Happy Wednesday. For today’s update, we take a closer look at Sonos’ FY3Q23 earnings. The discussion then goes over Sonos taking market share in the speaker categories that the company competes in. We conclude with key differences/similarities between Sonos and Apple.

Let’s jump right in today’s update.

Sonos FY3Q23 Earnings

Sonos has had a very busy 2023. New speakers (Era 100 and 300), services (Sonos Pro), and partnerships (Apple Music spatial audio) have fulfilled the company’s promise of continuing to move the platform forward. However, Sonos is unable to escape the consumer electronics gadget recession. Sales promotions continue to be needed to maintain speaker sales trends.

The following exhibit shows Sonos speaker sales on a TTM (trailing twelve months) basis to remove the seasonality associated with the holidays. The sales decline is becoming more noticeable.

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