• Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • Settings
  • RSS Feeds
Quantisnow Logo
  • Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • Settings
  • RSS Feeds
Dashboard
    Quantisnow Logo

    © 2025 quantisnow.com
    Democratizing insights since 2022

    Services
    Live news feedsRSS FeedsAlerts
    Company
    AboutQuantisnow PlusContactJobs
    Legal
    Terms of usePrivacy policyCookie policy

    Sonos Reports Fourth Quarter and Fiscal 2024 Results

    11/13/24 4:05:00 PM ET
    $SONO
    Consumer Electronics/Appliances
    Consumer Staples
    Get the next $SONO alert in real time by email

    Sonos, Inc. (NASDAQ:SONO) today reported fourth quarter and fiscal 2024 results.

    "Thanks to our team going all-in on our app recovery efforts, we made significant progress in bringing the quality of our software to a level that we're all proud of, which enabled us to launch our highly anticipated new products, Arc Ultra and Sub 4, in time for the holidays," Sonos CEO Patrick Spence commented. "Initial feedback on our new products has been very positive, which, along with the introduction of Ace earlier this year, makes our product lineup the strongest it's ever been. Sonos is still the best home audio system, and we're focused on using this industry-leading product lineup to acquire more customers and solidify our loyal customer base. The Sonos flywheel remains strong, as evidenced by the fact that the number of new products per home increased in Fiscal 2024. While the overall audio category continues to face headwinds, we are confident that we are well positioned to take more of it over time."

    Fiscal 2024 Financial Highlights (unaudited)

    • Revenue of $1,518.1 million
    • GAAP gross margin of 45.4%
    • GAAP net loss of $38.1 million, GAAP diluted earnings per share (EPS) of -$0.31
    • Non-GAAP net income1 of $71.4 million, Non-GAAP diluted EPS1 of $0.56
    • Adjusted EBITDA1 of $107.9 million

    Fourth Quarter Fiscal 2024 Financial Highlights (unaudited)

    • Revenue of $255.4 million
    • GAAP gross margin of 40.3%
    • GAAP net loss of $53.1 million, GAAP diluted earnings per share (EPS) of -$0.44
    • Non-GAAP net loss1 of $22.1 million, Non-GAAP diluted EPS1 of -$0.18
    • Adjusted EBITDA1 of -$22.6 million

    Notes:

    (1) Non-GAAP net income (loss)/Non-GAAP diluted earnings per share (EPS) and Adjusted EBITDA exclude stock-based compensation, legal and transaction related fees, amortization of intangibles, and restructuring and abandonment costs. See "Use of Non-GAAP Measures" and reconciliations to GAAP measures below.

    Guidance

    The company will provide guidance on its fourth quarter and Fiscal 2024 earnings call.

    Supplemental Earnings Presentation

    The company has posted a supplemental earnings presentation accompanying its fourth quarter and fiscal 2024 results to the Earnings Reports section of its investor relations website at https://investors.sonos.com/reports-and-filings/default.aspx#section=earningsreports. Additional detailed financial and business information regarding certain non-financial key metrics, new products, brand initiatives and our sustainability and social impact efforts is included in the supplemental earnings presentation.

    Conference Call, Webcast and Transcript

    The company will host a webcast of its conference call and Q&A related to its fourth quarter and fiscal 2024 results on November 13, 2024, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). Participants may access the live webcast in listen-only mode on the Sonos investor relations website at https://investors.sonos.com/news-and-events/default.aspx.

    The conference call may also be accessed by dialing (888) 330-2454 with conference ID 8641747. Participants outside the U.S. can access the call by dialing (240) 789-2714 using the same conference ID.

    An archived webcast of the conference call and a transcript of the company's prepared remarks and Q&A session will also be available at https://investors.sonos.com/reports-and-filings/default.aspx#section=earningsreports following the call.

    Consolidated Statements of Operations and Comprehensive Loss

    (unaudited, in thousands, except share and per share amounts)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Three Months Ended

     

    Twelve Months Ended

     

     

    September 28,

    2024

     

    September 30,

    2023

     

    September 28,

    2024

     

    September 30,

    2023

    Revenue

     

    $

    255,380

     

     

    $

    305,147

     

     

    $

    1,518,056

     

     

    $

    1,655,255

     

    Cost of revenue

     

     

    152,364

     

     

     

    177,093

     

     

     

    828,683

     

     

     

    938,765

     

    Gross profit

     

     

    103,016

     

     

     

    128,054

     

     

     

    689,373

     

     

     

    716,490

     

    Operating expenses

     

     

     

     

     

     

     

     

    Research and development

     

     

    70,777

     

     

     

    65,517

     

     

     

    304,558

     

     

     

    301,001

     

    Sales and marketing

     

     

    73,180

     

     

     

    58,601

     

     

     

    290,609

     

     

     

    267,518

     

    General and administrative

     

     

    28,428

     

     

     

    32,297

     

     

     

    142,252

     

     

     

    168,518

     

    Total operating expenses

     

     

    172,385

     

     

     

    156,415

     

     

     

    737,419

     

     

     

    737,037

     

    Operating loss

     

     

    (69,369

    )

     

     

    (28,361

    )

     

     

    (48,046

    )

     

     

    (20,547

    )

    Other income (expense), net

     

     

     

     

     

     

     

     

    Interest income

     

     

    2,327

     

     

     

    2,661

     

     

     

    11,965

     

     

     

    10,201

     

    Interest expense

     

     

    (108

    )

     

     

    (149

    )

     

     

    (441

    )

     

     

    (733

    )

    Other income (expense), net

     

     

    4,864

     

     

     

    (6,696

    )

     

     

    9,371

     

     

     

    15,473

     

    Total other income (expense), net

     

     

    7,083

     

     

     

    (4,184

    )

     

     

    20,895

     

     

     

    24,941

     

    (Loss) income before (benefit from) provision for income taxes

     

     

    (62,286

    )

     

     

    (32,545

    )

     

     

    (27,151

    )

