Sonos shares fall sharply after losses in first public results
Shares in Sonos fell more than 13 per cent in after hours trading last night as it reported losses in its first results as a public company.
The figures
The home audio company said it sold 11 per cent more products than the same quarter last year but its revenues fell 6.6 per cent to $208.4m (£159.4m) from last year's $223m.
Its adjusted earnings was a loss of $1.5m – down from a gain of $2.3m the previous year.
Why it's interesting
Shares had initially risen by 13 per cent – the largest daily gain for the company since listing on NASDAQ last month.
But when details of the results were released its stock fell by close to 15 per cent in after hours trading.
In a letter to shareholders Sonos said the decline was due to new product launches – most notably its Playbase sound system.
It did see a gain in its largest category, wireless speakers, which was up one per cent to $93.9m.
What Sonos said
Chief executive Patrick Spence said: “Given the nature of our business and the impact on seasonality and new product launches, we measure our financial progress on an annual basis, not a quarterly basis.
He added: “We are the only company I'm aware of where people add more to their system over time versus replacing previous purchases.
“We've made good progress on our growth strategies over the past few months.
“We're delivering on our commitment to launch two new products a year with the introduction of Beam, our second product of fiscal 2018 after the One in Q1 and our announcement of Amp, which will start shipping in Q1 of fiscal 2019.”