Sonos Inc. rose after increasing its annual sales outlook and reporting quarterly results that beat Wall Street estimates, boosted by increased demand for its speakers from homebound customers. In after-hours trading, the stock jumped as much as 20%.
On several metrics, including sales, adjusted Ebitda, and earnings per share, the Santa Barbara, California-based business outperformed all expectations. It made $332.9 million in revenue in the quarter that ended on April 3, compared to a consensus estimate of $248.3 million.
The company raised its revenue outlook for fiscal 2023 to a range of $1.625 billion to $1.675 billion, up $100 million from the previous range. A worsening global chip shortage, shipment delays, and increasing raw material prices have also raised gross margin expectations.
In an interview, Sonos CEO Patrick Spence said that the company has no plans to adjust pricing and that it can “manage through” supply chain constraints.
Sales of Roam, the latest portable speaker that was unveiled in March but didn’t hit the market until April, was not included in the quarterly results, but pre-orders for the product were more than 150 percent of the company’s goal, according to Spence. He believes the product will benefit from the economy’s reopening as more people listen to music on the go.
“As the world reopens, I think Roam is going to be the perfect product.”Sonos CEO – Patrick Spence