NASDAQ$SONO

Sonos Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Sonos reported record first quarter fiscal 2021 results, achieving record number of new and existing customers and raising fiscal 2021 outlook.

Sonos reported a strong first quarter with record revenue and earnings, driven by increased demand and successful product offerings. The company raised its fiscal year 2021 outlook, reflecting confidence in its business momentum and future product plans.

  • GAAP net income increased 87% year-over-year to $132.3 million.
  • GAAP diluted earnings per share (EPS) increased to $1.01 from $0.60 last year.
  • Revenue increased 15% year-over-year to $645.6 million.
  • Free cash flow increased 97% to $203.2 million compared to $102.9 million last year.

Headline financials

Total Revenue

$646M

Previous: $562M+14.9%
EPS (adj)

$1.17

Previous: $0.60+95.0%
Adjusted EBITDA margin

25.8%

No prior period
GAAP gross margin

46.4%

No prior period
Capital Expenditures

-$11.3M

Previous: -$15.9M+28.8%
Free Cash Flow

$121M

Previous: $54.9M+120.5%
Net Income

$132M

Previous: $70.8M+86.9%
Operating Income

$137M

Previous: $67.5M+103.6%
Gross Profit

$299M

Previous: $228M+31.5%
Cash & Equivalents

$678M

Previous: $408M+66.0%
Total Assets

$1.07B

Previous: $874M+22.1%
Stock-Based Comp

$14.8M

Previous: $13.2M+12.4%

Revenue & EPS history

Sonos · Revenue · Quarterly

$646M

Q1 2021+14.9%vs Q1 2020
Beat estimate in 9 of 13 quarters(69%)
ActualEstimate

Revenue by segment

Sonos · $646M total across 3 segments · Q1 2021

  • Sonos speakers
    $528M
  • Sonos system products
    $97.8M
  • Partner products and other revenue
    $20.3M

Forward guidance

Sonos raised its fiscal year 2021 outlook.

Tailwinds

  • Adjusted EBITDA increased to a range of $195 million to $225 million representing growth in the range of 80% to 107% year-over-year.
  • Adjusted EBITDA margin increased to a range of 13% to 14%, representing a 460 to 610 basis point improvement year-over-year.
  • Gross margin increased to a range of 46.0% to 46.5%, representing a 288 to 338 basis point improvement year-over-year.
  • Revenue increased to a range of $1.525 billion to $1.575 billion, representing growth in the range of 15% to 19% from fiscal 2020
  • Outlook includes minimal impact from ongoing tariffs and does not include tariff refunds expected due to timing uncertainty.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.5%

Avg return

Earnings day

-0.4%

Avg return

5 days after

-3.5%

Avg return

30 days after

51%

19 / 37 earnings

Positive

+29.5%

Q4 2020

Best reaction

-25.9%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+1.0%+1.3%+9.3%
Q1 2026+6.4%+16.7%-2.5%
Q4 2025+1.5%+1.5%+16.7%
Q2 2025+9.7%+25.3%+11.9%
Q1 2025-7.5%-12.5%-14.1%
Q4 2024-2.2%-10.2%+3.6%
Q3 2024-5.4%-8.4%-6.9%
Q2 2024-5.8%-7.0%-11.2%
Q1 2024+21.8%+15.6%+20.2%
Q4 2023+18.0%+27.2%+51.1%
Q3 2023-7.8%-11.8%-16.1%
Q2 2023-25.9%-28.7%-27.5%
Q1 2023+11.9%+14.2%+3.0%
Q4 2022-2.5%-3.7%-1.5%
Q3 2022-22.3%-22.2%-27.1%
Q2 2022+4.4%+4.5%+2.0%
Q1 2022+4.7%+2.7%-9.7%
Q4 2021-4.3%-6.8%-14.0%
Q3 2021+6.2%+13.4%+5.0%
Q2 2021-3.0%-2.9%+1.3%
Q1 2021+13.1%+10.1%+28.9%
Q4 2020+29.5%+25.1%+42.0%
Q3 2020-13.6%-16.5%-20.7%
Q2 2020-1.3%+0.6%+14.0%
Q1 2020+8.0%-5.7%-28.2%
Q4 2019-2.0%+6.5%+2.2%
Q3 2019+8.8%+18.8%+48.0%
Q2 2019+4.0%+1.8%+3.3%
Q1 2018-13.5%-9.3%-19.3%
Q1 2019-17.1%-16.5%-24.2%
Q2 2018+4.5%+7.5%-15.6%
Q2 2017+4.5%+7.5%-15.6%
Q1 2016+4.5%+7.5%-15.6%
Q4 2018+10.8%-4.4%-18.2%
Q3 2018-19.2%-21.6%-38.0%
Q3 2017-19.2%-21.6%-38.0%
Q4 2017-19.2%-11.2%-28.8%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro