SANTA BARBARA, Calif.--(BUSINESS WIRE)--
Sonos, Inc. (Nasdaq: SONO) today reported third quarter fiscal 2024 results.
“Thanks to Ace, our long-awaited entry into headphones, we reported year over year revenue growth and delivered results that slightly exceeded our expectations in our third quarter,” Sonos CEO Patrick Spence commented. “This was overshadowed by the problems that our customers and partners experienced as a result of the rollout of our new app, which in turn has required us to reduce our Fiscal 2024 guidance. We have a clear action plan to address the issues caused by our app as quickly as possible. While our app setback is regrettable, it is one chapter in our over twenty years of delighting customers. I speak for everyone at Sonos when I say that our #1 priority is to make this right and ensure that the next chapter is even better than the previous ones.”
Third Quarter Fiscal 2024 Financial Highlights (unaudited)
-
Revenue of $397.1 million
-
Gross margin of 48.3%
-
GAAP net income of $3.7 million, GAAP diluted earnings per share (EPS) of $0.03
-
Non-GAAP net income
1
of $29.5 million, Non-GAAP diluted EPS
1
of $0.23
-
Adjusted EBITDA
1
of $48.9 million
Notes:
(1) Non-GAAP net income/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.
Fiscal 2024 Outlook
The company will provide its Fiscal 2024 outlook on its third quarter fiscal 2024 earnings call.
Supplemental Earnings Presentation
Following the earnings call, the company will post a supplemental earnings presentation regarding its third quarter 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
.
Conference Call, Webcast and Transcript
The company will host a webcast of its conference call and Q&A related to its third quarter fiscal 2024 results on August 7, 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) Income
|
|
(unaudited, in thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
June 29,
2024
|
|
July 1,
2023
|
|
June 29,
2024
|
|
July 1,
2023
|
|
Revenue
|
|
$
|
397,146
|
|
|
$
|
373,356
|
|
|
$
|
1,262,676
|
|
|
$
|
1,350,108
|
|
|
Cost of revenue
|
|
|
205,505
|
|
|
|
201,594
|
|
|
|
676,320
|
|
|
|
761,672
|
|
|
Gross profit
|
|
|
191,641
|
|
|
|
171,762
|
|
|
|
586,356
|
|
|
|
588,436
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
74,223
|
|
|
|
77,758
|
|
|
|
233,780
|
|
|
|
235,484
|
|
|
Sales and marketing
|
|
|
71,643
|
|
|
|
66,600
|
|
|
|
217,428
|
|
|
|
208,917
|
|
|
General and administrative
|
|
|
33,186
|
|
|
|
48,665
|
|
|
|
113,825
|
|
|
|
136,219
|
|
|
Total operating expenses
|
|
|
179,052
|
|
|
|
193,023
|
|
|
|
565,033
|
|
|
|
580,620
|
|
|
Operating income (loss)
|
|
|
12,589
|
|
|
|
(21,261
|
)
|
|
|
21,323
|
|
|
|
7,816
|
|
|
Other income, net
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
2,629
|
|
|
|
2,391
|
|
|
|
9,638
|
|
|
|
