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Oct 03, 2020
Sonos Q4 2020 Earnings Report
Reported record fourth quarter and fiscal year 2020 results, demonstrating the power and profitability of its business model.
Key Takeaways
Sonos reported record fourth quarter results with revenue increasing 16% year-over-year to $339.8 million. GAAP net income increased to $18.4 million, and GAAP diluted EPS increased to $0.15. The company reached an inflection point, demonstrating the power and profitability of its business model.
GAAP net income increased to $18.4 million from ($29.6) million last year; non-GAAP net income increased to $40.7 million from ($16.6) million last year.
GAAP diluted earnings per share (EPS) increased to $0.15 from ($0.28) last year; non-GAAP diluted earnings per share (EPS) increased to $0.33 from ($0.15) last year.
Revenue increased 16% year-over-year to $339.8 million; excluding the impact of the 14th week, revenue increased approximately 7% year-over-year.
Direct-to-consumer revenue increased 67% year-over-year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Sonos anticipates revenue between $1.44 billion and $1.5 billion, representing growth in the range of 11% to 15% from fiscal 2020. They expect adjusted EBITDA in the range of $170 million to $205 million, and adjusted EBITDA margin in the range of 12% to 14%.
Positive Outlook
- Revenue growth of 11% to 15% from fiscal 2020
- Adjusted EBITDA in the range of $170 million to $205 million
- Adjusted EBITDA margin in the range of 12% to 14%
- Gross margin improvement year-over-year
- Direct-to-consumer revenue as a percentage of total revenue similar to fiscal 2020
Challenges Ahead
- Minimal impact from ongoing tariffs.
- No impact from the potential tariff refund.
- Uncertainty and challenges stemming from the COVID-19 pandemic.
- Changes in general economic or market conditions
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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