What happened
Shares of Sonos (SONO 0.69%) have jumped today, up by 13% as of 12:39 p.m. EST, after the high-end audio specialist reported its fiscal first-quarter earnings results. Despite recent controversies, Sonos topped expectations for both the top and bottom lines.
So what
Revenue in the fiscal first quarter jumped 13% to a record $562.1 million, easily crushing the consensus estimate of $545.5 million in sales. That translated into record net income of $71 million, or $0.60 per share, by the time it reached the bottom line. Analysts were modeling for just $0.48 per share in profits.
Sonos One SL. Image source: Sonos.
Unit volumes increased 22% to over 2.9 million, with new devices like the Sonos One SL and Sonos Move helping drive demand, as well as product collaborations with IKEA. Promotional activity during the holiday shopping season also helped grow sales. Adjusted EBITDA soared 29% to $113 million.
"A record number of new homes started with Sonos during the first quarter, and we continued to see strong growth in product registrations by both existing and new customers," CEO Patrick Spence said on the conference call with analysts.
Now what
Going forward, Sonos reiterated its long-term targets of 10% annual revenue growth and 20% annual adjusted EBITDA growth, and reaffirmed its outlook for fiscal 2020. The company still plans to launch at least two new products each year and says it is "increasingly thinking about our products as more than hardware and look forward to being able to include additional business models as part of our future product launches."
Fiscal 2020 revenue is still expected to be in the range of $1.37 billion to $1.4 billion.
