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Sonos Reports Record Fiscal Year and Fourth Quarter 2021 Results

Nov 17, 2021

Introduces Fiscal 2022 Outlook; Ahead of Schedule Reaching Fiscal 2024 Targets

SANTA BARBARA, Calif.--(BUSINESS WIRE)-- Sonos, Inc. (Nasdaq: SONO) today reported fourth quarter and fiscal 2021 results.

Fiscal 2021 Financial Highlights (unaudited)

  • Revenue increased 29% to $1.717 billion; excluding the impact of the 53rd week in fiscal 2020, revenue increased approximately 32%
  • Gross margin increased 410 basis points to 47.2%; excluding the effect of tariff duties and refunds, gross margin increased 130 basis points to a record of 46.9%
  • GAAP net income increased to $158.6 million from a net loss of ($20.1) million last year; non-GAAP net income excluding stock-based compensation, restructuring, and legal and transaction-related fees increased to $248.3 million from $79.2 million last year
  • GAAP diluted earnings per share (EPS) increased to $1.13 from a loss per share of ($0.18) last year; non-GAAP diluted earnings per share (EPS) excluding stock-based compensation, restructuring, and legal and transaction related fees increased to $1.77 from $0.67 last year
  • Adjusted EBITDA increased 157% to $278.6 million
  • Adjusted EBITDA margin increased 800 basis points to 16.2%
  • Cash flows from operating activities increased to $253.2 million compared to $162.0 million last year
  • Free cash flow increased to $207.7 million compared to $129.0 million last year

Fourth Quarter 2021 Financial Highlights (unaudited)

  • Revenue increased 6% year-over-year to $359.5 million; excluding the impact of the 14th week last year, revenue increased approximately 14% year-over-year
  • Gross margin of 46.4% compared to 47.5% last year; excluding the effect of tariff duties and refunds, gross margin was 45.7% compared to 48.3% last year
  • GAAP net loss of ($8.7) million compared to net income of $18.4 million last year; non-GAAP net income excluding stock-based compensation, restructuring and legal and transaction related fees of $11.8 million compared to $40.7 million last year
  • GAAP diluted loss per share of ($0.07) compared to $0.15 last year; non-GAAP diluted earnings per share (EPS) excluding stock-based compensation, restructuring, and legal and transaction related fees of $0.08 compared to $0.33 last year
  • Adjusted EBITDA of $17.1 million compared to $46.4 million last year
  • Adjusted EBITDA margin was 4.8% compared to 13.7% last year

Fiscal 2022 Outlook

  • Revenue in the range of $1.925 billion to $2.0 billion, representing growth in the range of 12% to 16% from fiscal 2021
  • Gross margin in the range of 46% to 47%. Our fiscal 2022 gross margin outlook includes minimal net tariff impact
  • Adjusted EBITDA in the range of $280 million to $325 million, representing growth in the range of 1% to 17%
  • Adjusted EBITDA margin in the range of 14.5% to 16.2%

New Stock Repurchase Program

  • As announced in a separate release today, the company’s Board of Directors has authorized a new common stock repurchase program of up to $150 million
  • Under its prior repurchase programs, the company completed $100 million in stock repurchases, representing 5.2 million shares at an average price of $19.30 per share, enabling the company to return capital to shareholders and offset dilution from compensation plans.

Sonos CEO Patrick Spence commented, “We are thrilled to report another record year at Sonos. Our fiscal 2021 results are an illustration of just how much our products have appealed to customers and how powerful and profitable our model is as we execute and scale. Demand for our products remains incredibly robust and, despite continued supply constraints, we delivered a record $1.717 billion in revenue, up nearly 30% from the prior year. We achieved record adjusted EBITDA of $278.6 million, representing a record adjusted EBITDA margin of 16.2%, up 800 basis points from the prior year.”

“As our customers recognize, Sonos products operate seamlessly together, with more products improving the experience. We consistently see our existing customers adding more products to their systems, and with every new household that we add, that flywheel begins. Total households increased 15% to a record 12.6 million in fiscal 2021, while our existing customers once again showed strong repurchase habits, accounting for a record 46% of total product registrations. Total products per household increased to 3.0, underscoring the power of our model and we are poised to drive further increases in customer lifetime value as we continue to innovate and introduce new products and services,” continued Mr. Spence.

