Snap One (Nasdaq: SNPO) is anticipating continued “market headwinds” heading into the final quarter of year. As such, the company has adjusted its revenue and profit forecasts for the year, despite posting third quarter revenues and profits that soundly beat 2021 numbers.

For the third quarter ending Sept. 30, Snap One reported revenues of $281.2 million, up 7.9% from $260.7 million in 2021. Through nine months of the year, the company has had revenues of $855.5 million compared to $734.5 million last year. In terms of total profitability, the Charlotte-based company reported a loss of $1 million for the quarter, compared to a loss of $21 million last year in Q3. For the full year, Snap One has had a net loss of $4.6 million.

Despite the improved performance over the previous year, Wall St. reacted negatively to the news as it was below revenue expectation estimates by 7.4%. Snap One’s stock dipped 12% since the release of its Q3 data.

“The third quarter reflects our continued commitment to our ‘Only Here’ strategy,” said CEO John Heyman. “In Q3, we announced several new product releases, including exciting advancements within our traditional residential offering and expanded applicability across both commercial and security markets. In addition, we continued to build our local branch footprint, completed our acquisition of Clare Controls, and hosted our inaugural Analyst and Investor Day, all highlights of our team’s diligent efforts this quarter.

“We are focused on managing the business to deliver strong profitability amidst an uncertain operating environment. For the third quarter, we delivered $281.2 million in net sales, representing 7.9% year-over-year growth on an as-reported basis, with a net loss of $1.0 million and adjusted EBITDA of $31.9 million, representing 11.3% of net sales. While the unpredictable macroeconomic reality persists, we remain confident in our sustainable, long-term growth strategy and resilient team, and believe in the path ahead for Snap One.”

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Snap One Fiscal 2022 Financial Outlook

“As we turn to the fourth quarter, we anticipate recent market headwinds to persist,” Heyman continued. “While we remain steadfast in our growth algorithm over the long-term, we believe that it is prudent to acknowledge and adjust to economic conditions. Our fiscal 2022 guidance considers our year-to-date performance, pricing adjustments, the acquisition of Clare, which we expect to have a modest dilutive impact on consolidated results in the short term, ongoing FX headwinds, and our anticipation of continued market uncertainty.”

“With these factors in mind, we are adjusting our full-year net sales and adjusted EBITDA guidance ranges from our previously published outlook. We now expect net sales in the fiscal year ending December 30, 2022 to range between $1.1 billion and $1.115 billion, which would represent an increase of 9% to 11% compared to the prior fiscal year on an as-reported basis, and 11% to 13% after adjusting fiscal 2021 to remove the impact of a 53^rd week.

“For fiscal 2022, we expect adjusted EBITDA to range between $109 million and $113 million, which would represent a decrease of -1.6% to an increase of 2.0% compared to the prior fiscal year on an as-reported basis. While we are adjusting our guidance range for the year, we maintain our focus on increasing profitability in the short-term. Overall, we remain committed to revolutionizing smart living and helping lead overall industry progress as we deliver long-term growth and margin expansion for Snap One.”

Coming out of CEDIA Expo 2022 in which the company debuted a slew of new products, Snap One recently acquired Parasol, a 24/7 remote support service based on OvrC. Also, the company secured an incremental $55 million term loan to provide additional liquidity for general corporate purposes. Snap One says it will use most of the proceeds to pay down its existing revolving credit facility, with the remaining cash strengthening the balance sheet. Moreover, Snap One has continued its stock repurchasing, having repurchased for the year 222,210 shares of its common stock at value of $2.4 million.

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