Sonos delivers surprise profit, raises revenue guidance
Sonos delivered a loud earnings beat after the markets closed Aug. 11, as the Santa Barbara-based home sound system producer delivered net income back in the black when the company announced its third quarter 2021 earnings.
Sonos generated net income of $17.6 million, or 12 cents per diluted share, for the quarter ended June 30.
Analysts expected Sonos to lose 17 cents per share, according to the research firm FactSet, which would have been more in line with the company’s 2020 third quarter earnings, when Sonos lost $56.9 million, or 52 cents per share.
Revenue for the speaker maker was also on the rise, as Sonos tallied revenue of $378.6 million in the third quarter of 2021, up from $249.3 million in the same quarter a year earlier, a 52% jump.
Over the first three quarters of the year, Sonos’ revenue is 45% higher than the same period in 2020.
Sonos shares were down 1.1% during the trading day Aug. 11, but the stock rebounded strongly in after-hours trading, up about 9%, with the price hovering above $37 a share. Sonos opened at $38.98 on Aug. 12, a gain of 12% since the previous day’s close.
“Our third quarter results represent yet another record-shattering quarter at Sonos,” CEO Patrick Spence said in a news release. “We believe that the strong demand for our products is unwavering and underscores the uniqueness and power of our business model where customers start with one product and expand with more over time.”
Spence added that due to the company’s record third quarter, Sonos is updating its guidance for the full year. Sonos now expects full-year revenue worth $1.695 billion to $1.710 billion, which would be either a 28% or 29% leap from the previous year.
Sonos ended the quarter with cash and cash equivalents worth $670.9 million.
Note: This article was updated Aug. 12 with Sonos’ opening share price.