EX-99 2 sono-ex99_1.htm EX-99.1 EX-99

 

Exhibit 99.1

img161172520_0.jpg 

Sonos Reports Second Quarter Fiscal 2023 Results

 

Santa Barbara, CA – May 10, 2023 - Sonos, Inc. (Nasdaq: SONO) today reported second quarter fiscal 2023 results.

 

Second Quarter 2023 Financial Highlights (unaudited)

●
Revenue decreased 23.9% year-over-year to $304.2 million; on a constant-currency basis, revenue decreased 22.4% year-over-year
●
Gross margin decreased 150 basis points year-over-year to 43.3%
●
GAAP net loss of $(30.7) million compared to net income of $8.6 million last year
○
GAAP net loss margin of (10.1)% compared to net income margin of 2.1% last year
○
GAAP diluted earnings per share (EPS) of $(0.24) compared to $0.06 last year
●
Non-GAAP net income1 of $5.7 million compared to $36.8 million last year
○
Non-GAAP diluted EPS1 of $0.04 compared to $0.26 last year
●
Adjusted EBITDA of $(10.6) million compared to $46.9 million last year
○
Adjusted EBITDA margin of (3.5)% compared to 11.7% last year
●
Free cash flow of $(121.7) million. Cash flows used in operating activities of $(113.0) million
○
Inventories of $326.3 million, increased 7% from last quarter
○
Finished goods of $274.5 million, increased 5% from last quarter

 

Notes: 1 Non-GAAP net income/earnings per share (EPS) exclude stock-based compensation, legal and transaction related fees, amortization of intangibles, and lease abandonment costs. See “Use of Non-GAAP Measures” and reconciliations to GAAP measures below.

 

Sonos CEO Patrick Spence commented, “This quarter we made outstanding progress in delivering on our product roadmap with the launch of two new game-changing products, the Era 100 and 300, both the best of their kind. And we entered a new product category with our SaaS-based Sonos Pro offering.”

 

Mr. Spence continued, “Though our second quarter results were in-line with our guidance, we are reducing our expectations for the second half of Fiscal 2023 due to softening consumer demand and channel partner inventory tightening. As a result, we are taking swift action to reduce our operating expenses and protect our profitability. We remain focused on ensuring that Sonos will emerge from the current choppy consumer environment in a position of strength: we are profitable, we are debt free, and we have a huge market opportunity. Continuing to innovate is critical to delivering on our long-term growth ambitions and I have every confidence in our ability to continue to do so.”

 

 

Sonos today separately announced that the Board has appointed Julius Genachowski as Sonos' Chairperson of the Board. Mr. Genachowski succeeds the Board's current Chairperson, Mike Volpi, who will continue as a Director. “Mike has set a wonderful example as Board Chair with his exceptional combination of experience and discerning intellect.” Mr. Genachowski said. “I’m honored to be following in his footsteps and delighted that he will be remaining on the Board.” Mr. Genachowski and Mr. Volpi have served as Directors since September 2013 and March 2010, respectively and Mr. Volpi served as Chairperson from November 2010 to May 2023.

 

Revised Fiscal 2023 Outlook

 

●
Revenue in the range of $1.625 billion to $1.675 billion, representing a decline of 7% to 4% from fiscal 2022, or a decline of 5% to 2% on a constant currency basis. This compares to a prior outlook range of $1.7 billion to $1.8 billion, which represented a decline of 3% to growth 3% from fiscal 2022
●
Gross margin in the range of 44.3% to 44.8%, compared to prior outlook range of 45.0% to 46.0%
●
Adjusted EBITDA in the range of $138 million to $168 million, compared to prior outlook range of $145 million to $180 million
●
Adjusted EBITDA margin of 8.5% to 10.0%, unchanged from prior outlook range

 

Supplemental Earnings Presentation

 

The company has posted a supplemental earnings presentation accompanying its second quarter fiscal 2023 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 second quarter fiscal 2023 results on May 10, 2023, 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.

