Sonos lowers FY24 revenue view to $1.5B-$1.52B from $1.6B-$1.7B

Consensus $1.65B. Cuts FY24 adjusted EBITDA view to $93M-$117M from $150M-$180M. The company said, “As a result of the reduction to Q4, we expect the revenue in the range of $1.503 billion to $1.523 billion for the full year. We expect Q4 GAAP gross margins in the range of 40% to 42%, down sequentially from Q3, driven by deleverage resulting from lower revenue. For the full year, we expect GAAP gross profit dollars in the range of $682 million to $696 million, representing a gross margin of 45.4% to 45.7%. We expect non-GAAP gross margins to be approximately 40 bps higher due to approximately $6 million of stock based compensation and amortization of intangibles included in GAAP cost of revenue. We expect Q4 adjusted EBITDA to be in the range of minus $37 million to minus $14 million, resulting in full year adjusted EBITDA in the range of $93 million to $117 million, representing a margin of 6.2% to 7.7%. The reduction in our expectation for adjusted EBITDA is primarily due to lower revenue. As Patrick mentioned, from now through the holidays, we’re investing approximately $20 million to $30 million in fixing the app, supporting our customers and regaining their trust. We expect that this will come in the form of revenue and gross profit reductions as well as operating expense increases. A portion of this investment that will be incurred in Q4 has not been factored into our guidance range.”