Sonos Reports Fourth Quarter and Fiscal 2024 Results

Rhea-AI Summary

Sonos (SONO) reported fiscal 2024 results with revenue of $1.52 billion and a GAAP net loss of $38.1 million. Fourth quarter revenue was $255.4 million with a net loss of $53.1 million. The company's GAAP gross margin for the fiscal year was 45.4%. Despite headwinds in the audio category, Sonos launched new products including Arc Ultra and Sub 4 for the holiday season, following software improvements. The company noted an increase in new products per home in Fiscal 2024, though facing overall audio category challenges.

Positive

• Gross margin improved to 45.4% in fiscal 2024
• Generated positive free cash flow of $134.7 million in fiscal 2024
• Successful launch of new products (Arc Ultra and Sub 4) ahead of holiday season
• Increased number of products per home in fiscal 2024

Negative

• Revenue declined 8.3% to $1.52 billion in fiscal 2024
• Reported GAAP net loss of $38.1 million in fiscal 2024
• Q4 revenue dropped 16.3% to $255.4 million
• Implemented 6% workforce reduction in restructuring plan
• Facing continued headwinds in audio category

Insights

Financial Analyst

Q4 and FY2024 results show concerning trends with revenue declining to $1.52B from $1.66B last year. The company posted a net loss of $38.1M versus a $10.3M loss in FY2023. Q4 was particularly weak with revenue down 16.3% to $255.4M.

Key metrics deteriorated across the board: gross margin declined to 40.3% in Q4, operating loss widened significantly to $69.4M and free cash flow turned negative at $53.5M. While new product launches like Arc Ultra and Sub 4 are positive developments, they haven't yet translated to improved financial performance.

The balance sheet remains relatively healthy with $221M in cash and marketable securities, though cash declined $50M year-over-year. Inventory levels improved but operating expenses increased despite restructuring efforts.

Market Research Analyst

The audio category headwinds mentioned by management are evident in the regional performance breakdown. EMEA revenue dropped sharply by 30% in Q4, while Americas declined 12.8%. Only APAC showed resilience with a slight growth.

Product mix data reveals core Sonos speakers revenue fell 20.2% in Q4, suggesting market share challenges and potentially saturated premium segments. The increased products per household metric indicates strong loyalty but slower new customer acquisition. Recent restructuring affecting 6% of workforce signals a defensive posture focused on cost control rather than growth.

SANTA BARBARA, Calif.--(BUSINESS WIRE)-- Sonos, Inc. (Nasdaq: SONO) today reported fourth quarter and fiscal 2024 results.

“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,” Sonos CEO Patrick Spence commented. “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. The Sonos flywheel remains strong, as evidenced by the fact that the number of new products per home increased in Fiscal 2024. While the overall audio category continues to face headwinds, we are confident that we are well positioned to take more of it over time.”

Fiscal 2024 Financial Highlights (unaudited)

• Revenue of $1,518.1 million
• GAAP gross margin of 45.4%
• GAAP net loss of $38.1 million, GAAP diluted earnings per share (EPS) of -$0.31
• Non-GAAP net income¹ of $71.4 million, Non-GAAP diluted EPS¹ of $0.56
• Adjusted EBITDA¹ of $107.9 million

Fourth Quarter Fiscal 2024 Financial Highlights (unaudited)

• Revenue of $255.4 million
• GAAP gross margin of 40.3%
• GAAP net loss of $53.1 million, GAAP diluted earnings per share (EPS) of -$0.44
• Non-GAAP net loss¹ of $22.1 million, Non-GAAP diluted EPS¹ of -$0.18
• Adjusted EBITDA¹ of -$22.6 million

Notes:
(1) Non-GAAP net income (loss)/Non-GAAP diluted earnings per share (EPS) and Adjusted EBITDA 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.

Guidance

The company will provide guidance on its fourth quarter and Fiscal 2024 earnings call.

Supplemental Earnings Presentation

The company has posted a supplemental earnings presentation accompanying its fourth quarter and fiscal 2024 results to the Earnings Reports section of its investor relations website at https://investors.sonos.com/reports-and-filings/default.aspx#section=earningsreports. Additional detailed financial and business information regarding certain non-financial key metrics, new products, brand initiatives and our sustainability and social impact efforts is included in the supplemental earnings presentation.