     

     

    4,394

     

    (Benefit from) provision for income taxes

     

     

    (9,193

    )

     

     

    (1,306

    )

     

     

    10,995

     

     

     

    14,668

     

    Net loss

     

    $

    (53,093

    )

     

    $

    (31,239

    )

     

    $

    (38,146

    )

     

    $

    (10,274

    )

     

     

     

     

     

     

     

     

     

    Net loss attributable to common stockholders:

     

     

     

     

     

     

     

     

    Basic and diluted

     

    $

    (53,093

    )

     

    $

    (31,239

    )

     

    $

    (38,146

    )

     

    $

    (10,274

    )

     

     

     

     

     

     

     

     

     

    Net loss per share attributable to common stockholders:

     

     

     

     

     

     

     

     

    Basic

     

    $

    (0.44

    )

     

    $

    (0.25

    )

     

    $

    (0.31

    )

     

    $

    (0.08

    )

    Diluted

     

    $

    (0.44

    )

     

    $

    (0.25

    )

     

    $

    (0.31

    )

     

    $

    (0.08

    )

     

     

     

     

     

     

     

     

     

    Weighted-average shares used in computing net loss per share attributable to common stockholders:

     

     

     

     

     

     

     

     

    Basic

     

     

    121,389,519

     

     

     

    127,335,311

     

     

     

    123,218,532

     

     

     

    127,702,885

     

    Diluted

     

     

    121,389,519

     

     

     

    127,335,311

     

     

     

    123,218,532

     

     

     

    127,702,885

     

     

     

     

     

     

     

     

     

     

    Total comprehensive loss

     

     

     

     

     

     

     

     

    Net loss

     

     

    (53,093

    )

     

     

    (31,239

    )

     

     

    (38,146

    )

     

     

    (10,274

    )

    Change in foreign currency translation adjustment

     

     

    1,872

     

     

     

    2,035

     

     

     

    1,604

     

     

     

    153

     

    Net unrealized gain on marketable securities

     

     

    154

     

     

     

    —

     

     

     

    122

     

     

     

    —

     

    Comprehensive loss

     

    $

    (51,067

    )

     

    $

    (29,204

    )

     

    $

    (36,420

    )

     

    $

    (10,121

    )

     

    Consolidated Balance Sheets

    (unaudited, in thousands, except par values)

     

     

    As of

     

     

    September 28,

    2024

     

    September 30,

    2023

    Assets

     

     

     

     

    Current assets:

     

     

     

     

    Cash and cash equivalents

     

    $

    169,732

     

     

    $

    220,231

     

    Marketable securities

     

     

    51,426

     

     

     

    -

     

    Accounts receivable, net

     

     

    44,513

     

     

     

    67,583

     

    Inventories

     

     

    231,505

     

     

     

    346,521

     

    Prepaids and other current assets

     

     

    53,910

     

     

     

    25,296

     

    Total current assets

     

     

    551,086

     

     

     

    659,631

     

    Property and equipment, net

     

     

    102,148

     

     

     

    87,075

     

    Operating lease right-of-use assets

     

     

    50,175

     

     

     

    48,918

     

    Goodwill

     

     

    82,854

     

     

     

    80,420

     

    Intangible assets, net

     

     

     

     

    In-process research and development

     

     

    73,770

     

     

     

    69,791

     

    Other intangible assets

     

     

    14,266

     

     

     

    20,218

     

    Deferred tax assets

     

     

    10,314

     

     

     

    1,659

     

    Other noncurrent assets

     

     

    31,699

     

     

     

    34,529

     

    Total assets

     

    $

    916,312

     

     

    $

    1,002,241

     

     

     

     

     

     

    Liabilities and stockholders' equity

     

     

     

     

    Current liabilities:

     

     

     

     

    Accounts payable

     

    $

    194,590

     

     

    $

    187,981

     

    Accrued expenses

     

     

    87,783

     

     

     

    89,717

     

    Accrued compensation

     

     

    15,701

     

     

     

    22,079

     

    Deferred revenue, current

     

     

    21,802

     

     

     

    20,188

     

    Other current liabilities

     

     

    46,277

     

     

     

    34,253

     

    Total current liabilities

     

     

    366,153

     

     

     

    354,218

     

    Operating lease liabilities, noncurrent

     

     

    56,588

     

     

     

    54,956

     

    Deferred revenue, noncurrent

     

     

    61,075

     

     

     

    60,650

     

    Deferred tax liabilities

     

     

    60

     

     

     

    9,846

     

    Other noncurrent liabilities

     

     

    3,816

     

     

     

    3,914

     

    Total liabilities

     

     

    487,692

     

     

     

    483,584

     

     

     

     

     

     

    Commitments and contingencies

     

     

     

     

    Stockholders' equity:

     

     

     

     

    Common stock, $0.001 par value

     

     

    123

     

     

     

    130

     

    Treasury stock

     

     

    (17,096

    )

     

     

    (72,586

    )

    Additional paid-in capital

     

     

    498,245

     

     

     

    607,345

     

    Accumulated deficit

     

     

    (50,934

    )

     

     

    (12,788

    )

    Accumulated other comprehensive loss

     

     

    (1,718

    )

     

     

    (3,444

    )

    Total stockholders' equity

     

     

    428,620

     

     

     

    518,657

     

    Total liabilities and stockholders' equity

     

    $

    916,312

     

     

    $

    1,002,241

     

     

    Consolidated Statements of Cash Flows

    (unaudited, dollars in thousands)

     

     

    Twelve Months Ended

     

     

    September 28,

    2024

     

    September 30,

    2023

    Cash flows from operating activities

     

     

     

     

    Net loss

     

    $

    (38,146

    )

     

    $

    (10,274

    )

    Adjustments to reconcile net loss to net cash provided by operating activities:

     

     

     

     

    Stock-based compensation expense

     

     

    84,294

     

     

     

    76,857

     

    Depreciation and amortization

     

     

    52,378

     

     

     

    48,969

     

