Sonos Reports Third Quarter Fiscal 2023 Results

About this update from Sonos, Inc.

[{"type":"text","content":" SANTA BARBARA, Calif.--(BUSINESS WIRE)--\nSonos, Inc. (Nasdaq: SONO) today reported third quarter fiscal 2023 results.\n\n\nThird Quarter 2023 Financial Highlights (unaudited)\n\n\n\nRevenue increased 0.4% year-over-year to $373.4 million; on a constant-currency basis, revenue increased 0.3% year-over-year\n\n\n\nGross margin decreased 130 basis points year-over-year to 46.0%\n\n\n\nGAAP net loss of $23.6 million compared to $0.6 million last year\n\n\nGAAP net loss margin of 6.3% compared to 0.2% last year\n\n\n\nGAAP diluted loss per share (EPS) of $0.18 compared to $0.00 last year\n\n\n\n\n\n\nNon-GAAP net income1 of $21.3 million compared to $26.5 million last year\n\n\nNon-GAAP diluted EPS1 of $0.16 compared to $0.19 last year\n\n\n\n\n\n\nAdjusted EBITDA of $34.3 million compared to $42.1 million last year\n\n\nAdjusted EBITDA margin of 9.2% compared to 11.3% last year\n\n\n\n\n\n\nFree cash flow of ($7.8) million. Cash flows from operating activities of $8.9 million\n\n\nInventories of $298.1 million, decreased 8.6% from last quarter\n\n\n\nFinished goods of $240.1 million, decreased 12.5% 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 restructuring and abandonment costs. See “Use of Non-GAAP Measures” and reconciliations to GAAP measures below.\n\n\nSonos CEO Patrick Spence commented, “We are pleased to report third quarter revenue of $373.4 million and Adjusted EBITDA of $34.3 million. Despite the challenging environment, we are winning in the market and I’m proud of our team’s execution as we outperform the competition. We remain on track to deliver against our fiscal 2023 guidance.”\n\n\nMr. Spence continued, “While we have not yet seen conditions in our categories return to normal, we remain focused on ensuring Sonos can emerge from this period in a position of strength: we are profitable, we are debt free, and we have a huge market opportunity. In mid-June we made the difficult decision to reduce our workforce by 7% in order to protect profitability and allow us to invest in our exciting product roadmap to drive future growth. Continuing to innovate is critical to achieving our long-term potential and I have the utmost confidence in our ability to do so.”\n\n\nRevised Fiscal 2...

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