NASDAQ$SONO

Sonos Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Sonos' first quarter of fiscal year 2022 resulted in revenue increase and strong adjusted EBITDA margin.

Sonos reported a 3% year-over-year increase in revenue to $664.5 million. The company's adjusted EBITDA margin was strong at 24.6%. Despite chip shortages that constrained supply, Sonos increased the midpoint of its fiscal 2022 guidance.

  • Revenue increased 3% year-over-year to $664.5 million.
  • Gross margin increased 140 basis points to 47.8%.
  • GAAP diluted earnings per share (EPS) was $0.87 compared to $1.01 last year.
  • Free cash flow was $173.6 million.

Headline financials

Total Revenue

$664M

Previous: $646M+2.9%
EPS (adj)

$1.02

Previous: $1.17-12.8%
Capital Expenditures

-$6.36M

Previous: -$11.3M+43.9%
Free Cash Flow

$117M

Previous: $121M-3.2%
Net Income

$123M

Previous: $132M-6.7%
Operating Income

$133M

Previous: $137M-3.5%
Gross Profit

$317M

Previous: $299M+6.0%
Cash & Equivalents

$754M

Previous: $678M+11.3%
Total Assets

$1.37B

Previous: $1.07B+28.7%
Stock-Based Comp

$17.5M

Previous: $14.8M+17.6%

Revenue & EPS history

Sonos · Revenue · Quarterly

$664M

Q1 2022+2.9%vs Q1 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Sonos · $664M total across 3 segments · Q1 2022

  • Sonos speakers
    $502M-4.9%
  • Sonos system products
    $135M+37.8%
  • Partner products and other revenue
    $27.9M+37.1%

Forward guidance

Sonos expects revenue in the range of $1.95 billion to $2.0 billion, gross margin in the range of 46% to 47%, and adjusted EBITDA in the range of $290 million to $325 million for fiscal year 2022.

Tailwinds

  • Revenue in the range of $1.95 billion to $2.0 billion, representing growth in the range of 14% to 16% from fiscal 2021
  • Gross margin in the range of 46% to 47%.
  • Adjusted EBITDA in the range of $290 million to $325 million, representing growth in the range of 4% to 17%
  • Adjusted EBITDA margin in the range of 14.9% to 16.2%
  • Company is well-positioned to deliver on its fiscal 2022 outlook.

Headwinds

  • The duration and impact of the COVID-19 pandemic and related mitigation efforts on the industry and supply chain.
  • Supply chain challenges, including shipping and logistics challenges and significant limits on component supplies.
  • Changes in general economic or market conditions that could affect consumer income and overall consumer spending.
  • Ability to successfully introduce new products and services and maintain or expand the success of existing products.
  • Ability to meet product demand and manage any product availability delays.

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 2022

Historical avgQ1 2022

-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%

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