    Provision for inventory obsolescence

     

     

    8,894

     

     

     

    20,640

     

    Restructuring and abandonment charges

     

     

    2,204

     

     

     

    5,533

     

    Deferred income taxes

     

     

    (18,922

    )

     

     

    (583

    )

    Other

     

     

    3,701

     

     

     

    5,535

     

    Foreign currency transaction gains

     

     

    (7,276

    )

     

     

    (7,335

    )

    Changes in operating assets and liabilities:

     

     

     

     

    Accounts receivable

     

     

    23,044

     

     

     

    32,120

     

    Inventories

     

     

    106,122

     

     

     

    87,004

     

    Other assets

     

     

    (28,775

    )

     

     

    10,470

     

    Accounts payable and accrued expenses

     

     

    (789

    )

     

     

    (162,345

    )

    Accrued compensation

     

     

    (6,775

    )

     

     

    (2,185

    )

    Deferred revenue

     

     

    304

     

     

     

    (4,576

    )

    Other liabilities

     

     

    9,648

     

     

     

    576

     

    Net cash provided by operating activities

     

     

    189,906

     

     

     

    100,406

     

    Cash flows from investing activities

     

     

     

     

    Purchases of marketable securities

     

     

    (90,495

    )

     

     

    —

     

    Purchases of property and equipment and intangible assets

     

     

    (55,247

    )

     

     

    (50,286

    )

    Maturities of marketable securities

     

     

    40,500

     

     

     

    —

     

    Net cash used in investing activities

     

     

    (105,242

    )

     

     

    (50,286

    )

    Cash flows from financing activities

     

     

     

     

    Payments for repurchase of common stock

     

     

    (129,018

    )

     

     

    (100,064

    )

    Payments for repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock units

     

     

    (25,344

    )

     

     

    (29,874

    )

    Proceeds from exercise of stock options

     

     

    17,053

     

     

     

    21,346

     

    Net cash used in financing activities

     

     

    (137,309

    )

     

     

    (108,592

    )

    Effect of exchange rate changes on cash and cash equivalents

     

     

    2,146

     

     

     

    3,848

     

    Net decrease in cash and cash equivalents

     

     

    (50,499

    )

     

     

    (54,624

    )

    Cash and cash equivalents

     

     

     

     

    Beginning of period

     

     

    220,231

     

     

     

    274,855

     

    End of period

     

    $

    169,732

     

     

    $

    220,231

     

    Supplemental disclosure

     

     

     

     

    Cash paid for interest

     

    $

    256

     

     

    $

    1,330

     

    Cash paid for taxes, net of refunds

     

    $

    21,206

     

     

    $

    9,522

     

    Cash paid for amounts included in the measurement of lease liabilities

     

    $

    11,008

     

     

    $

    14,218

     

    Supplemental disclosure of non-cash investing and financing activities

     

     

     

     

    Purchases of property and equipment in accounts payable and accrued expenses

     

    $

    7,878

     

     

    $

    2,784

     

    Right-of-use assets obtained in exchange for new operating lease liabilities

     

    $

    11,492

     

     

    $

    31,692

     

    Excise tax on share repurchases, accrued but not paid

     

    $

    602

     

     

    $

    —

     

    Change in estimate of asset retirement obligations

     

    $

    —

     

     

    $

    2,290

     

     

    Reconciliation of GAAP to Non-GAAP Cost of Revenue and Gross Profit

    (unaudited, in thousands, except percentages)

     

     

    Three Months Ended

     

    Twelve Months Ended

     

     

    September 28,

    2024

     

    September 30,

    2023

     

    September 28,

    2024

     

    September 30,

    2023

    Reconciliation of GAAP cost of revenue

     

     

     

     

     

     

     

     

    GAAP cost of revenue

     

    $

    152,364

     

     

    $

    177,093

     

     

    $

    828,683

     

     

    $

    938,765

     

    Stock-based compensation expense

     

     

    620

     

     

     

    437

     

     

     

    2,614

     

     

     

    2,038

     

    Amortization of intangibles

     

     

    973

     

     

     

    973

     

     

     

    3,891

     

     

     

    4,103

     

    Non-GAAP cost of revenue

     

    $

    150,771

     

     

    $

    175,683

     

     

    $

    822,178

     

     

    $

    932,624

     

     

     

     

     

     

     

     

     

     

    Reconciliation of GAAP gross profit

     

     

     

     

     

     

     

     

    GAAP gross profit

     

    $

    103,016

     

     

    $

    128,054

     

     

    $

    689,373

     

     

    $

    716,490

     

    Stock-based compensation expense

     

     

    620

     

     

     

    437

     

     

     

    2,614

     

     

     

    2,038

     

    Amortization of intangibles

     

     

    973

     

     

     

    973

     

     

     

    3,891

     

     

     

    4,103

     

    Non-GAAP gross profit

     

    $

    104,609

     

     

    $

    129,464

     

     

    $

    695,878

     

     

    $

    722,631

     

     

     

     

     

     

     

     

     

     

    GAAP gross margin

     

     

    40.3

    %

     

     

    42.0

    %

     

     

    45.4

    %

     

     

    43.3

    %

    Non-GAAP gross margin

     

     

    41.0

    %

     

     

    42.4

    %

     

     

    45.8

    %

     

     

    43.7

    %

     

    Reconciliation of Selected Non-GAAP Financial Measures

    (unaudited, dollars in thousands)

     

     

    Three Months Ended

     

    Twelve Months Ended

     

     

    September 28,

    2024

     

    September 30,

    2023

     

    September 28,

    2024

     

    September 30,

    2023

    Research and Development (GAAP)

     

    $

    70,777

     

     

    $

    65,517

     

     

    $

    304,558

     

     

    $

    301,001

     

    Stock-based compensation

     

     

    8,780

     

     

     

    8,177

     

     

     

    37,913

     

     

     

    35,530

     

    Amortization of intangibles

     

     

    497

     

     

     

    496

     

     

     

