SONOS(SONO) - 2025 Q1 - Quarterly Results

Financial Performance - Q1 Fiscal 2025 revenue was $551 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 $80.9 million in the same quarter last year[10] - Non-GAAP net income was $79.2 million, with a diluted EPS of $0.64[5] - Operating income decreased to $48.09 million from $79.70 million year-over-year[10] - GAAP net income for Q4 2024 was $50,237, a decrease of 38% from $80,947 in Q4 2023[19] - Adjusted EBITDA for Q4 2024 was $91,173, down 20.9% from $115,242 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 $612,869 in Q4 2023[20] - Non-GAAP net income for Q4 2024 was $79,237, down from $106,108 in Q4 2023[19] - Free cash flow for Q4 2024 was $143,067, down from $269,324 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 $18 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 $169.73 million quarter-over-quarter[14] - Total current assets rose to $612.53 million, compared to $551.09 million in the previous quarter[12] Revenue Breakdown - Revenue from Sonos speakers decreased to $467,142 in Q4 2024 from $503,011 in Q4 2023, while Sonos system products revenue fell to $60,274 from $84,562[20] - Revenue from the Americas region decreased to $324,583 in Q4 2024 from $392,439 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]