Sonos Reports First Quarter Fiscal 2025 Results
Sonos (SONO) reported Q1 fiscal 2025 results with revenue of $551 million, near the high-end of guidance. The company achieved GAAP gross margin of 43.8% and GAAP net income of $50.2 million ($0.40 per share). Non-GAAP net income was $79.2 million ($0.64 per share), with Adjusted EBITDA of $91.2 million.
The company announced a significant reorganization, including a reduction in force affecting approximately 12% of employees. This restructuring is expected to result in charges of $15-18 million, primarily related to severance and benefits costs, to be incurred in Q2 fiscal 2025.
Revenue breakdown shows Sonos speakers generated $467.1 million, system products $60.3 million, and partner products $23.4 million. Geographically, Americas contributed $324.6 million, EMEA $197.6 million, and Asia Pacific $28.7 million.
Sonos (SONO) ha riportato i risultati del primo trimestre fiscale 2025 con un fatturato di 551 milioni di dollari, vicino al limite superiore delle previsioni. L'azienda ha raggiunto un margine lordo GAAP del 43,8% e un utile netto GAAP di 50,2 milioni di dollari (0,40 dollari per azione). L'utile netto non-GAAP è stato di 79,2 milioni di dollari (0,64 dollari per azione), con un EBITDA rettificato di 91,2 milioni di dollari.
L'azienda ha annunciato una significativa riorganizzazione, inclusa una riduzione di personale che colpirà circa il 12% dei dipendenti. Questa ristrutturazione dovrebbe comportare costi tra 15 e 18 milioni di dollari, principalmente legati ai costi di liquidazione e benefici, che verranno sostenuti nel secondo trimestre fiscale 2025.
La suddivisione del fatturato mostra che gli altoparlanti Sonos hanno generato 467,1 milioni di dollari, i prodotti di sistema 60,3 milioni di dollari e i prodotti partner 23,4 milioni di dollari. Geograficamente, le Americhe hanno contribuito con 324,6 milioni di dollari, l'EMEA con 197,6 milioni di dollari e l'Asia-Pacifico con 28,7 milioni di dollari.
Sonos (SONO) informó los resultados del primer trimestre fiscal 2025 con ingresos de $551 millones, cerca del extremo superior de la guía. La compañía logró un margen bruto GAAP del 43.8% y un ingreso neto GAAP de $50.2 millones ($0.40 por acción). El ingreso neto no-GAAP fue de $79.2 millones ($0.64 por acción), con un EBITDA ajustado de $91.2 millones.
La empresa anunció una reestructuración significativa, que incluye una reducción de personal que afectará aproximadamente al 12% de los empleados. Se espera que esta reestructuración resulte en cargos de $15 a $18 millones, principalmente relacionados con costos de despido y beneficios, que se incurrirán en el segundo trimestre fiscal 2025.
El desglose de los ingresos muestra que los altavoces Sonos generaron $467.1 millones, los productos de sistema $60.3 millones y los productos de socios $23.4 millones. Geográficamente, las Américas contribuyeron con $324.6 millones, EMEA con $197.6 millones, y Asia-Pacífico con $28.7 millones.
Sonos (SONO)는 2025 회계연도 1분기 실적을 보고하며 매출이 5억 5,100만 달러로 가이드의 상위 범위에 근접했다고 발표했습니다. 회사는 GAAP 총 이익률 43.8%와 GAAP 순이익 5,020만 달러($0.40 주당)를 달성했습니다. 비GAAP 순이익은 7,920만 달러($0.64 주당)였으며, 조정된 EBITDA는 9,120만 달러였습니다.
회사는 약 12%의 직원에 영향을 미치는 인원 감축을 포함한 중대한 조직 개편을 발표했습니다. 이번 구조 조정에 따라 해고 및 복리후생 비용과 관련된 1,500만에서 1,800만 달러의 비용이 발생할 것으로 예상되며, 이는 2025 회계연도 2분기에 발생할 예정입니다.
매출 breakdown에 따르면, Sonos 스피커는 4억 6,710만 달러, 시스템 제품은 6,030만 달러, 파트너 제품은 2,340만 달러를 생성했습니다. 지리적으로는 아메리카가 3억 2,460만 달러, EMEA가 1억 9,760만 달러, 아시아 태평양이 2,870만 달러를 기여했습니다.
