We do not provide a reconciliation of forward-looking non-GAAP financial measures to their comparable GAAP financial measures because we cannot do so without unreasonable effort due to unavailability of information needed to calculate reconciling items and due to the variability, complexity and limited visibility of the adjusting items that would be excluded from the non-GAAP financial measures in future periods. When planning, forecasting, and analyzing future periods, we do so primarily on a non-GAAP basi ...

Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 1, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38603 SONOS, INC. (Exact name of registrant as specified in its charter) Delaware 03-0479476 (State or other ju ...

Q2 Fiscal Year 2023 Financial Results This presentation contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding our outlook for the fiscal year ending September 30, 2023; our long-term outlook; our long-term focus, financial, growth, and business strategies and opportunities; growth metrics and targets; our business model; new products, services, and partnerships; profitability and gross margins; market growth and our market sha ...

Financial Data and Key Metrics - Revenue for Q2 2023 was $304.2 million, down 23.9% year-over-year, slightly ahead of the expected 25% to 30% decline [35] - Adjusted EBITDA declined to negative $10.6 million, significantly ahead of initial expectations due to cost actions taken intra-quarter [19] - Free cash flow was negative $122 million, driven by a $120 million decrease in accounts payable and accrued expenses, and a $25 million increase in inventories [20] - Inventory balance at the end of the quarter was $326 million, up 7% sequentially, with finished goods at $274 million, up 5% sequentially [20] - The company repurchased $15 million of stock in the quarter at an average price of $19.50 per share [21] Business Line Data and Key Metrics - The company launched two new products, Era 100 and Era 300, which have been well-received and are selling ahead of expectations [25][26] - Sonos Pro, a new software-as-a-service offering, was introduced, targeting small and medium-sized businesses [7][45] - The company is focusing on converting single-product households to multi-product households, which represents a $5 billion revenue opportunity [12] Market Data and Key Metrics - The US home theater market saw a pronounced decline in March, while the European market remains challenged [28] - The company is seeing share gains in the home theater category despite deep discounts from competitors [28][36] - EMEA accounted for 33% of revenue in fiscal 2022, with FX sensitivity being about four to one euro to pound [46] Company Strategy and Industry Competition - The company is reducing its fiscal 2023 revenue guidance by 6% at the midpoint, reflecting a constant currency year-over-year decline of 3% [8] - Sonos is focusing on managing expenses to deliver an 8.5% to 10% adjusted EBITDA margin for the year [10] - The company is investing in innovation across five existing categories and expanding into three new categories [11] - Sonos is leveraging its installer channel and direct-to-consumer efforts to drive growth, particularly in multi-product household formation [51][76] Management Commentary on Operating Environment and Future Outlook - The company is navigating macroeconomic pressures, including softening demand and channel inventory tightening, particularly in EMEA [27][29] - Management remains confident in the long-term growth potential, with a focus on sustainable, profitable growth and innovation [13][33] - The company is taking decisive actions to adjust its expense base and protect profitability, aiming to maintain prior full-year adjusted EBITDA margin expectations [40] Other Important Information - The company is involved in Google litigation, with a trial in Northern California underway, but no additional comments will be made while the trial is pending [120] - Sonos is exploring opportunities in professional and commercial audio, with early signs of interest in the Sonos Pro offering [64] Q&A Session Summary Question: What changed in the last three months regarding channel inventory and dealer behavior? - The company observed softening demand trends and rapid changes in retailer behavior, particularly in EMEA, leading to reduced open-to-buy dollars and lower inventory levels [122] Question: How is the company managing its expense base for fiscal 2024? - The company is reducing its fiscal 2023 operating expense base by approximately $52 million through a combination of reduced program spend, slowing hiring, and restructuring teams [104] Question: What is the outlook for gross margin in the second half of the year? - The company expects gross margin to improve to approximately 47% in the second half, driven by lower promotional activity, improved supply chain conditions, and reduced FX headwinds [49][67] Question: How is the company leveraging its direct-to-consumer channel? - The company is leaning into direct-to-consumer efforts, focusing on converting single-product households to multi-product households, which represents a significant revenue opportunity [51] Question: What is the strategy for the Sonos Pro offering? - Sonos Pro is targeting small and medium-sized businesses, leveraging the company's existing consumer technology to provide a reliable and easy-to-use audio experience [45][64] Question: How is the company addressing industry headwinds? - The company is focusing on maintaining market share and delivering value for money, despite unprecedented discounts from competitors and broader industry challenges [43][83]

Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 1, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38603 SONOS, INC. (Exact name of registrant as specified in its charter) Delaware 03-0479476 (I.R.S. Employer ...

Sonos, Inc. (NASDAQ:SONO) Q1 2023 Earnings Conference Call February 8, 2023 5:00 PM ET Company Participants James Baglanis - Senior Director, Investor Relations Patrick Spence - CEO, President & Director Edward Lazarus - CFO, Chief Legal Officer & Corporate Secretary Conference Call Participants Thomas Forte - D.A. Davidson & Co. John Babcock - Bank of America Merrill Lynch Erik Woodring - Morgan Stanley Brent Thill - Jefferies Operator Good afternoon, and welcome to the Sonos First Quarter 2023 Earnings Ca ...

(State or other jurisdiction of incorporation or organization) Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38603 SONOS, INC. (Exact name of registrant ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 1, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-38603 SONOS, INC. (Exact name of Registrant as specified in its charter) Delaware 03-0479476 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identi ...

Q4 & Fiscal Year 2022 Financial Results November 16, 2022 ONO Forward Looking Statements This presentation contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding our outlook for the fiscal year ending September 30, 2023; our long term outlook; our long term focus, financial, growth, and business strategies and opportunities; growth metrics and targets; our business model; new products, services, and partnerships; profitability ...

Sonos, Inc. (NASDAQ:SONO) Q4 2022 Earnings Conference Call November 16, 2022 5:00 PM ET Company Participants James Baglanis - Senior Director, Investor Relations Patrick Spence - Chief Executive Officer Eddie Lazarus - Chief Financial Officer Conference Call Participants Tom Forte - D.A. Davidson Matt Sheerin - Stifel John Babcock - Bank of America Erik Woodring - Morgan Stanley Brent Thill - Jefferies Operator Ladies and gentlemen, thank you for standing by and welcome to the Sonos Fourth Quarter and Fisca ...