Patrick. you, Thank
last the future top we the products. business over from in and focused sustainable with necessary quarter invest the the Because we potential this is Despite quarters, business line and what long-term of discussed balancing on to for few in have in addition is that short-term that focus impact position where need actions. pandemic, to been has a growth, strength priority. our the increasing significant best today continue and be we of long-term the taking can As the to Sonos continue growth profitability on still our global to challenges profitable strong
believe is cash today, the strategy. repurchases second balance in also We the million ended We share M&A allocation is debt. and minimal very philosophy well. capital equivalents $XXX And with and cash and a us prudent with sheet, that serving quarter that along right long-term
million providing further We revolver, place even $XX an undrawn also have in flexibility.
We cash our a can as variety you position, even scenarios, economic condition in have weak run are of imagine, confident a persists. if and
largely typically a of operations, During the seasonal quarter. QX used the timing following cash. our is low inventory in $XX.X due from quarter million we for to second holiday cash quarter, payables,
our our strong year, rest we we continue to at and the As focus cash the sheet. balance preserving look on managing of
We quarter. the XX currently million remaining approximately approximately $XX of million authorization. repurchased repurchase early also stock $XX our the in million under have We
preserve to action and liquidity our In needs. took the March, adjustments year planned business continuing for and to review flexibility investments critical to our we support while made
you certain have our with seen, Sonos campaign. At also approach, investments marketing both have reducing Home by planned As adjusted we launching the while
our weakness beyond and typical discretionary taken given market manage expenses in-office have eliminated to We end steps tightly more inventory many expenses. just the and travel
second operating of half and making. lower we we compared have were focused which the the XXXX half, paused hiring on rate to expense the We continuing first having some in of on are also fiscal run a means investments as
promotion the and timing and of You product launches. new should expect our events some in sales variability including given QX, around marketing
are over we measures weeks We we'll learn confident and these to the and adjust right but continue review to take the coming as time, this are that at months. more
$XXX off the we a some or second softness to quarter, the expecting decreased quarter demand XX% from second highlighted currency constant in XX% had Coming quarter in strong million. were pull-in. on Revenue basis first a that we
a also large inventory as as market primarily in saw noted, German weakness U.S. challenges, Patrick inventory rebalancing in As well our with rebalancing our from distributor. from the we partner
COVID-XX our orders majority and markets, physical March end of there weakened closures stemming across demand pandemic. Overall, partners retail the impact significant a global in the our replenishment our of the environment both impacted from was demand from broad-based from end all and This in markets.
revenue XX%. a As our declined in result, March
the performance system of XX% late in XX% quarter, contrast, fiscal Sonos and the the from Sonos decreased on revenue, more year-over-year In of effects prior total and this of of was the speaker Sonos driven by revenue the rebalancing XX% of demand. measures by inventory to which revenue category during during total Port second and significantly year. our Sonos revenue Amp quarter COVID-XX believe represented the XXXX. consumer launch We increased XX% products impacted represented
this during our in important Partner thought to products revenue quarter driven launched IKEA and with with get as our Sonance of and increased which time. We discussed, Home was second consumers In launched we it partnership, the relevant front of fiscal messaging back April, challenging opportunities XXXX. Sonos X% At and other by primarily program. in
Move As Sonos Patrick products mentioned, of a even was promotion. without best-selling our one
We the have sales increasing percentage closures. purchasing during online retail quarter seen given an physical our of shift to the
quarter accelerate direct-to-consumer XX% direct-to-consumer revenue saw increased We channel. with April Our our in approximately growth year-over-year. this the in further XXX% second year-over-year during
Overall, April to compared is showing better March. meaningfully trends
year-over-year. in X% We than to expect less total April revenue decline
results closed. improving very to We shift the given QX. in a behavior primarily products, pleased represents relative remains is also are position retail our online big with This these our mostly inventory for to physical consumer-buying This channel.
during declined of the points September introduction tariffs due to second margin XXXX. Gross the basis XXX quarter in
would Excluding year XX.X%. to the of were tariff tariffs, half first million. increased the have points approximately Total margin the basis $XX through effect gross expenses of XXX
capacity. as complete it manufacturing We chain of expect have not COVID-XX the diversification to relates lasting Malaysia end experienced by to supply we into to our any year. the due our Currently, impact still
submitted also have obtain a we will that positive We List exclusion are and from XA a request outcome. for hopeful
tariff have X.X% As imported a a been reminder, subject XX, we from since on China. February to goods
color Now little on for a more OpEx.
During GAAP increased quarter year-over-year of operating a second XXXX, fiscal XX% on expenses the basis.
also some and reductions organization our majority growth. in we by features. been March, made in R&D significant long-term new for higher we Overall, is the of starting headcount continue products in as increase the had driven we While invest investing to
G&A to million, due X% $XX.X million. and $XX.X to IP increase to This the primarily the Research million, in Sales to Snips increased and of and team. to related X% expenses marketing increased our expenses expenses an addition legal $XX.X fees XX% increased litigation. includes development
quarter, quarter for Adjusted the million. a generated Excluding X%. the Year-to-date, we during the $XX.X $XX.X EBITDA of have expenses $X.X fees million. increased million in IP loss was EBITDA litigation of adjusted G&A
our forward business look year, we normal when will the to physical or rest how for run a we of the recover. what know like economy As reopen will rate don't the looks retail
fiscal and unpredictability guidance for XXXX. revenue, Given and withdrawing the volatility, uncertainty, previously are we our gross issued adjusted EBITDA margin
the have Arc, we Radio. seen continue excited balance challenging teams sheet Sonos we allows strength our the and us about continue engagement from from us of and Despite customers allow X-week investments, to capitalized that delivering continue term. of to the the to the with We our the launch our Five, Sub are Home We from over believe well to experiences. campaign, value positioned operate and environment, Sonos are our create making great resiliency prudent and home what as At believe of they long we ongoing
And with will for questions. that, line we the open
