Sonos, Inc. (SONO) delivered its fourth-quarter earnings report after the market closed on Wednesday, showcasing a mixed bag of results. While the company surpassed revenue expectations, it missed on earnings per share. Despite the earnings miss, Sonos highlighted a positive outlook fueled by its new product releases.
The company reported a quarterly GAAP loss of 44 cents per share, falling short of the analyst consensus estimate of a loss of 38 cents. However, revenue came in at $255.4 million, exceeding the anticipated $249.49 million. Sonos also reported a GAAP gross margin of 40.3% for the quarter.
Looking at the full fiscal year 2024, Sonos reported GAAP losses of 31 cents per share, again missing the analyst consensus estimate of losses of 27 cents. Fiscal year revenue, however, reached $1.518 billion, beating the analyst consensus estimate of $1.513 billion. The company reported a GAAP gross margin of 45.4% for the year.
Sonos CEO Patrick Spence attributed the company’s strong revenue performance to the successful launch of its highly anticipated new products, Arc Ultra and Sub 4, which were released just in time for the holiday season. “Thanks to our team going all-in on our app recovery efforts, we made significant progress in bringing the quality of our software to a level that we’re all proud of, which enabled us to launch our highly anticipated new products, Arc Ultra and Sub 4, in time for the holidays,” Spence said. He added, “Initial feedback on our new products has been very positive, which, along with the introduction of Ace earlier this year, makes our product lineup the strongest it’s ever been. Sonos is still the best home audio system, and we’re focused on using this industry-leading product lineup to acquire more customers and solidify our loyal customer base.”
Following the release of the earnings report, Sonos shares saw a slight increase of 0.50% in after-hours trading, reaching $14.15 at the time of publication on Wednesday.
While Sonos faced challenges on the earnings front, the company’s strong revenue performance and the positive reception of its new products suggest a promising future for the audio technology leader.