    1,985

     

     

     

    1,983

     

    Restructuring and abandonment costs

     

     

    4,942

     

     

     

    188

     

     

     

    5,743

     

     

     

    6,556

     

    Research and Development (Non-GAAP)

     

    $

    56,558

     

     

    $

    56,656

     

     

    $

    258,917

     

     

    $

    256,932

     

     

     

     

     

     

     

     

     

     

    Sales and Marketing (GAAP)

     

    $

    73,180

     

     

    $

    58,601

     

     

    $

    290,609

     

     

    $

    267,518

     

    Stock-based compensation

     

     

    4,201

     

     

     

    3,499

     

     

     

    17,499

     

     

     

    15,677

     

    Amortization of intangibles

     

     

    -

     

     

     

    -

     

     

     

    -

     

     

     

    -

     

    Restructuring and abandonment costs

     

     

    2,473

     

     

     

    180

     

     

     

    2,770

     

     

     

    5,635

     

    Sales and Marketing (Non-GAAP)

     

    $

    66,506

     

     

    $

    54,922

     

     

    $

    270,340

     

     

    $

    246,206

     

     

     

     

     

     

     

     

     

     

    General and Administrative (GAAP)

     

     

    28,428

     

     

     

    32,297

     

     

     

    142,252

     

     

     

    168,518

     

    Stock-based compensation

     

     

    5,732

     

     

     

    5,195

     

     

     

    26,268

     

     

     

    23,612

     

    Legal and transaction related costs

     

     

    182

     

     

     

    2,944

     

     

     

    7,383

     

     

     

    32,950

     

    Amortization of intangibles

     

     

    24

     

     

     

    24

     

     

     

    96

     

     

     

    96

     

    Restructuring and abandonment costs

     

     

    2,571

     

     

     

    106

     

     

     

    3,340

     

     

     

    3,458

     

    Adjusted General and Administrative (Non-GAAP)

     

    $

    19,919

     

     

    $

    24,028

     

     

    $

    105,165

     

     

    $

    108,402

     

     

     

     

     

     

     

     

     

     

    Total Operating Expenses (GAAP)

     

    $

    172,385

     

     

    $

    156,415

     

     

    $

    737,419

     

     

    $

    737,037

     

    Stock-based compensation

     

     

    18,713

     

     

     

    16,871

     

     

     

    81,680

     

     

     

    74,819

     

    Legal and transaction related costs

     

     

    182

     

     

     

    2,944

     

     

     

    7,383

     

     

     

    32,950

     

    Amortization of intangibles

     

     

    521

     

     

     

    520

     

     

     

    2,081

     

     

     

    2,079

     

    Restructuring and abandonment costs

     

     

    9,986

     

     

     

    474

     

     

     

    11,853

     

     

     

    15,649

     

    Adjusted Operating Expenses (Non-GAAP)

     

    $

    142,983

     

     

    $

    135,606

     

     

    $

    634,422

     

     

    $

    611,540

     

     

     

     

     

     

     

     

     

     

    Total Operating Loss (GAAP)

     

    $

    (69,369

    )

     

    $

    (28,361

    )

     

    $

    (48,046

    )

     

    $

    (20,547

    )

    Stock-based compensation

     

     

    19,333

     

     

     

    17,308

     

     

     

    84,294

     

     

     

    76,857

     

    Legal and transaction related costs

     

     

    182

     

     

     

    2,944

     

     

     

    7,383

     

     

     

    32,950

     

    Amortization of intangibles

     

     

    1,494

     

     

     

    1,493

     

     

     

    5,972

     

     

     

    6,182

     

    Restructuring and abandonment costs

     

     

    9,986

     

     

     

    474

     

     

     

    11,853

     

     

     

    15,649

     

    Adjusted Operating (Loss) Income (Non-GAAP)

     

    $

    (38,374

    )

     

    $

    (6,142

    )

     

    $

    61,456

     

     

    $

    111,091

     

    Depreciation

     

     

    15,730

     

     

     

    12,422

     

     

     

    46,406

     

     

     

    42,787

     

    Adjusted EBITDA (Non-GAAP)

     

    $

    (22,644

    )

     

    $

    6,280

     

     

    $

    107,862

     

     

    $

    153,878

     

     

    Reconciliation of Net Loss to Adjusted EBITDA

    (unaudited, dollars in thousands except percentages)

     

     

    Three Months Ended

     

    Twelve Months Ended

     

     

    September 28,

    2024

     

    September 30,

    2023

     

    September 28,

    2024

     

    September 30,

    2023

    (In thousands, except percentages)

     

     

     

     

     

     

     

     

    Net loss

     

    $

    (53,093

    )

     

    $

    (31,239

    )

     

    $

    (38,146

    )

     

    $

    (10,274

    )

    Add (deduct):

     

     

     

     

     

     

     

     

    Depreciation and amortization

     

     

    17,224

     

     

     

    13,915

     

     

     

    52,378

     

     

     

    48,969

     

    Stock-based compensation expense

     

     

    19,333

     

     

     

    17,308

     

     

     

    84,294

     

     

     

    76,857

     

    Interest income

     

     

    (2,327

    )

     

     

    (2,661

    )

     

     

    (11,965

    )

     

     

    (10,201

    )

    Interest expense

     

     

    108

     

     

     

    149

     

     

     

    441

     

     

     

    733

     

    Other expense (income), net

     

     

    (4,864

    )

     

     

    6,696

     

     

     

    (9,371

    )

     

     

    (15,473

    )

    (Benefit from) provision for income taxes

     

     

    (9,193

    )

     

     

    (1,306

    )

     

     

    10,995

     

     

     

    14,668

     

    Legal and transaction related costs (1)

     

     

    182

     

     

     

    2,944

     

     

     

    7,383

     

     

     

    32,950

     

    Restructuring and abandonment costs (2)

     

     

    9,986

     

     

     

    474

     

     

     

    11,853

     

     

     

    15,649

     

    Adjusted EBITDA

     

    $

    (22,644

    )

     

    $

    6,280

     

     

    $

    107,862

     

     

    $

    153,878

     

    Revenue

     

    $

    255,380

     

     

    $

    305,147

     

     

    $

    1,518,056

     

     

    $

    1,655,255

     

    Net loss margin

     

     

    (20.8

    )%

     

     

    (10.2

    )%

     

     

    (2.5

    )%

     

     

    (0.6

    )%

    Adjusted EBITDA margin

     

     

    (8.9

    )%

     

     

    2.1

    %

     

     

    7.1

    %

     

     

    9.3

    %

    (1) Legal and transaction-related costs consist of expenses related to our intellectual property ("IP") litigation against Alphabet and Google, as well as legal and transaction costs associated with our acquisition activity, which we do not consider representative of our underlying operating performance.

