Owlet Inc (OWLT) 2021 Q4 法說會逐字稿

Good evening. Thank you for attending today's Owlet Q4 2021 Earnings Call. My name is Tania, and I will be your moderator for today's call. (Operator Instructions)

晚上好。感謝您參加今天的 Owlet 2021 年第四季度財報電話會議。我叫塔尼亞，我將擔任今天電話會議的主持人。 （操作員說明）

I would now like to pass the conference over to our host, Mike Cavanaugh. Please go ahead.

我現在想將會議轉交給我們的主持人 Mike Cavanaugh。請繼續。

Good afternoon, and thank you for joining us today. Earlier today, Owlet Incorporated released financial results for the quarter ended December 31, 2021, and the full year 2021. The release is currently available on the company's website at investors.owletcare.com. Kurt Workman, Owlet's Co-Founder and Chief Executive Officer; and Kate Scolnick, Chief Financial Officer, will host this afternoon's call.

下午好，感謝您今天加入我們。今天早些時候，Owlet Incorporated 發布了截至 2021 年 12 月 31 日的季度和 2021 年全年的財務業績。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. 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 for the quarter ended September 30, 2021, 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.

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。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，包括其截至 2021 年 9 月 30 日的季度報告，以及向美國證券交易委員會提交的其他報告，這些報告可在其網站 investors.owletcare.com 或 SEC 網站 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. Please note that Owlet will refer to certain non-GAAP financial information on today's call. You can find reconciliations to the non-GAAP financial measures to most comparable GAAP measures in the company's earnings press release, which is also available on the company's Investor page of its website.

本次電話會議中提供的信息僅代表今天的現場電話會議。除法律要求外，Owlet 不承擔更新或修改任何信息、財務預測或其他前瞻性陳述的任何意圖或義務，無論是因為新信息、未來事件還是其他原因。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新聞稿中找到非 GAAP 財務指標與大多數可比 GAAP 指標的對賬，該新聞稿也可在公司網站的投資者頁面上找到。

I will now turn the call over to Kurt.

我現在將把電話轉給 Kurt。

Thanks, Mike, and thank you all for joining us today for our first earnings call of the year. We're excited to share an update on the progress we've made as a business. Our Dream Sock and Dream Duo product offerings are now in the market in the U.S., and we're making great progress on our product road map. Additionally, we're seeing continued acceleration and adoption of our products in our international markets and we're confident in the long-term opportunity ahead of us.

謝謝邁克，感謝大家今天加入我們，參加我們今年的第一次財報電話會議。我們很高興與大家分享我們作為企業取得的最新進展。我們的 Dream Sock 和 Dream Duo 產品現已在美國市場上市，我們的產品路線圖正在取得重大進展。此外，我們看到我們的產品在國際市場上的持續加速和採用，我們對擺在我們面前的長期機遇充滿信心。

First, a look back at 2021. Our team met our revenue goals through the third quarter of 2021, exceeding our full year 2020 revenue in just the first 3 quarters of 2021. We did experience an unexpected development when at the beginning of the fourth quarter of 2021, Owlet received a warning letter from the FDA alleging that the heart rate and oxygen notifications on the Smart Sock and certain related marketing claims, rendered the Smart Sock to medical device requiring pre-market clearance or approval from the FDA. Cooperating with FDA's request, we halted sales of all Smart Sock products in U.S. in October of 2021.

首先，回顧 2021 年。我們的團隊在 2021 年第三季度實現了收入目標，僅在 2021 年前三個季度就超過了 2020 年全年的收入。在第四季度初，我們確實經歷了意想不到的發展2021 年 2 月，Owlet 收到了 FDA 的一封警告信，稱 Smart Sock 上的心率和氧氣通知以及某些相關營銷聲明，使 Smart Sock 成為醫療設備，需要獲得 FDA 的上市前許可或批准。為配合 FDA 的要求，我們於 2021 年 10 月停止在美國銷售所有 Smart Sock 產品。

From there, in just about 90 days, we developed and launched a new product, while focusing on deepening our retail customer relationships to effectively manage the product transition during the holiday season. The efforts of our team here at Owlet speaks to the dedication to our mission of supporting parents in the home, our ability to pivot quickly and the breadth of our technology platform. Over the course of the fourth quarter, we've already accomplished a great deal to get Owlet back on track to deliver a true connected ecosystem for today's parents.

從那時起，在大約 90 天內，我們開發並推出了一款新產品，同時專注於深化我們的零售客戶關係，以有效管理節日期間的產品過渡。我們在 Owlet 的團隊所做的努力體現了我們致力於支持家中父母的使命、我們快速調整的能力以及我們技術平台的廣度。在第四季度的過程中，我們已經取得了很大的成就，讓 Owlet 重回正軌，為當今的父母提供一個真正互聯的生態系統。

We kicked off 2022 by launching the brand-new Dream product line in the U.S. on January 5, a major milestone for our team as we continue forward following the FDA letter. This includes the Dream Sock and Dream Duo, which consists of the Dream Sock and Owlet Cam as a bundle. The Dream Duo and Dream Sock monitor babies while they sleep to help parents understand their little one sleep and no one to assist their baby for better sleep, empowering parents with information and insights to support better sleep. The Dream Duo is our most intelligent monitoring system yet.

