UNITED STATES SECURITIES AND EXCHANGE COMMISSION Table of contents 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 January 1, 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 as specified in its charter) (I.R.S. Employer Identification No. ...

Table of contents 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 2, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-38603 | _____________________ ...

Sonos, Inc. (NASDAQ:SONO) Q4 2021 Earnings Conference Call November 18, 2021 5:00 PM ET Company Participants Patrick Spence – CEO Brittany Bagler – CFO Eddie Lazarus – Chief Legal Officer Cammeron Mclaughlin – Vice President, Investor Relations Conference Call Participants Tom Forte – Davidson Katy Huberty – Morgan Stanley Brent Thill – Jefferies Rk Rajagopal – Goldman Sachs John Babcock – Bank of America Matt Sheerin – Stifle Operator Good afternoon. My name is Emma and I will be your conference Operator ...

Q3 FY21 Financial Results August 11, 2021 SONOS 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 October 2, 2021, our fiscal 2024 targets, 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 margin ...

Sonos, Inc. (NASDAQ:SONO) Q3 2021 Earnings Conference Call August 11, 2021 5:00 PM ET Corporate Participants Cammeron McLaughlin - Vice President, Investor Relations Patrick Spence - Chief Executive Officer Eddie Lazarus - Chief Legal Officer Brittany Bagley - Chief Financial Officer ConferenceCall Participants Katy Huberty - Morgan Stanley Rod Hall - Goldman Sachs John Babcock - Bank of America Matt Sheerin - Stifel David Zervos - Jefferies Alex Sklar - Raymond James Alexia Tsimikas - D.A. Davidson Operato ...

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 3, 2021 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 FY21 Financial Results May 12, 2021 SONOS 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 October 2, 2021, 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, our direct-to-consumer ef ...

Financial Data and Key Metrics Changes - The company reported a revenue increase of 90% to nearly $333 million compared to the same quarter last year, which had a revenue decline of 17% due to partner inventory rebalancing and retail store closures [31][32] - Adjusted EBITDA reached $48.5 million, a significant improvement from a loss of $28.4 million in the previous year, with an adjusted EBITDA margin of 14.6% [30] - Gross margins improved to a record 49.8%, an increase of 810 basis points year-over-year, primarily due to lower tariffs and a shift to higher-margin products [35][36] Business Line Data and Key Metrics Changes - Sonos speaker revenue increased by 130% year-over-year, benefiting from the success of products like Arc and Sub [34] - Revenue from Sonos system products grew by 10%, driven by strength in the installer channel and component products [34] - Partner products and other revenue rose by 16%, supported by accessories and Sonance, despite lower revenue from IKEA [34] Market Data and Key Metrics Changes - The Americas region grew by 90%, while EMEA experienced a 100% increase (83% on a constant currency basis), and APAC grew by 56% [33] - The company noted that APAC's growth was slightly slower due to IKEA's store closures and product cycle transitions [33] Company Strategy and Development Direction - The company aims to expand its brand and marketing strategies to reach more customers, including partnerships with premium brands like North Face [17][18] - Plans to introduce at least two new products each year, with recent launches including Sonos Radio HD and Roam, and a partnership with Audi [19][20] - The company is focused on driving operational excellence to achieve sustainable profitable growth, with a strong emphasis on margin expansion and top-line growth [22] Management's Comments on Operating Environment and Future Outlook - Management highlighted three macro trends fueling growth: the golden age of audio, the rise of direct-to-home video content, and the great reshuffling of living and working arrangements [12][14] - The company is increasing its fiscal 2021 revenue outlook to $1.625 billion to $1.675 billion, representing growth of 23% to 26% [45] - Despite strong demand, the company acknowledged challenges in the global supply chain, particularly with semiconductor shortages impacting component availability [40][96] Other Important Information - The company has no debt on its balance sheet and ended the quarter with $639 million in cash and cash equivalents, positioning it well for future investments and shareholder returns [38][39] - The company is actively pursuing litigation against Google for patent infringements, with a recent ruling in Germany favoring Sonos [24][27] Q&A Session Summary Question: Can you walk through some of the pressures expected over the next couple of quarters? - Management noted that while annual guidance has been increased, gross margin outlook remains unchanged due to rising component costs and the need for additional airfreight [52] Question: What happens after the rulings in the Google cases? - Management indicated that the outcome will depend on the ITC's ruling, which could lead to discussions with Google regarding their patent infringements [56] Question: How is the Roam expected to bring new customers to Sonos? - Management expressed confidence that Roam will attract new customers and drive additional product purchases over time, especially as it is the first Bluetooth product that works both in-home and outdoors [60][62] Question: What is the company's strategy regarding direct-to-consumer efforts as physical stores reopen? - Management stated that direct-to-consumer remains important, and they expect growth across all channels as customer engagement continues to improve [65] Question: Are you lengthening component inventory to mitigate supply issues? - Management clarified that the increase in inventory is primarily finished goods to support higher sales volume, not just to mitigate supply issues [70] Question: What inflationary pressures are being seen? - Management acknowledged inflation in shipping and logistics, particularly in semiconductor component costs, which are expected to impact the second half of the year [72][88]