    (2) Restructuring and abandonment costs relate to the restructuring plan we initiated on August 14, 2024 to reduce our cost base, including a reduction in force involving approximately 6% of our employees, and nominal remaining costs incurred related to the restructuring plan initiated on June 14, 2023.

     

    Reconciliation of GAAP Net Loss to Non-GAAP Net (Loss) Income

    (unaudited, in thousands, except share and per share amounts)

     

     

    Three Months Ended

     

    Twelve Months Ended

     

     

    September 28,

    2024

     

    September 30,

    2023

     

    September 28,

    2024

     

    September 30,

    2023

    Reconciliation of GAAP net loss

     

     

     

     

     

     

     

     

    GAAP net loss

     

    $

    (53,093

    )

     

    $

    (31,239

    )

     

    $

    (38,146

    )

     

    $

    (10,274

    )

    Stock-based compensation expense

     

     

    19,333

     

     

     

    17,308

     

     

     

    84,294

     

     

     

    76,857

     

    Legal and transaction related costs

     

     

    182

     

     

     

    2,944

     

     

     

    7,383

     

     

     

    32,950

     

    Amortization of intangibles

     

     

    1,494

     

     

     

    1,493

     

     

     

    5,972

     

     

     

    6,182

     

    Restructuring and abandonment costs

     

     

    9,986

     

     

     

    474

     

     

     

    11,853

     

     

     

    15,649

     

    Non-GAAP net (loss) income

     

    $

    (22,098

    )

     

    $

    (9,020

    )

     

    $

    71,356

     

     

    $

    121,364

     

     

     

     

     

     

     

     

     

     

    Reconciliation of net loss per share

     

     

     

     

     

     

     

     

    GAAP net loss per share, diluted

     

    $

    (0.44

    )

     

    $

    (0.25

    )

     

    $

    (0.31

    )

     

    $

    (0.08

    )

    Non-GAAP adjustments to net loss per share

     

     

    0.26

     

     

     

    0.18

     

     

     

    0.87

     

     

     

    1.00

     

    Non-GAAP net (loss) income per share, diluted

     

    $

    (0.18

    )

     

    $

    (0.07

    )

     

    $

    0.56

     

     

    $

    0.92

     

    Weighted-average shares used in GAAP per share calculation, diluted

     

     

    121,389,519

     

     

     

    127,335,311

     

     

     

    123,218,532

     

     

     

    127,702,885

     

    Weighted-average shares used in non-GAAP per share calculation, diluted

     

     

    121,389,519

     

     

     

    127,335,311

     

     

     

    126,783,859

     

     

     

    131,947,092

     

    Note: Certain figures may not sum due to rounding

     

     

     

     

     

     

     

     

     

    Reconciliation of Cash Flows (Used in) Provided by Operating Activities to Free Cash Flow

    (unaudited, dollars in thousands)

     

     

    Three Months Ended

     

    Twelve Months Ended

     

     

    September 28,

    2024

     

    September 30,

    2023

     

    September 28,

    2024

     

    September 30,

    2023

    Cash flows (used in) provided by operating activities

     

    $

    (37,734

    )

     

    $

    22,195

     

     

    $

    189,906

     

     

    $

    100,406

     

    Less: Purchases of property and equipment

     

     

    (15,770

    )

     

     

    (10,201

    )

     

     

    (55,247

    )

     

     

    (50,286

    )

    Free cash flow

     

    $

    (53,504

    )

     

    $

    11,994

     

     

    $

    134,659

     

     

    $

    50,120

     

     

    Revenue by Product Category

    (unaudited, dollars in thousands)

     

     

    Three Months Ended

     

     

    Twelve Months Ended

     

     

     

    September 28,

    2024

     

     

    September 30,

    2023

     

     

    September 28,

    2024

     

     

    September 30,

    2023

     

    (In thousands)

     

     

     

     

     

     

     

     

     

     

     

     

    Sonos speakers

     

    $

    178,226

     

     

    $

    223,323

     

     

    $

    1,169,604

     

     

    $

    1,293,440

     

    Sonos system products

     

     

    58,731

     

     

     

    62,316

     

     

     

    267,744

     

     

     

    285,064

     

    Partner products and other revenue

     

     

    18,423

     

     

     

    19,508

     

     

     

    80,708

     

     

     

    76,751

     

    Total revenue

     

    $

    255,380

     

     

    $

    305,147

     

     

    $

    1,518,056

     

     

    $

    1,655,255

     
     

    Revenue by Geographical Region

    (unaudited, dollars in thousands)

     

     

    Three Months Ended

     

     

    Twelve Months Ended

     

     

     

    September 28,

    2
    024

     

     

    September 30,

    2023

     

     

    September 28,

    2024

     

     

    September 30,

    2023

     

    Americas

     

    $

    177,533

     

     

    $

    203,531

     

     

    $

    1,004,770

     

     

    $

    1,048,245

     

    Europe, Middle East and Africa

     

     

    58,353

     

     

     

    83,374

     

     

     

    430,428

     

     

     

    518,179

     

    Asia Pacific

     

     

    19,494

     

     

     

    18,242

     

     

     

    82,858

     

     

     

    88,831

     

    Total revenue

     

