Sonos Tops Q3 EPS by 13c, Revenue and Guidance Miss Consensus

Published 10/08/2022, 21:22

Sonos (NASDAQ:SONO) reported Q3 EPS of $0.19, $0.13 better than the analyst estimate of $0.06. Revenue for the quarter came in at $371.8 million versus the consensus estimate of $424.03 million.

GUIDANCE:

Sonos sees FY2022 revenue of $1.73-1.76 billion, versus the consensus of $1.96 billion.

  • Revenue in the range of $1.730 billion to $1.755 billion, representing growth of 1% to 2% from fiscal 2021, or growth of 4% to 5% on a constant currency basis. This compares to a prior outlook range of $1.95 billion to $2.0 billion, which represented growth of 14% to 16% from fiscal 2021
  • Gross margin in the range of 45.7% to 45.9%, narrowed from previous gross margin range of 45.5% to 46.0%
  • Adjusted EBITDA in the range of $215 million to $230 million, representing a decline of 23% to 17% from fiscal 2021. This compares to a prior outlook range of $290 million to $310 million, which represented growth of 4% to 11%
  • Adjusted EBITDA margin of 12.4% to 13.1%, compared to prior outlook range of 14.9% to 15.5%
  • Fiscal 2024 Targets
  • Due to the uncertain and evolving macroeconomic backdrop, the timeline to achieve the Company’s previously issued targets of $2.5 billion revenue, 45-47% gross margins and 15-18% Adjusted EBITDA margins is being extended beyond FY2024

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