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Jul 02, 2022
Sonos Q3 2022 Earnings Report
Revenue decreased slightly, but profitability was impacted by macroeconomic headwinds.
Key Takeaways
Sonos reported a slight decrease in revenue for Q3 2022, with a GAAP net loss compared to net income in the same quarter last year. The company is adjusting its FY22 outlook due to a challenging macroeconomic environment.
Revenue decreased by 1.8% year-over-year to $371.8 million.
GAAP net loss was $0.6 million, compared to a net income of $17.8 million last year.
GAAP diluted EPS was $0.00, compared to $0.12 last year.
Free cash flow was ($16.0) million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Sonos expects revenue in the range of $1.730 billion to $1.755 billion, gross margin in the range of 45.7% to 45.9%, and adjusted EBITDA in the range of $215 million to $230 million for fiscal year 2022.
Positive Outlook
- Revenue growth of 1% to 2% from fiscal 2021.
- Constant currency revenue growth of 4% to 5%.
- Gross margin in the range of 45.7% to 45.9%.
- Company remains confident that, when macroeconomic conditions normalize, they will return to double-digit revenue growth
- Company expects to weather the current environment while operating from a position of strength
Challenges Ahead
- Revenue outlook lowered from previous range of $1.95 billion to $2.0 billion.
- Adjusted EBITDA expected to decline 23% to 17% from fiscal 2021.
- Adjusted EBITDA margin of 12.4% to 13.1%, compared to prior outlook range of 14.9% to 15.5%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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