Following what appears to be a familiar pattern for the public hardware companies, Sonos (Nasdaq: SONO) announced record revenues for its second quarter 2022, but with a dip in profit due to the supply chain situation.
The Santa Barbara, Calif.-based company reported a 20.1% increase in revenue compared to the same quarter last year to $399.8 million versus $332.9 million in 2021.
But similar to other companies such as Alarm.com and Napco Security Technologies that have recently issued their quarterly data, Sonos saw a dip in its profits as hardware and logistics costs ate into the bottom line.
For the quarter ended April 3, 2022, Sonos’ net income was $8.5 million compared to $17.2 million last year. That decline is primarily due to a decrease in gross margin, which came in at 44.8% for the quarter.
Sonos CEO Patrick Spence comments, “We are pleased to report record Q2 revenue of $399.8 million, representing 20% growth over last year. Our Adjusted EBITDA of $46.9 million illustrates our continued ability to deliver sustainable, profitable growth despite the ongoing, industry-wide supply constraints and rising cost pressures.”
Spence continues, “Our consumer demand remains strong and we announced three exciting new products today. While the world remains unpredictable, we remain confident that we can deliver another record-setting year in Fiscal 2022.”
Looking ahead to the full year, Sonos is maintaining its total revenue outlook in the $195 billion to $2 billion range, which would represent a 14% to 16% increase over the previous year.
The company sees its EBITDA between $290 million and $310 million for the year, which is between 4% and 11% growth. That estimate is slightly lower than its previous outlook that had predicted a possible EBITDA of up to $325 million. Lastly, it updated its gross margin outlook for its hardware to between 45.5% and 46% compared to its prior outlook of 46% to 47%.