Owlet (OWLT) TD Cowen 10th Annual Future of the Consumer Conference summary

Strategic positioning and growth drivers

• Achieved FDA clearance, establishing a strong competitive moat and credibility with parents, enabling transition from hardware to a pediatric health platform with software-driven insights.

• Subscription model launched, now a core focus, driving higher customer lifetime value (LTV) and enabling telehealth opportunities.

• Camera features added to subscriptions, aiming for multi-year relationships as families grow and use products longer.

• U.S. market penetration at 11%, with significant room to grow toward 20%+ seen in top states; international penetration remains low but is a key future opportunity.

• AI search optimization, word of mouth, and Babylist registry partnerships are key marketing levers to increase awareness and adoption.

Product innovation and feature roadmap

• Focus on leveraging AI to deliver actionable health insights to parents, with new camera features prioritized to boost subscription attach rates.

• Subscription penetration for Dream Sock at 34%, with plans to expand features and international reach to drive further growth.

• Telehealth offering in early rollout, leveraging proprietary health data to improve pediatric care and reduce unnecessary ER visits.

• BabySat, a prescription device, is being scaled through hospital partnerships, though it remains a small part of the business for now.

Financial strategy and operational focus

• Major investments completed for FDA clearance; future spend focused on software feature development and periodic hardware refreshes.

• Margin improvement driven by higher subscription revenue mix, hardware cost reductions, and operational focus on core products.

• Pulled back on global launches and headcount expansion, leveraging AI to improve efficiency and profitability.

• Guidance reflects conservative sell-through assumptions, focus on non-promotional run rates, and strategic investment in key retail events.