“Demand for our products remains stronger than ever, and we are entering fiscal 2022 with a significant backlog due to the continued industry-wide supply constraints. Despite these supply constraints, we expect to deliver another strong year in fiscal 2022, including 16% revenue growth and 17% adjusted EBITDA growth at the high end of our outlook. The powerful momentum we are experiencing in our business puts us ahead of schedule for reaching the fiscal 2024 financial targets introduced at our investor event last March. As we look forward, we are confident in our ability to deliver an approximately 13% revenue CAGR, 45% to 47% gross margin, and 15% to 18% adjusted EBITDA margin through fiscal 2024. We have an exciting product roadmap ahead, are extremely well positioned for the long-term, and expect to deliver significant free cash flow and increased shareholder value over time as we continue on our quest to be the world’s leading sound experience company,” Mr. Spence concluded.

Fiscal 2021 Company Highlights (unaudited)

Key Metrics:

  • Total households increased 15% to 12.6 million in fiscal 2021
  • Existing households accounted for 46% of new product registrations in fiscal 2021
  • Average number of registered products per household of 3.0 in fiscal 2021 vs 2.9 last year
  • Listening hours increased 19% year-over-year
  • Direct-to-consumer revenue increased nearly 47% and represented 24% of total revenue

Strategic Initiatives:

  • Expansion of our Offerings:
    • Introduced Sonos Radio HD in November 2020 - an ad-free, high-definition streaming tier of Sonos Radio featuring even more exclusive content directly in the Sonos app, now in lossless, CD-quality audio.
    • Launched Roam in April 2021 ($179 MSRP) - the ultra-portable smart speaker built to deliver great sound at home and on any adventure.
    • Announced first-everautomotive audio partnership with Audi in April 2021- featuring a Sonos-tuned premium sound experience in the Audi Q4 e-tron and future models including the A1, Q2 and Q3.
    • Introduced new partner products with IKEA in June and September 2021 - including the SYMFONISK picture frame and updated lamp.
  • Expansion of our Brand:
    • Named one of Fast Company’s Brands that Matter in 2021 - The list captures brands who are inspiring all of us whether it be leading in pop culture or responding meaningfully to current events
    • Entered into first-ever sports team partnership with Liverpool Football Club - a multi-year partnership naming Sonos the Official Sound Partner of Liverpool FC and creating immersive sound experiences within Anfield stadium
    • Teamed up with ESPN as an Official Sponsor of ESPN College Football
    • Announced multi-faceted partnership with the North Face and Sonos Radio in celebration of the launch of Roam
    • Launched new, exclusive programming on Sonos Radio, in partnership with artists such as Brian Eno, Erkyah Badu, M.I.A and more, and grew Radio HD with geo expansion to five new countries - Austria, Canada, France, Germany and The Netherlands. Listening hours doubled during the past year.
  • Delivering Operational Excellence and Other Highlights
    • Continued strong execution, delivering record fiscal 2021 revenue, gross margin, adjusted EBITDA and free cash flow in a challenging supply chain and logistics environment.
    • Included in Inc. Magazine first ever list of the 250 Best-Led Companies - coming in at #13. The list highlights America's thriving midsize companies that are the unsung heroes of the US economy and the standout CEOs that are setting the gold standard for leadership.
    • Published our annual Listen Better report, highlighting the work we have done to improve our efforts as a responsible company. In 2021, we developed our first climate action plan, which we will be sharing alongside our annual Listen Better report in December.

Supplemental Earnings Presentation

The Company has posted a supplemental earnings presentation accompanying its fourth quarter and fiscal 2021 results to the Earnings Reports section of its investor relations website at https://investors.sonos.com/reports-and-filings/default.aspx#section=earningsreports.

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 2021 results on November 17, 2021 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 1804222. 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 Income (Loss)

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

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

October 2,
2021

 

October 3,
2020

 

October 2,
2021

 

October 3,
2020

Revenue

$

359,539

 

$

339,837

 

$

1,716,744

 

$

1,326,328

 

Cost of revenue

192,608

 

178,301

 

906,750

 

754,372

 

Gross profit

166,931

 

161,536

 

809,994

 

571,956

 

Operating expenses

 

 

 

 

Research and development

65,783

 

54,783

 

230,078

 

214,672

 

Sales and marketing

73,236

 

58,338

 

272,124

 

263,539

 

General and administrative

39,457

 

32,986

 

152,828

 

120,978

 

Total operating expenses

178,476

 

146,107

 

655,030

 

599,189

 

Operating income (loss)

(11,545

)

15,429

 

154,964

 

(27,233

)

Other income (expense), net

 

 

 

 

Interest income

33

 

43

 

146

 

1,998

 

Interest expense

(67

)

(300

)

(592

)

(1,487

)

Other income (expense), net

(2,271

)

3,273

 

2,407

 

6,639

 

