#1The Sonos Story SONOS November 2023 Investor Presentation#2Forward Looking Statements This presentation contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding our outlook for the fiscal year ending September 28, 2024; our long-term outlook; our long-term focus, financial, growth, and business strategies and opportunities; growth metrics and targets; our business model; new products, product categories and services; profitability and gross margins; market growth and our market share; our incremental revenue opportunity; 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: our ability to accurately forecast product demand and effectively manage owned and channel inventory levels; the impact of global economic, market, and political events, including the potential for an extended global recession, continued inflationary pressures, rising 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 meet product demand and manage any product availability delays; supply chain challenges, including shipping and logistics challenges and component supply-related challenges; the resurgence of the COVID-19 pandemic; 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 1, 2023, 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, 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 letter, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events, except to the extent required by law. Non-GAAP Measures We have provided in this presentation financial information that has not been prepared in accordance with US generally accepted accounting principles ("GAAP"). 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 US GAAP. 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, restructuring and 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 define free cash flow conversion as free cash flow as a percentage of Adjusted EBITDA. We define non-GAAP gross margin as GAAP gross margin, excluding stock-based compensation and amortization of intangible assets. We define Adjusted Operating Expenses as operating expenses less stock-based compensation expense, legal and transaction related costs, amortization of intangibles, and restructuring and abandonment costs. 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 certain 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. 2#3Sonos at a Glance 2002 SONOS SONOB SONOS Founded wwwwww 20 Products 10 Locations 2 Services 1,800+ Employees 3,300+ US Patents and Applications 60 Countries distributed $1.66B FY23 Revenue SONOS 3#4Broad Product Portfolio Spanning Variety of Price Points Portables Roam $179 Home Theater Move 2 $449 Amp $699 Ray $279 Components and Architectural All-in-One Speakers Port $449 Era 100 $249 Beam $499 Era 300 $449 Sonance $659 Sonance $659 Five $549 Sonance $879 IKEA SYMFONISK Bookshelf speaker $139 Arc $899 IKEA SYMFONISK Speaker lamp $249 Automotive CXXO Audi IKEA SYMFONISK Picture frame speaker $259 Sub Mini $429 IKEA SYMFONISK Floor lamp speaker $299 Sub $799 4#5Market Position Sonos is differentiated by our unique combination of an open content and control platform with high-quality, premium hardware that spans a variety of form factors, use cases, and price points. No other company has created an interoperable suite of products serving customers in the home and beyond. "Big tech" focused on the adoption of their voice assistants through a range of household devices, including more commoditized audio devices that compromise on privacy, design, and sound experience. Legacy companies have been focused on acoustics and hardware for decades, offering single-product solutions. They lack the software and networking capabilities to compete in the future of audio. Premium Commodity Legacy home audio SONOS Google amazon Walled garden Open platform 5#6Sonos Innovation Is Widely Adopted Sonos founded June 2002 Jan 2002 Sonos demos at D2 June 2004 Jan 2004 Sonos releases digital music system in February 2005 SONOS Jan 2006 Jan 2008 Jan 2010 Jan 2012 Amazon Echo Jan 2014 Denon Heos Lenbrook Bluesound Jan 2016 Google Home Jan 2018 Apple HomePod Present 6#7Yet We Remain the Leader $200+ Home Theater² Brand Rank: #1 Top Products in Category Sonos Arc Sonos Sub United States Sonos Beam Source: Circana for US, GfK UK and DE Notes: 1 - EMEA includes UK and DE 2 - Home Theater includes soundbars and wireless subwoofers FY23 Top Ranked Models (by $ share) $150+ Streaming Audio Brand Rank: #2 Top Products in Category Sonos One SL Sonos Amp Sonos Move $200+ Home Theater² Brand Rank: #1 Top Products in Category Sonos Arc Sonos Beam EMEA¹ Sonos Sub $150+ Streaming Audio Brand Rank: #2 Top Products in Category Sonos One SL Sonos One Sonos Move 7#8Why the Sonos Ecosystem Wins "Software Eats Audio" - We have invested over $1.2 billion into R&D over the last 5 years Hardware Sound Design Quality Durability Sounds great, looks beautiful, and lasts + Software Easy to use Reliable All works together Rich patent portfolio System + Services 130+ third-party apps 2 voice providers 2 first-party services (Sonos Radio & Sonos Voice Control) Open platform and choice 8#9Our Innovation Is Protected by a Robust and Growing Patent Portfolio Total Sonos U.S. Patents and Patent Applications (filed over time, cumulative) 2500 2000 1500 1000 500 ● 0 2 2003 V 2004 15 2005 2006 30 2 2007 34 7 2008 35 8 2009 Total U.S. Patent Applications Total U.S. Issued Patents Source: internal data 40 12 2010 68 15 2011 114 21 2012 186 29 2013 307 43 2014 455 109 2015 660 215 2016 778 361 2017 1000 563 2018 1234 756 2019 1497 962 2020 1766 1154 2021 2029 1322 2022 9#10Open Platform Enables Freedom of Choice 130+ Content Partners Spotify pandora® ...deezer amazon music SONOS Radio ►YouTube Music TIDAL Yandex Music Music audible Pocket Casts Calm Clubhouse Home Automation & Home Control Partners CRESTRON Control LUTRON. SAVANT Llegrand JOSH IPORT