Conference Call, Webcast and Transcript

The company will host a webcast of its conference call and Q&A related to its fourth quarter and fiscal 2024 results on November 13, 2024, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). Participants may access the live webcast in listen-only mode on the Sonos investor relations website at https://investors.sonos.com/news-and-events/default.aspx.

The conference call may also be accessed by dialing (888) 330-2454 with conference ID 8641747. Participants outside the U.S. can access the call by dialing (240) 789-2714 using the same conference ID.

An archived webcast of the conference call and a transcript of the company’s prepared remarks and Q&A session will also be available at https://investors.sonos.com/reports-and-filings/default.aspx#section=earningsreports following the call.

Consolidated Statements of Operations and Comprehensive Loss
(unaudited, in thousands, except share and per share amounts)
		Three Months Ended								Twelve Months Ended
		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Revenue		$	255,380			$	305,147			$	1,518,056			$	1,655,255
Cost of revenue			152,364				177,093				828,683				938,765
Gross profit			103,016				128,054				689,373				716,490
Operating expenses
Research and development			70,777				65,517				304,558				301,001
Sales and marketing			73,180				58,601				290,609				267,518
General and administrative			28,428				32,297				142,252				168,518
Total operating expenses			172,385				156,415				737,419				737,037
Operating loss			(69,369	)			(28,361	)			(48,046	)			(20,547	)
Other income (expense), net
Interest income			2,327				2,661				11,965				10,201
Interest expense			(108	)			(149	)			(441	)			(733	)
Other income (expense), net			4,864				(6,696	)			9,371				15,473
Total other income (expense), net			7,083				(4,184	)			20,895				24,941
(Loss) income before (benefit from) provision for income taxes			(62,286	)			(32,545	)			(27,151	)			4,394
(Benefit from) provision for income taxes			(9,193	)			(1,306	)			10,995				14,668
Net loss		$	(53,093	)		$	(31,239	)		$	(38,146	)		$	(10,274	)
Net loss attributable to common stockholders:
Basic and diluted		$	(53,093	)		$	(31,239	)		$	(38,146	)		$	(10,274	)
Net loss per share attributable to common stockholders:
Basic		$	(0.44	)		$	(0.25	)		$	(0.31	)		$	(0.08	)
Diluted		$	(0.44	)		$	(0.25	)		$	(0.31	)		$	(0.08	)
Weighted-average shares used in computing net loss per share attributable to common stockholders:
Basic			121,389,519				127,335,311				123,218,532				127,702,885
Diluted			121,389,519				127,335,311				123,218,532				127,702,885
Total comprehensive loss
Net loss			(53,093	)			(31,239	)			(38,146	)			(10,274	)
Change in foreign currency translation adjustment			1,872				2,035				1,604				153
Net unrealized gain on marketable securities			154				—				122				—
Comprehensive loss		$	(51,067	)		$	(29,204	)		$	(36,420	)		$	(10,121	)

Consolidated Balance Sheets
(unaudited, in thousands, except par values)
		As of
		September 28, 2024				September 30, 2023
Assets
Current assets:
Cash and cash equivalents		$	169,732			$	220,231
Marketable securities			51,426				-
Accounts receivable, net			44,513				67,583
Inventories			231,505				346,521
Prepaids and other current assets			53,910				25,296
Total current assets			551,086				659,631
Property and equipment, net			102,148				87,075
Operating lease right-of-use assets			50,175				48,918
Goodwill			82,854				80,420
Intangible assets, net
In-process research and development			73,770				69,791
Other intangible assets			14,266				20,218
Deferred tax assets			10,314				1,659
Other noncurrent assets			31,699				34,529
Total assets		$	916,312			$	1,002,241
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	194,590			$	187,981
Accrued expenses			87,783				89,717
Accrued compensation			15,701				22,079
Deferred revenue, current			21,802				20,188
Other current liabilities			46,277				34,253
Total current liabilities			366,153				354,218
Operating lease liabilities, noncurrent			56,588				54,956
Deferred revenue, noncurrent			61,075				60,650
Deferred tax liabilities			60				9,846
Other noncurrent liabilities			3,816				3,914
Total liabilities			487,692				483,584
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.001 par value			123				130
Treasury stock			(17,096	)			(72,586	)
Additional paid-in capital			498,245				607,345
Accumulated deficit			(50,934	)			(12,788	)
Accumulated other comprehensive loss			(1,718	)			(3,444	)
Total stockholders’ equity			428,620				518,657
Total liabilities and stockholders’ equity		$	916,312			$	1,002,241