Sonos (SONO) a publié les résultats du premier trimestre de l'exercice fiscal 2025 avec un chiffre d'affaires de 551 millions de dollars, proche de l'extrémité supérieure des prévisions. L'entreprise a atteint une marge brute GAAP de 43,8 % et un bénéfice net GAAP de 50,2 millions de dollars (0,40 dollar par action). Le bénéfice net non-GAAP s'élevait à 79,2 millions de dollars (0,64 dollar par action), avec un EBITDA ajusté de 91,2 millions de dollars.
L'entreprise a annoncé une réorganisation significative, incluant une réduction de personnel touchant environ 12 % des employés. Cette restructuration devrait entraîner des charges de 15 à 18 millions de dollars, principalement liées aux coûts de licenciement et aux avantages, à engager au deuxième trimestre de l'exercice fiscal 2025.
La répartition des revenus montre que les haut-parleurs Sonos ont généré 467,1 millions de dollars, les produits système 60,3 millions de dollars, et les produits partenaires 23,4 millions de dollars. Géo-régionnellement, les Amériques ont contribué avec 324,6 millions de dollars, EMEA avec 197,6 millions de dollars, et l'Asie-Pacifique avec 28,7 millions de dollars.
Sonos (SONO) hat die Ergebnisse des ersten Quartals des Geschäftsjahres 2025 mit einem Umsatz von 551 Millionen Dollar gemeldet, was nahe am oberen Ende der Prognose liegt. Das Unternehmen erreichte eine GAAP-Bruttomarge von 43,8 % und einen GAAP-Nettoeinkommen von 50,2 Millionen Dollar (0,40 Dollar pro Aktie). Das Non-GAAP-Nettoeinkommen betrug 79,2 Millionen Dollar (0,64 Dollar pro Aktie), mit einem bereinigten EBITDA von 91,2 Millionen Dollar.
Das Unternehmen kündigte eine erhebliche Reorganisation an, einschließlich einer Reduzierung des Personals, die etwa 12 % der Mitarbeiter betrifft. Diese Umstrukturierung wird voraussichtlich zu Kosten von 15 bis 18 Millionen Dollar führen, die hauptsächlich mit Abfindungen und Sozialleistungen zusammenhängen, und die im zweiten Quartal des Geschäftsjahres 2025 anfallen werden.
Die Umsatzaufteilung zeigt, dass Sonos-Lautsprecher 467,1 Millionen Dollar, Systemprodukte 60,3 Millionen Dollar und Partnerprodukte 23,4 Millionen Dollar generierten. Geografisch trugen die Americas 324,6 Millionen Dollar, EMEA 197,6 Millionen Dollar und Asien-Pazifik 28,7 Millionen Dollar bei.
- Revenue of $551 million near high-end of guidance
- GAAP net income of $50.2 million
- Strong gross margin of 43.8%
- Positive free cash flow of $143.1 million
- Year-over-year revenue decline from $612.9M to $550.9M
- 12% workforce reduction with $15-18M in restructuring charges
- Decreased Adjusted EBITDA margin from 18.8% to 16.6%
- Lower net income compared to prior year ($50.2M vs $80.9M)
Insights
The Q1 results reveal a company actively restructuring for improved operational efficiency despite challenging market conditions. While revenue declined
The reduction in workforce, while substantial at
Regional performance shows interesting dynamics: while Americas revenue declined
The maintenance of a healthy gross margin at
Q1 revenue near high-end of guidance range, announced reduction in force
“Yesterday we implemented important organizational changes that mark the start of a new chapter of efficiency and growth for Sonos,” said Tom Conrad, Sonos Interim CEO. “I see tremendous opportunity in front of us. The team and I are hard at work improving the core experience for our customers while designing the next set of Sonos products and innovations. It’s an honor to show up every day to do this work with the talented Sonos team.”
“Our Q1 results show our team’s commitment to execution as we navigate a difficult environment,” commented Saori Casey, Sonos Chief Financial Officer. “We continue to make great progress in our transformation journey that will set us up well for the future.”