7,540
|
|
|
Interest expense
|
|
|
(106
|
)
|
|
|
(274
|
)
|
|
|
(333
|
)
|
|
|
(585
|
)
|
|
Other (loss) income, net
|
|
|
(2,464
|
)
|
|
|
1,424
|
|
|
|
4,507
|
|
|
|
22,169
|
|
|
Total other income, net
|
|
|
59
|
|
|
|
3,541
|
|
|
|
13,812
|
|
|
|
29,124
|
|
|
Income (loss) before provision for income taxes
|
|
|
12,648
|
|
|
|
(17,720
|
)
|
|
|
35,135
|
|
|
|
36,940
|
|
|
Provision for income taxes
|
|
|
8,939
|
|
|
|
5,851
|
|
|
|
20,188
|
|
|
|
15,974
|
|
|
Net income (loss)
|
|
$
|
3,709
|
|
|
$
|
(23,571
|
)
|
|
$
|
14,947
|
|
|
$
|
20,966
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
$
|
3,709
|
|
|
$
|
(23,571
|
)
|
|
$
|
14,947
|
|
|
$
|
20,966
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.03
|
|
|
$
|
(0.18
|
)
|
|
$
|
0.12
|
|
|
$
|
0.16
|
|
|
Diluted
|
|
$
|
0.03
|
|
|
$
|
(0.18
|
)
|
|
$
|
0.12
|
|
|
$
|
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
122,553,129
|
|
|
|
128,311,109
|
|
|
|
123,828,150
|
|
|
|
127,825,410
|
|
|
Diluted
|
|
|
127,245,459
|
|
|
|
128,311,109
|
|
|
|
127,886,368
|
|
|
|
132,851,379
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
3,709
|
|
|
|
(23,571
|
)
|
|
|
14,947
|
|
|
|
20,966
|
|
|
Change in foreign currency translation adjustment
|
|
|
681
|
|
|
|
802
|
|
|
|
(267
|
)
|
|
|
(1,882
|
)
|
|
Net unrealized loss on marketable securities
|
|
|
(6
|
)
|
|
|
—
|
|
|
|
(32
|
)
|
|
|
—
|
|
|
Comprehensive income (loss)
|
|
$
|
4,384
|
|
|
$
|
(22,769
|
)
|
|
$
|
14,648
|
|
|
$
|
19,084
|
|
|
Consolidated Balance Sheets
|
|
(unaudited, in thousands, except par values)
|
|
|
|
As of
|
|
|
|
June 29,
2024
|
|
September 30,
2023
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
227,114
|
|
|
$
|
220,231
|
|
|
Marketable securities
|
|
|
49,515
|
|
|
|
-
|
|
|
Accounts receivable, net
|
|
|
131,581
|
|
|
|
67,583
|
|
|
Inventories
|
|
|
154,903
|
|
|
|
346,521
|
|
|
Prepaids and other current assets
|
|
|
41,343
|
|
|
|
25,296
|
|
|
Total current assets
|
|
|
604,456
|
|
|
|
659,631
|
|
|
Property and equipment, net
|
|
|
103,123
|
|
|
|
87,075
|
|
|
Operating lease right-of-use assets
|
|
|
53,030
|
|
|
|
48,918
|
|
|
Goodwill
|
|
|
80,980
|
|
|
|
80,420
|
|
|
Intangible assets, net
|
|
|
|
|
|
In-process research and development
|
|
|
70,706
|
|
|
|
69,791
|
|
|
Other intangible assets
|
|
|
15,748
|
|
|
|
20,218
|
|
|
Deferred tax assets
|
|
|
1,640
|
|
|
|
1,659
|
|
|
Other noncurrent assets
|
|
|
31,422
|
|
|
|
34,529
|
|
|
Total assets
|
|
$
|
961,105
|
|
|
$
|
1,002,241
|
|
|
|
|
|
|
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
179,327
|
|
|
$
|
187,981
|
|
|
Accrued expenses
|
|
|
88,958
|
|
|
|
89,717
|
|
|
Accrued compensation
|
|
|
33,059
|
|
|
|
22,079
|
|
|
Deferred revenue, current
|
|
|
20,796
|
|
|
|
20,188
|
|
|
Other current liabilities
|
|
|
44,741
|
|
|
|
34,253