Consolidated Statements of Cash Flows
(unaudited, dollars in thousands)
		Twelve Months Ended
		September 28, 2024				September 30, 2023
Cash flows from operating activities
Net loss		$	(38,146	)		$	(10,274	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Stock-based compensation expense			84,294				76,857
Depreciation and amortization			52,378				48,969
Provision for inventory obsolescence			8,894				20,640
Restructuring and abandonment charges			2,204				5,533
Deferred income taxes			(18,922	)			(583	)
Other			3,701				5,535
Foreign currency transaction gains			(7,276	)			(7,335	)
Changes in operating assets and liabilities:
Accounts receivable			23,044				32,120
Inventories			106,122				87,004
Other assets			(28,775	)			10,470
Accounts payable and accrued expenses			(789	)			(162,345	)
Accrued compensation			(6,775	)			(2,185	)
Deferred revenue			304				(4,576	)
Other liabilities			9,648				576
Net cash provided by operating activities			189,906				100,406
Cash flows from investing activities
Purchases of marketable securities			(90,495	)			—
Purchases of property and equipment and intangible assets			(55,247	)			(50,286	)
Maturities of marketable securities			40,500				—
Net cash used in investing activities			(105,242	)			(50,286	)
Cash flows from financing activities
Payments for repurchase of common stock			(129,018	)			(100,064	)
Payments for repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock units			(25,344	)			(29,874	)
Proceeds from exercise of stock options			17,053				21,346
Net cash used in financing activities			(137,309	)			(108,592	)
Effect of exchange rate changes on cash and cash equivalents			2,146				3,848
Net decrease in cash and cash equivalents			(50,499	)			(54,624	)
Cash and cash equivalents
Beginning of period			220,231				274,855
End of period		$	169,732			$	220,231
Supplemental disclosure
Cash paid for interest		$	256			$	1,330
Cash paid for taxes, net of refunds		$	21,206			$	9,522
Cash paid for amounts included in the measurement of lease liabilities		$	11,008			$	14,218
Supplemental disclosure of non-cash investing and financing activities
Purchases of property and equipment in accounts payable and accrued expenses		$	7,878			$	2,784
Right-of-use assets obtained in exchange for new operating lease liabilities		$	11,492			$	31,692
Excise tax on share repurchases, accrued but not paid		$	602			$	—
Change in estimate of asset retirement obligations		$	—			$	2,290

Reconciliation of GAAP to Non-GAAP Cost of Revenue and Gross Profit
(unaudited, in thousands, except percentages)
		Three Months Ended								Twelve Months Ended
		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Reconciliation of GAAP cost of revenue
GAAP cost of revenue		$	152,364			$	177,093			$	828,683			$	938,765
Stock-based compensation expense			620				437				2,614				2,038
Amortization of intangibles			973				973				3,891				4,103
Non-GAAP cost of revenue		$	150,771			$	175,683			$	822,178			$	932,624
Reconciliation of GAAP gross profit
GAAP gross profit		$	103,016			$	128,054			$	689,373			$	716,490
Stock-based compensation expense			620				437				2,614				2,038
Amortization of intangibles			973				973				3,891				4,103
Non-GAAP gross profit		$	104,609			$	129,464			$	695,878			$	722,631
GAAP gross margin			40.3	%			42.0	%			45.4	%			43.3	%
Non-GAAP gross margin			41.0	%			42.4	%			45.8	%			43.7	%