 

 

 

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

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

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

April 1,

2023

 

April 2,

2022

 

April 1,

2023

 

April 2,

2022

Revenue

$ 304,173

 

$ 399,781

 

$ 976,752

 

$ 1,064,262

Cost of revenue

172,555

 

220,747

 

560,078

 

567,843

Gross profit

131,618

 

179,034

 

416,674

 

496,419

Operating expenses

 

 

 

 

 

 

 

Research and development

80,785

 

64,947

 

157,726

 

126,277

Sales and marketing

63,621

 

59,955

 

142,317

 

143,691

General and administrative

44,438

 

44,090

 

87,553

 

83,816

Total operating expenses

188,844

 

168,992

 

387,596

 

353,784

Operating income (loss)

(57,226)

 

10,042

 

29,078

 

142,635

Other income (expense), net

 

 

 

 

 

 

 

Interest income

3,181

 

123

 

5,149

 

156

Interest expense

(152)

 

(90)

 

(311)

 

(187)

Other income (expense), net

(2,832)

 

(2,281)

 

20,745

 

(3,683)

Total other income (expense), net

197

 

(2,248)

 

25,583

 

(3,714)

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

(57,029)

 

7,794

 

54,661

 

138,921

Provision for (benefit from) income taxes

(26,377)

 

(772)

 

10,124

 

6,874

Net income (loss)

$ (30,652)

 

$ 8,566

 

$ 44,537

 

$ 132,047

 

 

 

 

 

 

 

 

Net income (loss) attributable to common stockholders:

 

 

 

 

 

 

 

Basic and diluted

$ (30,652)

 

$ 8,566

 

$ 44,537

 

$ 132,047

 

 

 

 

 

 

 

 

Net income (loss) per share attributable to common stockholders:

 

 

 

 

 

 

 

Basic

$ (0.24)

 

$ 0.07

 

$ 0.35

 

$ 1.03

Diluted

$ (0.24)

 

$ 0.06

 

$ 0.34

 

$ 0.94

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Basic

127,952,875

 

128,112,234

 

127,582,560

 

127,887,530

Diluted

127,952,875

 

139,642,570

 

132,834,096

 

140,982,509

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss)

 

 

 

 

 

 

 

Net income (loss)

(30,652)

 

8,566

 

44,537

 

132,047

Change in foreign currency translation adjustment

4,542

 

100

 

(2,684)

 

(260)

Comprehensive income (loss)

$ (26,110)

 

$ 8,666

 

$ 41,853

 

$ 131,787

 

 

 

Condensed Consolidated Balance Sheets

(unaudited, dollars in thousands, except par values)

 

 

As of

 

 

April 1,

2023

 

October 1,

2022

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$ 294,873

 

$ 274,855

Accounts receivable, net of allowances

 

84,203

 

101,206

Inventories

 

326,289

 

454,288

Prepaids and other current assets

 

31,474

 

37,042

Total current assets

 

736,839

 

867,391

Property and equipment, net

 

87,467

 

86,168

Operating lease right-of-use assets

 

21,662

 

28,329

Goodwill

 

81,501

 

77,300

Intangible assets, net

 

 

 

 

    In-process research and development

 

71,554

 

64,680

    Other intangible assets

 

23,219

 

26,384

Deferred tax assets

 

1,530

 

1,508

Other noncurrent assets

 

35,481

 

36,628

Total assets

 

$ 1,059,253

 

$ 1,188,388

Liabilities and stockholders’ equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$ 183,648

 

$ 335,758

Accrued expenses

 

76,387

 

109,290

Accrued compensation

 

30,492

 

23,624

Deferred revenue, current

 

19,764

 

27,318

Other current liabilities

 

41,866

 

39,649

Total current liabilities

 

352,157

 

535,639

Operating lease liabilities, noncurrent

 

19,606

 

25,596

Deferred revenue, noncurrent

 

61,963

 

56,152

Deferred tax liabilities

 

11,849

 

9,642

Other noncurrent liabilities

 

764

 

846

Total liabilities

 

446,339

 

627,875

Stockholders’ equity:

 

 

 

 

 

Common stock, $0.001 par value

 

130

 

130

Treasury stock

 

(36,462)

 

(50,896)

Additional paid-in capital

 

613,505

 

617,390

Retained earnings (accumulated deficit)

 

42,022

 

(2,514)

Accumulated other comprehensive loss

 

(6,281)

 

(3,597)

Total stockholders’ equity

 

612,914

 

560,513

Total liabilities and stockholders’ equity

 

$ 1,059,253

 

$ 1,188,388

 

 

Condensed Consolidated Statements of Cash Flows

(unaudited, dollars in thousands)

 

 

Six Months Ended

 

 

April 1,

2023

 

April 2,

2022

Cash flows from operating activities

 

 

 

 

Net income

 

$ 44,537

 

$ 132,047

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

 

 

 

 

Depreciation and amortization

 

22,845

 

18,792

Impairment and abandonment

 

4,846

 

—

Stock-based compensation expense

 

41,220

 

38,684

Other

 

13,232

 

