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Sonos Shares Soar 20% After Record Q4 Revenue

Sonos has post whopping a 27% YoY jump in Q4 earnings, sending shares soaring ~20% in after hours trading. Marking its first quarter as a public company, Q4 revenue notched a record US$273 million, up from US$214.1 million a year ago.

For the quarter ending September 30, Sonos delivered near-break-even net income, narrowing its loss to US$1.7 million, down from US$14.9 million the year before.

Forth quarter EDITDA grew a whopping 343% YoY to US$20 million, alongside a 7.4% adjusted EBITDA margin.

Results mark a loss of US$0.02 per share, beating analyst projections for US$0.10 per share.

Forth quarter revenue also trumped analyst expectations for US$248.7 million.

Concerning full-year results, Sonos sold US$1.14 billion worth of products during fiscal 2018 – the first time it has surpassed US$1 billion.

Net loss for the year notched US$15.6 million.

For the 12 months ending September 30, Sonos asserts it sold over 5 million consumer products (up 29% YoY), adding around 1.5 million households to its customer base (up 21% YoY).

Around 37% of product sales were registered to existing Sonos customers, with direct-to-consumer revenue soaring 26% YoY.

[Sonos]

Q4 FY2018 gross margin notched 42.6%, 5.5 percentage points lower than 2017.

Operating expenses for the quarter notched US$116.1 million – 42.5% of quarterly revenue. On a comparative basis, operating expenses declined US$2.4 million, versus the same time last year.

[Sonos]

Launched in mid-July, the Sonos Beam is attributed for strong Q4 performance, driving home theatre revenue up a notable 63%.

The Sonos Beam claims to be the only smart speaker specifically designed for a living room – fusing voice assistant functionality with robust soundbar parts.

Sonos claims Beam sales trumped forecasts, achieving the number one position [by dollar share] in the US soundbar market (8%) in Q3.

According to GfK, the Sonos Beam boast a 21% value share in the UK, and 14% in Germany.

Sonos asserts this may underestimate its market position, with data excluding its direct-to-consumer and installed solutions channels – “significant revenue sources” for the company.

[Sonos]

Despite launching over five years ago, Sonos claims its Playbar has retained the number three spot (6.4%) in the United States market [by dollar share].

The audio manufacturer claims results demonstrate a commitment to “enduring” products, as it shifts gear to music playback outside the home in FY2019.

[Sonos]

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