    $

    255,380

     

     

    $

    305,147

     

     

    $

    1,518,056

     

     

    $

    1,655,255

     
     

    Stock-based Compensation

    (unaudited, dollars in thousands)

     

     

    Three Months Ended

     

     

    Twelve Months Ended

     

     

     

    September 28,

    2024

     

     

    September 30,

    2023

     

     

    September 28,

    2024

     

     

    September 30,

    2023

     

    (In thousands)

     

     

     

     

     

     

     

     

     

     

     

     

    Cost of revenue

     

    $

    620

     

     

    $

    437

     

     

    $

    2,614

     

     

    $

    2,038

     

    Research and development

     

     

    8,780

     

     

     

    8,177

     

     

     

    37,913

     

     

     

    35,530

     

    Sales and marketing

     

     

    4,201

     

     

     

    3,499

     

     

     

    17,499

     

     

     

    15,677

     

    General and administrative

     

     

    5,732

     

     

     

    5,195

     

     

     

    26,268

     

     

     

    23,612

     

    Total stock-based compensation expense

     

    $

    19,333

     

     

    $

    17,308

     

     

    $

    84,294

     

     

    $

    76,857

     
     

    Amortization of Intangibles

    (unaudited, dollars in thousands)

     

     

    Three Months Ended

     

     

    Twelve Months Ended

     

     

     

    September 28,

    2024

     

     

    September 30,

    2023

     

     

    September 28,

    2024

     

     

    September 30,

    2023

     

    Cost of revenue

     

    $

    973

     

     

    $

    973

     

     

    $

    3,891

     

     

    $

    4,103

     

    Research and development

     

     

    497

     

     

     

    496

     

     

     

    1,985

     

     

     

    1,983

     

    Sales and marketing

     

     

    -

     

     

     

    -

     

     

     

    -

     

     

     

    -

     

    General and administrative

     

     

    24

     

     

     

    24

     

     

     

    96

     

     

     

    96

     

    Total amortization of intangibles

     

    $

    1,494

     

     

    $

    1,493

     

     

    $

    5,972

     

     

    $

    6,182

     

    Use of Non-GAAP Measures

    We have provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles ("U.S. GAAP"), including adjusted EBITDA, adjusted EBITDA margin, free cash flow, non-GAAP gross margin, net income (loss) excluding stock-based compensation, legal and transaction related fees, amortization of intangibles, and restructuring and abandonment costs and diluted earnings (loss) per share excluding stock-based compensation, legal and transaction related fees, amortization of intangibles and restructuring and abandonment costs. These non-GAAP financial measures are not based on any standardized methodology prescribed by U.S. GAAP and are not necessarily comparable to similarly titled measures presented by other companies. We use these non-GAAP financial measures to evaluate our operating performance and trends and make planning decisions. We believe that these non-GAAP financial measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses and other items that we exclude in these non-GAAP financial measures. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects and allowing for greater transparency with respect to a key financial metric used by our management in its financial and operational decision-making. Non-GAAP financial measures should not be considered in isolation of, or as an alternative to, measures prepared in accordance with U.S. GAAP. Investors are encouraged to review the reconciliation of these financial measures to their nearest U.S. GAAP financial equivalents provided in the financial statement tables above. We define Adjusted EBITDA as net income (loss) adjusted to exclude the impact of depreciation and amortization, stock-based compensation expense, interest income, interest expense, other income, income taxes, restructuring and abandonment costs, legal and transaction related fees and other items that we do not consider representative of our underlying operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenue. We define free cash flow as net cash from operations less purchases of property and equipment. We define non-GAAP gross margin as GAAP gross margin, excluding stock-based compensation and amortization of intangible assets. We calculate non-GAAP net income (loss) excluding stock-based compensation, legal and transaction related fees, amortization of intangibles and restructuring and abandonment costs as net income (loss) less stock-based compensation, legal and transaction related fees, amortization of intangibles and restructuring and abandonment costs. We calculate non-GAAP diluted earnings (loss) per share excluding stock-based compensation, legal and transaction related fees, amortization of intangibles and restructuring and abandonment costs as net income (loss) less stock-based compensation, legal and transaction related fees, amortization of intangibles and restructuring and abandonment costs divided by our number of shares at fiscal year end. 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 basis without preparing a GAAP analysis as that would require estimates for items such as stock-based compensation, which is inherently difficult to predict with reasonable accuracy. Stock-based compensation expense is difficult to estimate because it depends on our future hiring and retention needs, as well as the future fair market value of our common stock, all of which are difficult to predict and subject to constant change. In addition, for purposes of setting annual guidance, it would be difficult to quantify stock-based compensation expense for the year with reasonable accuracy in the current quarter. As a result, we do not believe that a GAAP reconciliation would provide meaningful supplemental information about our outlook.

    Forward Looking Statements

    This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding our long-term outlook, financial, growth and business strategies and opportunities, our product roadmap, our action plan to address issues caused by our new app, market growth and our market share, our ability to expand our footprint with existing customers and other factors affecting variability in our financial results. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors, including, but not limited to: our ability to accurately forecast product demand and effectively forecast and manage owned and channel inventory levels; our ability to introduce software updates to our new app on a timely basis and otherwise deliver on our action plan to address issues caused by our new app and related customer commitments; our ability to maintain, enhance and protect our brand image; the impact of global economic, market and political events, including continued inflationary pressures, high interest rates and, in certain markets, foreign currency exchange rate fluctuations; changes in consumer income and overall consumer spending as a result of economic or political uncertainty or conditions; changes in consumer spending patterns; our ability to successfully introduce new products and services and maintain or expand the success of our existing products; the success of our efforts to expand our direct-to-consumer channel; the success of our financial, growth and business strategies; our ability to compete in the market and maintain or expand market share; our ability to meet product demand and manage any product availability delays; supply chain challenges, including shipping and logistics challenges and component supply-related challenges; our ability to protect our brand and intellectual property; and the other risk factors set forth under the caption "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended June 29, 2024 and our other filings filed with the Securities and Exchange Commission (the "SEC"), copies of which are available free of charge at the SEC's website at www.sec.gov or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this press release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events. Sonos and Sonos product names are trademarks or registered trademarks of Sonos, Inc. All other product names and services may be trademarks or service marks of their respective owners.