1 月 5 日，我們在美國推出了全新的 Dream 產品線，拉開了 2022 年的序幕，這對我們的團隊來說是一個重要的里程碑，因為我們將繼續遵循 FDA 的信函。這包括 Dream Sock 和 Dream Duo，後者由 Dream Sock 和 Owlet Cam 捆綁而成。 Dream Duo 和 Dream Sock 在嬰兒睡覺時對其進行監控，以幫助父母了解他們的小寶寶的睡眠情況，並且沒有人幫助他們的寶寶獲得更好的睡眠，從而為父母提供信息和見解以支持更好的睡眠。 Dream Duo 是我們迄今為止最智能的監控系統。

Let me characterize the first few weeks of the Dream Sock and Dream Duo launch. On Owlet Online, January 5 and January 6 were our best non-promotional sales days ever. Additionally, all retailers that previously carried the Smart Sock are now selling the Dream Sock line. Our retail rollout is still in progress and we are pleased with the initial results, both in terms of demand and customer feedback. We'll report back in our next call on the results as we need some additional time to be thoughtful on the look ahead, so we can share the outlook for 2022.

讓我描述一下 Dream Sock 和 Dream Duo 推出的前幾週。在 Owlet Online 上，1 月 5 日和 1 月 6 日是我們有史以來最好的非促銷銷售日。此外，之前銷售 Smart Sock 的所有零售商現在都在銷售 Dream Sock 系列。我們的零售推廣仍在進行中，我們對需求和客戶反饋方面的初步結果感到滿意。我們將在下一次電話會議上報告結果，因為我們需要一些額外的時間來思考未來的展望，這樣我們才能分享 2022 年的展望。

Outside of the U.S., we continue our international product expansion. International revenue grew by over 100% from 2020 to 2021. Owlet products are now available in 16 countries with additional launches coming in 2022. In Germany, we just received the news that 91 out of 100 midwives with (inaudible) would recommend the Smart Sock. We are excited about recommendations like these as well as continued product adoption around the world.

在美國以外，我們繼續擴大國際產品。從 2020 年到 2021 年，國際收入增長了 100% 以上。Owlet 產品現已在 16 個國家/地區上市，並將於 2022 年推出更多產品。在德國，我們剛剛收到消息，100 名助產士中有 91 名（聽不清）會推薦 Smart Sock .我們對此類建議以及產品在全球範圍內的持續採用感到興奮。

In regards to an update on U.S. regulatory matters, our ongoing conversations with the FDA is in around 3 areas. First, ensuring that the Dream products are not intended for use of medical devices, which could make them subject to FDA pre-market clearance or approval. Second, working toward gaining FDA pre-market authorization on the heart rate and oxygen notification features previously in the Smart Sock product line. And finally, similar to the second point, continuing to pursue the development of a prescription-only sock for babies who need medical monitoring at home.

關於美國監管事務的最新進展，我們與 FDA 正在進行的對話主要集中在三個方面。首先，確保 Dream 產品不打算用於醫療設備，這可能使它們需要獲得 FDA 的上市前許可或批准。其次，努力在 Smart Sock 產品線之前的心率和氧氣通知功能上獲得 FDA 的上市前授權。最後，與第二點類似，繼續為需要在家進行醫療監測的嬰兒開發處方專用襪。

Medical devices are an important strategic focus and area of investment for Owlet, both domestically and internationally. In regards to an international update, we recently received our ISO 1345 and MDSAP certificates as we work towards submitting medical device applications for the Smart Sock in the U.K., the European Union and Canada. We have a robust product road map as well. We plan to launch a new version of the Owlet Cam later this year and are also working to grow our sleepwear product line.

醫療器械是 Owlet 在國內外的重要戰略重點和投資領域。關於國際更新，我們最近收到了 ISO 1345 和 MDSAP 證書，因為我們致力於在英國、歐盟和加拿大提交 Smart Sock 的醫療設備申請。我們也有強大的產品路線圖。我們計劃在今年晚些時候推出新版 Owlet Cam，同時也在努力擴大我們的睡衣產品線。

In Q4 of 2021, we launched the Owlet Sleeper, a wearable blanket. And in 2022, we plan to expand that sleepwear line. We also continue to work on expanding our sleep ecosystem, including a Smart Crib. We will share more on our road map and continued research and development in future updates. From continuing to grow the Dream product line to building out new parts of the ecosystem and continued international expansion, we are optimistic about the opportunities ahead for Owlet.

2021 年第四季度，我們推出了可穿戴毯子 Owlet Sleeper。到 2022 年，我們計劃擴大該睡衣系列。我們還繼續致力於擴展我們的睡眠生態系統，包括智能嬰兒床。我們將在未來的更新中分享更多關於我們的路線圖和持續研究與開發的信息。從繼續發展 Dream 產品線到構建生態系統的新部分以及持續的國際擴張，我們對 Owlet 未來的機遇持樂觀態度。

I'll now turn the time over to Kate for a review of the financials from Q4 and the full year 2021.

