are probably on everybody's mind. So I'd like to hand a couple over to Kurt and Kate right now.

謝謝你，馬特。我們還想藉此機會回答在最近的對話中我們從投資者那裡得到的幾個問題，這些問題可能在每個人的腦海中。所以我現在想把一對夫婦交給庫爾特和凱特。

So the first one, this is for Kate, and you did address this a little bit, but maybe for everybody's -- refreshing everybody's memory. What is Owlet's exposure to Silicon Valley Bank? And do you have access to all of your cash? And what happens to the latest LSA?

所以第一個，這是給凱特的，你確實稍微解決了這個問題，但也許是為了每個人——刷新每個人的記憶。 Owlet 對矽谷銀行的風險敞口是多少？您可以使用所有現金嗎？最新的 LSA 會怎樣？

Yes, sure. So as I mentioned in the prepared remarks, we were impacted along with everybody else given this week's past events. We have been customers of Silicon Valley Bank for a long time. So we do have access to our deposits. And we are confirming that our loan agreement and credit facility do remain in place, and we are in the process of amending our loan agreement and line of credit with them as previously disclosed.

是的，當然。因此，正如我在準備好的發言中提到的那樣，考慮到本週過去發生的事件，我們和其他所有人都受到了影響。我們一直是矽谷銀行的客戶。所以我們確實可以使用我們的存款。我們確認我們的貸款協議和信貸額度確實存在，我們正在修改我們的貸款協議和信用額度，如前所述。

Okay. Great. And then a couple for Kurt. Kurt, regarding the FDA submissions, you previously mentioned on earlier calls, a 90-day FDA window. That starts after submission and pauses as questions come in. With the average decision coming around the 6-month mark since we're coming up on 5. We're coming up now in 5 months since submission, can you share any personal thoughts on how you feel the process is going? And potentially some of the color around some of the questions that the FDA is asking during the process. And then finally, regarding the de novo submission, can you share what the FDA time line typically looks like? And would that be similar to the 510(k) submission?

好的。偉大的。然後是 Kurt 的一對。庫爾特，關於 FDA 的提交，你之前在之前的電話中提到過，一個 90 天的 FDA 窗口。這在提交後開始，並隨著問題的出現而暫停。平均決定大約在 6 個月左右，因為我們是在 5 個月左右。我們現在在提交後 5 個月內做出決定，你能分享任何個人想法嗎你覺得這個過程如何？並且可能會圍繞 FDA 在此過程中提出的一些問題使用一些顏色。最後，關於從頭提交，你能分享一下 FDA 的時間表通常是什麼樣的嗎？那會類似於 510(k) 提交嗎？

Yes. So just kind of as a quick refresher, we have the 2 submissions with the FDA. The first is our prescription device called BabySat, which is a 510(k) that will address babies who are sick and need to prescribe medical monitor. That submission is subject to the typical 510(k) rules, which is a 90-day clock that stops when FDA asks questions. The company then has 180 days to gather information and provide a response. So we are currently working through our response to questions from the FDA. I'm not going to comment on the specific details of that submission, we are really confident in our products.

是的。因此，作為快速復習，我們向 FDA 提交了 2 份報告。第一個是我們的名為 BabySat 的處方設備，它是一個 510(k) 計劃，將解決生病並需要開醫療監護儀的嬰兒。該提交受典型的 510(k) 規則的約束，這是一個 90 天的時鐘，當 FDA 提出問題時停止。該公司隨後有 180 天的時間收集信息並做出回應。因此，我們目前正在努力回答 FDA 的問題。我不會對提交的具體細節發表評論，我們對我們的產品非常有信心。

In December, we filed a second submission to the FDA for a software as a medical device as an over-the-counter product that offers the heart rate and oxygen notifications in conjunction with the existing Dream Sock fleet monitoring capabilities. The de novo application includes both the display of heart rate and oxygen currently in the Dream Sock and the additional notification features as software as a medical device.

