Sonos Shares Plummet 15% Over CFO Exit
Audio equipment manufacturer, Sonos, has seen shares plummet 15% in after-hours trading, following news its Chief Financial Offer, Mike Giannetto, will depart later this year. It comes despite record Q1 revenue and profit.
Mr Giannetto – Sonos’ longtime CFO – announced his retirement by year end, however, will continue working until a replacement is found.
“Q1 FY2019 was the most profitable quarter in Sonos history thanks to record sales and
increased efficiency,” states the company in a shareholder letter.
For the quarter ending December 29, Sonos reported a 6% YoY lift in revenue to US$496 million, plus 12.4% jump in net profit to US$61.6 million.
It follows the sale of 2,384,581 products within the quarter.
The audio company claims revenue growth was driven by the Sonos Beam – sparking a period-over-period revenue growth of 42%.
Units of home theatre speakers soared a whopping 87% period-over-period, whilst wireless speaker unit sales slumped 11%.
Wireless speaker revenue slipped 17% YoY, citing the removal of the Sonos PLAY:3 and declining PLAY:5 sales.
For the quarter, adjusted EBITDA soared 34% YoY to US$87 million, delivering a 17.6% adjusted EBITDA margin.
The company has continued to leverage collaborations, with its special edition Beastie Boys PLAY:5 speaker selling out within six minutes in the United States.
The news follows the launch of its Sonos Amp and Architectural in-wall and in-ceiling speakers, further expanding into the custom install market.
Pre-orders have opened, with local release slated for later this month.
Sonos has reaffirmed its former FY19 guidance, however, warns of reduced sell-through velocity into Q2Y19, citing higher channel inventory.
Increased channel inventory and its production schedule with IKEA – starting in Q3 instead of Q2 – is expected to impact Q2 revenue, but not its full-year or adjusted EBITDA outlook.