Total other income (expense), net

(2,305

)

3,016

 

1,961

 

7,150

 

Income (loss) before provision for (benefit from) income taxes

(13,850

)

18,445

 

156,925

 

(20,083

)

Provision for (benefit from) income taxes

(5,106

)

34

 

(1,670

)

32

 

Net income (loss)

$

(8,744

)

$

18,411

 

$

158,595

 

$

(20,115

)

 

 

 

 

 

Net income (loss) attributable to common stockholders

 

 

 

 

Basic

$

(8,744

)

$

18,411

 

$

158,595

 

$

(20,115

)

Diluted

$

(8,744

)

$

18,411

 

$

158,595

 

$

(20,115

)

Net income (loss) per share attributable to common stockholders

 

 

 

 

Basic

$

(0.07

)

$

0.17

 

$

1.30

 

$

(0.18

)

Diluted

$

(0.07

)

$

0.15

 

$

1.13

 

$

(0.18

)

Weighted-average shares used in computing net income (loss) per share attributable to common stockholders

 

 

 

 

Basic

126,351,433

 

111,148,110

 

122,245,212

 

109,807,154

 

Diluted

126,351,433

 

122,598,225

 

140,309,152

 

109,807,154

 

Total comprehensive income (loss)

 

 

 

 

Net income (loss)

$

(8,744

)

$

18,411

 

$

158,595

 

$

(20,115

)

Change in foreign currency translation adjustment

252

 

(1,095

)

514

 

(1,826

)

Comprehensive income (loss)

$

(8,492

)

$

17,316

 

$

159,109

 

$

(21,941

)

 

Consolidated Balance Sheets

(unaudited, dollars in thousands, except par values)

 

As of

 

October 2,
2021

October 3,
2020

Assets

 

 

Current assets:

 

 

Cash and cash equivalents

$

640,101

 

$

407,100

 

Restricted cash

 

191

 

Accounts receivable, net of allowances

100,779

 

54,935

 

Inventories

185,130

 

180,830

 

Prepaids and other current assets

31,504

 

17,321

 

Total current assets

957,514

 

660,377

 

Property and equipment, net

71,341

 

60,784

 

Operating lease right-of-use assets

33,841

 

42,342

 

Goodwill

15,545

 

15,545

 

Intangible assets, net

24,450

 

26,394

 

Deferred tax assets

10,028

 

1,800

 

Other noncurrent assets

26,085

 

8,809

 

Total assets

$

1,138,804

 

$

816,051

 

Liabilities and stockholders’ equity

 

 

Current liabilities:

 

 

Accounts payable

$

214,996

 

$

250,328

 

Accrued expenses

108,029

 

45,049

 

Accrued compensation

77,695

 

44,517

 

Short-term debt

 

6,667

 

Deferred revenue, current

35,866

 

15,304

 

Other current liabilities

39,544

 

31,150

 

Total current liabilities

476,130

 

393,015

 

Operating lease liabilities, noncurrent

33,960

 

50,360

 

Long-term debt

 

18,251

 

Deferred revenue, noncurrent

53,632

 

47,085

 

Deferred tax liabilities

2,394

 

2,434

 

Other noncurrent liabilities

3,646

 

7,067

 

Total liabilities

569,762

 

518,212

 

Stockholders’ equity:

 

 

Common stock, $0.001 par value

129

 

114

 

Treasury stock

(50,276

)

(20,886

)

Additional paid-in capital

690,462

 

548,993

 

Accumulated deficit

(69,897

)

(228,492

)

Accumulated other comprehensive loss

(1,376

)

(1,890

)

Total stockholders’ equity

569,042

 

297,839

 

Total liabilities and stockholders’ equity

$

1,138,804

 

$

816,051

 

Consolidated Statements of Cash Flows

(unaudited, dollars in thousands)

 

Twelve Months Ended

 

October 2,
2021

October 3,
2020

Cash flows from operating activities

 

 

Net income (loss)

$

158,595

 

$

(20,115

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities

 

 

Depreciation and amortization

33,882

 

36,426

 

Impairment and abandonment charges

3,552

 

14,174

 

Stock-based compensation expense

62,127

 

57,610

 

Other

1,951

 

5,710

 

Deferred income taxes

(8,330

)

(567

)

Foreign currency transaction gain

(1,108

)

(4,143

)

Changes in operating assets and liabilities:

 

 

Accounts receivable, net

(45,697

)

49,593

 

Inventories

(7,911

)

38,010

 

Other assets

(30,009

)

(5,749

)

Accounts payable and accrued expenses

26,231

 

