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Sonos released better than expected second quarter earnings after the close Thursday with the momentum of Home Theater smarter speaker Beam leading. $SONO also announced the Google Assistant support launch.


Sonos Inc NASDAQ: SONO Reported Earnings After Close Thursday

($0.22) Beat ($0.35) EPS AND $210M Beat $209 million expected in Revenue.


Sonos announced its fiscal Q2 2019 earnings report,beating analyst expectations. Sonos said it lost $23 million, or 22 cents a share,  compared with a loss of $34 million, or 55 cents a share, in the year-ago period. Revenue rose 13% to $210 million, compared with $187 million a year ago. Analysts polled by FactSet had expected a loss of 35 cents a share on sales of $209 million in the quarter. The Sonos fiscal second quarter, which ended on March 30.


Market Reaction > After Hours $10.61 +0.35 (+3.41%)


  • Sonos's biggest growth was in its home theater segment, where it sold $89 million worth of devices in the quarter, largely driven by the Beam, a compact sound bar with integrated microphones, which led to a 57% increase in home theater speaker products sold.
  • Traditional speaker sales declined, down 16% than during the same quarter last year. The company attributed this to the discontinuation of the Play:3 speaker, as well as fewer sales of its entry-level Play:1 speaker.
  • Sonos sold a total of 785,291 products during the quarter, which was up just 1% year-over-year.
  • Sonos spent significantly less on marketing during the quarter, which helped the company to reduce overall costs. Part of that seems to be due a shift to online marketing.

Google Assistant Launch To Sonos smart speakers:

Sonos announced that Assistant support will be rolling out next week.

“Through a software upgrade, Sonos One and Beam will support the Google Assistant in the U.S., with more markets to come over the next few months,” the company said in its letter to investors.

A spokesperson declined to share additional details on the timing Assistant support for legacy Sonos speakers, saying that the company would share more next week, but CEO Patrick Spence suggested that this functionality was definitely coming as well: “If you have a Google Home device, you will be able to use that to control your Sonos,” Spence said.

Sonos first announced that it was working with Google when it introduced the Sonos One speaker in late 2017. Sonos began beta-testing Google Assistant with a subset of its users earlier this year.


The Swedish furniture giant IKES is scheduled to launch 2 smart speakers powered by Sonos in August, which will be shown in its stores in a home-like setting.

“They get 1.3 billion shoppers a year through their stores,” Spence said Thursday about Ikea. In addition to reaching new consumers in existing markets, Sonos also wants to use the chain as a way to evaluate new territories, and then double down on those countries where Ikea’s speakers sell well, Spence explained.

Sonos speakers occupy a higher tier of the wireless home entertainment market than Amazon Echo or Google Home products. With prices for multi-room Sonos systems running into the thousands of dollars, the products are targeted toward customers who value a full home-theater experience. The risk remains that a behemoth such as Amazon or Google could decide to compete in higher-end equipment and use its vast cash reserves to undercut the smaller company’s prices and quickly dominate the segment. For now, though, Amazon seems content to leave Sonos alone. 

From The TradersCommunity Research Desk

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