Core Viewpoint - Sonos, Inc. is expected to report second-quarter fiscal 2025 results with anticipated revenues between $240 million and $265 million, reflecting a slight year-over-year increase, while the bottom line is projected to show an improved loss compared to the previous year [1][2]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for revenues is $255.9 million, indicating a rise of 1.3% from the previous year [1]. - The consensus estimate for the bottom line is a loss of 18 cents, an improvement from a loss of 34 cents reported in the prior year [1]. - Sonos has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average earnings surprise of 22.8% [2]. Group 2: Challenges Impacting Performance - The company's second-quarter performance is likely to be negatively affected by high promotional activity and restructuring efforts, including a workforce reduction impacting nearly 12% of employees, leading to expected charges of $15 million to $18 million [3]. - The rollout of Sonos' redesigned app faced issues, resulting in unforeseen bugs and prompting an investment of $6 million in app recovery, with additional projected charges of $4 million to $8 million for the second quarter [4]. - GAAP gross margin is expected to be between 42% and 44%, down year-over-year due to foreign exchange headwinds and amortization costs [5]. Group 3: Positive Factors Supporting Performance - Sonos' focus on product innovation, particularly the successful launch of Sonos Ace, is expected to support revenue despite challenges from the app redesign [6]. - The introduction of the Era 100 Pro has opened a new revenue stream in the light-commercial audio market, potentially contributing to overall growth [7]. - Ongoing expansion of direct-to-consumer initiatives and a growing international presence, especially in Asia, are likely to bolster second-quarter performance [7].

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Over the past year, few consumer brands have been as beleaguered as Sonos, Inc. (NASDAQ: SONO ). The home audio company has been routed after a disastrous app update left many older devices unusable, not only hurting sales in the short runWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular con ...

Core Insights - Sonos, Inc. reported first-quarter fiscal 2025 non-GAAP earnings per share of 64 cents, down from 84 cents in the prior-year quarter, while GAAP earnings were 40 cents compared to 64 cents a year ago, exceeding the Zacks Consensus Estimate of 36 cents per share [1][2] Revenue Performance - Quarterly revenues decreased by 10.1% year over year to $550.9 million, within the company's guidance range of $480 million to $560 million, attributed to weaker demand and challenges from the 2024 app rollout [2] - Revenue from Sonos speakers was $467.1 million, down 7.1% year over year, surpassing the consensus estimate of $427 million [4] - System products revenue fell 28.7% year over year to $60.3 million, below the consensus estimate of $77 million [4] - Partner products and other revenues totaled $23.4 million, down 7.3% year over year, slightly above the consensus estimate of $22.9 million [4] - Region-wise, revenues from the Americas declined 17.3% to $324.6 million, while Europe, the Middle East, and Africa saw a 3% increase to $197.6 million, and Asia Pacific revenues rose 0.2% to $28.7 million [5] Margin and Expense Analysis - Non-GAAP gross profit was $246.1 million, down 13.4% year over year, with a non-GAAP gross margin contraction of 170 basis points to 44.7% [6] - Adjusted operating expenses were $193.3 million, down from $203 million in the prior-year quarter, while non-GAAP adjusted operating expenses were $169 million compared to $179.4 million a year ago [7] Cash Flow and Liquidity - Sonos generated $156.2 million in cash from operations, with a free cash outflow of $143.1 million, improved from $269.3 million in the previous year [9] - As of December 28, 2024, cash and cash equivalents were $280 million, up from $169.7 million as of September 28, 2024 [10] - The company returned $27 million to shareholders through stock repurchases in the fiscal first quarter, with $44 million remaining under the current buyback authorization [10] Future Guidance - Management expects second-quarter fiscal 2025 revenues to range between $240 million and $265 million, with GAAP gross margin anticipated between 42% and 44% and non-GAAP gross margin between 44% and 45.8% [11]

Sonos, Inc. (NASDAQ:SONO) Q1 2025 Earnings Call February 6, 2025 4:15 PM ET Company Participants James Baglanis - Head, Investor Relations Tom Conrad - Interim Chief Executive Officer Saori Casey - Chief Financial Officer Eddie Lazarus - Chief Legal and Strategy Officer Conference Call Participants Steve Frankel - Rosenblatt Logan Katzman - Raymond James Erik Woodring - Morgan Stanley Alex Fuhrman - Craig Hallum Brent Thill - Jefferies Operator Thank you for standing by. My name is Jale, and I will be your ...

