Sonos Closes Door to Video, Time to Start Asking the Sonos Questions, Apple Opportunities
Today's Above Avalon Daily email contains the following stories:
Sonos Closes Door to Video
Time to Start Asking the Sonos Questions
Apple Opportunities
Hello everyone. Today's update will take us into Sonos land. As Sonos continues to navigate turbulent waters, we are getting to the point when questions regarding the company's longer-term prospects need to be asked. There are also some implications to consider as it pertains to Apple.
Let's jump in.
Become a member to continue reading today’s update. Already a member? Read the full update here.
An audio version of this update is available to members who have the podcast add-on attached to their membership.
Member Privileges and Benefits
Become an Above Avalon member and receive the following privileges and benefits:
Exclusive Analysis. Receive the Above Avalon Daily newsletter, widely-recognized as the leading daily newsletter dedicated to Apple. Now in its tenth year.
Archive Access. Access previous newsletters sent to members.
Member Forum Access. Access all channels in the Above Avalon forum in Discord.
Email Access. Receive timely responses from Neil to email inquiries.
Access to Add-ons. Customize a membership with the Podcast, Inside Orchard, and Financial Models add-ons.
Above Avalon Support. Play an active role in supporting Above Avalon as an independent voice and resource.
Sonos FY4Q23 Earnings, Sonos Discloses New Installed Base Data, Sonos’ Product Roadmap for 2024
Happy Tuesday. Today’s update will be dedicated to discussing Sonos. The company reported earnings a few days prior to the Thanksgiving break. Sonos is on a path to being a more direct competitor to Apple.
Let’s jump right in.
Sonos FY4Q23 Earnings
Two weeks ago, Sonos reported FY4Q23 earnings (July through September).
Sonos is feeling the impact of the consumer gadget recession. Revenue was down 3.5% to $305M as the number of products sold were down 8% and speaker registrations were down 13%. The 500 basis point gap between products sold and registrations is due to channel inventory fill. This means quarterly results were boosted by Sonos putting speakers into the channel ahead of the holidays. The stronger revenue total (-3.5%) versus products sold (-8%) was due to higher speaker ASP.
The following exhibit shows Sonos speaker sales on a TTM.
An Above Avalon membership is required to continue reading this update. Members can read the full update here. An audio version of this update is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here.
(Members: Daily Updates are accessible by logging into Slack. If you haven’t logged into Slack before, fill out this form to receive an invite.)
Above Avalon Membership
Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time.
Special Inside Orchard bundle pricing is available for Above Avalon members. Additional membership customization is available via the Podcast and Financial Models add-ons.