Q2 2024 Sonos Inc Earnings Call Transcript
Key Points
- Sonos Inc (SONO) reported Q2 revenues of $252.7 million, exceeding expectations with a strong customer response to promotions.
- The company is launching a new product soon, entering a new multibillion-dollar category, expected to significantly boost Q3 revenues.
- Sonos Inc (SONO) has successfully expanded its distribution footprint, including becoming a first-party seller on Amazon in the U.S., enhancing customer acquisition.
- The company has maintained a robust gross margin of 44.3%, demonstrating resilience and effective cost management.
- Sonos Inc (SONO) has a strong innovation track record, with significant investments in a new app and upcoming products, aiming to attract new customers and expand market share.
- Despite exceeding revenue expectations, Sonos Inc (SONO)'s first half revenue of $866 million was down 11% year over year.
- The company faces significant pressure in its categories, with overall market challenges impacting sales, particularly in EMEA and APAC regions.
- Adjusted EBITDA was negative $34 million, although it was ahead of guidance, indicating ongoing challenges in achieving profitability.
- Sonos Inc (SONO) reported a negative free cash flow of $121 million in Q2, reflecting typical seasonal challenges but highlighting financial pressures.
- The company's litigation with Google over patent infringement, although successful, could pose distractions and potential future legal expenses.
Thank you for standing by. My name is Greg and I will be your conference operator today. At this time, I would like to welcome everyone to the Sonos Second Quarter Fiscal 2024 conference. (Operator Instructions) Thank you I would now like to turn the call over to James Baglanis, Head of Investor Relations. James, you have the floor.
Good afternoon, and welcome to Sonos Second Quarter Fiscal 2024 earnings conference call. I'm James Baglanis. And with me today are Sonos CEO,Patrick Spence; CFO, Saori Casey; and Chief Legal and Strategy Officer, Eddie Lazarus. For those who joined the call early. Today's hold music is a sampling from our sweets and Space Station, which is curated in collaboration with API at Sonos. In recognition of Asian Pacific, American Heritage month.
Before I hand it over to Patrick, I would like to remind everyone that today's discussion will include forward-looking statements regarding future events and our future financial performance. These statements reflect our views as of today
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