|
|
|
Total current liabilities
|
|
|
366,881
|
|
|
|
354,218
|
|
|
Operating lease liabilities, noncurrent
|
|
|
53,050
|
|
|
|
54,956
|
|
|
Deferred revenue, noncurrent
|
|
|
62,190
|
|
|
|
60,650
|
|
|
Deferred tax liabilities
|
|
|
10,735
|
|
|
|
9,846
|
|
|
Other noncurrent liabilities
|
|
|
3,858
|
|
|
|
3,914
|
|
|
Total liabilities
|
|
|
496,714
|
|
|
|
483,584
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
Common stock, $0.001 par value
|
|
|
126
|
|
|
|
130
|
|
|
Treasury stock
|
|
|
(72,323
|
)
|
|
|
(72,586
|
)
|
|
Additional paid-in capital
|
|
|
538,172
|
|
|
|
607,345
|
|
|
Retained earnings (accumulated deficit)
|
|
|
2,159
|
|
|
|
(12,788
|
)
|
|
Accumulated other comprehensive loss
|
|
|
(3,743
|
)
|
|
|
(3,444
|
)
|
|
Total stockholders’ equity
|
|
|
464,391
|
|
|
|
518,657
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
961,105
|
|
|
$
|
1,002,241
|
|
|
Consolidated Statements of Cash Flows
|
|
(unaudited, dollars in thousands)
|
|
|
|
Nine Months Ended
|
|
|
|
June 29,
2024
|
|
July 1,
2023
|
|
Cash flows from operating activities
|
|
|
|
|
|
Net income
|
|
$
|
14,947
|
|
|
$
|
20,966
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
Stock-based compensation expense
|
|
|
64,961
|
|
|
|
59,549
|
|
|
Depreciation and amortization
|
|
|
35,154
|
|
|
|
35,054
|
|
|
Provision for inventory obsolescence
|
|
|
2,005
|
|
|
|
14,964
|
|
|
Restructuring and abandonment charges
|
|
|
266
|
|
|
|
5,125
|
|
|
Deferred income taxes
|
|
|
819
|
|
|
|
1,569
|
|
|
Other
|
|
|
2,973
|
|
|
|
4,270
|
|
|
Foreign currency transaction gains
|
|
|
(2,750
|
)
|
|
|
(12,698
|
)
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
(64,218
|
)
|
|
|
(13,934
|
)
|
|
Inventories
|
|
|
189,613
|
|
|
|
141,054
|
|
|
Other assets
|
|
|
(15,285
|
)
|
|
|
9,375
|
|
|
Accounts payable and accrued expenses
|
|
|
(16,942
|
)
|
|
|
(204,012
|
)
|
|
Accrued compensation
|
|
|
10,251
|
|
|
|
20,640
|
|
|
Deferred revenue
|
|
|
1,685
|
|
|
|
(4,093
|
)
|
|
Other liabilities
|
|
|
4,161
|
|
|
|
382
|
|
|
Net cash provided by operating activities
|
|
|
227,640
|
|
|
|
78,211
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
Purchases of marketable securities
|
|
|
(68,676
|
)
|
|
|
—
|
|
|
Purchases of property and equipment
|
|
|
(39,477
|
)
|
|
|
(40,085
|
)
|
|
Maturities of marketable securities
|
|
|
20,000
|
|
|
|
—
|
|
|
Net cash used in investing activities
|
|
|
(88,153
|
)
|
|
|
(40,085
|
)
|
|
Cash flows from financing activities
|
|
|
|
|
|
Payments for repurchase of common stock
|
|
|
(128,739
|
)
|
|
|
(45,063
|
)
|
|
Payments for repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock units
|
|
|
(20,757
|
)
|
|
|
(23,914
|
)
|
|
Proceeds from exercise of stock options
|
|
|
16,312
|
|
|
|
20,042
|
|
|
Net cash used in financing activities
