Sonos Inc. (NASDAQ: SONO) shares surged over 10% in after-hours trading on Wednesday following the company’s announcement of better-than-expected revenue for its fiscal third quarter and revised guidance for fiscal 2023.
Financial Performance
Sonos reported a net loss of $23.6 million, or 18 cents per share, for the quarter, compared to a loss of $597,000, or breakeven on a per-share basis, during the same period last year. However, despite the challenges faced, Sonos managed to achieve a revenue increase of 0.4%, reaching $373.4 million. This result exceeded analysts’ expectations, as they had forecasted a loss of 16 cents per share on sales amounting to $336 million.
Revised Outlook
In addition to its strong Q3 performance, Sonos also adjusted its outlook for the fiscal year. The company now anticipates revenue in the range of $1.64 billion to $1.66 billion, compared to its previous forecast of $1.625 billion to $1.675 billion. Furthermore, Sonos expects its gross margin to be in the range of 44% to 44.2%, slightly lower than the initial expectation of 44.3% to 44.8%.
CEO’s Statement
Patrick Spence, Chief Executive Officer of Sonos, expressed his appreciation for the team’s efforts amidst a challenging market environment, stating, “Despite the challenging environment, we are winning in the market and I’m proud of our team’s execution as we outperform the competition.” He further emphasized their dedication to ensuring that Sonos emerges from this period in a position of strength.
Conclusion
Despite ending the regular trading day down 1.5%, Sonos Inc.’s positive Q3 results and revised fiscal year outlook demonstrate the company’s ability to adapt and succeed in a turbulent market.