4,357

Deferred income taxes

 

1,358

 

(129)

Foreign currency transaction (gains) losses

 

(14,126)

 

2,267

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable, net

 

16,932

 

(12,786)

Inventories

 

118,032

 

(86,153)

Other assets

 

5,481

 

(6,082)

Accounts payable and accrued expenses

 

(186,194)

 

51,643

Accrued compensation

 

6,108

 

(45,084)

Deferred revenue

 

(4,484)

 

(11,834)

Other liabilities

 

(463)

 

(3,348)

Net cash provided by operating activities

 

69,324

 

82,374

Cash flows from investing activities

 

 

 

 

Purchases of property and equipment, and intangible assets

 

(23,403)

 

(15,665)

Cash paid for acquisitions, net of acquired cash

 

—

 

(27,101)

Net cash used in investing activities

 

(23,403)

 

(42,766)

Cash flows from financing activities

 

 

 

 

Payments for debt issuance costs

 

—

 

(929)

Payments for repurchase of common stock

 

(30,054)

 

(74,482)

Proceeds from exercise of common stock options

 

17,584

 

29,254

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

 

(18,199)

 

(22,601)

Net cash used in financing activities

 

(30,669)

 

(68,758)

Effect of exchange rate changes on cash and cash equivalents

 

4,766

 

(4,207)

 

Net increase (decrease) in cash and cash equivalents

 

20,018

 

(33,357)

Cash and cash equivalents

 

 

 

 

Beginning of period

 

274,855

 

640,101

End of period

 

$ 294,873

 

$ 606,744

Supplemental disclosure

 

 

 

 

Cash paid for interest

 

$ 330

 

$ 85

Cash paid for taxes, net of refunds

 

$ 6,399

 

$ 8,916

Cash paid for amounts included in the measurement of lease liabilities

 

$ 7,219

 

$ 7,800

Supplemental disclosure of non-cash investing and financing activities

 

 

 

 

Purchases of property and equipment in accounts payable and accrued expenses

 

$ 8,393

 

$ 7,869

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

 

$ 711

 

$ 2,245

 

 

Reconciliation of Selected Non-GAAP Financial Measures

(unaudited, dollars in thousands)

 

 

Three Months Ended

 

Six Months Ended

 

 

April 1,

2023

 

April 2,

2022

 

April 1,

2023

 

April 2,

2022

Research and Development (GAAP)

 

$ 80,785

 

$ 64,947

 

$ 157,726

 

$ 126,277

Stock-based compensation

 

9,565

 

8,091

 

18,716

 

14,829

Amortization of intangibles

 

495

 

737

 

990

 

1,808

Lease abandonment costs

 

2,682

 

—

 

2,682

 

—

Research and Development (Non-GAAP)

 

$ 68,043

 

$ 56,119

 

$ 135,338

 

$ 109,640

 

 

 

 

 

 

 

 

 

Sales and Marketing (GAAP)

 

$ 63,621

 

$ 59,955

 

$ 142,317

 

$ 143,691

Stock-based compensation

 

4,475

 

4,177

 

8,588

 

7,824

Lease abandonment costs

 

1,034

 

—

 

1,034

 

—

Sales and Marketing (Non-GAAP)

 

$ 58,112

 

$ 55,778

 

$ 132,695

 

$ 135,867

 

 

 

 

 

 

 

 

 

General and Administrative (GAAP)

 

$ 44,438

 

$ 44,090

 

$ 87,553

 

$ 83,816

Stock-based compensation

 

6,404

 

8,580

 

12,765

 

15,326

Legal and transaction related costs

 

9,018

 

6,012

 

15,307

 

9,885

Amortization of intangibles

 

24

 

24

 

48

 

48

Lease abandonment costs

 

1,130

 

—

 

1,130

 

—

Adjusted General and Administrative (Non-GAAP)

 

$ 27,862

 

$ 29,474

 

$ 58,303

 

$ 58,557

 

 

 

 

 

 

 

 

 

Total Operating Expenses (GAAP)

 

$ 188,844

 

$ 168,992

 

$ 387,596

 

$ 353,784

Stock-based compensation

 

20,444

 

20,848

 

40,069

 

37,979

Legal and transaction related costs

 

9,018

 

6,012

 

15,307

 

9,885

 

Amortization of intangibles

 

519

 

761

 

1,038

 

1,856

Lease abandonment costs

 

4,846

 

—

 

4,846

 

—

Adjusted Operating Expenses (Non-GAAP)

 

$ 154,017

 

$ 141,371

 

