Sonos today announced that it suffered a net loss of $30.6 million on revenues of $304.2 million in the quarter ending April 1. Both represent significant declines over the year-ago quarter, with revenues down 24 percent, and Sonos warned that the situation will not improve in the coming months, sending its stock into a tailspin.

“Though our second quarter results were in-line with our guidance, we are reducing our expectations for the second half of Fiscal 2023 due to softening consumer demand and channel partner inventory tightening,” Sonos CEO Patrick Spence said. “As a result, we are taking swift action to reduce our operating expenses and protect our profitability. We remain focused on ensuring that Sonos will emerge from the current choppy consumer environment in a position of strength: we are profitable, we are debt free, and we have a huge market opportunity. Continuing to innovate is critical to delivering on our long-term growth ambitions and I have every confidence in our ability to continue to do so.”

Sonos had predicted that revenues would fall by 25 to 30 percent in the quarter due to soft consumer demand and an unfavorable comparison with the year-ago quarter when it finally fulfilled its pandemic-era sales backlog. But the firm also launched two major new speaker lines, the Era 300 and Era 100, in the quarter alongside its Sonos Pro service.

Sonos revised its annual revenue expectations from a range of between $1.7 billion and $1.8 billion to $1.63 and $1.68 billion, lower than external expectations. The firm lost over 20 percent of its market capitalization as a result, with its stock price falling to $16.40, a five-month low.