NASDAQ$SONO

Sonos Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported strong revenue growth and consistent profitability.

Sonos reported a 20.1% increase in revenue to $399.8 million. GAAP net income was $8.6 million, with a GAAP EPS of $0.06. The company maintains its revenue outlook for the fiscal year.

  • Revenue increased by 20.1% year-over-year to $399.8 million.
  • Gross margin decreased to 44.8%.
  • GAAP net income was $8.6 million compared to $17.2 million last year.
  • Free cash flow was ($106.9) million.

Headline financials

Total Revenue

$400M

Previous: $333M+20.1%
EPS (adj)

$0.26

Previous: $0.31-16.1%
Adjusted EBITDA

$46.9M

No prior period
Adjusted EBITDA margin

11.7%

Previous: 14.6%-19.9%
GAAP gross margin

44.8%

Previous: 49.8%-10.0%
Capital Expenditures

-$15.7M

Previous: -$19.9M+21.4%
Free Cash Flow

-$7.1M

Previous: -$2.71M-162.3%
Net Income

$8.57M

Previous: $17.2M-50.3%
Operating Income

$10M

Previous: $12.4M-19.0%
Gross Profit

$179M

Previous: $166M+8.0%
Cash & Equivalents

$607M

Previous: $639M-5.0%
Total Assets

$1.23B

Previous: $1.05B+17.0%
Stock-Based Comp

$21.2M

Previous: $16.4M+29.7%

Revenue & EPS history

Sonos · Revenue · Quarterly

$400M

Q2 2022+20.1%vs Q2 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Sonos · $400M total across 3 segments · Q2 2022

  • Sonos speakers
    $318M+18.8%
  • Sonos system products
    $61.2M+17.6%
  • Partner products and other revenue
    $20.8M+56.0%

Forward guidance

Sonos maintains its revenue outlook 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 is updated to be in the range of 45.5% to 46.0%. Adjusted EBITDA is expected to be in the range of $290 million to $310 million, representing growth in the range of 4% to 11%.

Tailwinds

  • Revenue outlook maintained in the range of $1.95B to $2.0B.
  • Represents growth of 14% to 16% from fiscal 2021.
  • Gross margin updated to be in the range of 45.5% to 46.0%.
  • Adjusted EBITDA in the range of $290M to $310M.
  • Adjusted EBITDA growth in the range of 4% to 11%.

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 2022

Historical avgQ2 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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