|
|
|
(133,184
|
)
|
|
|
(48,935
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
580
|
|
|
|
4,240
|
|
|
Net increase in cash and cash equivalents
|
|
|
6,883
|
|
|
|
(6,569
|
)
|
|
Cash and cash equivalents
|
|
|
|
|
|
Beginning of period
|
|
|
220,231
|
|
|
|
274,855
|
|
|
End of period
|
|
$
|
227,114
|
|
|
$
|
268,286
|
|
|
Supplemental disclosure
|
|
|
|
|
|
Cash paid for interest
|
|
$
|
195
|
|
|
$
|
780
|
|
|
Cash paid for taxes, net of refunds
|
|
$
|
17,134
|
|
|
$
|
5,217
|
|
|
Cash paid for amounts included in the measurement of lease liabilities
|
|
$
|
9,637
|
|
|
$
|
10,599
|
|
|
Supplemental disclosure of non-cash investing and financing activities
|
|
|
|
|
|
Purchases of property and equipment in accounts payable and accrued expenses
|
|
$
|
9,910
|
|
|
$
|
7,129
|
|
|
Right-of-use assets obtained in exchange for new operating lease liabilities
|
|
$
|
11,277
|
|
|
$
|
31,547
|
|
|
Change in estimate of asset retirement obligations
|
|
$
|
—
|
|
|
$
|
2,185
|
|
|
Reconciliation of GAAP to Non-GAAP Cost of Revenue and Gross Profit
|
|
(unaudited, in thousands, except percentages)
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
June 29,
2024
|
|
July 1,
2023
|
|
June 29,
2024
|
|
July 1,
2023
|
|
Reconciliation of GAAP cost of revenue
|
|
|
|
|
|
|
|
|
|
GAAP cost of revenue
|
|
$
|
205,505
|
|
|
$
|
201,594
|
|
|
$
|
676,320
|
|
|
$
|
761,672
|
|
|
Stock-based compensation expense
|
|
|
655
|
|
|
|
450
|
|
|
|
1,995
|
|
|
|
1,601
|
|
|
Amortization of intangibles
|
|
|
973
|
|
|
|
973
|
|
|
|
2,918
|
|
|
|
3,131
|
|
|
Non-GAAP cost of revenue
|
|
$
|
203,877
|
|
|
$
|
200,171
|
|
|
$
|
671,407
|
|
|
$
|
756,940
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP gross profit
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
$
|
191,641
|
|
|
$
|
171,762
|
|
|
$
|
586,356
|
|
|
$
|
588,436
|
|
|
Stock-based compensation expense
|
|
|
655
|
|
|
|
450
|
|
|
|
1,995
|
|
|
|
1,601
|
|
|
Amortization of intangibles
|
|
|
973
|
|
|
|
973
|
|
|
|
2,918
|
|
|
|
3,131
|
|
|
Non-GAAP gross profit
|
|
$
|
193,269
|
|
|
$
|
173,185
|
|
|
$
|
591,269
|
|
|
$
|
593,168
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross margin
|
|
|
48.3
|
%
|
|
|
46.0
|
%
|
|
|
46.4
|
%
|
|
|
43.6
|
%
|
|
Non-GAAP gross margin
|
|
|
48.7
|
%
|
|
|
46.4
|
%
|
|
|
46.8
|
%
|
|
|
43.9
|
%
|
|
Reconciliation of Selected Non-GAAP Financial Measures
|
|
(unaudited, dollars in thousands)
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
June 29,
2024
|
|
July 1,
2023
|
|
June 29,
2024
|
|
July 1,
2023
|
|
Research and Development (GAAP)
|
|
$
|
74,223
|
|
|
$
|
77,758
|
|
|
$
|
233,780
|
|
|
$
|
235,484
|
|
|
Stock-based compensation
|
|
|
9,735
|
|
|
|
8,637
|
|
|
|
29,133
|
|
|
|
27,353
|
|
|
Amortization of intangibles
|
|
|
496
|
|
|
|
496
|
|
|
