Shares of Sonos (NASDAQ: SONO) tanked in pre-market trading at the time of writing on Thursday after the developer and manufacturer of audio products’ FY23 outlook was not music to investors’ ears. The company now expects its FY23 revenues to be in the range of $1.63 billion to $1.675 billion, indicating a decline of 7% to 4% year-over-year versus its prior outlook between $1.7 billion and $1.8 billion.
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The company now forecasts adjusted EBITDA in the range of $138 million to $168 million, compared to its prior outlook between $145 million and $180 million.
Sonos CEO Patrick Spence commented, “Though our second quarter results were in-line with our guidance, we are reducing our expectations for the second half of Fiscal 2023 due to softening consumer demand and channel partner inventory tightening. As a result, we are taking swift action to reduce our operating expenses and protect our profitability.”
In the fiscal second quarter, the company reported adjusted earnings of $0.04 per share versus $0.26 in the same period last year while analysts were expecting Sonos to report a loss of $0.24 per share. Sonos’ revenues fell 23.6% year-over-year to $304.2 million.
In addition, Sonos also announced the appointment of Julius Genachowski as the company’s Chairperson of the Board and will replace the current Chairperson, Mike Volpi, who will continue as a Director.
Today’s stock slide aside, SONO stock has surged by more than 25% year-to-date.
