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SONOS(SONO) - 2025 Q1 - Quarterly Results
SONOSONOS(SONO)2025-02-06 13:37

Financial Performance - Q1 Fiscal 2025 revenue was 551million,nearthehighendofguidance[5]−GAAPgrossmargindecreasedto43.8551 million, near the high end of guidance[5] - GAAP gross margin decreased to 43.8% from 46.1% year-over-year[15] - GAAP net income was 50.2 million, down from 80.9millioninthesamequarterlastyear[10]−Non−GAAPnetincomewas80.9 million in the same quarter last year[10] - Non-GAAP net income was 79.2 million, with a diluted EPS of 0.64[5]−Operatingincomedecreasedto0.64[5] - Operating income decreased to 48.09 million from 79.70millionyear−over−year[10]−GAAPnetincomeforQ42024was79.70 million year-over-year[10] - GAAP net income for Q4 2024 was 50,237, a decrease of 38% from 80,947inQ42023[19]−AdjustedEBITDAforQ42024was80,947 in Q4 2023[19] - Adjusted EBITDA for Q4 2024 was 91,173, down 20.9% from 115,242inQ42023,resultinginanadjustedEBITDAmarginof16.6115,242 in Q4 2023, resulting in an adjusted EBITDA margin of 16.6% compared to 18.8%[17] - Total revenue for Q4 2024 was 550,857, a decline of 10.1% from 612,869inQ42023[20]−Non−GAAPnetincomeforQ42024was612,869 in Q4 2023[20] - Non-GAAP net income for Q4 2024 was 79,237, down from 106,108inQ42023[19]−FreecashflowforQ42024was106,108 in Q4 2023[19] - Free cash flow for Q4 2024 was 143,067, down from 269,324inQ42023[20]RestructuringandWorkforceChanges−Thecompanyannouncedareductioninforceaffectingapproximately12269,324 in Q4 2023[20] Restructuring and Workforce Changes - The company announced a reduction in force affecting approximately 12% of its employees, with estimated restructuring charges of 15 to 18million[6]−Thecompanyinitiatedarestructuringplanaffectingapproximately618 million[6] - The company initiated a restructuring plan affecting approximately 6% of its employees in August 2024, with costs primarily incurred in Q4 2024[18] Cash and Assets - Cash and cash equivalents increased to 279.96 million from 169.73millionquarter−over−quarter[14]−Totalcurrentassetsroseto169.73 million quarter-over-quarter[14] - Total current assets rose to 612.53 million, compared to 551.09millioninthepreviousquarter[12]RevenueBreakdown−RevenuefromSonosspeakersdecreasedto551.09 million in the previous quarter[12] Revenue Breakdown - Revenue from Sonos speakers decreased to 467,142 in Q4 2024 from 503,011inQ42023,whileSonossystemproductsrevenuefellto503,011 in Q4 2023, while Sonos system products revenue fell to 60,274 from 84,562[20]−RevenuefromtheAmericasregiondecreasedto84,562[20] - Revenue from the Americas region decreased to 324,583 in Q4 2024 from 392,439inQ42023,whilerevenuefromEurope,theMiddleEast,andAfricaincreasedslightlyto392,439 in Q4 2023, while revenue from Europe, the Middle East, and Africa increased slightly to 197,612 from $191,817[20] Company Strategy and Focus - The company is focused on improving core customer experience and developing new products and innovations[2] - The company anticipates challenges in product demand forecasting and supply chain management, impacting future performance[24] - Sonos is recognized as a leading brand in sound experience, specializing in multi-room wireless home audio[26] - The company emphasizes innovation to enhance audio content accessibility and user control[26] - Sonos is headquartered in Santa Barbara, California, highlighting its operational base[26]