|
1,488
|
|
|
|
1,487
|
|
|
Restructuring and abandonment costs
|
|
|
478
|
|
|
|
3,686
|
|
|
|
801
|
|
|
|
6,368
|
|
|
Research and Development (Non-GAAP)
|
|
$
|
63,514
|
|
|
$
|
64,939
|
|
|
$
|
202,358
|
|
|
$
|
200,276
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and Marketing (GAAP)
|
|
$
|
71,643
|
|
|
$
|
66,600
|
|
|
$
|
217,428
|
|
|
$
|
208,917
|
|
|
Stock-based compensation
|
|
|
4,510
|
|
|
|
3,590
|
|
|
|
13,297
|
|
|
|
12,178
|
|
|
Amortization of intangibles
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Restructuring and abandonment costs
|
|
|
185
|
|
|
|
4,422
|
|
|
|
297
|
|
|
|
5,455
|
|
|
Sales and Marketing (Non-GAAP)
|
|
$
|
66,948
|
|
|
$
|
58,588
|
|
|
$
|
203,834
|
|
|
$
|
191,284
|
|
|
|
|
|
|
|
|
|
|
|
|
General and Administrative (GAAP)
|
|
|
33,186
|
|
|
|
48,665
|
|
|
|
113,825
|
|
|
|
136,219
|
|
|
Stock-based compensation
|
|
|
7,030
|
|
|
|
5,652
|
|
|
|
20,536
|
|
|
|
18,417
|
|
|
Legal and transaction related costs
|
|
|
1,062
|
|
|
|
14,699
|
|
|
|
7,202
|
|
|
|
30,006
|
|
|
Amortization of intangibles
|
|
|
24
|
|
|
|
24
|
|
|
|
72
|
|
|
|
72
|
|
|
Restructuring and abandonment costs
|
|
|
630
|
|
|
|
2,220
|
|
|
|
768
|
|
|
|
3,352
|
|
|
Adjusted General and Administrative (Non-GAAP)
|
|
$
|
24,440
|
|
|
$
|
26,070
|
|
|
$
|
85,247
|
|
|
$
|
84,372
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses (GAAP)
|
|
$
|
179,052
|
|
|
$
|
193,023
|
|
|
$
|
565,033
|
|
|
$
|
580,620
|
|
|
Stock-based compensation
|
|
|
21,275
|
|
|
|
17,879
|
|
|
|
62,966
|
|
|
|
57,948
|
|
|
Legal and transaction related costs
|
|
|
1,062
|
|
|
|
14,699
|
|
|
|
7,202
|
|
|
|
30,006
|
|
|
Amortization of intangibles
|
|
|
520
|
|
|
|
520
|
|
|
|
1,560
|
|
|
|
1,559
|
|
|
Restructuring and abandonment costs
|
|
|
1,293
|
|
|
|
10,328
|
|
|
|
1,866
|
|
|
|
15,175
|
|
|
Adjusted Operating Expenses (Non-GAAP)
|
|
$
|
154,902
|
|
|
$
|
149,597
|
|
|
$
|
491,439
|
|
|
$
|
475,932
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating (Loss) Income (GAAP)
|
|
$
|
12,589
|
|
|
$
|
(21,261
|
)
|
|
$
|
21,323
|
|
|
$
|
7,816
|
|
|
Stock-based compensation
|
|
|
21,930
|
|
|
|
18,329
|
|
|
|
64,961
|
|
|
|
59,549
|
|
|
Legal and transaction related costs
|
|
|
1,062
|
|
|
|
14,699
|
|
|
|
7,202
|
|
|
|
30,006
|
|
|
Amortization of intangibles
|
|
|
1,493
|
|
|
|
1,493
|
|
|
|
4,478
|
|
|
|
4,690
|
|
|
Restructuring and abandonment costs
|
|
|
1,293
|
|
|
|
10,328
|
|
|
|
1,866
|
|
|
|
15,175
|
|
|
Adjusted Operating Income (Non-GAAP)
|
|
$
|
38,367
|
|
|
$
|
23,588
|
|
|
$
|
99,830
|
|
|
$
|
117,236
|
|
|
Depreciation
|
|
|
10,539
|
|
|
|
10,716
|
|
|
|
30,676
|
|
|
|
30,364
|
|
|
Adjusted EBITDA (Non-GAAP)
|
|
$
|
48,906
|
|
|
$
|
34,304
|
|
|
$
|
130,506
|
|
|
$
|
147,600
|
|
|
Reconciliation of Net Income (Loss) to Adjusted EBITDA
