SONO Earnings Prediction
The chart below shows how SONO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SONO sees a -0.24% change in stock price 10 days leading up to the earnings, and a -4.59% change 10 days following the report. On the earnings day itself, the stock moves by -0.56%. This data can give you a slight idea of what to expect for the next quarter's release.
SONO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
550.86M
-10.12%
115.70%
Gross Margin
43.82%
-4.99%
8.63%
Operating Margin
8.76%
-36.11%
-137.79%
Net Margin
9.12%
-30.96%
-143.87%
EPS
0.40
-37.50%
-190.91%
No Data Available
SONO Earnings Analysis
Sonos Inc Corporation (SONO.O) Earnings Conference Call
Positive
Q1 2025 Revenue Performance: Sonos reported Q1 2025 revenue of $551 million, achieving results towards the high end of guidance despite a year-over-year decline of only 10%, compared to guidance of a decline between 22% to 9%.
Gross Margin Exceeds Guidance: GAAP gross margin reached 43.8%, exceeding the high end of guidance by 80 basis points, driven by improved cost and product mix.
Operating Expenses Reduction: Non-GAAP operating expenses decreased by 6% year-over-year to $169 million, coming in approximately $13 million below guidance due to effective expense management.
Strong Q1 Adjusted EBITDA: Adjusted EBITDA for Q1 was $91.2 million, representing a margin of 16.6%, which was above the high end of guidance due to higher gross margins and lower operating expenses.
Share Repurchase Update: Sonos returned $27 million to shareholders through share repurchases in Q1, reducing the share count by 1.9 million shares, with $44 million remaining under the current share repurchase authorization.
Negative
Revenue Decline Analysis: Revenue declined 10% year-over-year, driven by softer demand and challenges from the 2024 app rollout, indicating ongoing market difficulties.
Free Cash Flow Decline: Free cash flow decreased significantly to $143 million, down from $269 million last year, primarily due to lower revenue and unique factors affecting last year's cash flow.
Revenue Decline Forecast: Q2 revenue guidance suggests a potential decline of 5% to 5% year-over-year, indicating continued revenue challenges in the upcoming quarter.
Negative Adjusted EBITDA Projection: Adjusted EBITDA for Q2 is projected to be negative, ranging from -$27 million to -$6 million, reflecting ongoing operational struggles and investment in app recovery.
Employee Reduction Announcement: The company announced a reduction of approximately 200 employees, including nearly 50 managers and executives, highlighting significant organizational restructuring and cost-cutting measures.
SONO FAQs
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SONO Earning Call Sentiment
Sonos, Inc. (NASDAQ:SONO) Q1 2025 Earnings Call Transcript
SONO.O
-2.69%Positive
The earnings call shows mixed signals: strong financial metrics with improved margins, reduced expenses, and a solid cash position, but challenges remain with app recovery and unclear guidance on product launches. The Q&A highlighted some management uncertainties, particularly regarding app improvements and revenue seasonality. Despite positive shareholder returns and efficient reorganization, the lack of specific guidance and ongoing app issues temper positive sentiment. Given the mid-cap size, a neutral stock reaction is expected over the next two weeks.
