NASDAQ$SONO

Sonos Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Sonos's Q2 2023 results were reported, revealing a decrease in revenue and a GAAP net loss.

Sonos reported a 23.9% year-over-year decrease in revenue to $304.2 million. The company experienced a GAAP net loss of $(30.7) million compared to a net income of $8.6 million in the previous year. The company is reducing its expectations for the second half of Fiscal 2023 due to softening consumer demand and channel partner inventory tightening.

  • Revenue decreased 23.9% year-over-year to $304.2 million.
  • Gross margin decreased 150 basis points year-over-year to 43.3%.
  • GAAP net loss of $(30.7) million compared to net income of $8.6 million last year.
  • Non-GAAP diluted EPS of $0.04 compared to $0.26 last year.

Headline financials

Total Revenue

$304M

Previous: $400M-23.9%
EPS (adj)

$0.04

Previous: $0.26-84.6%
Adjusted EBITDA margin

-3.5%

Previous: 11.7%-129.9%
GAAP gross margin

43.3%

Previous: 44.8%-3.3%
Capital Expenditures

-$23.4M

Previous: -$15.7M-49.4%
Free Cash Flow

-$54.1M

Previous: -$7.1M-661.4%
Net Income

-$30.7M

Previous: $8.57M-457.8%
Operating Income

-$57.2M

Previous: $10M-669.9%
Gross Profit

$132M

Previous: $179M-26.5%
Cash & Equivalents

$295M

Previous: $607M-51.4%
Total Assets

$1.06B

Previous: $1.23B-13.6%
Stock-Based Comp

$21M

Previous: $21.2M-0.9%

Revenue & EPS history

Sonos · Revenue · Quarterly

$304M

Q2 2023-23.9%vs Q2 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Sonos · $304M total across 3 segments · Q2 2023

  • Sonos speakers
    $241M-24.1%
  • Sonos system products
    $44.1M-28.0%
  • Partner products and other revenue
    $18.9M-9.2%

Forward guidance

Sonos revised its Fiscal Year 2023 outlook, with revenue expected to be in the range of $1.625 billion to $1.675 billion, representing a decline of 7% to 4% from fiscal 2022. Gross margin is projected to be in the range of 44.3% to 44.8%, and adjusted EBITDA is expected to be in the range of $138 million to $168 million.

Tailwinds

  • Gross margin in the range of 44.3% to 44.8%.
  • Adjusted EBITDA in the range of $138 million to $168 million.
  • Adjusted EBITDA margin of 8.5% to 10.0%, unchanged from prior outlook range

Headwinds

  • Revenue in the range of $1.625 billion to $1.675 billion, representing a decline of 7% to 4% from fiscal 2022.
  • This compares to a prior outlook range of $1.7 billion to $1.8 billion, which represented a decline of 3% to growth 3% from fiscal 2022
  • Gross margin in the range of 44.3% to 44.8%, compared to prior outlook range of 45.0% to 46.0%
  • Adjusted EBITDA in the range of $138 million to $168 million, compared to prior outlook range of $145 million to $180 million

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 2023

Historical avgQ2 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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