Financial Performance - Total revenue for the three months ended April 3, 2021, was $332.9 million, a 90.2% increase from $175.1 million for the same period in 2020[81] - Net income for the three months ended April 3, 2021, was $17.2 million, compared to a net loss of $52.3 million for the same period in 2020[80] - Adjusted EBITDA for the three months ended April 3, 2021, was $48.5 million, with an adjusted EBITDA margin of 14.6%, compared to an adjusted EBITDA loss of $28.4 million and a margin of -16.2% in the same period of 2020[89] - Total revenue increased by 32.7% to $978.5 million for the six months ended April 3, 2021, compared to $737.2 million for the same period in 2020[113] - Gross profit for the three months ended April 3, 2021, was $165,776,000, with a gross margin of 49.8%, compared to a gross profit of $73,009,000 and a margin of 41.7% in the prior year[106] - Operating income for the three months ended April 3, 2021, was $12,395,000, compared to an operating loss of $53,207,000 for the same period in 2020[106] - Gross profit for the six months ended April 3, 2021 increased by 54.7% to $465.2 million, with a gross margin of 47.5%[122] Sales and Product Performance - Products sold increased to 1,039 thousand units in the three months ended April 3, 2021, from 681 thousand units in the same period of 2020, representing a 52.6% growth[81] - Revenue from Sonos speakers accounted for 80.4% of total revenue, increasing by 129.9% to $267,534,000, driven by the success of the Arc and Sub products[109] - Sonos speakers revenue represented 81.2% of total revenue, increasing by 36.4% to $795.1 million for the six months ended April 3, 2021[114] - Total products sold increased by 1.9% to 3,688 thousand units for the six months ended April 3, 2021, driven by growth in Sonos speakers and system products[117] Expenses and Investments - Research and development expenses for the three months ended April 3, 2021, were $56,370,000, representing 16.9% of total revenue, compared to $49,593,000 or 28.3% in the prior year[107] - Research and development expenses increased by 6.5% to $108.7 million for the six months ended April 3, 2021, representing 11.1% of total revenue[125] - Sales and marketing expenses increased by 2.9% to $131.7 million for the six months ended April 3, 2021, representing 13.5% of total revenue[127] - General and administrative expenses increased by $13.7 million, or 52.4%, to $39.8 million for the three months ended April 3, 2021, primarily due to $9.3 million in legal fees related to IP litigation and $4.8 million in higher personnel-related expenses[128] - For the six months ended April 3, 2021, general and administrative expenses rose by $18.7 million, or 33.2%, totaling $75.0 million, driven by $16.0 million in legal fees and $4.8 million in personnel-related expenses[129] Cash Flow and Financing - As of April 3, 2021, the company had cash and cash equivalents of $638.9 million, including $88.0 million held by foreign subsidiaries[137] - Net cash provided by operating activities was $176.0 million for the six months ended April 3, 2021, significantly up from $35.4 million for the same period in 2020[142] - Cash used in investing activities was $19.9 million for the six months ended April 3, 2021, primarily for manufacturing-related tooling and test equipment[145] - Cash provided by financing activities was $74.7 million for the six months ended April 3, 2021, mainly from proceeds of $119.2 million from the exercise of stock options[146] - The company had $57.5 million in non-cancelable purchase commitments for inventory expected to be purchased in the remainder of fiscal 2021[147] - The Credit Facility allows borrowing up to $80.0 million, with no outstanding borrowings as of April 3, 2021[140] Foreign Currency Exposure - The company expects continued fluctuations in foreign currency exchange gains and losses due to changes in exchange rates[102] - For the three months ended April 3, 2021, the company recognized a loss from foreign currency of $1.6 million, compared to a loss of $1.5 million for the same period in 2020[154] - For the six months ended April 3, 2021, the company recognized a gain from foreign currency of $2.6 million, down from a gain of $2.9 million for the same period in 2020[154] - A hypothetical adverse change of 10% in foreign currency exchange rates would have resulted in an adverse impact on income before provision for income taxes of approximately $5.2 million for the three months ended April 3, 2021[154] - The company's international sales are primarily denominated in foreign currencies, exposing it to fluctuations in exchange rates, particularly with the euro and British pound[152] - A portion of the company's operating expenses is incurred outside the United States and is also subject to foreign currency exchange rate fluctuations[152] - The company's continued international expansion increases its exposure to exchange rate fluctuations, which could significantly impact future results of operations[153] Strategic Outlook - The company expects ongoing supply chain challenges due to the COVID-19 pandemic to impact product availability until fiscal 2022[78] - Direct-to-consumer sales channel performance has been strong, primarily driven by increased orders through the company's website[78] - The company plans to continue investing in e-commerce capabilities to drive direct sales and support overall growth and profitability[92] - The company aims to introduce new products that appeal to a broad set of consumers and enhance its differentiated listening platform[90] - The introduction of new products may increase revenue but could also impact sales of existing products as consumer preferences shift[104] Accounting and Estimates - The company evaluates its estimates and assumptions regarding financial statements on an ongoing basis, based on historical experience and reasonable assumptions[149] - There have been no material changes to the company's critical accounting policies compared to those disclosed in its Annual Report[150]

Sonos, Inc. (NASDAQ:SONO) Q1 2021 Results Earnings Conference Call February 10, 2021 5:00 PM ET Company Participants Cammeron McLaughlin - Vice President, Investor Relations Patrick Spence - Chief Executive Officer Brittany Bagley - Chief Financial Officer Eddie Lazarus - Chief Legal Officer Conference Call Participants Adam Tindle - Raymond James Katy Huberty - Morgan Stanley Rod Hall - Goldman Sachs John Babcock - Bank of America Tevis Robinson - D.A. Davidson Matt Sheerin - Stifel Operator Ladies and gen ...