Sonos continues to be making an attempt to dig itself out of the opening it dug itself into earlier this 12 months by recklessly transport a revised cell app lengthy earlier than the software program was really prepared. At present, simply weeks after launching its newest merchandise — the Arc Extremely and Sub four — Sonos reported its fiscal fourth quarter 2024 earnings. And the harm from the app debacle is obvious.
Income was down eight% year-over-year, which Sonos attributed to “weaker demand as a result of troublesome market situations and challenges ensuing from our current app launch.” In the course of the quarter, the corporate sunk $four million into unspecified “utility restoration investments.” (Sonos beforehand estimated it might spend as a lot as $30 million to repair all the issues that arose from the rebuilt app.)
“Up to now, we’ve launched 16 updates and restored 90% of lacking options,” the corporate wrote in its earnings presentation. “Going ahead, we'll be alternating between main and minor releases. This may permit us to take care of our momentum to make enhancements whereas making certain correct beta testing.”
CEO Patrick Spence has taken accountability for the app's plight, and final month Sonos introduced a number of commitments it believes will forestall one other colossal misstep like this from taking place once more. Some features of the plan are centered on extra rigorous testing and larger transparency – each internally and externally. However others, corresponding to administrators potential forfeiting their annual bonuses, have been derided by clients as meaningless, half-hearted measures.
“Sonos' momentum stays sturdy, as evidenced by the truth that new merchandise per dwelling elevated in fiscal 2024,” Spence mentioned in at this time's press launch. The corporate additionally reported its “highest annual market share ever” in dwelling theater, one other optimistic signal at a time when Sonos worker morale has been critically broken.
The rebuilt app is in a greater place now, as you’d hope it could be after a couple of months of bug fixes and efficiency enhancements. The temper in Sonos' neighborhood areas, corresponding to the corporate's subreddit, has additionally improved, with much less of the vitriol that felt continuous (understandably) from late spring to early fall.
When it comes to , Sonos appears to be again on monitor. Early evaluations of the Arc Extremely have been principally optimistic. (Sure, I’ll have one within the close to future.) An early bug with the brand new soundbar affected the Trueplay tuning and, for some clients, resulted in weak bass response from a paired subwoofer. Sonos simply fastened this concern with a software program replace that got here out earlier at this time.
However a few of the firm's most loyal clients nonetheless really feel a way of wariness and waning belief within the model. Sonos' subsequent main product is rumored to be a video streaming field. I'm nonetheless at a loss as to how the corporate plans to face out from the competitors in that area. However hopefully there received't be one other main controversy that derails the product like there was with the Sonos Ace headphones.