Sonos Q3 up 11% but “disappointing”
September 13, 2018
By Chris Forrester
Wireless consumer loudspeaker manufacturers Sonos has reported Q3 numbers with revenues up 11 per cent to $864 million, and with a maintained revenue guidance for the year of more than $1.1 billion (and a growth rate in the range of 11.7-12.2 per cent over 2017).
However, quarterly revenue numbers are down, from $223 million in 2017 to $208 million this year.
CEO Patrick Spence told analysts that its recently introduced Sonos Amp 2 (for amplifier, and ideal to power non-Sonos legacy loudspeakers) was selling well, but overall the revenue numbers disappointed the market and the company’s share price crashed 15 percent. The market was worried that the early adopters had now been taken care of and that the market was now saturated.
Sonos went public in August and this was the first set of quarterly numbers since its IPO. Spence says that a cost-reduction programme is being carried out and is targeting $14 million annual savings.
Some commentators are comparing the business with that of fitness wristband Fitbit and even camera makers GoPro, which have also seen sluggish numbers.
Meanwhile the company is talking about widening the range of voice-activated units, and of products suitable for outside (garden) use.