Sonos has reported its second quarter fiscal 2021 results, and the popular audio company emphasizes it achieved record earnings figures.

Upon the closure of the market on May 12, the company’s stock continued to surge, trading up over 17% in after-hours trading.

Patrick Spence, CEO of Sonos, points out that through its à la carte market approach, the company has been able appeal to a wide range of consumers.

“We are thrilled to report another record quarter at Sonos, as demand for our products continues to exceed even our heightened expectations. The power of our model is that customers can start with one product and expand to more over time, and our customers continue to prove they do just that,” says Spence.

“Based on our outstanding second quarter performance, the continued strong demand for our products, and the power and profitability of our unique business model, we are raising our outlook for fiscal 2021 again.”

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Sonos Q2 2021 Fiscal Highlights

Taking a look at some of the numbers released by the company, Spence notes that based on the Sonos Q2 2021 results the company’s long-term health looks promising.

“Our increased fiscal 2021 revenue outlook still assumes Sonos will account for only approximately 9% of the total spend in the $18 billion premium home audio market, and an even smaller fraction of the broader $89 billion global audio market we expect to expand into over the long-term,” he comments.

“We are truly just scratching the surface toward realizing our long-term opportunity. The future is bright for Sonos.”

Here are the unaudited Sonos Q2 2021 results:

• GAAP net income (loss) increased to $17.2 million from ($52.3) million last year; non-GAAP net income (loss) excluding stock-based compensation, restructuring and legal and transaction related fees increased to $44.6 million from ($37.2) million last year.
• GAAP diluted earnings per share (EPS) increased to $0.12 from ($0.48) last year; non-GAAP diluted earnings per share (EPS) excluding stock-based compensation, restructuring, and legal and transaction related fees increased to $0.31 from ($0.34) last year.
• Adjusted EBITDA increased to $48.5 million from ($28.4) million last year.
• Adjusted EBITDA margin increased to 14.6% from (16.2%) last year.
• Gross margin increased 810 basis points to 49.8% from 41.7% last year.
• Revenue increased 90% year-over-year to $332.9 million; on a constant-currency basis, revenue increased approximately 83% year-over-year.

Additionally, here is Sonos’ 2021 Fiscal Outlook:

• Adjusted EBITDA increased to a range of $225 million to $250 million representing growth in the range of 107% to 130%.
• This compares to our prior outlook of $195 million to $225 million, representing growth in the range of 80% to 107% and our initial fiscal 2021 outlook provided at the start of the fiscal year of $170 million to $205 million, representing growth in the range of 57% to 89%.
• Adjusted EBITDA margin increased to a range of 13.8% to 14.9%, representing a 560 to 670 basis point improvement year-over-year.
• This compares to our prior outlook range of 12.8% to 14.3%, representing a 460 to 610 basis point improvement and our initial fiscal 2021 outlook of 12% to 14%, representing a 380 to 580 basis point improvement.
• Gross margin in the range of 46.0% to 46.5%, representing a 288 to 338 basis point improvement year-over-year.
• Our fiscal 2021 gross margin outlook reflects minimal impact from ongoing tariffs and does not include the $27.5 million in tariff refunds expected due to timing uncertainty.
• This is consistent with prior guidance range of 46.0% to 46.5% and compares to Sonos’ initial fiscal 2021 outlook of 45.3% to 45.8%.
• Revenue increased to a range of $1.625 billion to $1.675 billion, representing growth in the range of 23% to 26% year-over-year (25% to 29% on a comparable basis excluding the 53rd week in fiscal 2020).
• This compares to prior guidance range of $1.525 billion to $1.575 billion, representing growth in the range of 15% to 19% from fiscal 2020 (17% to 21% excluding the 53rd week in fiscal 2020) and initial fiscal 2021 outlook of $1.44 billion to $1.5 billion, or 9% to 13% growth (11% to 15% excluding the 53rd week in fiscal 2020).

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