Sonos (SONO) earnings Q4 2020

Sonos celebrated its IPO on Nasdaq on August 2, 2018.

: Nasdaq

Shares of speaker maker Sonos rose 23% on Wednesday, following the company’s fiscal fourth quarter earnings and expectations for fiscal year revenue guidance.

Here’s how the company did:

  • Income: 33 cents, 0 cents, excluding some items expected by analysts, according to Refinitiv.
  • Revenue: According to Refinitive, $ 339.8 million as expected by analysts, $ 298.8 million.

According to a statement, in the fiscal fourth quarter, which ended on October 3, Sonos’ revenue grew 16%, although the quarter was 14 weeks long. Excluding the 14th week, revenue grew 7%. Revenue declined 4% in the prior quarter as the company’s inventory was not sufficient to meet demand.

For more than half of the 2020 fiscal year, people worked and attended school from home to reduce the spread of coronovirus. This means that people had more time to spend at home listening to music. However, in the quarter, Sonos said the virus had a negative impact on product availability.

Sonos increased the number of households over 20% year-on-year to 10.9 million in the 2020 fiscal year, compared to 22% in the prior year. Sonos CEO Patrick Spence said in a statement that “existing customers add more products to their systems – every new home we acquire starts anew.”

Sonos also launched several new products to help keep its portfolio fresh, including a high-end soundbar that works with TVs and replacements to its powerful speakers.

The company continues to face inventory bottlenecks, Spence told analysts on a conference call Wednesday.

“We are investing in things like air freight and can do everything that can give us maximum supply in Q1,” he said.

For the upcoming 2021 fiscal year, Sonos projects $ 1.44 billion to $ 1.5 billion in revenue, which comes with an 11% to 15% increase, ahead of a $ 1.38 billion consensus among analysts provided by Refinitive.

Excluding the after-hours move, Sonos shares are up 9% for the year, compared to 14% for the S&P 500 index.

—CNBC’s Todd Haselton contributed to this report.

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