現在我將把時間交給凱特，讓她回顧一下第四季度和 2021 年全年的財務狀況。

Thank you, and good afternoon, everyone. As Kurt outlined, for the first 3 quarters of 2021, Owlet demonstrated great momentum towards our operational and financial goals. In the fourth quarter, following the receipt of the Warning Letter from FDA, the company chose to halt sales of all Smart Sock products in the U.S. and accept returns from U.S. retailers. As a result, for the fourth quarter and year ended 2021, the company recorded a contra-revenue adjustment of $23.2 million of received and anticipated returns on the Owlet Smart Sock and Owlet Monitor Duo products. Return estimates were developed in partnership with our retailers and we do not anticipate material return adjustments for Smart Sock in the U.S. in future periods.

謝謝，大家下午好。正如 Kurt 概述的那樣，在 2021 年前三個季度，Owlet 在實現我們的運營和財務目標方面表現出了巨大的勢頭。第四季度，在收到 FDA 的警告信後，該公司選擇停止在美國銷售所有 Smart Sock 產品，並接受美國零售商的退貨。因此，在截至 2021 年的第四季度和全年，公司對 Owlet Smart Sock 和 Owlet Monitor Duo 產品的已收到和預期回報進行了 2320 萬美元的對銷調整。退貨估算是與我們的零售商合作制定的，我們預計未來期間美國不會對 Smart Sock 的材料退貨進行調整。

Q4 product gross billings before promotions and reserves were approximately $11 million, a portion of which included initial shipments of Dream products. We define gross billings as amounts invoiced to customers. It does not include the impact of adjustments such as promotions, discounts and other allowances. The cessation of U.S. Smart Sock and Duo sales and product returns, however, resulted in total net negative revenues of $2.5 million for the fourth quarter 2021. Q4 cost of goods sold was $3.5 million, including a benefit of $8.2 million related to product returns and gross profit was negative $6 million.

促銷和儲備前的第四季度產品總賬單約為 1100 萬美元，其中一部分包括 Dream 產品的初始發貨。我們將總賬單定義為向客戶開具發票的金額。它不包括促銷、折扣和其他津貼等調整的影響。然而，美國 Smart Sock 和 Duo 銷售和產品退貨的停止導致 2021 年第四季度的總淨負收入為 250 萬美元。第四季度的銷售成本為 350 萬美元，其中包括與產品退貨相關的 820 萬美元收益和毛利潤為負 600 萬美元。

Operating expenses for the fourth quarter 2021 were $27.3 million compared to $13.5 million for same period in 2020. The increase in year-over-year operating expenses was primarily for planned increases in spending associated with the scaling of the business and higher marketing spend. Operating loss and net loss for the fourth quarter of 2021 were $33.3 million and $24.1 million, respectively, as compared with $3.4 million operating loss and $5.8 million net loss for the same period in 2020.

2021 年第四季度的運營費用為 2730 萬美元，而 2020 年同期為 1350 萬美元。運營費用同比增長主要是由於計劃增加與業務規模相關的支出和更高的營銷支出。 2021 年第四季度的營業虧損和淨虧損分別為 3330 萬美元和 2410 萬美元，而 2020 年同期的營業虧損為 340 萬美元，淨虧損為 580 萬美元。

EBITDA loss for the fourth quarter of 2021 was $23.3 million compared to EBITDA loss of $5.2 million for the same period in 2020. Adjusted EBITDA loss for the fourth quarter 2021 was $31.3 million compared to adjusted EBITDA loss of $2.4 million for the same period in 2020. And for our balance sheet, cash and cash equivalents as of December 31, 2021, were approximately $95 million.

2021 年第四季度的 EBITDA 虧損為 2330 萬美元，而 2020 年同期的 EBITDA 虧損為 520 萬美元。2021 年第四季度的調整後 EBITDA 虧損為 3130 萬美元，而 2020 年同期的調整後 EBITDA 虧損為 240 萬美元.對於我們的資產負債表，截至 2021 年 12 月 31 日，現金和現金等價物約為 9500 萬美元。

Related to the product returns in Q4, as of December 31, 2021, the company has recorded a $6.7 million asset within prepaid expenses and other current assets for inventory expected to be received but not yet returned, $1.4 million within inventory for return inventory received as of December 31, 2021, and $20.1 million for accrued returns for liabilities. Given the company began planning for product returns with U.S. retailers late in the fourth quarter, we received little inventory as of year-end and did not begin receiving any product returns in earnest until mid-January, early February, with unique transportation arrangements and timing for each retailer.

與第四季度的產品退貨相關，截至 2021 年 12 月 31 日，公司已在預付費用和其他流動資產中記錄了 670 萬美元的資產用於預計將收到但尚未退回的存貨，140 萬美元的存貨用於收到的退貨存貨2021 年 12 月 31 日，以及 2010 萬美元的應計負債回報。鑑於公司在第四季度末開始計劃與美國零售商的產品退貨，截至年底我們收到的庫存很少，並且直到 1 月中旬、2 月初才開始認真接收任何產品退貨，運輸安排和時間安排獨特對於每個零售商。

We are actively in the process of reworking product inventory as it is received. To date, we have received a little over half of expected product returns. To reiterate, return estimates were developed in partnership with our retailers and we do not anticipate material return adjustments in future periods for the Smart Sock in the U.S. We do expect additional period costs such as rework to be expensed as incurred.

