The audio company Sonos released its earnings for what it calls the first quarter of 2021 on Wednesday, and the company reported increases in revenue and net income.
Sonos posted GAAP net income of $123.3 million, an 87 percent jump over the same time last year, while also posting revenue of $645.6 million, a jump of 15 percent from the year before. The performance beat expectations by analysts, the company said.
In the quarter, Sonos brought in a record number of new customers, while also selling a record number of new products sold to existing customers.
“Despite all of the challenges of the pandemic, our team rose to the occasion and delivered the best quarter in our 18 year history,” CEO Patrick Spence said in the earnings release. “We welcomed a record number of new customers while a record number of existing customers returned to add additional products to their system. Based on our outstanding first quarter performance, the momentum in our business, the exciting products we have planned for the future, and the power and profitability of our unique business model, we are raising our outlook for fiscal 2021.”
Sonos had announced record earnings in the previous quarter, also beating analyst expectations.
The company went on to list its priorities for the coming year, which include “delivering innovative new products that both new and existing customers love,” as well as “services that enhance and further differentiate the customer experience.” The company is also prioritizing “industry-leading growth margins” and “double-digit revenue growth.”
“We remain focused on delivering innovative new products that both attract new customers and inspire existing customers to add additional products, introducing services that enhance and further differentiate the customer experience, strengthening our direct-to-consumer efforts, and supporting our incredible partnerships,” Spence added. “We are extremely well positioned to deliver solid adjusted EBITDA margin expansion, industry-leading gross margins, strong revenue growth, significant free cash flow and increased shareholder value over time. The future has never been brighter for Sonos.”
Sonos is hosting an investor day on March 9. In addition, the company indicated on its earnings call that it will release a new product in the near future. According to Pocket-lint, a portable Bluetooth speaker from the company recently surfaced at the FCC, indicating that this is the new product that’s on the way.
“We are committed to launching at least two new products per year and are well on track as we look out at our fiscal 2021 product roadmap,” Spence said on the call Tuesday, per the company’s own transcript. “We are excited to introduce our newest product next month...stay tuned for details.”
Stephen Silver, a technology writer for The National Interest, is a journalist, essayist and film critic, who is also a contributor to Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Review and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.
Image: Sonos/The Verge.