$ 326,336

 

$ 304,064

 

 

 

 

 

 

 

 

 

Total Operating Income (GAAP)

 

$ (57,226)

 

$ 10,042

 

$ 29,078

 

$ 142,635

Stock-based compensation

 

21,025

 

21,225

 

41,220

 

38,684

Legal and transaction related costs

 

9,018

 

6,012

 

15,307

 

9,885

Amortization of intangibles

 

1,492

 

974

 

3,196

 

2,284

Lease abandonment costs

 

4,846

 

—

 

4,846

 

—

Adjusted Operating Income (Non-GAAP)

 

$ (20,845)

 

$ 38,253

 

$ 93,647

 

$ 193,488

Depreciation

 

10,221

 

8,601

 

19,649

 

16,508

Adjusted EBITDA (Non-GAAP)

 

$ (10,624)

 

$ 46,854

 

$ 113,296

 

$ 209,996

 

 

Reconciliation of Net Income (Loss) to Adjusted EBITDA

(unaudited, dollars in thousands except percentages)

 

 

Three Months Ended

 

Six Months Ended

 

 

April 1,

2023

 

April 2,

2022

 

April 1,

2023

 

April 2,

2022

Net income (loss)

 

$ (30,652)

 

$ 8,566

 

$ 44,537

 

$ 132,047

Add (deduct):

 

 

 

 

 

 

 

 

Depreciation and amortization

 

11,713

 

9,575

 

22,845

 

18,792

Stock-based compensation expense

 

21,025

 

21,225

 

41,220

 

38,684

Interest income

 

(3,181)

 

(123)

 

(5,149)

 

(156)

Interest expense

 

152

 

90

 

311

 

187

Other (income) expense, net

 

2,832

 

2,281

 

(20,745)

 

3,683

Provision for (benefit from) income taxes

 

(26,377)

 

(772)

 

10,124

 

6,874

Legal and transaction related costs(1)

 

9,018

 

6,012

 

15,307

 

9,885

Lease abandonment costs(2)

 

4,846

 

—

 

4,846

 

—

Adjusted EBITDA

 

$ (10,624)

 

$ 46,854

 

$ 113,296

 

$ 209,996

Revenue

 

$ 304,173

 

$ 399,781

 

$ 976,752

 

$ 1,064,262

Net income (loss) margin

 

(10.1)%

 

2.1%

 

4.6%

 

12.4%

Adjusted EBITDA margin

 

(3.5)%

 

11.7%

 

11.6%

 

19.7%

 

 

 

 

 

 

 

 

 

(1) Legal and transaction related costs consist of expenses related to our intellectual property 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.

 

(2) In March 2023, in support of operational efficiencies, we abandoned portions of our office spaces for the remainder of their respective lease terms. Lease abandonment costs include the impact of the write-off of the associated operating lease right-of-use assets, as well as accelerated depreciation of the related leasehold improvements.

 

 

 

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

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

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

April 1,

2023

 

April 2,

2022

 

April 1,

2023

 

April 2,

2022

Reconciliation of GAAP net income (loss)

 

 

 

 

 

 

 

 

GAAP net income (loss)

 

$ (30,652)

 

$ 8,566

 

$ 44,537

 

$ 132,047

Stock-based compensation expense

 

21,025

 

21,225

 

41,220

 

38,684

Legal and transaction related costs

 

9,018

 

6,012

 

15,307

 

9,885

Amortization of intangibles

 

1,492

 

974

 

3,196

 

2,284

Lease abandonment costs

 

4,846

 

—

 

4,846

 

—

Non-GAAP net income

 

$ 5,729

 

$ 36,777

 

$ 109,106

 

$ 182,900

 

 

 

 

 

 

 

 

 

Reconciliation of net income (loss) per share

 

 

 

 

 

 

 

 

GAAP net income (loss) per share, diluted

 

$ (0.24)

 

$ 0.06

 

$ 0.34

 

$ 0.94

Non-GAAP adjustments to net income (loss) per share

 

$ 0.28

 

$ 0.20

 

$ 0.49

 

$ 0.36

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

 

$ 0.04

 

$ 0.26

 

$ 0.82

 

$ 1.30

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

 

127,952,875

 

139,642,570

 

132,834,096

 

140,982,509

Note: Certain figures may not sum due to rounding

 

 

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

(unaudited, dollars in thousands)

 

 

Three Months Ended

 

Six Months Ended

 

 

April 1,

2023

 

April 2,

2022

 

April 1,

2023

 

