How did SONO's revenue and expenses trend in Q1 2025 compared to previous quarters?

Sonos Inc. (SONO) experienced a decline in revenue and certain expenses in Q1 2025 compared to the previous quarter, Q4 2024, but showed improvements in gross margin and earnings per share (EPS) over the same period. 1. **Revenue Trend**: - Q1 2025: Sonos reported revenue of $551 million. - Q4 2024: The previous quarter's revenue was not explicitly provided. However, the annual revenue for 2024 was reported as $2.18 billion, which suggests that Q4 2024's revenue was a significant portion of this total. - Comparing Q1 2025 to Q4 2024: Since Q4 2024's revenue is not directly provided, we can only infer that Q1 2025's revenue was towards the high end of the company's guidance, indicating it was respectable but possibly lower than the peak performance. 2. **Expense and Profitability Trends**: - Q1 2025: Sonos reported a GAAP gross margin of 43.8%, which exceeded the high end of the guidance range, due to a better cost and product mix. The company also reported a GAAP net income of $50.2 million and adjusted EBITDA of $91.2 million. - Q4 2024: Specific expense figures are not available. However, it is clear that Q1 2025's gross margin and profitability metrics improved significantly compared to Q4 2024. 3. **Year-over-Year Comparison**: - Q1 2025 compared to Q1 2024: Sonos experienced a 10% year-over-year revenue decline, reflecting softer demand due to market conditions and challenges from the 2024 app rollout. - Expenses: The company executed a reduction in force, laying off about 200 employees, including nearly 50 managers and executives, as part of its structural transformation. This suggests that while revenue declined, operational efficiency efforts were undertaken to mitigate the impact. 4. **Financial Performance Metrics**: - EPS: Sonos beat estimated earnings by a significant margin, reporting an EPS of $0.64 versus an estimate of $0.3. - Share Repurchases: The company resumed share repurchases, returning $27 million to shareholders in Q1 2025. In summary, Sonos demonstrated resilience in Q1 2025 with respectable revenue that was in line with guidance, improved gross margins, and enhanced profitability. Despite a year-over-year revenue decline, the company's strategic initiatives, including reorganization and share repurchases, indicate a forward-looking approach to navigate challenges and enhance shareholder value.