去年 12 月，我們向 FDA 提交了第二次申請，希望將一款軟件作為一種醫療設備作為非處方產品，提供心率和氧氣通知以及現有的 Dream Sock 車隊監控功能。 de novo 應用程序包括 Dream Sock 當前的心率和氧氣顯示以及作為醫療設備軟件的附加通知功能。

So de novo applications with FDA, FDA has 150 days to review and then the company has 180 days to respond. So I would just comment, I'm really proud of our team for getting both submissions in during 2022, while launching Dream Sock, Cam 2 and our new predictive sleep features and passing the 2 audits, the MDSAP audit and ISO 1345. So it's a very busy year, and I'm really proud of everything we've accomplished. I'm also very confident in our products and their ability to meet FDA standards.

因此，從頭向 FDA 申請，FDA 有 150 天的時間進行審查，然後公司有 180 天的時間做出回應。所以我只想評論，我真的為我們的團隊感到自豪，因為我們的團隊在 2022 年提交了這兩項申請，同時推出了 Dream Sock、Cam 2 和我們新的預測睡眠功能，並通過了 2 項審核，即 MDSAP 審核和 ISO 1345。所以它是這是非常忙碌的一年，我為我們所取得的成就感到非常自豪。我也對我們的產品及其滿足 FDA 標準的能力充滿信心。

Okay. Great. And then one final question on international regulatory clearances. How many international regulatory clearance submission is Owlet currently working on? And when can we expect to see each of those submitted?

好的。偉大的。然後是關於國際監管許可的最後一個問題。 Owlet 目前正在處理多少國際監管許可提交？我們什麼時候可以看到提交的每一個？

Yes, we've made substantial progress towards our international applications. There's 2. There's the U.K. application and the CE applications, which are similar in nature, but one will allow us to gain clearance in the U.K. and the other will allow us to gain EU medical device certification. Both submissions will be filed with the notified body in the second quarter of this year.

是的，我們在國際申請方面取得了實質性進展。有2個，有英國的申請和CE的申請，本質上是相似的，但是一個可以讓我們在英國獲得許可，另一個可以讓我們獲得歐盟醫療器械認證。這兩份文件都將在今年第二季度提交給公告機構。

And we also continue to maintain our MDSAP and ISO 1345 certifications for that international compliance. And so our vision is to have medical device status globally, which we believe will better empower parents in every region to deliver the best care possible for their baby.

我們還繼續保持我們的 MDSAP 和 ISO 1345 認證以確保國際合規性。因此，我們的願景是在全球範圍內擁有醫療器械地位，我們相信這將更好地幫助每個地區的父母為他們的寶寶提供最好的護理。

Great. Thanks. And operator, I think we may have another question in the queue.

偉大的。謝謝。接線員，我想我們可能還有另一個問題要排隊。

Yes. We have a follow-up from Charles Rhyee.

是的。我們收到了 Charles Rhyee 的跟進。

I was going to ask about the submission. So you guys answered it. So I appreciate it.

我正要問關於提交。所以你們回答了它。所以我很感激。

There are no additional questions waiting at this time. So I'll turn it back to Kurt for any closing remarks.

目前沒有其他問題等待您回答。所以我會把它轉回給 Kurt 聽取任何結束語。

Yes. I just want to take a minute to thank everybody who has been so supportive of the business through the past year and getting back online with Dream Sock, getting our FDA submissions and really grateful for the team that has dug in to accomplish a lot of work in a very short period of time to get all that. We're in a position to be focusing on getting to profitability this year and getting FDA clearances, which we believe are going to provide a lot of future growth for the business and also will help improve the safety and health of a -- to a lot of babies and help a lot of families. So thank you so much for your time today, and we'll continue to work hard.

是的。我只想花一點時間感謝所有在過去一年中一直支持我們業務並與 Dream Sock 重新上線，獲得我們的 FDA 提交的人，並非常感謝為完成大量工作而努力的團隊在很短的時間內得到這一切。我們能夠專注於今年實現盈利並獲得 FDA 許可，我們相信這將為業務提供大量未來增長，也將有助於改善安全和健康 - 到很多嬰兒，幫助很多家庭。非常感謝您今天抽出寶貴時間，我們會繼續努力。

That concludes the conference call. Thank you for your participation. You may now disconnect your lines.

電話會議到此結束。感謝您的參與。您現在可以斷開線路。