Sonos Reports Second Quarter Fiscal 2023 Results

About this update from Sonos, Inc.

[{"type":"text","content":" SANTA BARBARA, Calif.--(BUSINESS WIRE)--\nSonos, Inc. (Nasdaq: SONO) today reported second quarter fiscal 2023 results.\n\n\nSecond Quarter 2023 Financial Highlights (unaudited)\n\n\n\nRevenue decreased 23.9% year-over-year to $304.2 million; on a constant-currency basis, revenue decreased 22.4% year-over-year\n\n\n\nGross margin decreased 150 basis points year-over-year to 43.3%\n\n\n\nGAAP net loss of $(30.7) million compared to net income of $8.6 million last year\n\n\nGAAP net loss margin of (10.1)% compared to net income margin of 2.1% last year\n\n\n\nGAAP diluted earnings per share (EPS) of $(0.24) compared to $0.06 last year\n\n\n\n\n\n\nNon-GAAP net income1 of $5.7 million compared to $36.8 million last year\n\n\nNon-GAAP diluted EPS1 of $0.04 compared to $0.26 last year\n\n\n\n\n\n\nAdjusted EBITDA of $(10.6) million compared to $46.9 million last year\n\n\nAdjusted EBITDA margin of (3.5)% compared to 11.7% last year\n\n\n\n\n\n\nFree cash flow of $(121.7) million. Cash flows used in operating activities of $(113.0) million\n\n\nInventories of $326.3 million, increased 7% from last quarter\n\n\n\nFinished goods of $274.5 million, increased 5% from last quarter\n\n\n\n\n\n\nNotes: 1 Non-GAAP net income/earnings per share (EPS) exclude stock-based compensation, legal and transaction related fees, amortization of intangibles, and lease abandonment costs. See “Use of Non-GAAP Measures” and reconciliations to GAAP measures below.\n\n\nSonos CEO Patrick Spence commented, “This quarter we made outstanding progress in delivering on our product roadmap with the launch of two new game-changing products, the Era 100 and 300, both the best of their kind. And we entered a new product category with our SaaS-based Sonos Pro offering.”\n\n\nMr. Spence continued, “Though our second quarter results were in-line with our guidance, we are reducing our expectations for the second half of Fiscal 2023 due to softening consumer demand and channel partner inventory tightening. As a result, we are taking swift action to reduce our operating expenses and protect our profitability. We remain focused on ensuring that Sonos will emerge from the current choppy consumer environment in a position of strength: we are profitable, we are debt free, and we have a huge market opportunity. Continuing to innovate is critical to delivering on our long-term g...

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