我們正在積極處理收到的產品庫存。迄今為止，我們收到的產品退貨率略高於預期的一半。重申一下，退貨估算是與我們的零售商合作制定的，我們預計 Smart Sock 在美國的未來期間不會進行重大退貨調整。我們確實預計返工等額外期間成本將在發生時計入費用。

Some selected full year 2021 financial highlights include $75.8 million in revenue, an increase of $0.4 million from $75.4 million for the full year 2020. The $23.9 million year-over-year increase during the first 9 months of 2021 was substantially offset by net contra-revenue in the fourth quarter of 2021. Cost of goods sold was $40.8 million, including a benefit of $8.2 million related to product returns in Q4, $35.1 million in gross profit and gross margin of 46.2%. On a year-over-year basis, margin declined 140 basis points. Primary year-over-year drivers include approximately 190 basis points due to inflationary headwinds, including increased transportation and material costs over 2020, approximately 150 basis points of impact was attributable to higher product returns in Q4 2021, partially offset by a benefit of 170 basis points from lower warranty expense.

一些選定的 2021 年全年財務亮點包括 7580 萬美元的收入，比 2020 年全年的 7540 萬美元增加了 40 萬美元。2021 年前 9 個月的 2390 萬美元同比增長被淨逆差大幅抵消2021 年第四季度的收入。銷售成本為 4080 萬美元，其中包括與第四季度產品退貨相關的收益 820 萬美元，毛利潤 3510 萬美元，毛利率為 46.2%。與去年同期相比，利潤率下降了 140 個基點。主要同比驅動因素包括約 190 個基點由於通脹逆風，包括 2020 年運輸和材料成本增加，約 150 個基點的影響歸因於 2021 年第四季度更高的產品回報，部分被 170 個基點的收益所抵消從較低的保修費用點。

Operating expenses were $90.9 million compared to $42.9 million for the same period in 2020. The increase in year-over-year operating expenses was for planned increases in spending associated with the scaling of the business, increased marketing spend and expenses related to the merger. Operating loss and net loss for the full year 2021 were $55.8 million and $71.7 million, respectively, as compared with $7 million operating loss and $10.5 million net loss for the same period in 2020. EBITDA loss for the full year 2021 was $42.7 million compared to EBITDA loss of $8.2 million for the same period in 2020. Adjusted EBITDA loss for the full year 2021 was $45.2 million compared to adjusted EBITDA loss of $4.6 million for the same period in 2020.

營業費用為 9090 萬美元，而 2020 年同期為 4290 萬美元。營業費用同比增加是因為計劃增加與業務規模相關的支出、增加的營銷支出以及與合併相關的支出。 2021 年全年營業虧損和淨虧損分別為 5580 萬美元和 7170 萬美元，而 2020 年同期營業虧損為 700 萬美元，淨虧損為 1050 萬美元。2021 年全年 EBITDA 虧損為 4270 萬美元，相比之下2020 年同期 EBITDA 虧損 820 萬美元。2021 年全年調整後 EBITDA 虧損為 4520 萬美元，而 2020 年同期調整後 EBITDA 虧損為 460 萬美元。

Overall, 2021 was a significant year for Owlet. Q4 2021 presented unexpected business and financial challenges. In a short period of time, we worked hard to ensure we are able to position Owlet for long-term success to support parents around the world with connected nursery technology solutions. Owlet's long-term objectives remain intact and our business goals for 2022 include increasing our connected nursery market penetration, targeting investments and product innovation to expand the lifetime value of our customers and focusing on obtaining marketing authorizations in the U.S. in key global markets where required.

總體而言，2021 年對 Owlet 來說是重要的一年。 2021 年第四季度出現了意想不到的業務和財務挑戰。在短時間內，我們努力確保我們能夠讓 Owlet 取得長期成功，通過互聯的托兒技術解決方案為世界各地的父母提供支持。 Owlet 的長期目標保持不變，我們 2022 年的業務目標包括提高我們的互聯苗圃市場滲透率、定向投資和產品創新以擴大我們客戶的生命週期價值，並專注於在必要時在美國獲得主要全球市場的營銷授權。

As we start off 2022, Q1 is an important transitional product quarter in the U.S. for Owlet. We started shipments of our Dream product line in late December for initial sell-in to our U.S. retailers and our product launch in early January on Owlet Online. Quarter-to-date, feedback from retailers and customers has been positive and we are meeting our initial internal expectations in the marketplace. All of our major U.S. retailers have the Dream product line available online and many have the Dream product line in their stores. We anticipate all major U.S. retailers will have the Dream product line fully available online and in stores by the end of Q1.

當我們從 2022 年開始時，第一季度是美國 Owlet 的一個重要的過渡產品季度。我們於 12 月下旬開始發貨我們的 Dream 產品線，以初步銷售給我們的美國零售商，並於 1 月初在 Owlet Online 上發布我們的產品。本季度至今，來自零售商和客戶的反饋是積極的，我們在市場上達到了我們最初的內部期望。我們所有主要的美國零售商都在網上提供 Dream 產品系列，許多零售商在他們的商店中都有 Dream 產品系列。我們預計到第一季度末，美國所有主要零售商都將在網上和商店全面推出 Dream 產品線。

Year-to-date gross billings before promotions and reserves for January and February 2022 are slightly higher than the same time period in 2021. After a very strong international expansion year in 2021, our international business has had a strong start to Q1. We are excited to continue our international growth plans in EMEA with new regions planned to be launched in 2022. In terms of operating expenses, we are continuing to manage variable spend and where possible, finding opportunities to mitigate inflationary pressures and we have sufficient liquidity to support our business.