    About Sonos

    Sonos (NASDAQ:SONO) is one of the world's leading sound experience brands. As the inventor of multi-room wireless home audio, Sonos' innovation helps the world listen better by giving people access to the content they love and allowing them to control it however they choose. Known for delivering an unparalleled sound experience, thoughtful home design aesthetic, simplicity of use and an open platform, Sonos makes the breadth of audio content available to anyone. Sonos is headquartered in Santa Barbara, California. Learn more at www.sonos.com.

    View source version on businesswire.com: https://www.businesswire.com/news/home/20241113080292/en/

    Get the next $SONO alert in real time by email

    Chat with this insight

    Save time and jump to the most important pieces.

    Recent Analyst Ratings for
    $SONO

    DatePrice TargetRatingAnalyst
    9/26/2024$25.00 → $11.00Overweight → Underweight
    Morgan Stanley
    8/8/2024$25.00 → $10.00Buy → Hold
    Craig Hallum
    12/12/2023$17.00 → $20.00Equal-Weight → Overweight
    Morgan Stanley
    11/7/2023$20.00 → $12.00Buy → Neutral
    BofA Securities
    9/20/2023$20.00Buy
    Rosenblatt
    9/8/2023$20.00Buy
    Craig Hallum
    6/15/2022$38.00 → $28.00Overweight → Equal-Weight
    Morgan Stanley
    2/3/2022$49.00 → $45.00Overweight
    Morgan Stanley
    More analyst ratings

    $SONO
    SEC Filings

    See more
    • Sonos Inc. filed SEC Form 8-K: Results of Operations and Financial Condition, Financial Statements and Exhibits

      8-K - Sonos Inc (0001314727) (Filer)

      5/7/25 4:24:57 PM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples
    • Amendment: SEC Form SCHEDULE 13G/A filed by Sonos Inc.

      SCHEDULE 13G/A - Sonos Inc (0001314727) (Subject)

      4/30/25 8:14:16 AM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples
    • Sonos Inc. filed SEC Form 8-K: Leadership Update, Regulation FD Disclosure, Financial Statements and Exhibits

      8-K - Sonos Inc (0001314727) (Filer)

      4/10/25 8:33:57 AM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples

    $SONO
    Analyst Ratings

    Analyst ratings in real time. Analyst ratings have a very high impact on the underlying stock. See them live in this feed.

    See more

    $SONO
    Press Releases

    Fastest customizable press release news feed in the world

    See more
    • Sonos downgraded by Morgan Stanley with a new price target

      Morgan Stanley downgraded Sonos from Overweight to Underweight and set a new price target of $11.00 from $25.00 previously

      9/26/24 7:42:38 AM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples
    • Sonos downgraded by Craig Hallum with a new price target

      Craig Hallum downgraded Sonos from Buy to Hold and set a new price target of $10.00 from $25.00 previously

      8/8/24 7:10:59 AM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples
    • Sonos upgraded by Morgan Stanley with a new price target

      Morgan Stanley upgraded Sonos from Equal-Weight to Overweight and set a new price target of $20.00 from $17.00 previously

      12/12/23 8:11:53 AM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples
    • Sonos Reports Second Quarter Fiscal 2025 Results

      Q2 revenue at high end of guidance range, Adjusted EBITDA above high end due to significant year over year expense declines Sonos, Inc. (NASDAQ:SONO) today reported Second Quarter Fiscal 2025 results. "We made significant progress in Q2 across our top initiatives," said Tom Conrad, Sonos Interim Chief Executive Officer. "We're firmly on track in restoring the reliability and responsiveness our customers expect, with nine major software updates delivered in the last 120 days and more on the way. We're actively navigating the evolving tariff landscape with operational discipline and flexibility and we're reinvigorating demand through strategic pricing on Era 100, one of our most popular gat

      5/7/25 4:02:00 PM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples
    • Sonos Announces Date for Second Quarter Fiscal 2025 Financial Results and Conference Call

      Sonos, Inc. (NASDAQ:SONO) today announced that after market close on Wednesday, May 7, 2025 the company will report financial results for the second quarter ended March 29, 2025. The company will issue a press release and accompanying slide presentation at that time which will be accessible at https://investors.sonos.com/reports-and-filings/default.aspx#section=earningsreports. The company will host a conference call and Q&A to discuss the results on the same day at 4:30 p.m. Eastern Time. A live webcast of the conference call and Q&A will be accessible at https://investors.sonos.com/news-and-events/default.aspx. A replay of the webcast and transcript will be available through the same lin

      4/16/25 4:05:00 PM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples
    • Sonos Appoints Hugo Barra to Board of Directors; Mike Volpi Steps Down

      Sonos, Inc. (NASDAQ:SONO) today announced that it has appointed Hugo Barra to its Board of Directors effective April 7, 2025. Mr. Barra is the co-founder and head of product at /dev/agents, a software company building a next-generation operating system for AI agents. "Hugo is a world-class technologist with senior executive experience at several of the most important and successful consumer tech companies," said Julius Genachowski, Chair of the Sonos Board. "He has a proven ability to turn cutting-edge innovation into great products - a great fit for Sonos. With his deep expertise, including in AI, we're excited to have him on the Board, engaging with the leadership team and adding value."

      4/10/25 8:30:00 AM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples

    $SONO
    Insider Trading

    Insider transactions reveal critical sentiment about the company from key stakeholders. See them live in this feed.

