In FY2023 (ended June 2023), revenue increased 20% YoY, beating our estimate by 10%. Gross margins improved 11 ppt to 53%, in line with our estimate. EPS improved YoY (from -$0.03 to -$0.001), and was in line with our estimate as well. 

DHB sells sleep aid products through its Dream Water brand, and pain relief products through its LivRelief brand. The company’s target markets are large. Rising awareness of the importance of sleep for both physical and mental health is the primary demand driver of sleep aid products.