Sonos Inc (NASDAQ: SONO) stock fell 19.8% on 11th September 2018 following its third-quarter 2018 report. Sonos has reported a net loss of $27 million on sales of $208.4 million, both worse than the loss of 26 cents a share on revenue of $223.1 million in the same quarter a year ago. As is typical for a company in the first quarter after an IPO, Sonos was hit by stock-based compensation, which totaled $10.3 million, as well as other related expenses. Sonos said its adjusted Ebitda was a loss of $1.5 million, though that was still a decline from a year ago, when that profit metric showed earnings of $2.3 million. The company expects to end the fiscal year with total adjusted Ebitda in the range of $59 million to $62 million on revenue of about $1.11 billion, approximately in line with analyst estimates.
Meanwhile, SONO has made good progress on the go to strategies over the past few months. The company is delivering on the commitment to launch two new products a year with the introduction of Beam, which is the second product for FY18 after the One in Q1 and the announcement of Amp, which will start shipping in Q1 of fiscal ’19. n terms of global expansion, in August, SONO was launched in Japan and are taking a tailored approach to that important market with second largest music market in the world. The company continue to accelerate the direct-to-consumer business with that channel continuing to be the fastest growing one. SONO also continue to evolve the platform with the introduction of AirPlay 2, and the company see increased engagement from Sonos [song] who are using AirPlay 2. Just last week, we opened the company’s platform for more developers with the set of APIs and are excited to see what gets developed as a result. Finally, the company continue to build the brand through activities like the reimaging of the NASDAQ opening bell, the Beam launch that drove a tremendous amount of the media and the cultural marketing event at the various physical locations.
Additionally, during the first nine months of the FY 18 revenue was $864 million, reflecting year-over-year growth rate of 11%. Adjusted EBITDA for the nine months ended was $49 million, which is a slight decline of $2 million from the same period last year.