Sonos Investor Event Provides First Comprehensive Overview for Investors Since its IPO & Introduces Fiscal Year 2024 Financia...
March 09 2021 - 4:05PM
Business Wire
Company unveils Sonos Roam, an ultra-portable
smart speaker perfect for wherever life takes you
Sonos, Inc. (NASDAQ: SONO) announced that it is hosting a
virtual investor event today at 4:00 pm EST (1:00 pm PST) to
provide a comprehensive update on its business and financial
outlook for fiscal year 2024. The event is accessible at the Sonos
Investor Relations website.
The company is also introducing Sonos Roam™, the ultra-portable
smart speaker built to deliver great sound at home and on any
adventure. fully connected to your Sonos system on WiFi at home and
automatically switching to Bluetooth when you’re on the go, Roam’s
powerful, adaptable sound defies expectations for a speaker of its
size. Roam is available starting April 20 for $169 MSRP and
customers can pre-order today on sonos.com. For full product
details visit the Sonos Newsroom.
Highlights
- Sonos is just getting started. The company believes it’s
just scratching the surface of its long-term opportunity. Sonos was
in 11 million homes at the end of fiscal year 2020, representing
only approximately 9% of the 116 million affluent homes in its
existing markets1. On the revenue side, Sonos accounted for
approximately 7% of the total spend in the $18 billion premium home
audio market in 20202, and expects to expand into the broader $89
billion global audio opportunity over the long-term.
- Sonos has a unique model that serves customers and enables
it to continue building a sustainable, profitable business.
Sonos believes the power of its business model is that customers
can start with one product and expand to more over time, and its
customers have proven they do just that. The company has increased
its efficiency in attracting new customers, and existing and new
customers continue to add additional Sonos products over time as
they build out their system. Customers who purchased products in
2005, the year Sonos shipped its first product, have continued to
return through 2020 to add additional ones, illustrating the power
and longevity of the company’s model.
- Sonos plans to seize this opportunity by focusing on three
key strategic initiatives.
- Expanding its Brand
- Expanding its Offerings
- Driving Operational Excellence.
Fiscal 2024 Targets
Today, Sonos is sharing its financial targets for fiscal year
2024 which are ahead of long-term targets provided in 2018 in
conjunction with its initial public offering. Despite the
uncertainty that continues to exist in the broader macro
environment, Sonos believes it can deliver the following financial
targets in fiscal year 2024:
- Revenue of $2.25 billion, representing a 13% CAGR based on the
midpoint of its fiscal 2021 guidance and ahead of its prior
long-term target of 10% CAGR.
- Gross margin in the range of 45% to 47%, despite product and
channel mix shifts the company expects to achieve this range in
each fiscal year. This gross margin range is ahead of the company’s
prior long-term gross margin target of 42% to 44%.
- Adjusted EBITDA margin in the range of 15% to 18%, driven by
growth and leverage of existing operating expense, and ahead of the
company’s prior long-term adjusted EBITDA margin target of 13% to
15%.
Additional Event Details
In addition to CEO Patrick Spence, Sonos investor event speakers
will include:
- Brittany Bagley, Chief Financial Officer
- Eddie Lazarus, Chief Legal Officer
- Ted Dworkin, SVP, Product Management & Customer
Experience
- Pete Pedersen, VP, Marketing
The event will begin at 4:00 pm EST and the video webcast and
question and answer session will be available online at the Sonos
Investor Relations website. A replay and the slide presentation
will also be available at the Sonos Investor Relations website
following the conclusion of the event.
1 “Affluent homes” comprise households with disposable income as
defined by the OECD of $75,000+ USD. Existing markets Core Markets
include the United States, Canada, Australia, United Kingdom,
Germany, Netherlands, Sweden, France, Switzerland, Norway, Belgium,
Italy, Austria, Spain, Ireland, Finland and Poland. Source:
Euromonitor.
2 “Premium” defined as $100+ wireless speakers, $200+ soundbars,
$300+ Hi-Fi systems, $250+ in-wall/in-ceiling speakers, $250+
bookshelf speakers (pairs), and all AV receivers, Floor standing
speakers, home theater speakers and home theater in a box products
and Hi-Fi separates. Source: Futuresource.
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
margin. We define adjusted EBITDA as net income adjusted to exclude
the impact of depreciation, stock-based compensation expense,
interest income, interest expense, other income (expense), income
taxes 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 use non-GAAP financial
measures to evaluate our operating performance and trends and make
planning decisions. We believe that 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 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. This non-GAAP financial measure is not based on any
standardized methodology prescribed by U.S. GAAP and is not
necessarily comparable to similarly titled measures presented by
other companies. 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 certain 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 outlook for the fiscal year ended
September 28, 2024, our long-term focus, financial, growth and
business strategies and opportunities, growth metrics and targets,
our business model, new products and services, our expectations
about our potential and existing markets and 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 the duration and impact of the
COVID-19 pandemic and related mitigation efforts on our industry
and our supply chain; changes in general economic or market
conditions that could affect consumer income and overall consumer
spending; our ability to successfully introduce new products and
services and maintain or expand the success of our existing
products; the success of our financial, growth and business
strategies;; and the other risk factors set forth under the caption
“Risk Factors” in our Annual Report on Form 10-Q for the quarter
ended January 2, 2021 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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version on businesswire.com: https://www.businesswire.com/news/home/20210309005674/en/
Investor Contact Cammeron McLaughlin IR@sonos.com
Press Contact Tom Lodge PR@sonos.com
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