SONOS(US:SONO)2022-08-10 22:16Revenue Performance - Total revenue for the three months ended July 2, 2022, was $371.8 million, a decrease of 1.4% compared to $378.7 million for the same period in 2021[104]. - For the nine months ended July 2, 2022, total revenue was $1.436 billion, an increase of 5.8% compared to $1.357 billion for the same period in 2021[104]. - Total revenue for the three months ended July 2, 2022, was $371.783 million, a decrease of 1.8% compared to $378.672 million for the same period in 2021[138]. - Revenue from Sonos speakers was $314.205 million, representing 84.5% of total revenue, with a 1.3% increase compared to the previous year[139]. - Sonos system products revenue decreased by 19.4% to $38.363 million, attributed to supply availability constraints[139]. - Partner products and other revenue decreased by 7.7% to $19.215 million, primarily due to lower accessory sales[139]. - Revenue in the Americas increased by 3.9%, while EMEA decreased by 10.7% and APAC decreased by 7.1%[140]. - In constant currency, total revenue increased by 2.2% for the three months ended July 2, 2022, compared to the same period in 2021[141]. Profitability Metrics - Net loss for the three months ended July 2, 2022, was $0.6 million, compared to a net income of $17.8 million for the same period in 2021[103]. - Adjusted EBITDA for the three months ended July 2, 2022, was $42.1 million, with an adjusted EBITDA margin of 11.3%, down from $46.7 million and 12.3% in the same period of 2021[104]. - Gross profit for the three months ended July 2, 2022, was $175.848 million, with a gross margin of 47.3%[136]. - Operating income for the three months ended July 2, 2022, was $6.960 million, representing an operating margin of 1.9%[136]. - Gross profit for the nine months ended July 2, 2022, increased by 4.5% to $672,267 from $643,062 in the prior year, while gross margin decreased by 60 basis points to 46.8%[152][153]. - Gross margin for the three months ended July 2, 2022, increased by 30 basis points to 47.3% compared to 47.0% in the prior year, driven by higher selling prices[151]. Expenses - Research and development expenses increased to $62.522 million, representing 16.8% of total revenue for the three months ended July 2, 2022[136]. - Research and development expenses for the nine months ended July 2, 2022, increased by 14.9% to $188,798 from $164,294 in the prior year, representing 13.1% of total revenue[156]. - Sales and marketing expenses for the nine months ended July 2, 2022, increased by 4.4% to $207,684 from $198,888 in the prior year, representing 14.5% of total revenue[158]. - General and administrative expenses for the nine months ended July 2, 2022, increased by 11.3% to $126,189 from $113,372 in the prior year, representing 8.8% of total revenue[161]. Cash Flow and Financial Position - Cash and cash equivalents as of July 2, 2022, totaled $439.7 million, including $74.3 million held by foreign subsidiaries[168]. - Net cash provided by operating activities for the nine months ended July 2, 2022, was $75.7 million, down from $246.7 million in 2021[174]. - Cash used in investing activities for the nine months ended July 2, 2022, was $(151.4 million), primarily for acquisitions and property purchases[176]. - Cash used in financing activities for the nine months ended July 2, 2022, was $(114.2 million), mainly for stock repurchases totaling $117.1 million[178]. - The company has a Revolving Credit Agreement allowing borrowing up to $100 million, with no outstanding borrowings as of July 2, 2022[172]. Foreign Exchange Impact - Foreign exchange rate fluctuations negatively impacted revenue, primarily due to the strengthening of the U.S. dollar against the euro[101]. - For the three months ended July 2, 2022, the company recognized a foreign currency loss of $9.9 million compared to a gain of $2.0 million for the same period in 2021[186]. - For the nine months ended July 2, 2022, the company reported a foreign currency loss of $13.5 million, while it had a gain of $4.6 million in the prior year[186]. - The strengthening of the U.S. dollar against the euro began in the latter part of Q2 2022 and continued into Q3 2022, potentially negatively impacting revenue and gross margins from foreign currency-denominated sales[186]. - A hypothetical adverse change of 10% in foreign currency transactions as of July 2, 2022, would have resulted in an adverse impact on income before taxes of approximately $4.5 million for Q3 2022 and $20.3 million for the nine months ended July 2, 2022[186]. Market and Product Strategy - The company plans to introduce new products to appeal to a broader consumer base and enhance its listening platform[116]. - The first fiscal quarter typically sees the highest revenue levels due to the holiday shopping season, although promotional activities were moderated in fiscal 2022[117]. - The company has experienced 16 consecutive years of revenue growth since its first product launch[98].