Core Insights - Sonos, Inc. reported first-quarter fiscal 2025 non-GAAP earnings per share of 64 cents, down from 84 cents in the prior-year quarter, while GAAP earnings were 40 cents compared to 64 cents a year ago, exceeding the Zacks Consensus Estimate of 36 cents per share [1][2] Revenue Performance - Quarterly revenues decreased by 10.1% year over year to $550.9 million, within the company's guidance range of $480 million to $560 million, attributed to weaker demand and challenges from the 2024 app rollout [2] - Revenue from Sonos speakers was $467.1 million, down 7.1% year over year, surpassing the consensus estimate of $427 million [4] - System products revenue fell 28.7% year over year to $60.3 million, below the consensus estimate of $77 million [4] - Partner products and other revenues totaled $23.4 million, down 7.3% year over year, slightly above the consensus estimate of $22.9 million [4] - Region-wise, revenues from the Americas declined 17.3% to $324.6 million, while Europe, the Middle East, and Africa saw a 3% increase to $197.6 million, and Asia Pacific revenues rose 0.2% to $28.7 million [5] Margin and Expense Analysis - Non-GAAP gross profit was $246.1 million, down 13.4% year over year, with a non-GAAP gross margin contraction of 170 basis points to 44.7% [6] - Adjusted operating expenses were $193.3 million, down from $203 million in the prior-year quarter, while non-GAAP adjusted operating expenses were $169 million compared to $179.4 million a year ago [7] Cash Flow and Liquidity - Sonos generated $156.2 million in cash from operations, with a free cash outflow of $143.1 million, improved from $269.3 million in the previous year [9] - As of December 28, 2024, cash and cash equivalents were $280 million, up from $169.7 million as of September 28, 2024 [10] - The company returned $27 million to shareholders through stock repurchases in the fiscal first quarter, with $44 million remaining under the current buyback authorization [10] Future Guidance - Management expects second-quarter fiscal 2025 revenues to range between $240 million and $265 million, with GAAP gross margin anticipated between 42% and 44% and non-GAAP gross margin between 44% and 45.8% [11]

Sonos, Inc. (NASDAQ:SONO) Q1 2025 Earnings Call February 6, 2025 4:15 PM ET Company Participants James Baglanis - Head, Investor Relations Tom Conrad - Interim Chief Executive Officer Saori Casey - Chief Financial Officer Eddie Lazarus - Chief Legal and Strategy Officer Conference Call Participants Steve Frankel - Rosenblatt Logan Katzman - Raymond James Erik Woodring - Morgan Stanley Alex Fuhrman - Craig Hallum Brent Thill - Jefferies Operator Thank you for standing by. My name is Jale, and I will be your ...

Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38603 _________________________________________________________ SONOS, INC. (Exact name of registrant as specified in its charter) _________________________________________________________ | Delaware | | 03-0479476 | | | --- | --- | --- | --- | | (State or other jurisdiction of incorporat ...

Core Insights - Sonos reported better-than-expected fiscal first-quarter earnings, with shares rising 4.5% following the announcement [1] - Despite beating revenue estimates, the company is facing declining sales and has announced a 12% workforce reduction as part of a restructuring effort [1][3] Financial Performance - Revenue for the quarter decreased by 9% to $550.9 million, surpassing the consensus estimate of $519.5 million [2] - Gross margin fell to 43.8% from 46.1%, and operating income dropped from $79.7 million to $48 million [2] - Adjusted earnings per share were $0.64, down from $0.84 a year ago, but exceeded the consensus estimate of $0.30 [2] Restructuring Efforts - The company plans to reduce its workforce by 12%, incurring estimated charges of $15 million to $18 million in the current quarter [3] - CEO Tom Conrad indicated the need for a flatter organizational structure to improve collaboration and decision-making [4] Future Outlook - While no specific guidance was provided, management appears focused on returning to revenue and profit growth [4] - The potential for stock appreciation exists if the company can successfully navigate its turnaround efforts [5]

