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Sonos (NASDAQ:SONO) shares dropped nearly 20% after-hours following the company’s reported Q3 results, with revenue of $371.8 million (down 1.8% year-over-year, or up 2.2% on a constant-currency basis) coming in worse than the Street estimate of $424.03 million. Q3 EPS was $0.19, compared to the Street estimate of $0.06.
“We have seen the macroeconomic backdrop become significantly more challenging for us starting in June as the dollar’s appreciation and high inflation have adversely affected consumer sentiment globally, particularly in the categories in which we play. As a result, revenue missed our expectations for Q3 and we are adjusting our FY22 outlook accordingly,” said Patrick Spence, Sonos CEO.
The company lowered its full 2022-year revenue guidance to $1.73-1.76 billion (vs. Street’s $1.96 billion) from the prior $1.95-$2.0 billion.
The company extended the timeline of achieving its previously announced targets of $2.5 billion revenue, 45-47% gross margins and 15-18% adjusted EBITDA margins beyond 2024, due to the uncertain and evolving macroeconomic backdrop.
The company also announced that its CFO Brittany Bagley is stepping down to pursue another professional opportunity. Eddie Lazarus, the company’s Chief Legal Officer (CLO), was appointed as interim CFO, effective Sept. 1, 2022.
