Sonos Inc. (SONO) reported a narrower loss in the fourth quarter helped by the sales of smart speaker Beam and the continued momentum of Sonos One. The top line exceeded analysts expectations. The multi-room audio products maker guided revenue for the first quarter and full-year above the Street’s view. Following this, the stock soared over 18% in the after-market session.
Net loss for the quarter narrowed to $1.72 million or $0.02 per share from $14.9 million or $0.26 per share in the previous year quarter. The bottom line was tighter than the analysts’ expected loss of $0.06 per share.
Revenue jumped 27% to $273 million. The company sold 1.12 million products, representing a 47% year-over-year growth. The largest driver impacting its revenue growth was the launch of Beam, which led to a 119% jump in home theater speakers products sold and a 63% surge in home theater speakers revenue.
Wireless speakers products sold increased 35% due to the continued momentum of Sonos One. Despite the strong unit growth, wireless speaker revenue rose 4% as volume mix shifted from high-priced Play:5 and Play:3 to low-priced Sonos One and Play:1.
With Sonos in over 7.4 million homes, the company said it is off to a great start. But the company believes it is scratching the surface considering that about 200 million subscribers are paying for streaming music, a number that is expected to grow to 333 million over the next three years.
Sonos expects Google Assistant to join its platform alongside Amazon Alexa, giving customers the freedom of choice when it comes to voice assistants. In the fiscal year 2019, the company plans to push its boundaries by investing resources to make the experience of Sonos outside the home a reality.
Looking ahead into the first quarter of fiscal 2019, the company expects revenue to grow 3% to 6% to the range of $485 million to $495 million. Adjusted EBITDA is predicted to rise 1% to 6% to the range of $66 million to $69 million.
For the full year 2019, Sonos projects revenue to jump 10% to 12% year-over-year to the range of $1.25 billion to $1.275 billion. Adjusted EBITDA is anticipated to climb 20% to 27% to the range of $83 million to $88 million. The company plans to invest about 2.5% of fiscal 2019 revenue in capital expenditures primarily to fund tooling and production line test equipment required for new products.
Shares of Sonos ended Thursday’s regular session up 1.65% at $14.16 on the Nasdaq. The stock has fallen over 28% since its IPO on August 2, 2018.
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