Audio products company Sonos (SONO +1.14%) reported earnings for its full-year fiscal 2021 on Nov. 17. In this segment of Backstage Pass, recorded on Nov. 17, Fool contributors Brian Withers and Toby Bordelon discuss the company's financial performance during the 12-month period.
Brian Withers:. Hey, Toby, let's talk about Sonos.
Toby Bordelon: Hey, Brian.
Brian Withers: How did the quarter go?
Toby Bordelon: The quarter went actually quite well, Brian. Do you have any Sonos those products? Those little speakers?
Brian Withers: No, I don't, I have a Bose speaker that I use for my TV. We're seeing your whole screen with the TV background and your notes.
Toby Bordelon: All right. How about this?
Brian Withers: There we go.
Toby Bordelon: It was a really good quarter. This was actually end of their fiscal year. The numbers I'm giving you here are the full-year numbers. Because I just find that that's a more interesting comparison. Revenue for the year $1.7 billion up almost 30%. Earnings-per-share positive versus a net loss net last year and they give us the guidance for next fiscal year, they're looking for around $2 billion in revenue, maybe a little bit less. Solid growth still looking for next year.
Really good stuff. Pretty good stuff all around operating cash flow of 56% The direct-to-consumer business is doing quite well, but it was up 47% and now that accounts to 24% of total revenue. They are getting more people to actually go to their website to buy their products, which is nice to see.
Brian Withers: I think that's a brand recognition thing too. I mean, that's a plus for their brand, right?
Toby Bordelon: Yeah. This is a really well-known brand. I've done a lot this year push that brand and did that more in front of consumers and they've launched some new products. Sonos radio HD, which is a premium offering of their Sonos radio they did last year on their launch new device called the Roam which is a very small portable speaker by the slides of those small Bluetooth speakers revenue familiar with. But it also works with the whole Sonos system on Wi-Fi, so nice product people seem to really like that and had a lot of good uptake. They have a partnership with Audi. This is basically a Sonos tuned premium sound package in certain models, the first automotive partnership.
That's interesting. We'll be curious to see if they get more partnerships like that over the next couple of years. New Ikea products, I mean, they have a line of products with Ikea. They launched a few more of those.
Just yesterday, I think it was yesterday, I learned about it yesterday. They launched DTS Audio support in a lot of their existing products. DTS Audio, is a competing format to Dolby Digital. It's nice to have that right now. If you have a Sonos, if you want to put a Sonos on theater system, you actually have the option of using DTS audio with maybe some old Blu-rays, you might have.
Disney Plus announced they're going to be streaming some stuff in that in the near future. That's really good to see, a lot of good stuff. Listening hours up, it's a little more households with our products, it's up pretty substantially. The number of products per household is now three, which is up from 2.9 last year. So slowly you're seeing people buy more stuff.
Existing households accounted for 46% of new product registrations, so we're seeing people continue to buy more products. You have one, you're likely to buy another one. It just looks really good all around.
It's surprising to me. Essentially what some people would view as a hardware maker, but they're doing quite well. I expect more things to come. They did launch a new stock repurchase program, I must say I love that. They haven't been public that long, I'm not quite sure why they need to they need to start rebuying some stock. They just finished a $100 million program. Now they announce a $150 million program. They are buying a lot of stock. But still pretty nice quarter, really good to see. I will also like.
Brian Withers: Yeah, I think they're playing to the trend that in the past when you and I were in college and young in our twenties, you wanted to see your speakers. That had to be part of the sound system. You had to see them and the bigger, the better. But now it's like, I don't want any wires, I don't want to see the speaker, it's got to blend in with the environment and my Bose speaker that I bought is just wonderful. It just hangs there. All Sonos stuff is Bluetooth enabled so you get rid of the wires too.
Toby Bordelon: Yeah, it's nice to have that Wi-Fi system going in your house if you want to set up a nice home wiring system, you don't want a lot of wires anywhere. It's has a great solutions. A lot of people are using it.
Brian Withers: Awesome. They are up 4% after-hours. It looks like the market liked it.
Toby Bordelon: Well received reports, so that's good.