First Quarter Fiscal 2025 Financial Highlights (unaudited)
-
Revenue of
$551 million -
GAAP gross margin of
43.8% -
GAAP net income of
, GAAP diluted earnings per share (EPS) of$50.2 million $0.40 -
Non-GAAP net income1 of
, Non-GAAP diluted EPS1 of$79.2 million $0.64 -
Adjusted EBITDA1 of
$91.2 million
Notes:
(1) Non-GAAP net income/Non-GAAP diluted earnings per share (EPS) and Adjusted EBITDA exclude stock-based compensation, legal and transaction related fees, amortization of intangibles, and restructuring and abandonment costs. See “Use of Non-GAAP Measures” and reconciliations to GAAP measures below.
Reorganization and Reduction in Force
-
The company announced a reorganization and reduction in force involving approximately
12% of its employees in a Form 8-K filed with the SEC on February 5, 2025 -
The company estimates that it will incur approximately
to$15 of restructuring and related charges, substantially all of which are related to employee severance and benefits costs. The company expects to incur substantially all of the restructuring and related charges in the second quarter of fiscal 2025$18 million
Guidance
The company will provide guidance on its First Quarter Fiscal 2025 earnings call.
Supplemental Earnings Presentation
The company has posted a supplemental earnings presentation accompanying its First Quarter Fiscal 2025 results to the Earnings Reports section of its investor relations website at https://investors.sonos.com/reports-and-filings/default.aspx#section=earningsreports.
Conference Call, Webcast and Transcript
The company will host a webcast of its conference call and Q&A related to its First Quarter Fiscal 2025 results on February 6, 2025, at 4:15 p.m. Eastern Time (1:15 p.m. Pacific Time). Participants may access the live webcast in listen-only mode on the Sonos investor relations website at https://investors.sonos.com/news-and-events/default.aspx.
The conference call may also be accessed by dialing (888) 330-2454 with conference ID 8641747. Participants outside the
An archived webcast of the conference call and a transcript of the company’s prepared remarks and Q&A session will also be available at https://investors.sonos.com/reports-and-filings/default.aspx#section=earningsreports following the call.
Consolidated Statements of Operations and Comprehensive Income |
||||||||
(unaudited, in thousands, except share and per share amounts) |
||||||||
|
|
|
|
|
||||
|
|
Three Months Ended |
||||||
|
|
December 28, 2024 |
|
December 30, 2023 |
||||
Revenue |
|
$ |
550,857 |
|
|
$ |
612,869 |
|
Cost of revenue |
|
|
309,451 |
|
|
|
330,190 |
|
Gross profit |
|
|
241,406 |
|
|
|
282,679 |
|
Operating expenses |
|
|
|
|
||||
Research and development |
|
|
80,838 |
|
|
|
79,235 |
|
Sales and marketing |
|
|
86,644 |
|
|
|
83,950 |
|
General and administrative |
|
|
25,831 |
|
|
|
39,799 |
|
Total operating expenses |
|
|
193,313 |
|
|
|
202,984 |
|
Operating income |
|
|
48,093 |
|
|
|
79,695 |
|
Other income (expense), net |
|
|
|
|
||||
Interest income |
|
|
1,861 |
|
|
|
3,075 |
|
Interest expense |
|
|
(110 |
) |
|
|
(105 |
) |
Other (expense) income, net |
|
|
(6,029 |
) |
|
|
10,274 |
|
Total other (expense) income, net |
|
|
(4,278 |
) |
|
|
13,244 |
|
Income before (benefit from) provision for income taxes |
|
|
43,815 |
|
|
|
92,939 |
|
(Benefit from) provision for income taxes |
|
|
(6,422 |
) |
|
|
11,992 |
|
Net income |
|
$ |
50,237 |
|
|
$ |
80,947 |
|
|
|
|
|
|
||||
Net income attributable to common stockholders: |
|
|
|
|
||||
