NASDAQ$SONO

Sonos Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported record Q1 revenue despite economic headwinds and maintained Fiscal 2023 outlook.

Sonos reported a 1.2% year-over-year increase in revenue to $672.6 million for the first quarter of fiscal year 2023. GAAP net income was $75.2 million, with a diluted EPS of $0.57. Non-GAAP net income reached $103.4 million, with a diluted EPS of $0.79. The company's free cash flow was $167.6 million.

  • Revenue increased 1.2% year-over-year to $672.6 million.
  • Gross margin decreased to 42.4%.
  • GAAP net income was $75.2 million compared to $123.5 million last year.
  • Free cash flow was $167.6 million for the quarter.

Headline financials

Total Revenue

$673M

Previous: $664M+1.2%
EPS (adj)

$0.79

Previous: $1.02-22.5%
Adjusted EBITDA

$124M

No prior period
Adjusted EBITDA margin

18.4%

No prior period
GAAP gross margin

42.4%

No prior period
Capital Expenditures

-$14.7M

Previous: -$6.36M-131.1%
Free Cash Flow

$60.5M

Previous: $117M-48.3%
Net Income

$75.2M

Previous: $123M-39.1%
Operating Income

$86.3M

Previous: $133M-34.9%
Gross Profit

$285M

Previous: $317M-10.2%
Cash & Equivalents

$432M

Previous: $754M-42.8%
Total Assets

$1.21B

Previous: $1.37B-12.1%
Stock-Based Comp

$20.2M

Previous: $17.5M+15.7%

Revenue & EPS history

Sonos · Revenue · Quarterly

$673M

Q1 2023+1.2%vs Q1 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Sonos · $673M total across 3 segments · Q1 2023

  • Sonos speakers
    $539M+7.4%
  • Sonos system products
    $114M-15.1%
  • Partner products and other revenue
    $18.9M-32.0%

Forward guidance

Sonos provided its outlook for the fiscal year 2023, with revenue expected to be in the range of $1.7 billion to $1.8 billion, representing a decline of -3% to growth of 3% from fiscal 2022. Gross margin is expected to be in the range of 45.0% to 46.0%, and adjusted EBITDA is projected to be in the range of $145 million to $180 million.

Tailwinds

  • Revenue in the range of $1.7 billion to $1.8 billion
  • Gross margin in the range of 45.0% to 46.0%
  • Adjusted EBITDA in the range of $145 million to $180 million
  • Representing a decline of -3% to growth of 3% from fiscal 2022
  • Growth of 1% to 7% on a constant currency basis

Headwinds

  • Adjusted EBITDA representing a decline of 36% to 21% from fiscal 2022
  • Significant macroeconomic uncertainty remains
  • Supply chain challenges
  • Fluctuating component availability
  • Changes in consumer spending patterns

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 2023

Historical avgQ1 2023

-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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