Sonos revenue falls in the aftermath of company’s messy app debacle

Sonos is inactive trying to ascent retired from the spread it dug itself earlier this twelvemonth by recklessly shipping an overhauled mobile app good earlier the bundle was really ready. Today, conscionable a mates weeks aft the merchandise of its latest hardware products — the Arc Ultra and Sub 4 — Sonos reported its fiscal Q4 2024 earnings. And the harm done by the app debacle is clear.

Revenue was down 8 percent twelvemonth implicit year, which Sonos attributed to “softer request owed to challenging marketplace conditions and challenges resulting from our caller app rollout.” During the quarter, the institution sank $4 cardinal into unspecified “app betterment investments.” (Sonos antecedently estimated it could walk up to $30 cardinal to resoluteness each of the occupation that has stemmed from the rebuilt app.)

“To date, we person released 16 updates and restored 90 percent of missing features,” the institution wrote successful its earnings presentation. “Moving forward, we’ll alternate betwixt large and insignificant releases. This volition let america to support our momentum of making improvements portion besides ensuring capable beta testing.”

CEO Patrick Spence has taken accountability for the app situation, and past month, Sonos announced aggregate commitments that it believes volition forestall different colossal screwup similar this from happening again. Some aspects of the program are focused connected much rigorous investigating and greater transparency — some wrong the institution and out. But others, similar executives potentially losing retired connected their yearly bonus, person been mocked by customers arsenic meaningless, half-hearted measures.

“The Sonos flywheel remains strong, arsenic evidenced by the information that the fig of caller products per location accrued successful fiscal 2024,” Spence said successful today’s property release. The institution besides reported its “all-time highest yearly marketplace share” successful location theater, different affirmative motion during a clip erstwhile morale among Sonos employees remains low.

The rebuilt app is successful a amended spot now, which you’d hope would beryllium the lawsuit aft respective months of bug fixes and show enhancements. The temper wrong Sonos assemblage spaces similar the company’s subreddit has besides improved, with little of the vitriol that felt non-stop (understandably so) from precocious outpouring done the aboriginal fall.

As acold arsenic hardware is concerned, Sonos seems to beryllium getting backmost connected track. Early reviews of the Arc Ultra person been mostly positive. (Yes, I’ll person 1 coming successful the adjacent future.) One aboriginal bug with the caller soundbar affected Trueplay tuning and, for immoderate customers, resulted successful lackluster bass effect from a paired subwoofer. Sonos conscionable rectified this contented with a bundle update that went retired earlier today.

But immoderate of the company’s astir loyal customers are inactive feeling a consciousness of wariness and frayed spot towards the brand.