Sonos soars as fiscal Q2 results top expectations, again raises year outlook

Sonos said customers continue to add to their Sonos purchases after starting with a single audio product.

Speaker maker Sonos this afternoon reported fiscal Q2 revenue that topped Wall Street's expectations, and a suprise profit where a loss had been expected, and offered an outlook for the full year that was again higher than previously announced. 

The report sent Sonos shares up 15% in late trading

CEO and Patrick Spence said the company was "thrilled" with the results, adding "demand for our products continues to exceed even our heightened expectations."

Spence boasted of the Sonos business model, observing that "customers can start with one product and expand to more over time, and our customers continue to prove they do just that."

Spence said despite the company raising its year outlook yet again, the outlook "still assumes Sonos will account for only approximately 9% of the total spend in the $18 billion premium home audio market, and an even smaller fraction of the broader $89 billion global audio market we expect to expand into over the long-term."

Added Spence, "We remain focused on our key three strategic initiatives - the expansion of our brand, the expansion of our offerings, and driving operational excellence."

Sonos, said Spence, has "a clear path" to achieving its financial targets for fiscal 2024:

  • $2.25 billion revenue
  • 45% to 47% gross margin
  • 15% to 18% adjusted EBITDA margin

Revenue in the three months ended April 3rd rose 90%, year over year to $332.9 million, yielding a net profit of 31 cents a share, excluding some costs.

Analysts had been modeling $249 million and a 14-cent loss per share.

For the full year, the company raised its outlook to a forecast of revenue in a range of $1.625 billion to $1.675 billion, up from a prior forecast offered in February for $1.525 billion to $1.575 billion. That compares to consensus of $1.563 billion. 

It is the second quarter in a row that Sonos has raised its year outlook.