NASDAQ$SONO

Sonos Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Sonos reported fourth quarter results, with revenue increasing 6% year-over-year despite supply constraints, but GAAP net loss was reported.

Sonos reported a 6% increase in revenue for Q4 2021, reaching $359.5 million. However, the company experienced a GAAP net loss of $8.7 million, a decrease compared to the net income of $18.4 million in the same quarter last year. The company achieved record revenue and adjusted EBITDA for the full fiscal year 2021.

  • Revenue increased 6% year-over-year to $359.5 million.
  • GAAP net loss of $8.7 million compared to net income of $18.4 million last year.
  • Non-GAAP net income was $11.8 million, compared to $40.7 million last year.
  • Company expects to deliver strong fiscal year 2022.

Headline financials

Total Revenue

$360M

Previous: $340M+5.8%
EPS (adj)

$0.08

Previous: $0.33-75.8%
Capital Expenditures

$10.7M

Previous: $3.13M+243.1%
Free Cash Flow

-$4.25M

Previous: $129M-103.3%
Net Income

-$8.74M

Previous: $18.4M-147.5%
Operating Income

-$11.5M

Previous: $15.4M-174.8%
Gross Profit

$167M

Previous: $162M+3.3%
Cash & Equivalents

$640M

Previous: $407M+57.2%
Total Assets

$1.14B

Previous: $816M+39.6%
Stock-Based Comp

$15.4M

Previous: $16M-3.8%

Revenue & EPS history

Sonos · Revenue · Quarterly

$360M

Q4 2021+5.8%vs Q4 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Sonos · $360M total across 3 segments · Q4 2021

  • Sonos speakers
    $274M+7.3%
  • Sonos system products
    $67.7M-0.2%
  • Partner products and other revenue
    $18.3M+7.1%

Forward guidance

Sonos anticipates another strong year in fiscal 2022, expecting revenue growth of 16% and adjusted EBITDA growth of 17% at the high end of their outlook, despite ongoing supply constraints.

Tailwinds

  • Revenue in the range of $1.925 billion to $2.0 billion, representing growth in the range of 12% to 16% from fiscal 2021
  • Gross margin in the range of 46% to 47%.
  • Adjusted EBITDA in the range of $280 million to $325 million, representing growth in the range of 1% to 17%.
  • Adjusted EBITDA margin in the range of 14.5% to 16.2%.
  • Demand for products remains stronger than ever.

Headwinds

  • Continued industry-wide supply constraints.
  • COVID-19 pandemic and related mitigation efforts on our industry and our supply chain.
  • 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 product demand and manage any product availability delays.

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 2021

Historical avgQ4 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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