年初至今，2022 年 1 月和 2 月的促銷和儲備金前總賬單略高於 2021 年同期。在經歷了 2021 年非常強勁的國際擴張之後，我們的國際業務在第一季度開局強勁。我們很高興繼續我們在 EMEA 的國際增長計劃，併計劃在 2022 年推出新區域。在運營費用方面，我們將繼續管理可變支出，並在可能的情況下尋找機會減輕通脹壓力，我們有足夠的流動性支持我們的業務。

In summary, Q1 will be our steps towards building a stronger global business in 2022 and beyond. Because the Dream product line is new, I'm rapidly ramping up across our go-to-market channels, online and in stores over the course of Q1, and Owlet is actively in the process of receiving and reworking product inventory, we are not providing guidance for 2022 financial expectations at this time. We anticipate providing an updated outlook when reporting first quarter 2022 results.

總之，第一季度將是我們在 2022 年及以後建立更強大的全球業務的步驟。因為 Dream 產品線是新的，所以我在第一季度通過我們的在線和商店進入市場渠道迅速增加，Owlet 正在積極接收和返工產品庫存，我們不是目前為 2022 年的財務預期提供指導。我們預計在報告 2022 年第一季度業績時提供更新的展望。

Operator, let's open up the call for questions.

接線員，讓我們打開問題電話。

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

（操作員說明）第一個問題來自 Charles Rhyee 與 Cowen 的對話。

This is Gwen, on for Charles. So, your directional commentary is just 1Q billing to be slightly higher than the '21 rate. But kind of adjusting for the contra-revenue account, it seems like you already did around $20 million in revenue in 4Q, even with the Smart Sock being only out for a month or so. So, how much is seasonality a factor in the 1Q directional commentary? And when you say slightly higher, can you kind of give rough range or magnitude of what that means? Is it low single-digits, mid-single digits? Anything around that would be really helpful.

這是格溫，代表查爾斯。因此，您的定向評論只是 1Q 計費略高於 21 年的費率。但是，如果對抵銷收入賬戶進行調整，您似乎在第四季度已經實現了大約 2000 萬美元的收入，即使 Smart Sock 只推出了一個月左右。那麼，季節性因素在 1Q 定向評論中的作用有多大？當你說略高時，你能給出這意味著什麼的粗略範圍或幅度嗎？是低個位數還是中個位數？任何關於這方面的事情都會非常有幫助。

Yes. Thanks for your question, Gwen. I mean I think we were just trying to give some really high-level directional commentary. We're not providing full guidance, but just wanted to give some overall idea of how we're seeing things with the new product in the market just being in there over the next -- over the last few weeks. As we mentioned, most of our channels are open in terms of being online and a number of our retail partners are in the process of getting our product in stores too. So, it's not really an apples-to-apples comparison. And so we're going to wait and update when we're ready to with a full Q1.

是的。謝謝你的問題，格溫。我的意思是我認為我們只是想給出一些非常高層次的定向評論。我們沒有提供完整的指導，而只是想提供一些總體思路，說明我們如何看待市場上新產品在接下來的幾週內出現的情況。正如我們所提到的，我們的大部分渠道都是在線開放的，我們的許多零售合作夥伴也正在將我們的產品帶到商店。因此，這並不是真正的同類比較。因此，當我們準備好完整的第一季度時，我們將等待並更新。

The next question is from the line of Jim Suva with Citigroup.

下一個問題來自花旗集團的 Jim Suva。

And I have a few questions, but I'll just ask them first one at a time. The first one is probably for Kurt. Kurt, in your prepared comments, you mentioned about some accessories or auxiliary items coming out. Just so we can get a sense on it, are these also going to be in the wellness where they'll give feedback to the user? Or are they just kind of more auxiliary to kind of add on, but it's the Smart Sock and the camera that gives the primary feedback of wellness to the user?

我有幾個問題，但我一次只問第一個。第一個可能是給 Kurt 的。庫爾特，在你準備好的評論中，你提到了一些配件或輔助物品的出現。只是為了讓我們對此有所了解，這些是否也會出現在他們會向用戶提供反饋的健康中？還是它們只是某種附加功能的輔助工具，但智能襪和攝像頭為用戶提供了健康的主要反饋？

Yes. Good question. Thanks, Jim. When we talk about accessories, we're primarily talking about non-smart accessories, for example, our sleepwear line, the new Owlet Sleeper that we launched in Q4. We have some other exciting updates for that line coming this year. It's actually a pretty big category for parents and Owlet has some significant innovation that's going to improve on that and it will work with the Smart Sock. There's some integrations there. We also talked about the Smart Crib that we're working on, so the camera, the Sock and the Smart Crib will all work together with our Dream app in one ecosystem. And that's in development as well.

