Final quarter ought to’ve been a triumphant one for Sonos with the launch of its first headphones, however the firm is dealing with the realities of its botched app redesign. CEO Patrick Spence defined within the firm’s Q3 earnings press release that Sonos has lowered its 2024 fiscal steerage because of “issues” each clients and companions encountered with the software program replace. However, the problems do not cease with income. The corporate additionally stated on its earnings name it’ll delay two new product launches deliberate for This fall till the app is fastened.
“Because of Ace, our long-awaited entry into headphones, we reported yr over yr income development and delivered outcomes that barely exceeded our expectations in our third quarter,” Spence stated. “This was overshadowed by the issues that our clients and companions skilled because of the rollout of our new app, which in flip has required us to scale back our Fiscal 2024 steerage. We’ve a transparent motion plan to deal with the problems attributable to our app as rapidly as doable.”
Spence stated the brand new merchandise have been able to ship in This fall, however that proper now “our primary precedence is to make this proper and make sure that the following chapter is even higher than the earlier ones.” After all, the corporate hasn’t formally mentioned precisely what these two merchandise are simply but. Bloomberg reported late final yr that Sonos was engaged on a set-top TV streaming field and a successor to its premium Arc soundbar. The CEO additionally admitted in the course of the name that the whole price of fixing the problems with the app will price the corporate $20-$30 million. Nonetheless, Spence is assured Sonos will bounce again, describing this as just one “chapter” within the firm’s historical past.
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