Sonos shares rise on earnings beat
Sonos saw a big bump in its stock after the markets closed Feb. 10 after the Santa Barbara-based home audio company released a strong earnings report for the first quarter of its fiscal year 2021.
Sonos saw an 87% increase in net income and a 15% increase in revenue for the quarter that ended Jan. 2, 2021, when compared to the same quarter a year earlier.
The company raked in $645 million in revenue for the quarter, while net income was at $132 million. Earnings per share increased to $1.01 from 60 cents in the same quarter a year ago, while free cash flow increased 97% to $203.2 million.
Sonos also added a record number of new customers and a record number of existing customers adding additional products, the company said.
Sonos shares were up as much as 15% after the market closed, trading at around $36.50 after closing the day at $31.50 on Feb. 10.
“While we anticipated delivering a strong first quarter, our results were meaningfully ahead of our expectations. On the heels of this strength, the momentum we continue to see, and our ambitious roadmap, we have an even greater confidence in our ability to drive transformational 2021 results,” Sonos CEO Patrick Spence said during the company’s earnings call. “These results are incredible in their own right in the face of the pandemic and all the challenges.”
Sonos speakers made $527 million in sales the first quarter compared to $466 million in the same quarter a year ago. Sonos system products were at $97 million, a 59% increase from last year.
Spence said he expects the demand for the company’s smart speakers to continue to grow.
Sonos now expects a full fiscal year revenue of $1.525 billion to $1.575 billion, compared to its earlier guidance of $1.4 billion to $1.5 billion.
“There’s more people at home so I think that has something to do with it,” Spence said. “The second thing is a lot of customers are running streaming services at home … and our home theater results were fantastic, and finally, the fact that our number one driver remains being people telling their friends and family about Sonos, we really see that just building on itself time and time again.”
Sonos remains out of stock on three of its products, primarily due to supply shortages. Spence said he expects the company to be caught up by the end of the current quarter.
The company also remains committed to launching two new products this year and Spence said it is on track to meet that goal.