His bone Inc.
loses its chief financial officer as the company faces economic challenges and cuts its outlook for the fiscal year.
The Santa Barbara, Calif.-based smart speaker maker said Wednesday that Brittany Bagley will step down effective Sept. 1 after more than three years as chief financial officer. Chief Legal Officer Eddie Lazarus will serve as interim Chief Financial Officer.
Ms Bagley will become chief financial officer of Axon Enterprise Inc., which sells Taser stun guns and body cameras, effective September 26. She’s also in a newly created position of chief business officer, according to Axon. She will contribute to several business functions, including technology, business development and strategy, said Josh Isner, chief operating officer of Axon.
Sonos declined to make Ms. Bagley and Mr. Lazarus available for interview. Mr. Lazarus, who has served as chief legal officer since 2019, takes on the role of interim chief financial officer following disappointing financial results for Sonos. He said Wednesday that fiscal third-quarter revenue fell 1.8% from the year-ago period to $371.8 million. The company reported a loss of nearly $600,000 for the period ended July 2, compared with a profit of $17.8 million a year earlier.
“We have seen the macro backdrop become significantly more challenging for us from June onwards as the stronger dollar and high inflation hurt consumer sentiment around the world, particularly in the categories in which we operate,” he said. Chief Executive Patrick Spence said Wednesday. “As a result, revenue did not meet our expectations for the third quarter and we are adjusting our FY22 outlook accordingly.”
Sonos expects full-year revenue in the range of $1.73 billion to $1.76 billion, below the company’s prior guidance range of $1.95 billion to $2 billion. It also lowered its forecast for adjusted earnings before interest, taxes, depreciation and amortization. For the full year, Sonos expects Adjusted Ebitda in the range of $215-230 million, below previous guidance of $290-310 million.
Citing uncertainties over macroeconomic conditions, the company moved the timeline of its $2.5 billion revenue target, extending it beyond fiscal year 2024. The company also said Wednesday it was suspending hiring and made other adjustments to operating expenses.
Sonos stock price fell about 18.3% to $18.60 per share on Wednesday after hours.
Mr Spence said the company was in “good hands” with Mr Lazarus in the role of interim chief financial officer and there were no plans to start an immediate search for a chief financial officer.
Mr. Lazarus says his additional responsibilities will not affect the company’s strategy in defending its intellectual property in a lawsuit with Alphabet Inc.
Google on audio patents.
The ideal candidate for the permanent position of chief financial officer is someone with experience in the consumer electronics or luxury retail industries, or both, said equity analyst Tom Forte. of financial services company DA Davidson Cos.
Mr. Forte said the potential for expanded responsibilities at Axon could have attracted Ms. Bagley to the new role.
“It looks like she’s going to have a bit more responsibility than before,” Mr. Forte said. “So I’m inclined to say it’s in no way a blow to Sonos.”
Write to Jennifer Williams-Alvarez at [email protected]
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