Basic and diluted |
|
$ |
50,237 |
|
|
$ |
80,947 |
|
|
|
|
|
|
||||
Net income per share attributable to common stockholders: |
|
|
|
|
||||
Basic |
|
$ |
0.41 |
|
|
$ |
0.65 |
|
Diluted |
|
$ |
0.40 |
|
|
$ |
0.64 |
|
|
|
|
|
|
||||
Weighted-average shares used in computing net income per share attributable to common stockholders: |
|
|
|
|
||||
Basic |
|
|
122,071,586 |
|
|
|
125,181,717 |
|
Diluted |
|
|
124,731,619 |
|
|
|
126,742,153 |
|
|
|
|
|
|
||||
Total comprehensive income |
|
|
|
|
||||
Net income |
|
|
50,237 |
|
|
|
80,947 |
|
Change in foreign currency translation adjustment |
|
|
(1,116 |
) |
|
|
(863 |
) |
Net unrealized gain on marketable securities |
|
|
(84 |
) |
|
|
— |
|
Comprehensive income |
|
$ |
49,037 |
|
|
$ |
80,084 |
|
Consolidated Balance Sheets |
||||||||
(unaudited, in thousands, except par values) |
||||||||
|
|
As of |
||||||
|
|
December 28, 2024 |
|
September 28, 2024 |
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
279,955 |
|
|
$ |
169,732 |
|
Marketable securities |
|
|
47,902 |
|
|
|
51,426 |
|
Accounts receivable, net |
|
|
84,786 |
|
|
|
44,513 |
|
Inventories |
|
|
140,892 |
|
|
|
231,505 |
|
Prepaids and other current assets |
|
|
58,991 |
|
|
|
53,910 |
|
Total current assets |
|
|
612,526 |
|
|
|
551,086 |
|
Property and equipment, net |
|
|
95,028 |
|
|
|
102,148 |
|
Operating lease right-of-use assets |
|
|
47,935 |
|
|
|
50,175 |
|
Goodwill |
|
|
82,854 |
|
|
|
82,854 |
|
Intangible assets, net |
|
|
|
|
||||
In-process research and development |
|
|
— |
|
|
|
73,770 |
|
Other intangible assets |
|
|
84,488 |
|
|
|
14,266 |
|
Deferred tax assets |
|
|
9,654 |
|
|
|
10,314 |
|
Other noncurrent assets |
|
|
31,120 |
|
|
|
31,699 |
|
Total assets |
|
$ |
963,605 |
|
|
$ |
916,312 |
|
|
|
|
|
|
||||
Liabilities and stockholders’ equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
162,080 |
|
|
$ |
194,590 |
|
Accrued expenses |
|
|
108,871 |
|
|
|
87,783 |
|
Accrued compensation |
|
|
28,509 |
|
|
|
15,701 |
|
Deferred revenue, current |
|
|
20,973 |
|
|
|
21,802 |
|
Other current liabilities |
|
|
52,081 |
|
|
|
46,277 |
|
Total current liabilities |
|
|
372,514 |
|
|
|
366,153 |
|
Operating lease liabilities, noncurrent |
|
|
56,786 |
|
|
|
56,588 |
|
Deferred revenue, noncurrent |
|
|
61,245 |
|
|
|
61,075 |
|
Deferred tax liabilities |
|
|
176 |
|
|
|
60 |
|
Other noncurrent liabilities |
|
|
3,757 |
|
|
|
3,816 |
|
Total liabilities |
|
|
494,478 |
|
|
|
487,692 |
|
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Common stock, |
|
|
125 |
|
|
|
123 |
|
Treasury stock |
|
|
(48,504 |
) |
|
|
(17,096 |
) |
Additional paid-in capital |
|
|
521,121 |
|
|
|
498,245 |
|
Accumulated deficit |
|
|
(697 |
) |
|
|
(50,934 |
) |
Accumulated other comprehensive loss |
|
|
(2,918 |
) |
|
|
(1,718 |
) |
Total stockholders’ equity |
|
|
469,127 |
|
|
|
428,620 |
|
Total liabilities and stockholders’ equity |
|
$ |
963,605 |
|
|
$ |
916,312 |
|
Consolidated Statements of Cash Flows |
||||||||
(unaudited, dollars in thousands) |
||||||||
|
|
Three Months Ended |
||||||
|
|
December 28, 2024 |
|
December 30, 2023 |
||||
Cash flows from operating activities |
|
|
|
|
||||
Net income |
|
$ |
50,237 |
|
|
$ |
80,947 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Stock-based compensation expense |
|
|
25,334 |
|
|
|
19,358 |
|
Depreciation and amortization |
|
|
17,611 |
|
|
|
11,878 |
|
Provision for inventory obsolescence |
|
|
1,305 |
|
|
|
5,837 |
|
Restructuring and abandonment charges |
|
|
— |
|
|
|
260 |