    See more
    • Interim CEO Conrad Thomas converted options into 29,971 shares and covered exercise/tax liability with 10,364 shares, increasing direct ownership by 23% to 105,035 units (SEC Form 4)

      4 - Sonos Inc (0001314727) (Issuer)

      4/15/25 5:04:08 PM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples
    • Director Barra Hugo was granted 16,626 shares (SEC Form 4)

      4 - Sonos Inc (0001314727) (Issuer)

      4/10/25 8:43:27 AM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples
    • SEC Form 3 filed by new insider Barra Hugo

      3 - Sonos Inc (0001314727) (Issuer)

      4/10/25 8:39:04 AM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples

    $SONO
    Insider Purchases

    Insider purchases reveal critical bullish sentiment about the company from key stakeholders. See them live in this feed.

    See more
    • Large owner Coliseum Capital Management, Llc bought $1,873,230 worth of shares (209,663 units at $8.93) (SEC Form 4)

      4 - Sonos Inc (0001314727) (Issuer)

      4/7/25 8:08:42 PM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples

    $SONO
    Large Ownership Changes

    This live feed shows all institutional transactions in real time.

    See more
    • Amendment: SEC Form SC 13G/A filed by Sonos Inc.

      SC 13G/A - Sonos Inc (0001314727) (Subject)

      11/14/24 6:05:25 AM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples
    • SEC Form SC 13G filed by Sonos Inc.

      SC 13G - Sonos Inc (0001314727) (Subject)

      9/20/24 5:04:57 PM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples
    • SEC Form SC 13G/A filed by Sonos Inc. (Amendment)

      SC 13G/A - Sonos Inc (0001314727) (Subject)

      2/14/24 4:19:51 PM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples

    $SONO
    Leadership Updates

    Live Leadership Updates

    See more
    • Sonos Appoints Hugo Barra to Board of Directors; Mike Volpi Steps Down

      Sonos, Inc. (NASDAQ:SONO) today announced that it has appointed Hugo Barra to its Board of Directors effective April 7, 2025. Mr. Barra is the co-founder and head of product at /dev/agents, a software company building a next-generation operating system for AI agents. "Hugo is a world-class technologist with senior executive experience at several of the most important and successful consumer tech companies," said Julius Genachowski, Chair of the Sonos Board. "He has a proven ability to turn cutting-edge innovation into great products - a great fit for Sonos. With his deep expertise, including in AI, we're excited to have him on the Board, engaging with the leadership team and adding value."

      4/10/25 8:30:00 AM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples
    • Sonos Announces CEO Transition

      Patrick Spence to Step Down as CEO and Board Member Tom Conrad Appointed Interim CEO Sonos, Inc. (NASDAQ:SONO) today announced that the Sonos Board of Directors and Patrick Spence have agreed that Mr. Spence will step down as Chief Executive Officer (CEO) and as a member of the Board effective today. The Board has appointed Tom Conrad, an independent member of the Board since 2017, as Interim CEO, also effective as of today. The Board has initiated a search for its next CEO with the assistance of a leading executive search firm, and is committed to identifying a leader who will build on the Sonos legacy of innovation and excellence in serving its customers while also driving profitable

      1/13/25 8:00:00 AM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples
    • Sonos Appoints Bracken Darrell to Board of Directors

      Bracken's appointment bolster Sonos' Board of world-class leaders Sonos, Inc. (NASDAQ:SONO) today announced the appointment of Bracken Darrell, President and CEO of VF Corporation, to its Board, effective Feb. 12, 2024. "With Bracken's excellent track record leading world-class product companies and his deep experience in our space, we are delighted to welcome him to the Board. We're excited about the value he can add as Sonos continues its journey to become the world's leading sound experience company," said Julius Genachowski, Chair of the Sonos Board. Bracken has a long history and proven experience in business leadership, product innovation, and brand management roles. Prior to jo

      2/13/24 4:05:00 PM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples

    $SONO
    Financials

    Live finance-specific insights

    See more
    • Sonos Reports Second Quarter Fiscal 2025 Results

      Q2 revenue at high end of guidance range, Adjusted EBITDA above high end due to significant year over year expense declines Sonos, Inc. (NASDAQ:SONO) today reported Second Quarter Fiscal 2025 results. "We made significant progress in Q2 across our top initiatives," said Tom Conrad, Sonos Interim Chief Executive Officer. "We're firmly on track in restoring the reliability and responsiveness our customers expect, with nine major software updates delivered in the last 120 days and more on the way. We're actively navigating the evolving tariff landscape with operational discipline and flexibility and we're reinvigorating demand through strategic pricing on Era 100, one of our most popular gat

      5/7/25 4:02:00 PM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples
    • Sonos Announces Date for Second Quarter Fiscal 2025 Financial Results and Conference Call

      Sonos, Inc. (NASDAQ:SONO) today announced that after market close on Wednesday, May 7, 2025 the company will report financial results for the second quarter ended March 29, 2025. The company will issue a press release and accompanying slide presentation at that time which will be accessible at https://investors.sonos.com/reports-and-filings/default.aspx#section=earningsreports. The company will host a conference call and Q&A to discuss the results on the same day at 4:30 p.m. Eastern Time. A live webcast of the conference call and Q&A will be accessible at https://investors.sonos.com/news-and-events/default.aspx. A replay of the webcast and transcript will be available through the same lin

      4/16/25 4:05:00 PM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples
    • Sonos Reports First Quarter Fiscal 2025 Results

      Q1 revenue near high-end of guidance range, announced reduction in force Sonos, Inc. (NASDAQ:SONO) today reported First Quarter Fiscal 2025 results. "Yesterday we implemented important organizational changes that mark the start of a new chapter of efficiency and growth for Sonos," said Tom Conrad, Sonos Interim CEO. "I see tremendous opportunity in front of us. The team and I are hard at work improving the core experience for our customers while designing the next set of Sonos products and innovations. It's an honor to show up every day to do this work with the talented Sonos team." "Our Q1 results show our team's commitment to execution as we navigate a difficult environment," commen

      2/6/25 8:30:00 AM ET
      $SONO
      Consumer Electronics/Appliances
      Consumer Staples