Core Insights - Sonos reported mixed results for Q1 FY 2025, with adjusted EPS of $0.64 and revenue of $551 million, both exceeding analyst expectations but down from the previous year [2][4] - The company is undergoing a restructuring process, including a planned 12% workforce reduction to enhance efficiency and align costs with growth ambitions [3][9] Financial Performance - Adjusted EPS decreased by 23.8% year-over-year from $0.84 to $0.64 [4] - Revenue fell by 10.1% year-over-year from $613 million to $551 million [4] - Adjusted EBITDA declined by 21% from $115.2 million to $91.2 million [4][7] - Free cash flow dropped significantly by 47% from $269.3 million to $143.1 million [4][7] - Adjusted gross margin decreased by 1.7 percentage points from 46.4% to 44.7% [4] Regional Performance - Revenue in the Americas contracted sharply from $392.4 million to $324.6 million, reflecting geopolitical and economic pressures [8] - In contrast, revenue in Europe, the Middle East, and Africa slightly increased from $191.8 million to $197.6 million [8] Strategic Focus - Sonos aims to expand its product portfolio and stimulate repeat purchases among its loyal customer base [6] - Partnerships with tech giants like Apple and Alphabet enhance the company's ecosystem and customer access to diverse content [6] - The company is committed to ongoing research and development to drive innovation and customer satisfaction [5][12] Future Outlook - Management has indicated that continued efficiency improvements and product innovation are central to the company's outlook [10] - Future possibilities include strategic product launches and new market entries, with a focus on monitoring the restructuring process and potential rebounds in key regions [11]

Sonos (SONO) reported $550.86 million in revenue for the quarter ended December 2024, representing a year-over-year decline of 10.1%. EPS of $0.64 for the same period compares to $0.84 a year ago.The reported revenue represents a surprise of +4.91% over the Zacks Consensus Estimate of $525.06 million. With the consensus EPS estimate being $0.36, the EPS surprise was +77.78%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

Sonos (SONO) came out with quarterly earnings of $0.64 per share, beating the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.84 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 77.78%. A quarter ago, it was expected that this maker of wireless speakers and home sound systems would post a loss of $0.22 per share when it actually produced a loss of $0.18, delivering a surprise of 18.18%.Over the last ...

Financial Performance - Q1 Fiscal 2025 revenue was $551 million, near the high end of guidance[5] - GAAP gross margin decreased to 43.8% from 46.1% year-over-year[15] - GAAP net income was $50.2 million, down from $80.9 million in the same quarter last year[10] - Non-GAAP net income was $79.2 million, with a diluted EPS of $0.64[5] - Operating income decreased to $48.09 million from $79.70 million year-over-year[10] - GAAP net income for Q4 2024 was $50,237, a decrease of 38% from $80,947 in Q4 2023[19] - Adjusted EBITDA for Q4 2024 was $91,173, down 20.9% from $115,242 in Q4 2023, resulting in an adjusted EBITDA margin of 16.6% compared to 18.8%[17] - Total revenue for Q4 2024 was $550,857, a decline of 10.1% from $612,869 in Q4 2023[20] - Non-GAAP net income for Q4 2024 was $79,237, down from $106,108 in Q4 2023[19] - Free cash flow for Q4 2024 was $143,067, down from $269,324 in Q4 2023[20] Restructuring and Workforce Changes - The company announced a reduction in force affecting approximately 12% of its employees, with estimated restructuring charges of $15 to $18 million[6] - The company initiated a restructuring plan affecting approximately 6% of its employees in August 2024, with costs primarily incurred in Q4 2024[18] Cash and Assets - Cash and cash equivalents increased to $279.96 million from $169.73 million quarter-over-quarter[14] - Total current assets rose to $612.53 million, compared to $551.09 million in the previous quarter[12] Revenue Breakdown - Revenue from Sonos speakers decreased to $467,142 in Q4 2024 from $503,011 in Q4 2023, while Sonos system products revenue fell to $60,274 from $84,562[20] - Revenue from the Americas region decreased to $324,583 in Q4 2024 from $392,439 in Q4 2023, while revenue from Europe, the Middle East, and Africa increased slightly to $197,612 from $191,817[20] Company Strategy and Focus - The company is focused on improving core customer experience and developing new products and innovations[2] - The company anticipates challenges in product demand forecasting and supply chain management, impacting future performance[24] - Sonos is recognized as a leading brand in sound experience, specializing in multi-room wireless home audio[26] - The company emphasizes innovation to enhance audio content accessibility and user control[26] - Sonos is headquartered in Santa Barbara, California, highlighting its operational base[26]

In Brief Sonos announced that it has laid off 200 people in a letter posted to its site Wednesday. The news follows a 100-person layoff in August. Both rounds arrive in the wake of a disastrously botched update to the Sonos app that alienated broad swaths of the premium audio hardware firm’s extremely loyal fanbase.The new letter is penned by Tom Conrad, who was the first CTO of Pandora and was named interim CEO after Patrick Spence stepped down from the chief executive role in January. Conrad states that t ...

NEW YORK, Feb. 4, 2025 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Sonos, Inc. ("Sonos" or the "Company") (NASDAQ: SONO). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.The investigation concerns whether Sonos and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. [Click here for information about joining the class action]On May 7, 2024, Sonos launched a red ...