(24,440

)

Accrued compensation

33,447

 

1,088

 

Deferred revenue

27,587

 

4,754

 

Other liabilities

(1,091

)

9,635

 

Net cash provided by operating activities

253,226

 

161,986

 

Cash flows from investing activities

 

 

Purchases of property and equipment, intangible and other assets

(45,531

)

(33,035

)

Cash paid for acquisition, net of acquired cash

 

(36,289

)

Net cash used in investing activities

(45,531

)

(69,324

)

Cash flows from financing activities

 

 

Proceeds from exercise of stock options

147,818

 

42,286

 

Payments for repurchase of common stock

(50,014

)

(50,015

)

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

(47,837

)

(11,029

)

Repayments of borrowings

(25,000

)

(8,333

)

Net cash provided by (used in) financing activities

24,967

 

(27,091

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

148

 

2,900

 

Net increase in cash, cash equivalents and restricted cash

232,810

 

68,471

 

Cash, cash equivalents and restricted cash

 

 

Beginning of period

407,291

 

338,820

 

End of period

$

640,101

 

$

407,291

 

Supplemental disclosure

 

 

Cash paid for interest

$

502

 

$

1,647

 

Cash paid for taxes, net of refunds

$

4,114

 

$

783

 

Cash paid for amounts included in the measurement of lease liabilities

$

18,657

 

$

17,194

 

Supplemental disclosure of non-cash investing and financing activities

 

 

Purchases of property and equipment, accrued but not paid

$

5,653

 

$

3,911

 

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

$

2,010

 

$

77,416

 

 
Reconciliation of Net Income (Loss) to Adjusted EBITDA

(unaudited, dollars in thousands)

 

Three Months Ended

 

Twelve Months Ended

 

October 2,
2021

 

October 3,
2020

 

October 2,
2021

 

October 3,
2020

Net income (loss)

$

(8,744

)

$

18,411

 

$

158,595

 

$

(20,115

)

Add (deduct):

 

 

 

 

Depreciation and amortization

8,093

 

8,733

 

33,882

 

36,426

 

Stock-based compensation expense

15,372

 

15,971

 

62,127

 

57,610

 

Interest income

(33

)

(43

)

(146

)

(1,998

)

Interest expense

67

 

300

 

592

 

1,487

 

Other (income) expense, net

2,271

 

(3,273

)

(2,407

)

(6,639

)

Provision for (benefit from) income taxes

(5,106

)

34

 

(1,670

)

32

 

Restructuring and related expenses (1)

165

 

125

 

(2,446

)

26,285

 

Legal and transaction related costs (2)

5,028

 

6,170

 

30,058

 

15,455

 

Adjusted EBITDA

$

17,113

 

$

46,428

 

$

278,585

 

$

108,543

 

Revenue

$

359,539

 

$

339,837

 

$

1,716,744

 

$

1,326,328

 

Adjusted EBITDA margin

4.8

%

13.7

%

16.2

%

8.2

%

(1)

Restructuring and related expenses for the twelve months ended October 2, 2021, include a gain of $2.8 million, related to our negotiation for the early termination of a facility lease that was part of the 2020 restructuring plan. The gain represents the difference between the related operating lease liability and previously accrued restructuring expenses versus the early termination payment. For a description of the 2020 restructuring plan, see “Restructuring and Related Costs” below.

(2)

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

 
Reconciliation of Cash Flows Provided by Operating Activities to Free Cash Flow

(unaudited, dollars in thousands)

 

Twelve Months Ended

 

October 2,
2021

October 3,
2020

Cash flows provided by operating activities

$

253,226

 

$

161,986

 

Less: Purchases of property and equipment, intangible and other assets

(45,531

)

(33,035

)

Free cash flow

$

207,695

 

$

128,951

 

 

Revenue by Product Category

(unaudited, dollars in thousands)

 

Three Months Ended

 

Twelve Months Ended

 

October 2,
2021

 

October 3,
2020

 

October 2,
2021

 

October 3,
2020

Sonos speakers

$

273,525

 

 

$

254,874

 

 

$

1,378,808

 

 

$

1,034,813

 

Sonos system products

67,738

 

 

67,901

 

 

265,180

 

 

218,788

 

Partner products and other revenue

18,276

 

 

17,062

 

 

72,756

 

 

72,727

 

Total revenue

$

359,539

 

 

$

339,837

 

 

$

1,716,744

 

 

$

1,326,328

 

Revenue by Geographical Region

(unaudited, dollars in thousands)

 

Three Months Ended

 

Twelve Months Ended

 

October 2,
2021

 