|
Deferred income taxes |
|
|
123 |
|
|
|
(45 |
) |
Other |
|
|
841 |
|
|
|
1,236 |
|
Foreign currency transaction loss (gain) |
|
|
2,129 |
|
|
|
(7,388 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
(41,374 |
) |
|
|
(12,215 |
) |
Inventories |
|
|
89,308 |
|
|
|
167,641 |
|
Other assets |
|
|
(6,437 |
) |
|
|
(12,878 |
) |
Accounts payable and accrued expenses |
|
|
(5,940 |
) |
|
|
(7,429 |
) |
Accrued compensation |
|
|
12,394 |
|
|
|
5,988 |
|
Deferred revenue |
|
|
1,513 |
|
|
|
3,660 |
|
Other liabilities |
|
|
9,129 |
|
|
|
18,551 |
|
Net cash provided by operating activities |
|
|
156,173 |
|
|
|
275,401 |
|
Cash flows from investing activities |
|
|
|
|
||||
Purchases of marketable securities |
|
|
(10,128 |
) |
|
|
— |
|
Purchases of property and equipment |
|
|
(13,106 |
) |
|
|
(6,077 |
) |
Maturities of marketable securities |
|
|
13,900 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(9,334 |
) |
|
|
(6,077 |
) |
Cash flows from financing activities |
|
|
|
|
||||
Payments for repurchase of common stock, including excise tax and commission |
|
|
(27,165 |
) |
|
|
(23,484 |
) |
Payments for repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock units |
|
|
(9,044 |
) |
|
|
(3,745 |
) |
Proceeds from exercise of stock options |
|
|
2,411 |
|
|
|
3,538 |
|
Net cash used in financing activities |
|
|
(33,798 |
) |
|
|
(23,691 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(2,818 |
) |
|
|
1,478 |
|
Net increase in cash and cash equivalents |
|
|
110,223 |
|
|
|
247,111 |
|
Cash and cash equivalents |
|
|
|
|
||||
Beginning of period |
|
|
169,732 |
|
|
|
220,231 |
|
End of period |
|
$ |
279,955 |
|
|
$ |
467,342 |
|
Supplemental disclosure |
|
|
|
|
||||
Cash paid for interest |
|
$ |
63 |
|
|
$ |
58 |
|
Cash paid for taxes, net of refunds |
|
$ |
658 |
|
|
$ |
3,684 |
|
Cash paid for amounts included in the measurement of lease liabilities, net of tenant improvement reimbursements received |
|
$ |
(2,531 |
) |
|
$ |
2,601 |
|
Supplemental disclosure of non-cash investing and financing activities |
|
|
|
|
||||
Purchases of property and equipment in accounts payable and accrued expenses |
|
$ |
3,693 |
|
|
$ |
6,141 |
|
Right-of-use assets obtained in exchange for new operating lease liabilities |
|
$ |
— |
|
|
$ |
7,637 |
|
Excise tax on share repurchases, accrued but not paid |
|
$ |
668 |
|
|
$ |
— |
|
Reconciliation of GAAP to Non-GAAP Cost of Revenue and Gross Profit |
||||||||
(unaudited, in thousands, except percentages) |
||||||||
|
|
Three Months Ended |
||||||
|
|
December 28, 2024 |
|
December 30, 2023 |
||||
Reconciliation of GAAP cost of revenue |
|
|
|
|
||||
GAAP cost of revenue |
|
$ |
309,451 |
|
|
$ |
330,190 |
|
Stock-based compensation expense |
|
|
1,349 |
|
|
|
654 |
|
Amortization of intangibles |
|
|
3,330 |
|
|
|
972 |
|
Non-GAAP cost of revenue |
|
$ |
304,772 |
|
|
$ |
328,564 |
|
|
|
|
|
|
||||
Reconciliation of GAAP gross profit |
|
|
|
|
||||
GAAP gross profit |
|
$ |
241,406 |
|
|
$ |
282,679 |
|
Stock-based compensation expense |
|
|
1,349 |
|
|
|
654 |
|
Amortization of intangibles |
|
|
3,330 |
|
|
|
972 |
|
Non-GAAP gross profit |
|
$ |
246,085 |
|
|
$ |
284,305 |
|
|
|
|
|
|
||||
GAAP gross margin |
|
|
43.8 |
% |
|
|
46.1 |
% |
Non-GAAP gross margin |
|
|
44.7 |
% |
|
|
46.4 |
% |
Reconciliation of Selected Non-GAAP Financial Measures |
|||||||
(unaudited, dollars in thousands) |
|||||||
|
|
Three Months Ended |
|||||
|
|
December 28, 2024 |
|
December 30, 2023 |
|||
GAAP Research and Development |