April 2,

2022

Cash flows provided by (used in) operating activities

 

$ (112,962)

 

$ (97,562)

 

$ 69,324

 

$ 82,374

Less: Purchases of property and equipment, and intangible assets

 

(8,714)

 

(9,310)

 

(23,403)

 

(15,665)

 

Free cash flow

 

$ (121,676)

 

$ (106,872)

 

$ 45,921

 

$ 66,709

 

 

Revenue by Product Category

(unaudited, dollars in thousands)

 

 

Three Months Ended

 

Six Months Ended

 

 

April 1,

2023

 

April 2,

2022

 

April 1,

2023

 

April 2,

2022

Sonos speakers

 

$ 241,180

 

$ 317,734

 

$ 780,377

 

$ 819,620

Sonos system products

 

44,091

 

61,220

 

158,525

 

195,965

Partner products and other revenue

 

18,902

 

20,827

 

37,850

 

48,677

Total revenue

 

$ 304,173

 

$ 399,781

 

$ 976,752

 

$ 1,064,262

 

 

Revenue by Geographical Region

(unaudited, dollars in thousands)

 

 

Three Months Ended

 

Six Months Ended

 

 

April 1,

2023

 

April 2,

2022

 

April 1,

2023

 

April 2,

2022

Americas

 

$ 196,533

 

$ 238,193

 

$ 593,097

 

$ 612,006

Europe, Middle East and Africa

 

89,054

 

128,431

 

329,494

 

373,912

Asia Pacific

 

18,586

 

33,157

 

54,161

 

78,344

Total revenue

 

$ 304,173

 

$ 399,781

 

$ 976,752

 

$ 1,064,262

 

 

 

 

Stock-based Compensation

(unaudited, dollars in thousands)

 

 

Three Months Ended

 

Six Months Ended

 

 

April 1,

2023

 

April 2,

2022

 

April 1,

2023

 

April 2,

2022

Cost of revenue

 

$ 581

 

$ 377

 

$ 1,151

 

$ 705

Research and development

 

9,565

 

8,091

 

18,716

 

14,829

Sales and marketing

 

4,475

 

4,177

 

8,588

 

7,824

General and administrative

 

6,404

 

8,580

 

12,765

 

15,326

Total stock-based compensation expense

 

$ 21,025

 

$ 21,225

 

$ 41,220

 

$ 38,684

 

 

Amortization of Intangibles

(unaudited, dollars in thousands)

 

 

Three Months Ended

 

Six Months Ended

 

 

April 1,

2023

 

April 2,

2022

 

April 1,

2023

 

April 2,

2022

Cost of revenue

 

$ 973

 

$ 213

 

$ 2,158

 

$ 428

Research and development

 

495

 

737

 

990

 

1,808

General and administrative

 

24

 

24

 

48

 

48

Total amortization of intangibles

 

$ 1,492

 

$ 974

 

$ 3,196

 

$ 2,284

 

 

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, net income excluding stock-based compensation, legal and transaction related fees, amortization of intangibles, and lease abandonment costs and diluted earnings per share excluding stock-based compensation, legal and transaction related fees, amortization of intangibles and lease 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 (expense), income taxes, lease abandonment costs 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 and other assets. We calculate non-GAAP net income excluding stock-based compensation, legal and transaction related fees, amortization of intangibles and lease abandonment costs as net income (loss) less stock-based compensation, legal and transaction related fees, amortization of intangibles and lease abandonment costs. We calculate non-GAAP diluted earnings per share excluding stock-based compensation, legal and transaction related fees, amortization of intangibles and lease abandonment costs as net income less stock-based compensation, legal and transaction related fees, amortization of intangibles and lease abandonment costs divided by our number of shares at fiscal year end. We calculate constant currency growth percentages by translating our current period financial results using the prior period average currency exchange rates and comparing these amounts to our prior 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 ending September 30, 2023, our long-term outlook, our long-term focus, financial, growth and business strategies and opportunities, growth metrics and targets, our business model, new products, services and partnerships, profitability and gross margins, market growth and our market share, the macroeconomic environment and our ability to weather it, 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 component supply-related challenges; our ability to accurately forecast product demand and effectively forecast and manage owned and channel inventory levels; the impact of global economic, market and political events, including broad economic uncertainty, foreign currency exchange fluctuations and inflation; changes in consumer income and overall consumer spending as a result of economic or political uncertainty; 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 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 December 31, 2022 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

James Baglanis
IR@sonos.com

 

Press Contact

Erin Pategas

PR@sonos.com

 

Source: Sonos