Sonos (NASDAQ: SONO) stock fell as much as 15% in extended hours on Monday, erasing a trading-day gain of 13 percent, after the company reported earnings for the third quarter of its 2018 fiscal year, which ended on June 30.
In its first earnings report, the company reported a loss of 45 cents per shares. Revenue was $208.4 million, vs. $208 million as expected by analysts.
Revenue was down 6% year over year, according to a statement. The primary reason for the revenue decline was the Playbase audio streaming device one year earlier, CEO Patrick Spence wrote in a letter to shareholders.
Sonos' biggest category, wireless speakers, did see a gain, rising 1% to $93.9 million. But the company's revenue from home theater speakers declined 20% to $66.7 million. Revenue from components, including the Connect and Connect:Amp products, was down 4% year over year at $42.28 million.
The company also provided guidance for its full 2018 fiscal year. It's expecting to report $1.109 to $1.114 billion in revenue for that period. Analysts had expected guidance of $1.112 billion in revenue for the full year.
Based in Santa Barbara, California, Sonos is the leading multi-room wireless smart home sound system. As the inventor of multi-room wireless home audio, Sonos innovation helps the world listen better by giving people access to the content they love and allowing them to control it however they choose.
Sonos went public last month. Shares are up 32% from their initial price of $16.00, but opened Tuesday morning lower by $4.36, or 20.5%, to $16.88