是的。好問題。謝謝，吉姆。當我們談論配件時，我們主要是在談論非智能配件，例如我們的睡衣系列，即我們在第四季度推出的新款 Owlet Sleeper。我們今年將對該系列進行一些其他令人興奮的更新。對於父母來說，這實際上是一個相當大的類別，Owlet 有一些重要的創新將對此進行改進，並將與 Smart Sock 配合使用。那裡有一些整合。我們還談到了我們正在開發的 Smart Crib，因此相機、Sock 和 Smart Crib 都將與我們的 Dream 應用程序在一個生態系統中協同工作。這也在開發中。

So it sounds like the Smart Crib indeed is smart and will get feedback and the other ones are more accessories and kind of non-feedback items. Is that the way to think about it?

所以聽起來 Smart Crib 確實很聰明，會得到反饋，而其他的則更多是配件和非反饋項目。是這樣想的嗎？

That's right. Yes.

這是正確的。是的。

And then a question for Kate, probably more of a CFO financial question. I know with the reversal that you had with revenues, does that make it so Q4 sell-in of new products was basically you take the minus negative revenues of $2.5 million and then you add in addition to that, the $23.2 million, so you get like $25.7 million adjusted sell-in of new products or because it's such an abnormal quarter, there's more moving parts and more variables like other countries still selling similar products that you shouldn't even rely or even use that as a guidepost?

然後是凱特的問題，可能更多是首席財務官的財務問題。我知道你的收入發生了逆轉，所以第四季度新產品的銷售基本上是你減去 250 萬美元的負收入，然後再加上 2320 萬美元，所以你得到比如 2570 萬美元的新產品調整後銷售，或者因為這是一個異常的季度，有更多的活動部件和更多的變量，比如其他國家仍在銷售類似的產品，你甚至不應該依賴它，甚至不應該將其用作路標？

Yes. It's definitely the latter. So, the gross billings numbers that we mentioned, what I would say if I had to characterize it as the first few weeks of the quarter before we were -- we stopped selling in the U.S., the Smart Sock products, it would also be international as well as Cam and then we also said that we had a bit of Dream product that's sold at the very end of Q4, right? So, that's the activity that you're seeing in Q4. And then there's a number of adjustments that take place, I guess, as you would naturally have in a natural quarter.

是的。肯定是後者。因此，我們提到的總賬單數字，如果我必須將其描述為本季度的前幾週，我會說什麼——我們停止在美國銷售 Smart Sock 產品，它也將是國際的以及 Cam 然後我們還說我們有一些 Dream 產品在第四季度末銷售，對吧？所以，這就是您在第四季度看到的活動。然後會發生一些調整，我猜，就像你在一個自然季度中自然會發生的那樣。

So I would kind of keep that activity very separate from the adjustment that we made for the contra-revenue, which really more so reflects a lot of the product that the U.S. retailers had already prior to the warning letter. So, if -- the better place to, I would say is to watch for the contra-revenue return on the balance sheet. So, we said on the product returns where we have some of that material in the prepaid expenses, some of it, got a tiny bit back in inventory and then most of it is in the accrued returns for liabilities that will be reworking or waiting to receive back that inventory. We said in -- to date in Q1, we received back a little bit over half of that. And so we'll be reworking that. And as that product is sold, we'll be incurring a little bit of cost.

因此，我會將該活動與我們為對沖收入所做的調整完全分開，這實際上更多地反映了美國零售商在發出警告信之前已經擁有的許多產品。所以，如果 - 我想說的更好的地方是觀察資產負債表上的收入對比回報。所以，我們在產品退貨上說，我們在預付費用中有一些材料，其中一些在庫存中得到了一點點，然後大部分在將返工或等待的負債的應計回報中收回該存貨。我們說 - 到目前為止，在第一季度，我們收到了其中一半多一點的回報。因此，我們將對其進行修改。隨著該產品的銷售，我們將產生一些成本。

And then Kate, my last question...

然后凱特，我的最後一個問題......

(inaudible) to that product.

（聽不清）該產品。

Okay. Kate, my last question is the billings number, the gross billing numbers that you kind of mentioned in your prepared comments, is that kind of a number that we should kind of rely upon in that, that's all new product? But I guess I assume it includes sell into the channel and not necessarily sell through the channel, and you probably have to rebuild some channel inventory and product on the shelves? Is that the way to think about it, Kate? Or is that the billings number is -- I should just kind of view that as really sell-in and sell-through?

好的。凱特，我的最後一個問題是帳單數量，您在準備好的評論中提到的總帳單數量，是我們應該依賴的那種數字，這都是新產品嗎？但我想我假設它包括銷售到渠道而不一定是通過渠道銷售，你可能必須重建一些渠道庫存和貨架上的產品？是這樣想的嗎，凱特？還是賬單數字是——我應該將其視為真正的銷售和銷售？

I would consider it, we define that as what we've invoiced the customers. So that's just a very early indication, and it doesn't include any adjustments, promotions, discounts, allowances or any of the sell-through data.

我會考慮，我們將其定義為我們向客戶開具的發票。所以這只是一個非常早期的跡象，它不包括任何調整、促銷、折扣、津貼或任何銷售數據。

But would it be a little bit higher than normal? Is it a little bit higher than normal since you kind of have to replenish all the new product on the shelves?

但是會不會比平時高一點點？由於您必須補充貨架上的所有新產品，它是否比正常情況高一點？

I wouldn't characterize it either way. We just wanted to give it as a data point.

我不會以任何一種方式描述它。我們只是想把它作為一個數據點。

The next question is from John Babcock with Bank of America.