October 3,
2020

 

October 2,
2021

 

October 3,
2020

Americas

$

196,034

 

 

$

199,549

 

 

$

980,931

 

 

$

755,874

 

Europe, Middle East and Africa ("EMEA")

137,936

 

 

117,076

 

 

618,476

 

 

470,883

 

Asia Pacific ("APAC")

25,569

 

 

23,212

 

 

117,337

 

 

99,571

 

Total revenue

$

359,539

 

 

$

339,837

 

 

$

1,716,744

 

 

$

1,326,328

 

 

Stock-based Compensation

(unaudited, dollars in thousands)

 

Three Months Ended

 

Twelve Months Ended

 

October 2,
2021

 

October 3,
2020

 

October 2,
2021

 

October 3,
2020

Cost of revenue

$

265

 

 

$

239

 

 

$

988

 

 

$

1,106

 

Research and development

6,008

 

 

6,742

 

 

25,075

 

 

23,439

 

Sales and marketing

3,253

 

 

3,701

 

 

13,570

 

 

14,359

 

General and administrative

5,846

 

 

5,289

 

 

22,494

 

 

18,706

 

Total stock-based compensation expense

$

15,372

 

 

$

15,971

 

 

$

62,127

 

 

$

57,610

 

 

Restructuring and Related Costs (1)

(unaudited, dollars in thousands)

 

Three Months Ended

 

Twelve Months Ended

 

October 2,
2021

 

October 3,
2020

 

October 2,
2021

 

October 3,
2020

Research and development

$

 

 

$

125

 

 

$

25

 

 

$

5,074

 

Sales and marketing

165

 

 

 

 

(2,471

)

 

19,788

 

General and administrative

 

 

 

 

 

 

1,423

 

Total restructuring and related costs

$

165

 

 

$

125

 

 

$

(2,446

)

 

$

26,285

 

(1)

On June 23, 2020, we initiated a restructuring plan as part of our efforts to reduce operating expenses and preserve liquidity due to the uncertainty and challenges stemming from the COVID-19 pandemic. As part of the 2020 restructuring plan, we eliminated approximately 12% of our global headcount and closed our New York retail store and six satellite offices. We believe these initiatives better aligned our resources to provide further operating flexibility and more efficiently position our business for our long-term strategy. Activities under the 2020 restructuring plan were substantially completed in the first quarter of fiscal 2021. In the first quarter of fiscal 2021, we negotiated the early termination of a facility lease that was part of the 2020 restructuring and recorded a gain of $2.8 million, representing the difference between the related operating lease liability and previously accrued restructuring expenses versus the early termination payment. The gain was recognized as a credit in sales and marketing expenses on the consolidated statements of operations and comprehensive income (loss).

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, revenue excluding the 53rd week, revenue excluding the 14th week, free cash flow, gross margin excluding the effect of tariffs, net income (loss) excluding stock-based compensation, restructuring, and legal and transaction related fees, and diluted earnings per share (EPS) excluding stock-based compensation, restructuring, and legal and transaction related fees. 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, stock-based compensation expense, interest income, interest expense, other income (expense), income taxes 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 and intangible assets. We calculate gross margin excluding the effect of tariff duties and refunds as gross profit, less the effect of tariffs imposed on goods imported to the U.S. from China and any tariffs refunds subject to a tariff refund claim approved by U.S. Customs and Border Protection, divided by revenue. We calculate non-GAAP net income (loss) excluding stock-based compensation, restructuring and legal and transaction related fees as net income (loss) less stock-based compensation, restructuring fees and legal and transaction related fees. We calculate non-GAAP diluted earnings per share (EPS) excluding stock-based compensation, restructuring, and legal and transaction related fees as net income (loss) less stock-based compensation, restructuring costs and legal and transaction related fees divided by our number of shares at fiscal year end. We calculate constant currency growth percentages by translating our prior period financial results using the current period average currency exchange rates and comparing these amounts to our current period reported results. 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 outlook for the fiscal year ended October 1, 2022, 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 margins, our direct-to-consumer efforts, our market share, 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 the duration and impact of the COVID-19 pandemic and related mitigation efforts on our industry and our supply chain; supply chain challenges, including shipping and logistics challenges and significant limits on component supplies; changes in general economic or market conditions that could affect consumer income and overall consumer spending; 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 meet product demand and manage any product availability delays; and the other risk factors set forth under the caption “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended July 3, 2021 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.

Investor Contact
Cammeron McLaughlin
IR@sonos.com

Press Contact
Tom Lodge
PR@sonos.com

Source: Sonos