NASDAQ$SONO

Sonos Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Sonos's Q2 2021 earnings exceeded expectations with record revenue and increased profitability.

Sonos reported record second quarter fiscal 2021 results, with revenue increasing 90% year-over-year to $332.9 million and GAAP net income increasing to $17.2 million from a loss of $52.3 million in the previous year. The company raised its fiscal 2021 outlook based on strong demand and the power of its business model.

  • Revenue increased 90% year-over-year to $332.9 million.
  • GAAP net income increased to $17.2 million from a loss of $52.3 million last year.
  • GAAP diluted earnings per share (EPS) increased to $0.12 from ($0.48) last year
  • The company raised its fiscal 2021 outlook.

Headline financials

Total Revenue

$333M

Previous: $175M+90.2%
EPS (adj)

$0.31

Previous: -$0.48+164.6%
Adjusted EBITDA margin

14.6%

No prior period
GAAP gross margin

49.8%

No prior period
Capital Expenditures

-$19.9M

Previous: -$25.8M+22.8%
Free Cash Flow

-$2.71M

Previous: -$78.1M+96.5%
Net Income

$17.2M

Previous: -$52.3M+132.9%
Operating Income

$12.4M

Previous: -$53.2M+123.3%
Gross Profit

$166M

Previous: $73M+127.1%
Cash & Equivalents

$639M

Previous: $283M+125.6%
Total Assets

$1.05B

Previous: $639M+64.0%
Stock-Based Comp

$16.4M

Previous: $13.4M+22.2%

Revenue & EPS history

Sonos · Revenue · Quarterly

$333M

Q2 2021+90.2%vs Q2 2020
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Sonos · $333M total across 3 segments · Q2 2021

  • Sonos speakers
    $268M
  • Sonos system products
    $52.1M
  • Partner products and other revenue
    $13.4M

Forward guidance

Sonos raised its fiscal year 2021 outlook.

Tailwinds

  • Adjusted EBITDA increased to a range of $225 million to $250 million representing growth in the range of 107% to 130%.
  • Adjusted EBITDA margin increased to a range of 13.8% to 14.9%, representing a 560 to 670 basis point improvement year-over-year.
  • Gross margin in the range of 46.0% to 46.5%, representing a 288 to 338 basis point improvement year-over-year.
  • Revenue increased to a range of $1.625 billion to $1.675 billion, representing growth in the range of 23% to 26% year-over-year (25% to 29% on a comparable basis excluding the 53rd week in fiscal 2020).
  • The company is extremely well positioned to deliver significant free cash flow and increased shareholder value over the long-term.

Headwinds

  • The fiscal 2021 gross margin outlook reflects minimal impact from ongoing tariffs and does not include the $27.5 million in tariff refunds expected due to timing uncertainty.
  • 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 meet and accurately forecast product demand and manage any product availability delays.
  • The duration and impact of the COVID-19 pandemic and related mitigation efforts on our industry and our supply chain.

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 Q2 2021

Historical avgQ2 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%

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