By Emily Bary
The home-improvement boom continued during the holidays, helping Sonos Inc. post record revenue that easily exceeded expectations for its latest quarter as more people sought to outfit their houses with the company’s smart audio products amid the pandemic.
Shares were up 16% in after-hours trading.
The maker of smart speakers generated revenue of $645.6 million in its fiscal first quarter, up from $562.1 a year earlier and ahead of the $590 million that analysts surveyed by FactSet had been projecting.
The quarter was “across the board strong for all of our products,” Chief Executive Patrick Spence told MarketWatch, as the company saw a record number of new customers purchase Sonos /zigman2/quotes/200589226/composite SONO -1.35% devices and a record number of existing customers add products to their homes.
Sonos continued to deal with some supply shortages, especially for its Arc sound bar, given container shortages coming out of Asia and a backlog in the port of Los Angeles. Spence expects to be caught up by the end of the current quarter.
The company also topped profit expectations for the holiday quarter. Sonos delivered net income of $132.3 million, or $1.01 a share, up from $70.8 million, or 60 cents a share, a year earlier, while analysts tracked by FactSet were projecting 86 cents. Sonos reported adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of $166.3 million, above the $130 million FactSet consensus.
Spence said that increased customer demand was a big driver of the profit performance, along with better supply-chain efficiencies and accelerated growth in direct-to-consumer sales.
The company has seen “a ton of demand continuing” even after the holidays, according to Spence, and Sonos increased its forecast for the full fiscal year. Sonos now expects revenue of $1.525 billion to $1.575 billion, up from a prior forecast of $1.4 billion to $1.5 billion. The company also upped its adjusted Ebitda outlook, calling for $195 million to $225 million compared with its prior forecast of $170 million to $205 million.
Analysts were modeling $1.46 billion in revenue and $180 million in adjusted Ebitda.
The company has an investor event planned for March 9.
Sonos shares have gained 106% over the past three months as the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.77% has risen 10%.