|
$ |
80,838 |
|
|
$ |
79,235 |
Stock-based compensation |
|
|
13,315 |
|
|
|
8,979 |
Amortization of intangibles |
|
|
178 |
|
|
|
496 |
Restructuring and abandonment costs |
|
|
(60 |
) |
|
|
323 |
Non-GAAP Research and Development |
|
$ |
67,405 |
|
|
$ |
69,437 |
|
|
|
|
|
|||
GAAP Sales and Marketing |
|
$ |
86,644 |
|
|
$ |
83,950 |
Stock-based compensation |
|
|
5,632 |
|
|
|
3,815 |
Amortization of intangibles |
|
|
- |
|
|
|
- |
Restructuring and abandonment costs |
|
|
- |
|
|
|
113 |
Non-GAAP Sales and Marketing |
|
$ |
81,012 |
|
|
$ |
80,022 |
|
|
|
|
|
|||
GAAP General and Administrative |
|
|
25,831 |
|
|
|
39,799 |
Stock-based compensation |
|
|
5,038 |
|
|
|
5,910 |
Legal and transaction related costs |
|
|
195 |
|
|
|
3,743 |
Amortization of intangibles |
|
|
23 |
|
|
|
24 |
Restructuring and abandonment costs |
|
|
- |
|
|
|
132 |
Non-GAAP General and Administrative |
|
$ |
20,575 |
|
|
$ |
29,990 |
|
|
|
|
|
|||
GAAP Operating Expenses |
|
$ |
193,313 |
|
|
$ |
202,984 |
Stock-based compensation |
|
|
23,985 |
|
|
|
18,704 |
Legal and transaction related costs |
|
|
195 |
|
|
|
3,743 |
Amortization of intangibles |
|
|
201 |
|
|
|
520 |
Restructuring and abandonment costs |
|
|
(60 |
) |
|
|
568 |
Non-GAAP Operating Expenses |
|
$ |
168,992 |
|
|
$ |
179,449 |
|
|
|
|
|
|||
GAAP Operating Income |
|
$ |
48,093 |
|
|
$ |
79,695 |
Stock-based compensation |
|
|
25,334 |
|
|
|
19,358 |
Legal and transaction related costs |
|
|
195 |
|
|
|
3,743 |
Amortization of intangibles |
|
|
3,531 |
|
|
|
1,492 |
Restructuring and abandonment costs |
|
|
(60 |
) |
|
|
568 |
Non-GAAP Operating Income |
|
$ |
77,093 |
|
|
$ |
104,856 |
Depreciation |
|
|
14,080 |
|
|
|
10,386 |
Adjusted EBITDA (Non-GAAP) |
|
$ |
91,173 |
|
|
$ |
115,242 |
Reconciliation of Net Income to Adjusted EBITDA |
||||||||
(unaudited, dollars in thousands except percentages) |
||||||||
|
|
Three Months Ended |
||||||
|
|
December 28, 2024 |
|
December 30, 2023 |
||||
(In thousands, except percentages) |
|
|
|
|
||||
Net income |
|
$ |
50,237 |
|
|
$ |
80,947 |
|
Add (deduct): |
|
|
|
|
||||
Depreciation and amortization |
|
|
17,611 |
|
|
|
11,878 |
|
Stock-based compensation expense |
|
|
25,334 |
|
|
|
19,358 |
|
Interest income |
|
|
(1,861 |
) |
|
|
(3,075 |
) |
Interest expense |
|
|
110 |
|
|
|
105 |
|
Other expense (income), net |
|
|
6,029 |
|
|
|
(10,274 |
) |
(Benefit from) provision for income taxes |
|
|
(6,422 |
) |
|
|
11,992 |
|
Legal and transaction related costs (1) |
|
|
195 |
|
|
|
3,743 |
|
Restructuring and abandonment costs (2) |
|
|
(60 |
) |
|
|
568 |
|
Adjusted EBITDA |
|
$ |
91,173 |
|
|
$ |
115,242 |
|
Revenue |
|
$ |
550,857 |
|
|
$ |
612,869 |
|
Net income margin |
|
|
9.1 |
% |
|
|
13.2 |
% |
Adjusted EBITDA margin |
|
|
16.6 |
% |
|
|
18.8 |
% |
(1) Legal and transaction-related costs consist of expenses related to our intellectual property ("IP") litigation against Alphabet and Google, as well as legal and transaction costs associated with our acquisition activity, which we do not consider representative of our underlying operating performance. |
||||||||
(2) On August 14, 2024, we initiated a restructuring plan to reduce our cost base involving approximately |
Reconciliation of GAAP Net Income to Non-GAAP Net Income |
|||||||
(unaudited, in thousands, except share and per share amounts) |
|||||||
|
|
Three Months Ended |
|||||
|
|
December 28, 2024 |
|
December 30, 2023 |
|||
Reconciliation of GAAP net income |
|
|
|
|
|||
GAAP net income |
|