Reconciliation of Selected Non-GAAP Financial Measures
(unaudited, dollars in thousands)
		Three Months Ended								Twelve Months Ended
		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Research and Development (GAAP)		$	70,777			$	65,517			$	304,558			$	301,001
Stock-based compensation			8,780				8,177				37,913				35,530
Amortization of intangibles			497				496				1,985				1,983
Restructuring and abandonment costs			4,942				188				5,743				6,556
Research and Development (Non-GAAP)		$	56,558			$	56,656			$	258,917			$	256,932
Sales and Marketing (GAAP)		$	73,180			$	58,601			$	290,609			$	267,518
Stock-based compensation			4,201				3,499				17,499				15,677
Amortization of intangibles			-				-				-				-
Restructuring and abandonment costs			2,473				180				2,770				5,635
Sales and Marketing (Non-GAAP)		$	66,506			$	54,922			$	270,340			$	246,206
General and Administrative (GAAP)			28,428				32,297				142,252				168,518
Stock-based compensation			5,732				5,195				26,268				23,612
Legal and transaction related costs			182				2,944				7,383				32,950
Amortization of intangibles			24				24				96				96
Restructuring and abandonment costs			2,571				106				3,340				3,458
Adjusted General and Administrative (Non-GAAP)		$	19,919			$	24,028			$	105,165			$	108,402
Total Operating Expenses (GAAP)		$	172,385			$	156,415			$	737,419			$	737,037
Stock-based compensation			18,713				16,871				81,680				74,819
Legal and transaction related costs			182				2,944				7,383				32,950
Amortization of intangibles			521				520				2,081				2,079
Restructuring and abandonment costs			9,986				474				11,853				15,649
Adjusted Operating Expenses (Non-GAAP)		$	142,983			$	135,606			$	634,422			$	611,540
Total Operating Loss (GAAP)		$	(69,369	)		$	(28,361	)		$	(48,046	)		$	(20,547	)
Stock-based compensation			19,333				17,308				84,294				76,857
Legal and transaction related costs			182				2,944				7,383				32,950
Amortization of intangibles			1,494				1,493				5,972				6,182
Restructuring and abandonment costs			9,986				474				11,853				15,649
Adjusted Operating (Loss) Income (Non-GAAP)		$	(38,374	)		$	(6,142	)		$	61,456			$	111,091
Depreciation			15,730				12,422				46,406				42,787
Adjusted EBITDA (Non-GAAP)		$	(22,644	)		$	6,280			$	107,862			$	153,878

Reconciliation of Net Loss to Adjusted EBITDA
(unaudited, dollars in thousands except percentages)
		Three Months Ended								Twelve Months Ended
		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
(In thousands, except percentages)
Net loss		$	(53,093	)		$	(31,239	)		$	(38,146	)		$	(10,274	)
Add (deduct):
Depreciation and amortization			17,224				13,915				52,378				48,969
Stock-based compensation expense			19,333				17,308				84,294				76,857
Interest income			(2,327	)			(2,661	)			(11,965	)			(10,201	)
Interest expense			108				149				441				733
Other expense (income), net			(4,864	)			6,696				(9,371	)			(15,473	)
(Benefit from) provision for income taxes			(9,193	)			(1,306	)			10,995				14,668
Legal and transaction related costs (1)			182				2,944				7,383				32,950
Restructuring and abandonment costs (2)			9,986				474				11,853				15,649
Adjusted EBITDA		$	(22,644	)		$	6,280			$	107,862			$	153,878
Revenue		$	255,380			$	305,147			$	1,518,056			$	1,655,255
Net loss margin			(20.8	)%			(10.2	)%			(2.5	)%			(0.6	)%
Adjusted EBITDA margin			(8.9	)%			2.1	%			7.1	%			9.3	%
(1) Legal and transaction-related costs consist of expenses related to our intellectual property ("IP") litigation against Alphabet and Google, as well as legal and transaction costs associated with our acquisition activity, which we do not consider representative of our underlying operating performance.
(2) Restructuring and abandonment costs relate to the restructuring plan we initiated on August 14, 2024 to reduce our cost base, including a reduction in force involving approximately 6% of our employees, and nominal remaining costs incurred related to the restructuring plan initiated on June 14, 2023.

Reconciliation of GAAP Net Loss to Non-GAAP Net (Loss) Income
(unaudited, in thousands, except share and per share amounts)
		Three Months Ended								Twelve Months Ended
		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Reconciliation of GAAP net loss
GAAP net loss		$	(53,093	)		$	(31,239	)		$	(38,146	)		$	(10,274	)
Stock-based compensation expense			19,333				17,308				84,294				76,857
Legal and transaction related costs			182				2,944				7,383				32,950
Amortization of intangibles			1,494				1,493				5,972				6,182
Restructuring and abandonment costs			9,986				474				11,853				15,649
Non-GAAP net (loss) income		$	(22,098	)		$	(9,020	)		$	71,356			$	121,364
Reconciliation of net loss per share
GAAP net loss per share, diluted		$	(0.44	)		$	(0.25	)		$	(0.31	)		$	(0.08	)
Non-GAAP adjustments to net loss per share			0.26				0.18				0.87				1.00
Non-GAAP net (loss) income per share, diluted		$	(0.18	)		$	(0.07	)		$	0.56			$	0.92
Weighted-average shares used in GAAP per share calculation, diluted			121,389,519				127,335,311				123,218,532				127,702,885
Weighted-average shares used in non-GAAP per share calculation, diluted			121,389,519				127,335,311				126,783,859				131,947,092
Note: Certain figures may not sum due to rounding

