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 ...

Financial Data and Key Metrics Changes - In Q1, the company reported a revenue growth of 7% in constant currency, reaching $672.6 million, while reported revenue increased by 1% [20][35] - Adjusted EBITDA declined by 24% to $123.9 million, with a margin of 18.4%, primarily due to lower gross margins and increased operating expenses [39][40] - Gross profit dollars grew by 2% in constant currency but declined by 10% on a reported basis, with gross margins decreasing by 540 basis points to 42.4% [38] Business Line Data and Key Metrics Changes - Quarterly registrations grew by 27% year-over-year, while products sold increased by 4% [36] - The Americas region saw a revenue growth of 6% year-over-year, accounting for 59% of total sales, while EMEA revenues grew by 11% in constant currency but declined by 2% reported [37] Market Data and Key Metrics Changes - APAC revenues declined by 15% in constant currency or 21% reported, accounting for 5% of total sales [7] - The company faced a $39 million headwind from foreign exchange, impacting revenue [35] Company Strategy and Development Direction - The company is focused on driving customer acquisition and repurchase through targeted investments and promotions, particularly in the home theater segment [19][23] - The company plans to enter a new product category this year, aiming to capture a larger share of the $96 billion global audio market [31][80] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer spending remains uncertain, with a shift from goods to services impacting the consumer electronics space [21][22] - The company is maintaining its fiscal 2023 guidance of $1.7 billion to $1.8 billion in revenue, citing significant economic uncertainty [22][42] Other Important Information - The company ended the quarter with $432 million in cash and no debt, with a significant decrease in inventory contributing to the cash balance [41][47] - Changes in the internal revenue code affecting R&D spending resulted in a $27 million hit to net income this quarter [48] Q&A Session Summary Question: How will supply chain cost reductions impact margins? - Management acknowledged a moderation in supply chain costs but emphasized a cautious approach to pricing and investments [54][55] Question: How successful were recent promotions in attracting new customers? - Promotions were successful in attracting both new and existing customers, aligning with pre-pandemic performance levels [56] Question: What is the outlook for the Asia Pacific market? - The Australian market has been weak, but new geographies like Japan and India are performing well; management expects recovery as China reopens [64] Question: Any updates on the Google litigation? - The next significant milestone is the trial set for May 8 in Northern California [67][68] Question: What are the expectations for Q2 revenue? - Management expects Q2 to be the smallest revenue quarter, with a year-over-year decline of 25% to 30% not indicative of underlying business trends [44][96]

(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 ...

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 ...

Sonos, Inc. (NASDAQ:SONO) Q3 2022 Earnings Conference Call August 10, 2022 5:00 PM ET Company Participants James Baglanis - IR Patrick Spence - CEO, President & Director Brittany Bagley - CFO Edward Lazarus - Chief Legal Officer & Corporate Secretary Conference Call Participants Thomas Forte - D.A. Davidson & Co. Brent Thill - Jefferies Roderick Hall - Goldman Sachs Group John Babcock - Bank of America Merrill Lynch Erik Woodring - Morgan Stanley Operator Good afternoon. My name is Emma, and I will be your ...

Revenue Performance - Total revenue for the three months ended July 2, 2022, was $371.8 million, a decrease of 1.4% compared to $378.7 million for the same period in 2021[104]. - For the nine months ended July 2, 2022, total revenue was $1.436 billion, an increase of 5.8% compared to $1.357 billion for the same period in 2021[104]. - Total revenue for the three months ended July 2, 2022, was $371.783 million, a decrease of 1.8% compared to $378.672 million for the same period in 2021[138]. - Revenue from Sonos speakers was $314.205 million, representing 84.5% of total revenue, with a 1.3% increase compared to the previous year[139]. - Sonos system products revenue decreased by 19.4% to $38.363 million, attributed to supply availability constraints[139]. - Partner products and other revenue decreased by 7.7% to $19.215 million, primarily due to lower accessory sales[139]. - Revenue in the Americas increased by 3.9%, while EMEA decreased by 10.7% and APAC decreased by 7.1%[140]. - In constant currency, total revenue increased by 2.2% for the three months ended July 2, 2022, compared to the same period in 2021[141]. Profitability Metrics - Net loss for the three months ended July 2, 2022, was $0.6 million, compared to a net income of $17.8 million for the same period in 2021[103]. - Adjusted EBITDA for the three months ended July 2, 2022, was $42.1 million, with an adjusted EBITDA margin of 11.3%, down from $46.7 million and 12.3% in the same period of 2021[104]. - Gross profit for the three months ended July 2, 2022, was $175.848 million, with a gross margin of 47.3%[136]. - Operating income for the three months ended July 2, 2022, was $6.960 million, representing an operating margin of 1.9%[136]. - Gross profit for the nine months ended July 2, 2022, increased by 4.5% to $672,267 from $643,062 in the prior year, while gross margin decreased by 60 basis points to 46.8%[152][153]. - Gross margin for the three months ended July 2, 2022, increased by 30 basis points to 47.3% compared to 47.0% in the prior year, driven by higher selling prices[151]. Expenses - Research and development expenses increased to $62.522 million, representing 16.8% of total revenue for the three months ended July 2, 2022[136]. - Research and development expenses for the nine months ended July 2, 2022, increased by 14.9% to $188,798 from $164,294 in the prior year, representing 13.1% of total revenue[156]. - Sales and marketing expenses for the nine months ended July 2, 2022, increased by 4.4% to $207,684 from $198,888 in the prior year, representing 14.5% of total revenue[158]. - General and administrative expenses for the nine months ended July 2, 2022, increased by 11.3% to $126,189 from $113,372 in the prior year, representing 8.8% of total revenue[161]. Cash Flow and Financial Position - Cash and cash equivalents as of July 2, 2022, totaled $439.7 million, including $74.3 million held by foreign subsidiaries[168]. - Net cash provided by operating activities for the nine months ended July 2, 2022, was $75.7 million, down from $246.7 million in 2021[174]. - Cash used in investing activities for the nine months ended July 2, 2022, was $(151.4 million), primarily for acquisitions and property purchases[176]. - Cash used in financing activities for the nine months ended July 2, 2022, was $(114.2 million), mainly for stock repurchases totaling $117.1 million[178]. - The company has a Revolving Credit Agreement allowing borrowing up to $100 million, with no outstanding borrowings as of July 2, 2022[172]. Foreign Exchange Impact - Foreign exchange rate fluctuations negatively impacted revenue, primarily due to the strengthening of the U.S. dollar against the euro[101]. - For the three months ended July 2, 2022, the company recognized a foreign currency loss of $9.9 million compared to a gain of $2.0 million for the same period in 2021[186]. - For the nine months ended July 2, 2022, the company reported a foreign currency loss of $13.5 million, while it had a gain of $4.6 million in the prior year[186]. - The strengthening of the U.S. dollar against the euro began in the latter part of Q2 2022 and continued into Q3 2022, potentially negatively impacting revenue and gross margins from foreign currency-denominated sales[186]. - A hypothetical adverse change of 10% in foreign currency transactions as of July 2, 2022, would have resulted in an adverse impact on income before taxes of approximately $4.5 million for Q3 2022 and $20.3 million for the nine months ended July 2, 2022[186]. Market and Product Strategy - The company plans to introduce new products to appeal to a broader consumer base and enhance its listening platform[116]. - The first fiscal quarter typically sees the highest revenue levels due to the holiday shopping season, although promotional activities were moderated in fiscal 2022[117]. - The company has experienced 16 consecutive years of revenue growth since its first product launch[98].