$ |
50,237 |
|
|
$ |
80,947 |
Stock-based compensation expense |
|
|
25,334 |
|
|
|
19,358 |
Legal and transaction related costs |
|
|
195 |
|
|
|
3,743 |
Amortization of intangibles |
|
|
3,531 |
|
|
|
1,492 |
Restructuring and abandonment costs |
|
|
(60 |
) |
|
|
568 |
Non-GAAP net income |
|
$ |
79,237 |
|
|
$ |
106,108 |
|
|
|
|
|
|||
Net income per share |
|
|
|
|
|||
GAAP net income per share, diluted |
|
$ |
0.40 |
|
|
$ |
0.64 |
Non-GAAP net income per share, diluted |
|
$ |
0.64 |
|
|
$ |
0.84 |
|
|
|
|
|
|||
Shares used to calculate net income per share |
|
|
|
|
|||
Weighted-average shares GAAP, diluted |
|
|
124,731,619 |
|
|
|
126,742,153 |
Weighted-average shares non-GAAP, diluted |
|
|
124,731,619 |
|
|
|
126,742,153 |
Reconciliation of Cash Flows Provided by Operating Activities to Free Cash Flow |
||||||||
(unaudited, dollars in thousands) |
||||||||
|
|
Three Months Ended |
||||||
|
|
December 28, 2024 |
|
December 30, 2023 |
||||
Cash flows provided by operating activities |
|
$ |
156,173 |
|
|
$ |
275,401 |
|
Less: Purchases of property and equipment |
|
|
(13,106 |
) |
|
|
(6,077 |
) |
Free cash flow |
|
$ |
143,067 |
|
|
$ |
269,324 |
|
Revenue by Product Category |
||||||
(unaudited, dollars in thousands) |
||||||
|
|
Three Months Ended |
||||
|
|
December 28, 2024 |
|
December 30, 2023 |
||
(In thousands) |
|
|
|
|
||
Sonos speakers |
|
$ |
467,142 |
|
$ |
503,011 |
Sonos system products |
|
|
60,274 |
|
|
84,562 |
Partner products and other revenue |
|
|
23,441 |
|
|
25,296 |
Total revenue |
|
$ |
550,857 |
|
$ |
612,869 |
Revenue by Geographical Region |
||||||
(unaudited, dollars in thousands) |
||||||
|
|
Three Months Ended |
||||
|
|
December 28, 2024 |
|
December 30, 2023 |
||
|
|
$ |
324,583 |
|
$ |
392,439 |
|
|
|
197,612 |
|
|
191,817 |
|
|
|
28,662 |
|
|
28,613 |
Total revenue |
|
$ |
550,857 |
|
$ |
612,869 |
Stock-based Compensation |
||||||
(unaudited, dollars in thousands) |
||||||
|
|
Three Months Ended |
||||
|
|
December 28, 2024 |
|
December 30, 2023 |
||
(In thousands) |
|
|
|
|
||
Cost of revenue |
|
$ |
1,349 |
|
$ |
654 |
Research and development |
|
|
13,315 |
|
|
8,979 |
Sales and marketing |
|
|
5,632 |
|
|
3,815 |
General and administrative |
|
|
5,038 |
|
|
5,910 |
Total stock-based compensation expense |
|
$ |
25,334 |
|
$ |
19,358 |
Amortization of Intangibles |
||||||
(unaudited, dollars in thousands) |
||||||
|
|
Three Months Ended |
||||
|
|
December 28, 2024 |
|
December 30, 2023 |
||
Cost of revenue |
|
$ |
3,330 |
|
$ |
972 |
Research and development |
|
|
178 |
|
|
496 |
Sales and marketing |
|
|
- |
|
|
- |
General and administrative |
|
|
23 |
|
|
24 |
Total amortization of intangibles |
|
$ |
3,531 |
|
$ |
1,492 |
Use of Non-GAAP Measures
We have provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles (“U.S. GAAP”), including adjusted EBITDA, adjusted EBITDA margin, free cash flow, non-GAAP gross margin, net income excluding stock-based compensation, legal and transaction related fees, amortization of intangibles, and restructuring and abandonment costs and diluted earnings per share excluding stock-based compensation, legal and transaction related fees, amortization of intangibles and restructuring and abandonment costs. These non-GAAP financial measures are not based on any standardized methodology prescribed by
Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding our long-term outlook, financial, growth and business strategies and opportunities, our product roadmap, market growth and our market share, our ability to expand our footprint with existing customers, our operating model and cost structure, our expectations with respect to restructuring and related charges and the timing and amounts of such charges, and other factors affecting variability in our financial results. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors, including, but not limited to: difficulties in and effect of implementing improvements to our operating model and cost structure; the risk that restructuring and related charges may be greater than anticipated or not occur in the expected time frame; local law requirements in various jurisdictions regarding elimination of positions; our ability to accurately forecast product demand and effectively forecast and manage owned and channel inventory levels; our ability to introduce software updates to our new app on a timely basis and otherwise deliver on our action plan to address issues caused by our new app and related customer commitments; our ability to maintain, enhance and protect our brand image; the impact of global economic, market and political events, including continued inflationary pressures, high interest rates and, in certain markets, foreign currency exchange rate fluctuations; changes in consumer income and overall consumer spending as a result of economic or political uncertainty or conditions; changes in consumer spending patterns; our ability to successfully introduce new products and services and maintain or expand the success of our existing products; the success of our efforts to expand our direct-to-consumer channel; the success of our financial, growth and business strategies; our ability to compete in the market and maintain or expand market share; our ability to maintain relationships with our channel, distribution and technology partners; our ability to meet product demand and manage any product availability delays; supply chain challenges, including shipping and logistics challenges and component supply-related challenges; our ability to protect our brand and intellectual property; our use of artificial intelligence; and the other risk factors identified in our filings with the Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K and subsequent filings. Copies of our SEC filings are available free of charge at the SEC’s website at www.sec.gov, on our investor relations website at https://investors.sonos.com/reports-and-filings/default.aspx or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this press release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events. Sonos and Sonos product names are trademarks or registered trademarks of Sonos, Inc. All other product names and services may be trademarks or service marks of their respective owners.
About Sonos
Sonos (Nasdaq: SONO) is one of the world’s leading sound experience brands. As the inventor of multi-room wireless home audio, Sonos’ innovation helps the world listen better by giving people access to the content they love and allowing them to control it however they choose. Known for delivering an unparalleled sound experience, thoughtful home design aesthetic, simplicity of use and an open platform, Sonos makes the breadth of audio content available to anyone. Sonos is headquartered in
View source version on businesswire.com: https://www.businesswire.com/news/home/20250206441704/en/
Investor Contact
James Baglanis
IR@sonos.com
Press Contact
Erin Pategas
PR@sonos.com
Source: Sonos
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