Sonos (SONO) Q1 2025 Earnings Call February 06, 2025 04:15 PM ET Company Participants James Baglanis - Investor RelationsTom Conrad - Interim CEOSaori Casey - Chief Financial OfficerLogan Katzman - Research AssociateBrent Thill - Tech Sector Leader - Software & Internet Research Conference Call Participants Steve Frankel - Director of Research & Senior Research AnalystErik Woodring - AnalystAlex Fuhrman - Senior Research Analyst Operator you for standing by. My name is JL and I will be your conference opera ...

Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38603 _________________________________________________________ SONOS, INC. (Exact name of registrant as specified in its charter) _________________________________________________________ | Delaware | | 03-0479476 | | | --- | --- | --- | --- | | (State or other jurisdiction of incorporat ...

Core Insights - Sonos reported better-than-expected fiscal first-quarter earnings, with shares rising 4.5% following the announcement [1] - Despite beating revenue estimates, the company is facing declining sales and has announced a 12% workforce reduction as part of a restructuring effort [1][3] Financial Performance - Revenue for the quarter decreased by 9% to $550.9 million, surpassing the consensus estimate of $519.5 million [2] - Gross margin fell to 43.8% from 46.1%, and operating income dropped from $79.7 million to $48 million [2] - Adjusted earnings per share were $0.64, down from $0.84 a year ago, but exceeded the consensus estimate of $0.30 [2] Restructuring Efforts - The company plans to reduce its workforce by 12%, incurring estimated charges of $15 million to $18 million in the current quarter [3] - CEO Tom Conrad indicated the need for a flatter organizational structure to improve collaboration and decision-making [4] Future Outlook - While no specific guidance was provided, management appears focused on returning to revenue and profit growth [4] - The potential for stock appreciation exists if the company can successfully navigate its turnaround efforts [5]

Core Insights - Sonos reported mixed results for Q1 FY 2025, with adjusted EPS of $0.64 and revenue of $551 million, both exceeding analyst expectations but down from the previous year [2][4] - The company is undergoing a restructuring process, including a planned 12% workforce reduction to enhance efficiency and align costs with growth ambitions [3][9] Financial Performance - Adjusted EPS decreased by 23.8% year-over-year from $0.84 to $0.64 [4] - Revenue fell by 10.1% year-over-year from $613 million to $551 million [4] - Adjusted EBITDA declined by 21% from $115.2 million to $91.2 million [4][7] - Free cash flow dropped significantly by 47% from $269.3 million to $143.1 million [4][7] - Adjusted gross margin decreased by 1.7 percentage points from 46.4% to 44.7% [4] Regional Performance - Revenue in the Americas contracted sharply from $392.4 million to $324.6 million, reflecting geopolitical and economic pressures [8] - In contrast, revenue in Europe, the Middle East, and Africa slightly increased from $191.8 million to $197.6 million [8] Strategic Focus - Sonos aims to expand its product portfolio and stimulate repeat purchases among its loyal customer base [6] - Partnerships with tech giants like Apple and Alphabet enhance the company's ecosystem and customer access to diverse content [6] - The company is committed to ongoing research and development to drive innovation and customer satisfaction [5][12] Future Outlook - Management has indicated that continued efficiency improvements and product innovation are central to the company's outlook [10] - Future possibilities include strategic product launches and new market entries, with a focus on monitoring the restructuring process and potential rebounds in key regions [11]

Sonos (SONO) reported $550.86 million in revenue for the quarter ended December 2024, representing a year-over-year decline of 10.1%. EPS of $0.64 for the same period compares to $0.84 a year ago.The reported revenue represents a surprise of +4.91% over the Zacks Consensus Estimate of $525.06 million. With the consensus EPS estimate being $0.36, the EPS surprise was +77.78%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...