NASDAQ$SONO

Sonos Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported decrease in revenue and a net loss for the fourth quarter of 2022.

Sonos reported a decrease in revenue by 12.0% year-over-year to $316.3 million and a GAAP net loss of $(64.1) million for the fourth quarter of 2022. The company saw trends stabilize in Q4 and is heading into the holidays with a good early response to its latest product, Sub Mini, and its healthiest in-stock inventory position in three years.

  • Revenue decreased 12.0% year-over-year to $316.3 million.
  • GAAP net loss was $(64.1) million compared to $(8.7) million last year.
  • Non-GAAP net loss was $(40.4) million compared to non-GAAP net income of $11.8 million last year.
  • Free cash flow was $(125.2) million.

Headline financials

Total Revenue

$316M

Previous: $360M-12.0%
EPS (adj)

-$0.32

Previous: $0.08-500.0%
Capital Expenditures

$21.3M

Previous: $10.7M+98.1%
Free Cash Flow

-$125M

Previous: -$4.25M-2843.1%
Net Income

-$64.1M

Previous: -$8.74M-632.7%
Operating Income

-$60.1M

Previous: -$11.5M-420.3%
Gross Profit

$124M

Previous: $167M-25.7%
Cash & Equivalents

$275M

Previous: $640M-57.1%
Total Assets

$1.19B

Previous: $1.14B+4.4%
Stock-Based Comp

$18.2M

Previous: $15.4M+18.2%

Revenue & EPS history

Sonos · Revenue · Quarterly

$316M

Q4 2022-12%vs Q4 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Sonos · $316M total across 3 segments · Q4 2022

  • Sonos speakers
    $235M-14.1%
  • Sonos system products
    $62.8M-7.3%
  • Partner products and other revenue
    $18.4M+0.8%

Forward guidance

Sonos expects revenue in the range of $1.7 billion to $1.8 billion, representing a decline of -3% to growth of 3% from fiscal 2022, or growth of 1% to 7% on a constant currency basis. Gross margin is expected to be in the range of 45.0% to 46.0%. Adjusted EBITDA is expected to be in the range of $145 million to $180 million, representing a decline of 36% to 21% from fiscal 2022. Adjusted EBITDA margin is expected to be 8.5% to 10.0%.

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 2022

Historical avgQ4 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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