|
|
|
|
|
|
(unaudited, dollars in thousands except percentages)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
June 29,
2024
|
|
July 1,
2023
|
|
June 29,
2024
|
|
July 1,
2023
|
|
(In thousands, except percentages)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
3,709
|
|
|
$
|
(23,571
|
)
|
|
$
|
14,947
|
|
|
$
|
20,966
|
|
|
Add (deduct):
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
12,032
|
|
|
|
12,209
|
|
|
|
35,154
|
|
|
|
35,054
|
|
|
Stock-based compensation expense
|
|
|
21,930
|
|
|
|
18,329
|
|
|
|
64,961
|
|
|
|
59,549
|
|
|
Interest income
|
|
|
(2,629
|
)
|
|
|
(2,391
|
)
|
|
|
(9,638
|
)
|
|
|
(7,540
|
)
|
|
Interest expense
|
|
|
106
|
|
|
|
274
|
|
|
|
333
|
|
|
|
585
|
|
|
Other expense (income), net
|
|
|
2,464
|
|
|
|
(1,424
|
)
|
|
|
(4,507
|
)
|
|
|
(22,169
|
)
|
|
Provision for income taxes
|
|
|
8,939
|
|
|
|
5,851
|
|
|
|
20,188
|
|
|
|
15,974
|
|
|
Legal and transaction related costs (1)
|
|
|
1,062
|
|
|
|
14,699
|
|
|
|
7,202
|
|
|
|
30,006
|
|
|
Restructuring and abandonment costs (2)
|
|
|
1,293
|
|
|
|
10,328
|
|
|
|
1,866
|
|
|
|
15,175
|
|
|
Adjusted EBITDA
|
|
$
|
48,906
|
|
|
$
|
34,304
|
|
|
$
|
130,506
|
|
|
$
|
147,600
|
|
|
Revenue
|
|
$
|
397,146
|
|
|
$
|
373,356
|
|
|
$
|
1,262,676
|
|
|
$
|
1,350,108
|
|
|
Net income (loss) margin
|
|
|
0.9
|
%
|
|
|
(6.3
|
)%
|
|
|
1.2
|
%
|
|
|
1.6
|
%
|
|
Adjusted EBITDA margin
|
|
|
12.3
|
%
|
|
|
9.2
|
%
|
|
|
10.3
|
%
|
|
|
10.9
|
%
|
|
(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 for the three and nine months ended June 29, 2024, and July 1, 2023, are primarily related to our restructuring plan initiated on June 14, 2023, and also costs incurred in March 2023 related to the abandonment of portions of our office spaces.
|
|
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income
|
|
(unaudited, in thousands, except share and per share amounts)
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
June 29,
2024
|
|
July 1,
2023
|
|
June 29,
2024
|
|
July 1,
2023
|
|
Reconciliation of GAAP net income (loss)
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
$
|
3,709
|
|
$
|
(23,571
|
)
|
|
$
|
14,947
|
|
$
|
20,966
|
|
Stock-based compensation expense
|
|
|
21,930
|
|
|
18,329
|
|
|
|
64,961
|
|
|
59,549
|
|
Legal and transaction related costs
|
|
|
1,062
|
|
|
14,699
|
|
|
|
7,202
|
|
|
30,006
|
|
Amortization of intangibles
|
|
|
1,493
|
|
|
1,493
|
|
|
|
4,478
|
|
|
4,690
|
|
Restructuring and abandonment costs
|
|
|
1,293
|
|
|
10,328
|
|
|
|
1,866
|
|
|
15,175
|
|
Non-GAAP net income
|
|
$
|
29,487
|
|
$
|
21,278
|
|
|
$
|
93,454
|
|
$
|
130,386
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income (loss) per share
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) per share, diluted
|
|
$
|
0.03
|
|
$
|
(0.18
|
)
|
|
$
|
|