Sonos Inc. reported a decline in financial performance for the three months ended December 28, 2024, with total revenue of $550.9 million, down 10.1% from $612.9 million in the same period last year. The decrease was attributed to softer demand and challenges related to the rollout of the company's new app, despite the introduction of new products such as the Arc Ultra soundbar. Net income also fell to $50.2 million, compared to $80.9 million in the prior year, resulting in a net income margin of 9.1%, down from 13.2%. Basic net income per share decreased to $0.41 from $0.65.
In terms of operational metrics, the number of products sold decreased by 12.3%, totaling 1.85 million units compared to 2.11 million units in the previous year. Revenue from Sonos speakers, which accounted for 84.8% of total revenue, decreased by 7.1%, while revenue from Sonos system products saw a more significant decline of 28.7%. The Americas region experienced a notable revenue drop of 17.3%, while the EMEA region saw a slight increase of 3.0%.
The company has made strategic adjustments, including a restructuring plan initiated in August 2024, which has led to a reduction in general and administrative expenses by 35.1% year-over-year. Total operating expenses decreased by 4.5%, reflecting cost management efforts. Sonos also repurchased 1.88 million shares for $27.1 million during the quarter, as part of a $200 million stock repurchase program authorized in November 2023.
As of December 28, 2024, Sonos held cash and cash equivalents of $280 million, an increase from $169.7 million at the end of the previous quarter. The company reported a net cash provided by operating activities of $156.2 million, down from $275.4 million in the prior year, primarily due to lower net income. Looking ahead, Sonos anticipates continued challenges in the market but remains focused on product innovation and operational efficiency to drive future growth. The company is also navigating a leadership transition, with Tom Conrad appointed as Interim CEO following the departure of Patrick Spence.
About Sonos Inc
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