Sonos (Nasdaq: SONO) reported record revenues of $672.6 million for its fiscal year Q1, an increase of 1.2%. First quarter EBITDA was $123.9 million compared to $163.1 million last year.
Meanwhile, the days of Sonos product shortages appear to be over, as CEO Patrick Spence said the company has its deepest inventory stock level in three years.
“We are pleased to report record first quarter revenue of $672.6 million and adjusted EBITDA of $123.9 million. We entered the quarter with our healthiest in-stock inventory position in three years which allowed us to meet the tremendous customer response to our industry-leading product portfolio and gain share across our key categories and geographies. Our results are a testament to the strength of the Sonos brand, our category leadership and the power of our flywheel,” says Spence.
He adds, “Looking ahead, we remain on track to deliver against our fiscal 2023 guidance as we build upon our momentum and prepare to launch multiple new products this year. While significant macroeconomic uncertainty remains, my conviction in the long-term potential of Sonos has never been stronger.”
Despite the positive Q1 sales numbers, the company is maintaining its full-year guidance that wavers between a -3 decline in sales and a 3% increase in sales, $1.7 billion to $1.8 billion in total sales. Spence notes that overall consumer spending is still moving to travel and away from goods.
“Consumer spending was rather tepid, especially as the pendulum has swung away from goods and towards travel and services as the consumer enjoys some of the activities that they were deprived of during the pandemic. The consumer electronics space, in particular, continues to experience softness after 3 years of very strong growth. For this reason, despite our strong start to fiscal 2023, we are standing pat on our annual guidance,” he told investors.
Michelle Obama, NY Times Sonos Shout Outs
Beyond the solid sales numbers, Spence was just as excited to tout some recent shout outs the company has received.
“There is a reason why the New York Times crossword puzzle selected Sonos as the answer to the clue, ‘wireless home audio company.’ And Michelle Obama named it her most used app recently while on the Late Show with Stephen Colbert. The Sonos brand has never been stronger. And when consumer spending picks up and the balance of goods and services expenditure stabilizes, we will be well positioned to deliver accelerating top and bottom-line growth,” he touted.
