Last quarter should have been a triumphant one for Sonos first earphonesbut the company faces its own realities failed program redesign. CEO Patrick Spence explained at the company Q3 earnings press release Sonos has cut its financial guidance for 2024 as a result of “problems” both customers and partners are experiencing with the software update. But the problems do not end with income. The company also said in the earnings call that it will delay the introduction of two new products planned for the 4th quarter until the application is fixed.
“Thanks to our long-awaited entry into headphones, Ace, we reported year-over-year revenue growth and delivered results that slightly exceeded our expectations in the third quarter,” Spence said. “This overshadowed the challenges our customers and partners experienced as a result of the rollout of our new application, which in turn required us to lower our guidance for fiscal 2024. We have a clear plan of action to resolve issues caused by our app as quickly as possible.”
Spence said the new products are ready to ship in the fourth quarter, but right now “our number one priority is to get it right and make sure the next chapter is better than the last.” Of course, the company has yet to officially discuss what exactly these two products are. Bloomberg reported on this Late last year, Sonos was working on a TV streaming box and its premium successor arc sound panel. The CEO also admitted on the call that the total cost of fixing the software issues will cost the company between $20 million and $30 million. However, Spence is confident that Sonos will bounce back, describing it as just one “chapter” in the company’s history.