Reconciliation of Cash Flows (Used in) Provided by Operating Activities to Free Cash Flow
(unaudited, dollars in thousands)
		Three Months Ended								Twelve Months Ended
		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Cash flows (used in) provided by operating activities		$	(37,734	)		$	22,195			$	189,906			$	100,406
Less: Purchases of property and equipment			(15,770	)			(10,201	)			(55,247	)			(50,286	)
Free cash flow		$	(53,504	)		$	11,994			$	134,659			$	50,120

Revenue by Product Category
(unaudited, dollars in thousands)
		Three Months Ended								Twelve Months Ended
		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
(In thousands)
Sonos speakers		$	178,226			$	223,323			$	1,169,604			$	1,293,440
Sonos system products			58,731				62,316				267,744				285,064
Partner products and other revenue			18,423				19,508				80,708				76,751
Total revenue		$	255,380			$	305,147			$	1,518,056			$	1,655,255

Revenue by Geographical Region
(unaudited, dollars in thousands)
		Three Months Ended								Twelve Months Ended
		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Americas		$	177,533			$	203,531			$	1,004,770			$	1,048,245
Europe, Middle East and Africa			58,353				83,374				430,428				518,179
Asia Pacific			19,494				18,242				82,858				88,831
Total revenue		$	255,380			$	305,147			$	1,518,056			$	1,655,255

Stock-based Compensation
(unaudited, dollars in thousands)
		Three Months Ended								Twelve Months Ended
		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
(In thousands)
Cost of revenue		$	620			$	437			$	2,614			$	2,038
Research and development			8,780				8,177				37,913				35,530
Sales and marketing			4,201				3,499				17,499				15,677
General and administrative			5,732				5,195				26,268				23,612
Total stock-based compensation expense		$	19,333			$	17,308			$	84,294			$	76,857

Amortization of Intangibles
(unaudited, dollars in thousands)
		Three Months Ended								Twelve Months Ended
		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Cost of revenue		$	973			$	973			$	3,891			$	4,103
Research and development			497				496				1,985				1,983
Sales and marketing			-				-				-				-
General and administrative			24				24				96				96
Total amortization of intangibles		$	1,494			$	1,493			$	5,972			$	6,182

