Key Takeaways Sonos lowered its outlook and delayed two product launches as it worked to fix a bug in its new app. The company said it had to put its full attention on repairing the app problem, which has led to problems for some customers of its audio products. The news overshadowed the firm's better-than-expected fiscal third-quarter results. Sonos (SONO) shares slumped on Thursday, a day after the maker of headphones and home sound systems cut its guidance and delayed two hardware releases as it races to ...

Sonos, Inc. (SONO) reported third-quarter fiscal 2024 non-GAAP earnings per share of 23 cents. It had registered earnings per share of 16 cents in the prior-year quarter. On a GAAP basis, the company reported earnings of 3 cents against a loss of 18 cents in the year-ago quarter. The Zacks Consensus Estimate was pegged at 19 cents. Quarterly revenues increased 6% year over year to $397.1 million, primarily benefiting from the launch of SONO's first over-the-ear Bluetooth headphone, Sonos Ace, earlier this q ...

Financial Data and Key Metrics Changes - Q3 revenues were $397 million, up 6% year-over-year, driven by the introduction of the Ace headphones [15] - Year-to-date revenue reached $1.2627 billion, down 6.5% year-over-year [15] - GAAP gross margin was 48.3%, up 230 basis points year-over-year, primarily due to improved inventory management [16] - Year-to-date gross margin increased to 46.4%, up from 43.6% in the previous year [16] - Free cash flow in Q3 was $40.3 million, bringing year-to-date free cash flow to $188 million compared to $38 million in the same period last year [17] Business Line Data and Key Metrics Changes - The launch of the Ace headphones marked a significant entry into the premium over-the-ear headphone market, which is a $5 billion addressable market growing by double digits annually [12] - Customer reviews for Ace were positive, with ratings of 4.6 out of 5 stars on sonos.com and 4.5 on Best Buy [12] Market Data and Key Metrics Changes - The company is navigating a cyclical downswing in existing categories while entering a growing market with the Ace headphones [12] - The premium headphone category is expected to provide diversification of revenue streams [12] Company Strategy and Development Direction - The company is focused on addressing issues with the new app, which has negatively impacted customer experience and sales [4][8] - A commitment to delivering at least two new products annually remains, although the launch of two major products has been delayed until app issues are resolved [8][19] - The company is investing $20 million to $30 million in fixing the app and supporting customers, which is expected to impact revenue and operating expenses [11][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the app rollout has fallen short, impacting customer satisfaction and sales [4][40] - The company remains confident in its long-term potential within the $100 billion audio market, aiming to capture a larger share [25] - The focus is on regaining customer trust and ensuring future product launches are successful [25][40] Other Important Information - The company ended Q3 with $277 million in net cash, including $50 million in marketable securities [16] - Inventory levels were down 48% year-over-year, indicating effective inventory management [18] Q&A Session Summary Question: Status of the two delayed products - The two products were ready to ship in Q4, but the company prioritized addressing app issues first [23] Question: Long-term vision for the app and monetization - The company aims to capture more of the audio market and believes the app redesign is essential for future growth [25] Question: Impact of app issues on revenue reduction - The revenue reduction is primarily due to lower sales across the portfolio and the delay of new products [27] Question: Channel inventory status - Channel inventory is higher than desired, but this is accounted for in the Q4 guidance [28] Question: Potential reputational damage from app issues - The company is focused on addressing current pain points and believes future product launches will help regain customer trust [35] Question: Clarification on $20 million to $30 million costs - These costs are not included in the Q4 guidance and will primarily impact Q1 [38]

For the quarter ended June 2024, Sonos (SONO) reported revenue of $397.15 million, up 6.4% over the same period last year. EPS came in at $0.23, compared to $0.16 in the year-ago quarter. The reported revenue represents a surprise of +0.97% over the Zacks Consensus Estimate of $393.32 million. With the consensus EPS estimate being $0.19, the EPS surprise was +21.05%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their n ...

Sonos (SONO) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.16 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 21.05%. A quarter ago, it was expected that this maker of wireless speakers and home sound systems would post a loss of $0.27 per share when it actually produced a loss of $0.34, delivering a surprise of -25.93%. Over the la ...

Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________ FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 29, 2024 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 ______________________________________________ ...

Exhibit 99.1 Sonos Reports Third Quarter Fiscal 2024 Results Santa Barbara, CA – August 7, 2024 - Sonos, Inc. (Nasdaq: SONO) today reported third quarter fiscal 2024 results. "Thanks to Ace, our long-awaited entry into headphones, we reported year over year revenue growth and delivered results that slightly exceeded our expectations in our third quarter," Sonos CEO Patrick Spence commented. "This was overshadowed by the problems that our customers and partners experienced as a result of the rollout of our n ...

Sonos (SONO) unveiled its first headphone — the Sonos Ace — to expand its footprint in the personal audio market. The Sonos Ace will be available globally in Black and Soft White from Jun 5, 2024, and will retail for $449, added the company. The Sonos Ace is an over-the-ear Bluetooth headphone that features Active Noise Cancelation and Aware Mode, as well as a home theater experience enhanced by Sonos' new TrueCinema technology. The headphone features custom drivers that deliver precise and clear audio acro ...

Sonos, Inc. (SONO) reported second-quarter fiscal 2024 non-GAAP loss per share of 34 cents. It had registered earnings per share of 4 cents in the prior-year quarter. On a GAAP basis, the company reported a loss of 56 cents compared with a loss of 24 cents in the year-ago quarter. The Zacks Consensus Estimate was pegged at a loss of 27 cents.Quarterly revenues decreased 16.9% (down 17.3% on a constant-currency basis) year over year to $252.7 million due to a challenging macroeconomic environment. However, t ...

For the quarter ended March 2024, Sonos (SONO) reported revenue of $252.66 million, down 16.9% over the same period last year. EPS came in at -$0.34, compared to -$0.24 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $246.48 million, representing a surprise of +2.51%. The company delivered an EPS surprise of -25.93%, with the consensus EPS estimate being -$0.27. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Str ...