Last quarter should have been a triumphant one for Sonos with the launch of its first headphones, but the company is facing the realities of its botched app redesign. CEO Patrick Spence explained in the company’s Q3 earnings press release that Sonos has reduced its 2024 fiscal guidance due to problems encountered with the software update by customers and partners. Additionally, two new product launches planned for Q4 have been delayed until the app is fixed. Spence acknowledged that while revenue growth was reported thanks to the headphones, the issues with the app have overshadowed the success. He stated that the company’s top priority is to address the app issues quickly to ensure future success. Bloomberg had previously reported on Sonos working on a TV streaming box and a new soundbar. The CEO disclosed that fixing the app issues will cost the company $20-$30 million, but remains optimistic that Sonos will bounce back from this setback, viewing it as just one chapter in the company’s history.