Use of Non-GAAP Measures

We have provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles (“U.S. GAAP”), including adjusted EBITDA, adjusted EBITDA margin, free cash flow, non-GAAP gross margin, net income (loss) excluding stock-based compensation, legal and transaction related fees, amortization of intangibles, and restructuring and abandonment costs and diluted earnings (loss) per share excluding stock-based compensation, legal and transaction related fees, amortization of intangibles and restructuring and abandonment costs. These non-GAAP financial measures are not based on any standardized methodology prescribed by U.S. GAAP and are not necessarily comparable to similarly titled measures presented by other companies. We use these non-GAAP financial measures to evaluate our operating performance and trends and make planning decisions. We believe that these non-GAAP financial measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses and other items that we exclude in these non-GAAP financial measures. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects and allowing for greater transparency with respect to a key financial metric used by our management in its financial and operational decision-making. Non-GAAP financial measures should not be considered in isolation of, or as an alternative to, measures prepared in accordance with U.S. GAAP. Investors are encouraged to review the reconciliation of these financial measures to their nearest U.S. GAAP financial equivalents provided in the financial statement tables above. We define Adjusted EBITDA as net income (loss) adjusted to exclude the impact of depreciation and amortization, stock-based compensation expense, interest income, interest expense, other income, income taxes, restructuring and abandonment costs, legal and transaction related fees and other items that we do not consider representative of our underlying operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenue. We define free cash flow as net cash from operations less purchases of property and equipment. We define non-GAAP gross margin as GAAP gross margin, excluding stock-based compensation and amortization of intangible assets. We calculate non-GAAP net income (loss) excluding stock-based compensation, legal and transaction related fees, amortization of intangibles and restructuring and abandonment costs as net income (loss) less stock-based compensation, legal and transaction related fees, amortization of intangibles and restructuring and abandonment costs. We calculate non-GAAP diluted earnings (loss) per share excluding stock-based compensation, legal and transaction related fees, amortization of intangibles and restructuring and abandonment costs as net income (loss) less stock-based compensation, legal and transaction related fees, amortization of intangibles and restructuring and abandonment costs divided by our number of shares at fiscal year end. We do not provide a reconciliation of forward-looking non-GAAP financial measures to their comparable GAAP financial measures because we cannot do so without unreasonable effort due to unavailability of information needed to calculate reconciling items and due to the variability, complexity and limited visibility of the adjusting items that would be excluded from the non-GAAP financial measures in future periods. When planning, forecasting and analyzing future periods, we do so primarily on a non-GAAP basis without preparing a GAAP analysis as that would require estimates for items such as stock-based compensation, which is inherently difficult to predict with reasonable accuracy. Stock-based compensation expense is difficult to estimate because it depends on our future hiring and retention needs, as well as the future fair market value of our common stock, all of which are difficult to predict and subject to constant change. In addition, for purposes of setting annual guidance, it would be difficult to quantify stock-based compensation expense for the year with reasonable accuracy in the current quarter. As a result, we do not believe that a GAAP reconciliation would provide meaningful supplemental information about our outlook.

Forward Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding our long-term outlook, financial, growth and business strategies and opportunities, our product roadmap, our action plan to address issues caused by our new app, market growth and our market share, our ability to expand our footprint with existing customers and other factors affecting variability in our financial results. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors, including, but not limited to: our ability to accurately forecast product demand and effectively forecast and manage owned and channel inventory levels; our ability to introduce software updates to our new app on a timely basis and otherwise deliver on our action plan to address issues caused by our new app and related customer commitments; our ability to maintain, enhance and protect our brand image; the impact of global economic, market and political events, including continued inflationary pressures, high interest rates and, in certain markets, foreign currency exchange rate fluctuations; changes in consumer income and overall consumer spending as a result of economic or political uncertainty or conditions; changes in consumer spending patterns; our ability to successfully introduce new products and services and maintain or expand the success of our existing products; the success of our efforts to expand our direct-to-consumer channel; the success of our financial, growth and business strategies; our ability to compete in the market and maintain or expand market share; our ability to meet product demand and manage any product availability delays; supply chain challenges, including shipping and logistics challenges and component supply-related challenges; our ability to protect our brand and intellectual property; and the other risk factors set forth under the caption “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended June 29, 2024 and our other filings filed with the Securities and Exchange Commission (the “SEC”), copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this press release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events. Sonos and Sonos product names are trademarks or registered trademarks of Sonos, Inc. All other product names and services may be trademarks or service marks of their respective owners.

About Sonos

Sonos (Nasdaq: SONO) is one of the world’s leading sound experience brands. As the inventor of multi-room wireless home audio, Sonos’ innovation helps the world listen better by giving people access to the content they love and allowing them to control it however they choose. Known for delivering an unparalleled sound experience, thoughtful home design aesthetic, simplicity of use and an open platform, Sonos makes the breadth of audio content available to anyone. Sonos is headquartered in Santa Barbara, California. Learn more at www.sonos.com.

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Investor Contact

James Baglanis

IR@sonos.com

Press Contact

Erin Pategas

PR@sonos.com

Source: Sonos

FAQ

What was Sonos (SONO) revenue in fiscal 2024?

Sonos reported revenue of $1.518 billion for fiscal 2024.

What was Sonos (SONO) net loss in Q4 2024?

Sonos reported a net loss of $53.1 million in Q4 2024.

What new products did Sonos (SONO) launch in 2024?

Sonos launched Arc Ultra and Sub 4 products in time for the holiday season, following the earlier introduction of Ace.

What was Sonos (SONO) gross margin in fiscal 2024?

Sonos achieved a GAAP gross margin of 45.4% in fiscal 2024.