NASDAQ$SONO

Sonos Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported record fourth quarter and fiscal year 2020 results, demonstrating the power and profitability of its business model.

Sonos reported record fourth quarter results with revenue increasing 16% year-over-year to $339.8 million. GAAP net income increased to $18.4 million, and GAAP diluted EPS increased to $0.15. The company reached an inflection point, demonstrating the power and profitability of its business model.

  • GAAP net income increased to $18.4 million from ($29.6) million last year; non-GAAP net income increased to $40.7 million from ($16.6) million last year.
  • GAAP diluted earnings per share (EPS) increased to $0.15 from ($0.28) last year; non-GAAP diluted earnings per share (EPS) increased to $0.33 from ($0.15) last year.
  • Revenue increased 16% year-over-year to $339.8 million; excluding the impact of the 14th week, revenue increased approximately 7% year-over-year.
  • Direct-to-consumer revenue increased 67% year-over-year.

Headline financials

Total Revenue

$340M

Previous: $294M+15.5%
EPS (adj)

$0.33

Previous: -$0.28+217.9%
Capital Expenditures

$3.13M

Previous: $9.13M-65.7%
Free Cash Flow

$129M

Previous: $570K+22523.0%
Net Income

$18.4M

Previous: -$29.6M+162.2%
Operating Income

$15.4M

Previous: -$24.8M+162.1%
Gross Profit

$162M

Previous: $124M+30.0%
Cash & Equivalents

$407M

Previous: $339M+20.2%
Total Assets

$816M

Previous: $762M+7.1%
Stock-Based Comp

$16M

Previous: $13.1M+22.4%

Revenue & EPS history

Sonos · Revenue · Quarterly

$340M

Q4 2020+15.5%vs Q4 2019
Beat estimate in 9 of 12 quarters(75%)
ActualEstimate

Revenue by segment

Sonos · $340M total across 3 segments · Q4 2020

  • Sonos speakers
    $255M
  • Sonos system products
    $67.9M
  • Partner products and other revenue
    $17.1M

Forward guidance

Sonos anticipates revenue between $1.44 billion and $1.5 billion, representing growth in the range of 11% to 15% from fiscal 2020. They expect adjusted EBITDA in the range of $170 million to $205 million, and adjusted EBITDA margin in the range of 12% to 14%.

Tailwinds

  • Revenue growth of 11% to 15% from fiscal 2020
  • Adjusted EBITDA in the range of $170 million to $205 million
  • Adjusted EBITDA margin in the range of 12% to 14%
  • Gross margin improvement year-over-year
  • Direct-to-consumer revenue as a percentage of total revenue similar to fiscal 2020

Headwinds

  • Minimal impact from ongoing tariffs.
  • No impact from the potential tariff refund.
  • Uncertainty and challenges stemming from the COVID-19 pandemic.
  • Changes in general economic or market conditions
  • Ability to accurately forecast consumer demand

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 Q4 2020

Historical avgQ4 2020

-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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