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Sonos Inc. (SONO-3.99%) has submitted its 10-Q filing for the quarterly period ended December 28, 2024.
The filing includes financial statements for the quarter, indicating a decrease in revenue to $550,857,000 from $612,869,000 in the same quarter the previous year. This decrease is attributed to softer market demand and challenges from the 2024 app rollout.
Cost of revenue for the quarter was $309,451,000, compared to $330,190,000 in the previous year. Gross profit declined to $241,406,000 from $282,679,000, with gross margin decreasing to 43.8% from 46.1%.
Operating expenses for the quarter were $193,313,000, down from $202,984,000 in the previous year. This reduction was primarily due to lower general and administrative expenses following a restructuring plan.
Net income for the quarter was $50,237,000, a decrease from $80,947,000 in the previous year. The net income margin fell to 9.1% from 13.2%.
Cash provided by operating activities was $156,173,000, while cash used in investing and financing activities was $9,334,000 and $33,798,000, respectively.
Sonos reported a working capital of $612,526,000 as of December 28, 2024. The company maintains a revolving credit agreement with a facility of up to $100 million, with no outstanding borrowings as of the report date.
The filing also discusses ongoing legal proceedings, including patent litigation with Google, and notes a recent reorganization involving a reduction in force affecting approximately 12% of its employees.
Sonos plans to continue focusing on product innovation and market expansion, with an emphasis on improving its operating model and cost structure.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Sonos Inc. quarterly 10-Q report dated February 6, 2025. To report an error, please email earnings@qz.com.