下一個問題來自美國銀行的 John Babcock。

Just wanted to quickly follow up on that last question. First of all, is there any way you might be able to provide more directly a kind of revenue figure for the quarter, excluding the contra number? And then also, if you could talk about gross margin where that came out on the products that were sold? Just overall, I want to get some sense as to directionally where the gross margin is headed.

只是想快速跟進最後一個問題。首先，您是否可以通過任何方式更直接地提供本季度的一種收入數據，不包括反對數？然後，您能否談談所售產品的毛利率？總的來說，我想對毛利率的方向有一些了解。

Yes. Thanks, John. So the way that the accounting works is that we have to provide a net revenue number, which came out after the gross billings and the adjustments as a negative number. So, I can't provide you as a separate exercise to the gross billing. And then in terms of the margin, I also don't have that either because we hadn't netted all of the activity. So, given that the revenue was negative, I don't have a gross margin number for you.

是的。謝謝，約翰。因此，會計工作的方式是我們必須提供淨收入數字，該數字是在總賬單和調整後得出的負數。因此，我無法將您作為總帳單的單獨練習提供給您。然後就利潤率而言，我也沒有，因為我們沒有淨賺所有的活動。因此，鑑於收入為負，我沒有給你的毛利率數字。

And then on -- just actually one more kind of clarification question here. Just on the international sales, you mentioned over 100% growth there. Could you be a little bit more specific on that?

然後 - 實際上只是這裡的另一種澄清問題。就國際銷售額而言，您提到那裡有超過 100% 的增長。你能更具體一點嗎？

Kurt, [do you want me] to make any comments on international?

庫爾特，[你想讓我]對國際發表任何評論嗎？

Do you mean it's like what the 100% growth means? Yes, go for it, Kate.

你是說這就像100%的增長意味著什麼？是的，去吧，凱特。

Yes, a little over 100%. Yes, is that like 110%, 120%, 150%?

是的，略高於 100%。是的，是 110%、120%、150% 嗎？

We didn't break out overall international sales for the year or for this quarter, just given all the activity that we have going on in Q4 and for the year. But I would say we had really strong momentum going into the end of the year and we think that we have very strong momentum going into '22 as well as we continue to expand into other international markets.

我們沒有列出今年或本季度的整體國際銷售額，只是考慮了我們在第四季度和今年進行的所有活動。但我要說的是，到年底我們的勢頭非常強勁，我們認為進入 22 年的勢頭非常強勁，並且我們將繼續擴展到其他國際市場。

And I just had some kind of -- well, one more kind of semi specific broader question. Just did you lose any retailers as part of the FDA's actions? Or are you still serving all the retailers that you were serving before that announcement was made?

我只是有某種——好吧，還有一種半具體的更廣泛的問題。作為 FDA 行動的一部分，您是否失去了任何零售商？還是您仍在為發布該公告之前所服務的所有零售商提供服務？

Yes. That's a good question. I would call out our team for the great work they did to build those customer relationships through a really difficult time. We did not lose any retailers and we did not lose any doors. So, we'll be with all of the same retailers in all of the same doors we have with Smart Sock and the team is working on expanding those doors this year.

是的。這是個好問題。我要感謝我們的團隊，感謝他們在非常困難的時期為建立客戶關係所做的出色工作。我們沒有失去任何零售商，也沒有失去任何門。因此，我們將在所有與 Smart Sock 相同的門中與所有相同的零售商合作，該團隊今年正在努力擴大這些門。

And then on the international expansion, I mean, it sounds like overall, that's continuing to go pretty well. Could you just talk about the rollout across the different countries that you're adding during the quarter? I thought I remember you mentioned the next countries you're expanding to is Italy, Spain, Belgium and the Netherlands. How is that rollout going? And also you talked about Latin America and Asia in your press release. If you could just kind of provide a little bit more detail on overall that, that would be helpful.

然後在國際擴張方面，我的意思是，聽起來總體上繼續進展順利。您能否談談您在本季度添加的不同國家/地區的推出？我想我記得你提到過你將擴展到的下一個國家是意大利、西班牙、比利時和荷蘭。推出進展如何？您還在新聞稿中談到了拉丁美洲和亞洲。如果你能提供更多關於整體的細節，那會很有幫助。

Yes, it's really a bright spot to the business right now. We're seeing this global thesis that parents everywhere need access to this type of information and data is through the adoption. In each of the countries that we've rolled out has been surprisingly good. We launched -- at the beginning part of last year, we launched Nordics. We then moved into Germany, France. We've now been working on opening up Italy, Spain, Belgium, Netherlands and the eastern part of Europe. And we're seeing great results.

是的，這確實是目前業務的一個亮點。我們看到這一全球性論點，即各地的父母都需要通過收養來訪問此類信息和數據。在我們推出的每個國家/地區，都出奇的好。我們推出了 - 在去年年初，我們推出了 Nordics。然後我們搬到了德國、法國。我們現在一直致力於開放意大利、西班牙、比利時、荷蘭和東歐。我們看到了很好的結果。

One of the things I shared is that we got the certificate from the midwife group in Germany. This is the group that reviews kind of all baby products there and gives their stamp of approval and 91% of midwives that used Owlet recommended the product. We're seeing in the U.K. and Germany and Nordics, the sell-through data is very positive. So, we're really proud of the results the team has been driving in that area. We just started opening up South America and we're working towards expansion in Asia this year.

