NASDAQ$SONO

Sonos Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported year-over-year revenue growth and delivered results that slightly exceeded expectations, but the app rollout caused problems requiring a reduction in Fiscal 2024 guidance.

Sonos reported slight revenue growth year-over-year, driven by the introduction of their new headphones, Ace. However, issues with the rollout of their new app have led to a reduction in their Fiscal 2024 guidance.

  • Reported year-over-year revenue growth thanks to Ace.
  • Results slightly exceeded expectations in the third quarter.
  • Problems with the rollout of the new app impacted customers and partners.
  • Fiscal 2024 guidance was reduced due to app issues.

Headline financials

Total Revenue

$397M

Previous: $373M+6.4%
EPS

$0.03

Previous: $0.16-81.3%
Adjusted EBITDA

$48.9M

No prior period
Adjusted EBITDA margin

12.3%

Previous: 9.2%+33.7%
Net income margin

0.9%

No prior period
GAAP gross margin

48.3%

Previous: 46.0%+5.0%
Non-GAAP gross margin

48.7%

No prior period
Capital Expenditures

-$39.5M

Previous: -$40.1M+1.5%
Free Cash Flow

-$35.8M

Previous: -$63.7M+43.8%
Net Income

$3.71M

Previous: -$23.6M+115.7%
Operating Income

$12.6M

Previous: -$21.3M+159.2%
Gross Profit

$192M

Previous: $172M+11.6%
R&D Expense

$73.2M

No prior period
Stock-Based Comp

$21.9M

Previous: $18.3M+19.6%

Revenue & EPS history

Sonos · Revenue · Quarterly

$397M

Q3 2024+6.4%vs Q3 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Sonos · $305M total across 3 segments · Q4 2023

  • Sonos speakers
    $223M-5.0%
  • Sonos system products
    $62.3M-0.7%
  • Partner products and other revenue
    $19.5M+5.9%

Forward guidance

The company will provide its Fiscal 2024 outlook on its third quarter fiscal 2024 earnings call.

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 Q3 2024

Historical avgQ3 2024

-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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