Sonos, Inc. (SONO), a company that designs, develops, manufactures, and sells multi-room audio products, has gained an increase of 2.21% in aftermarket trading session and consequently is trading at $34.21 at the time of the writing. On Wednesday, SONO closed the day at $33.47 after declining 3.15% during the mid-day session. The decline could be attributed to the announcement of quarterly results by the company
Why SONO Declined?
On Wednesday, SONO released the financial results for the fourth quarter of the fiscal year 2021. The quarter ended on 2nd October 2021. The company generated revenue of $359.5 million during the quarter against $339.8 million for the same period of 2020. The cost of revenue for the period was $192.6 million against $178.3 million for the same period of the previous fiscal. The gross profit for the quarter was $166.9 million against $161.5 million for the same quarter of fiscal 2020. The operating expenses for the period were $178.4 million against $146.1 million for the same period of 2020. The company suffered a net loss of $8.74 million (or $0.07 per basic and diluted share) during the quarter against the net income of $18.41 million (or $0.17 and $0.15 per basic and diluted share respectively) for the same quarter of 2020.
Financial Outlook
Alongside the financial results, SONO also reported the financial outlook for the upcoming fiscal 2022. The company expected the revenue to stand between $1.925 billion to $2 billion during the upcoming fiscal. The gross margin is expected to range between 46% and 47%. The gross margin for fiscal 2022 includes minimal net tariff impacts. The adjusted EBITDA is expected to range between $280 million to $325 million, while the adjusted EBITDA margin is expected to stand in the range of 14.5% to 16.2%.
Executive Commentary
SONO CEO Patrick Spence while commenting on the results said that the company is excited to report another record quarter as the results are the illustration of how much the company’s products have appealed to the consumers. He further said that the company is entering fiscal 2022 with a significant backlog due to the continued industry-wide supply chain constraints. He hoped that the company is well-positioned to achieve its long-term goals.
What Lies Ahead for SONO?
The stats reveal that during the last 12 months, SONO stock has mostly depicted a stable trend, not experiencing much volatility. This is a piece of good news for potential investors, as they could yield numerous dividends from the SONO stock by taking informed decisions regarding their investments.