我分享的其中一件事是我們獲得了德國助產士團體的證書。這是一個審查所有嬰兒產品並給予認可的小組，91% 使用過 Owlet 的助產士推薦了該產品。我們在英國、德國和北歐看到，銷售數據非常積極。因此，我們為團隊在該領域取得的成果感到非常自豪。我們剛剛開始開拓南美市場，今年我們正努力在亞洲擴張。

And then I guess there's 2 other quick questions. Just on the FDA approval of the OTC stock, can you just remind us of kind of the time line for that? Has that changed at all?

然後我想還有另外 2 個快速問題。就 FDA 批准場外交易股票而言，您能否提醒我們一些時間安排？這有什麼改變嗎？

Yes. We're getting clearance on that. OTC stock is a top priority for Owlet. I think the biggest influence we have on time lines is to make sure that our submission has all the information the FDA wants to see. So, that's where our focus is right now. We've had numerous meetings and phone calls with the agency over the last few months and working to make sure that the submission contains everything that they want where we feel good about the technology that we have and we're not making any assertions on time lines right now because we can't predict the FDA, but we do feel like we're making good progress.

是的。我們正在獲得許可。 OTC 股票是 Owlet 的首要任務。我認為我們對時間表的最大影響是確保我們提交的文件包含 FDA 希望看到的所有信息。所以，這就是我們現在的重點。在過去的幾個月裡，我們與該機構舉行了多次會議和電話，並努力確保提交的內容包含他們想要的一切，我們對我們擁有的技術感到滿意，並且我們沒有按時做出任何斷言現在排隊，因為我們無法預測 FDA，但我們確實覺得我們正在取得良好進展。

Okay. And then just also, just on your products, if you can just kind of talk about the crib and when you expect that to be out in the market and any other kind of commentary on just kind of new products overall?

好的。然後，就您的產品而言，您是否可以談談嬰兒床以及您希望它何時上市以及對整體新產品的任何其他評論？

Yes. I think the crib and some of the accessories products we're working on are really exciting. We recently had some prototypes in the office of the crib. It was great to see the response from parents on those prototypes. We've had really positive feedback on our consumer surveys and so the products in development right now. We haven't announced the date for it yet, but we do feel like it's going to be a really strong part of the ecosystem, the integrations with the Sock and the camera are going to take parenting to the next level and they're going to give back hours and hours of sleep to parents. So, we're excited about it. We should have more of an update on the next call.

是的。我認為我們正在開發的嬰兒床和一些配件產品真的很令人興奮。我們最近在嬰兒床的辦公室裡有一些原型。很高興看到父母對這些原型的反應。我們對我們的消費者調查以及目前正在開發的產品都獲得了非常積極的反饋。我們還沒有宣布它的日期，但我們確實覺得它會成為生態系統中非常強大的一部分，與 Sock 和相機的集成將把育兒提升到一個新的水平，他們正在把幾個小時的睡眠還給父母。所以，我們對此感到很興奮。我們應該在下一次電話會議上獲得更多更新。

There are no additional questions waiting at this time. I will now turn the conference over to Kate for any closing remarks.

目前沒有其他問題等待您回答。我現在將把會議轉交給凱特，聽取任何閉幕詞。

Kurt, I will turn it over to you for any closing remarks.

庫爾特，我會把它交給你聽取任何結束語。

I would just kind of reiterate the core big growth areas for Owlet. I'm really proud of the team for launching Dream Sock and Dream Duo. We've had phenomenal feedback from parents. We know it's making a difference in their lives. 82% of parents report getting less than 5 hours of sleep at night. And so anything we can do to help parents sleep better, feel more secure, feel more confident in that parenting journey is what our mission is all about, having that product back on the market and having the support from the retailers we have is -- it's great for the business and it's great for families.

我只想重申 Owlet 的核心大增長領域。我為推出 Dream Sock 和 Dream Duo 的團隊感到非常自豪。我們從家長那裡得到了驚人的反饋。我們知道這正在改變他們的生活。 82% 的父母報告說他們晚上的睡眠時間少於 5 小時。因此，我們可以做任何事情來幫助父母睡得更好、更有安全感、對育兒之旅更有信心，這就是我們的使命，讓該產品重新上市並獲得我們零售商的支持是——這對企業和家庭都有好處。

We're expanding our product's ecosystem, really excited about the crib, we're excited about the foundation of sleep that's going to really glue the ecosystem together and then taking that to the next level with some of the medical clearances and expansion internationally. So, I really appreciate everybody joining the call today and excited to continue to build the company. Thank you, everybody.

我們正在擴展我們產品的生態系統，對嬰兒床感到非常興奮，我們對真正將生態系統粘合在一起的睡眠基礎感到興奮，然後通過一些醫療許可和國際擴張將其提升到一個新的水平。所以，我非常感謝今天加入電話會議的每一個人，並為繼續建設公司而感到興奮。謝謝大家。

That concludes the Owlet Q4 2021 earnings call. Thank you for your participation. You may now disconnect your lines.

Owlet 2021 年第四季度財報電話會議到此結束。感謝您的參與。您現在可以斷開線路。