Final quarter was presupposed to be a profitable one for Sonos, with the launch of its first headphones, however the firm is dealing with the fact of a failed app redesign. CEO Patrick Spence defined within the firm’s third-quarter earnings press launch that Sonos lowered its monetary steerage for 2024 attributable to “points” skilled by clients and companions with software program updates. However the issue goes past earnings. The corporate additionally mentioned on the earnings name that it might delay the launch of two new merchandise deliberate for the fourth quarter till the app is fastened.
“Our third quarter outcomes barely exceeded our expectations as our income grew yr over yr, pushed by our long-awaited launch of Ace, our headphone section,” mentioned Spence. The problems overshadowed this, which in flip required us to scale back our fiscal 2024 steerage. We have now a transparent motion plan to resolve the problems attributable to our purposes as rapidly as doable.
Spencer mentioned the brand new product is able to ship within the fourth quarter, however for now “our precedence is to get this proper and ensure the following chapter is healthier than the final one.” In fact, the corporate hasn’t made it official but Focus on the specifics of those two merchandise. Bloomberg studies Late final yr, Sonos was growing a set-top TV streaming field and a successor to its premium Arc soundbar. The CEO additionally acknowledged on the decision that the entire price of fixing the app points would price the corporate $20 to $30 million. Nonetheless, Spencer believes Sonos will make a comeback, calling this only a “chapter” within the firm’s historical past.
