The earnings call reflected a challenging year for Sonos, with significant revenue impacts due to app rollout issues and a challenging market environment, particularly in EMEA. However, the company showed resilience with successful new product launches, increased customer loyalty, and strong cash management. Transformational initiatives are underway to improve efficiency and profitability.

Company Guidance

During the Sonos Q4 2024 earnings call, the company provided detailed guidance and metrics despite the challenges faced during the fiscal year. Sonos reported fiscal 2024 revenues of $1.52 billion, with the Americas and APAC regions experiencing declines of 4% and 7%, respectively, while EMEA saw a 17% decrease due to macroeconomic pressures. The GAAP gross margin improved by 210 basis points year-over-year to 45.4%, driven by lower component costs. Non-GAAP adjusted operating expenses were $634 million, with adjusted EBITDA reaching $107.9 million, representing a 7.1% margin. The company’s active household base grew to 16.3 million, and the average number of products in multi-product households increased to 4.42. Looking ahead, Sonos provided Q1 2025 guidance with revenue expected between $480 million and $560 million, a sequential increase of 88% to 119%. The company has committed to app recovery investments of $20 million to $30 million to address challenges with its software rollout. Additionally, Sonos aims to drive sustainable, profitable growth by implementing transformational cost initiatives across G&A, R&D, and sales and marketing functions.

New Product Launches

Sonos successfully launched new products, including Arc Ultra, Sub 4, and Ace headphones, with positive feedback and high customer ratings. Arc Ultra incorporates innovative Sound Motion technology.

Increase in Products Per Home

Despite challenges, the average number of Sonos products per home increased to 4.42, reflecting customer loyalty and satisfaction.

Strong Financial Management

Sonos managed to keep a flat net cash position of $221 million, despite the challenging year, and improved free cash flow by $85 million.

Transformation Initiatives

Sonos began implementing transformational cost initiatives, including a 6% reduction in force and leveraging AI to improve customer service efficiency.

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Sonos (SONO) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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SONO Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Sep 10, 2018	2018 (Q3)	- / -0.45	-0.148	-204.05% (-0.30)	―	―
Nov 15, 2018	2018 (Q4)	- / -0.02	-0.152	86.84% (+0.13)	―	―
Feb 06, 2019	2019 (Q1)	- / 0.63	0.251	149.80% (+0.38)	―	―
May 09, 2019	2019 (Q2)	- / -0.11	-0.25	55.20% (+0.14)	―	―
Aug 07, 2019	2019 (Q3)	- / -0.13	-0.45	71.11% (+0.32)	―	―
Nov 20, 2019	2019 (Q4)	- / -0.28	-0.02	-1300.00% (-0.26)	―	―
Feb 05, 2020	2020 (Q1)	- / 0.60	0.627	-4.31% (-0.03)	―	―
May 06, 2020	2020 (Q2)	- / -0.48	-0.112	-328.57% (-0.37)	―	―
Aug 05, 2020	2020 (Q3)	- / -0.52	-0.13	-300.00% (-0.39)	―	―
Nov 18, 2020	2020 (Q4)	- / 0.15	-0.28	153.57% (+0.43)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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SONO Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 13, 2024	$14.08	$13.75	-2.34%
Aug 07, 2024	$11.97	$11.78	-1.59%
May 07, 2024	$17.58	$16.84	-4.21%
Feb 06, 2024	$16.46	$19.28	+17.13%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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