IKEA SONANCE brilliant SEXIC hansgrohe Voice Assistants Sonos Voice Control Google Assistant amazon alexa 10#11Key Drivers of Long Term Growth 1 Continue to raise the bar in existing product categories "The Sonos Flywheel" New households enter the Sonos ecosystem, and existing households purchase additional products at a steady rate. 2 Enter new product categories Driven by Large growing addressable market Just scratching the surface: Currently ~2% share of $100B global audio market¹ and -9% share of 172M affluent households2 in core markets 3 Expand geographic reach Underpinned by 4 New business initiatives and services Durable secular tailwinds Continued growth in audio and video content consumption and formats Evolution of remote work and impact on how and where consumers live Widespread adoption of immersive object-based audio ("spatial audio") delivered via Dolby Atmos 1- Source: Futuresource CY2022 2- Source: Euromonitor 2023 Core Markets include the United States, Canada, Mexico, Australia, New Zealand, United Kingdom, Germany, Netherlands, Sweden, Denmark, France, Switzerland, Norway, Belgium, Italy, Austria, Spain, Ireland, Finland, Poland and Luxembourg 11#12Large and Growing Install Base Total Households Existing Households 4.6 1.2 FY2016 5.9 1.3 FY2017 Net New Households 7.4 1.5 FY2018 19% CAGR 9.1 1.7 FY2019 10.9 1.8 FY2020 12.6 1.7 FY2021 14.0 1.4 FY2022 15.3 1.3 FY2023 12#13Framing Our Long Term Opportunity: Households PLUS Geographic Expansion 391M Households in Core Markets¹ 172M Affluent ($75k+²) Households ~9% Current penetration of total affluent households 15M Sonos FY23 Households Source: Euromonitor 2023 1. Core Markets include the United States, Canada, Mexico, Australia, New Zealand, United Kingdom, Germany, Netherlands, Sweden, Denmark, France, Switzerland, Norway, Belgium, Italy, Austria, Spain, Ireland, Finland, Poland and Luxembourg 2. Represents disposable income as defined by the OECD 13#14Our Install Base Continues to Purchase Additional Sonos Products A significant portion of our annual product registrations come from our existing households (HHs), many of which start with just one product. Lifetime value of customers grows as products per HH increases Products registered (M) % to existing households Sonos households (M) New households Products per HH Increase Single product households (M) % of total Multi-product households (M) % of total Products per >1 household Increase 2018 21.0 36% 7.4 2.82 2.8 38% 4.6 62% 3.94 2019 26.1 36% 9.1 1.7 2.87 0.04 3.5 38% 5.6 62% 4.01 0.07 2020 2021 37.1 46% 31.6 41% 10.9 1.8 2.90 0.03 4.2 39% 6.6 61% 4.11 0.10 12.6 1.7 2.95 0.05 5.0 40% 7.5 60% 4.25 0.14 2022 2023 41.8 46.6 44% 44% 14.0 1.4 2.98 0.03 5.6 40% 8.4 60% 4.30 0.05 15.3 1.3 3.05 0.06 6.1 40% 9.2 60% 4.41 0.11 Incremental revenue opportunity: single product HH we have today 6.1 M Single product households x 3.41 Additional products X to reach 4.41 >$6 billion Incremental revenue opportunity $289 FY23 revenue per product sold In addition to converting single product HHs, we believe there is significant room to grow average multi-product HH size beyond 4.41 products. Source: internal data Note: Unaudited. Products per household defined as total registrations divided by total households. Products per >1 household defined as products registered less single product households divided by households with >1 product Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. 14#15NEW: A Detailed Look at Customer Behavior and Install Base Monetization Over Time Consistent repurchase behavior across larger cohorts and greater monetization of products sold underscores our conviction to deliver our long term financial targets Cohorts behave similarly over time, regardless of when first purchased Average Registrations per Customer 3.0 2.5 2.0 1.5 1.0 1.7 1.6 Day 1 2.0 1.9 6 months % of customers who have repurchased 2017-2019 2020-2023 2.2 2.0 12 months 6 months 17% 16% 2.3 2.2 18 months 12 months 25% 22% 2017-2019 -2020-2023 2.4 24 months 2.3 18 months 29% 26% 2.6 2.4 30 months Steady repurchase participation: after 3 years, over one-third of customers have repurchased 24 months 33% 29% 30 months 36% 32% 2.7 Source: internal data Note: Unaudited. Cohort defined as average customer/household across respective fiscal year periods 2.4 36 months 36 months 38% 34% Cohort LTV amplified by higher average revenue per product $222 $265 Average revenue per product, FY17-19 Average revenue per product, FY20-23 1.48M Average net new HH, FY17-19 + 1.55M Average net new HH, FY20-23 Greater LTV per Cohort 15#16Launching 2+ Products Annually Drives Household Acquisition & Repurchase Activity We continue to launch new products across our five current categories (all in one, home theater, components, portables and Pro) All in One Home Theater Partner Products/ Components Portables Services/Other FY18 Sonos One Beam (Gen 1) Amp FY19 One SL SYMFONISK Table Lamp & Bookshelf Port Sonos by Sonance FY20 Five Arc Sub (Gen 3) Move Sonos Radio FY21 SYMFONISK Picture Frame Roam Sonos Radio HD FY22 Beam (Gen 2) Ray Roam SL Roam Colors Sonos Voice Control FY23 Era 100 Era 300 Sub Mini SYMFONISK Floor Lamp Move 2 Sonos Pro 16#17Framing Our Long Term Opportunity: Revenue PLUS Audio content, services & business $100B Global Audio $30B Global Home Audio $22B Premium Global Home Audio ~2% Current penetration of global audio market $1.66B Sonos FY23 Revenue Source: Futuresource CY2022, Premium defined as $100+ wireless speakers, $200+ soundbars, $300+ Hi-Fi systems, $250+ in-wall/in-ceiling speakers, $250+ bookshelf speakers (pairs), and all AV receivers, Floor-standing speakers, home theater speakers and home theater in a box products and Hi-Fi separates 17#18Where We Are & Where We Are Going FY24 Guidance Midpoint $1,650M Revenue 45.5% GAAP Gross Margin $165M Adjusted EBITDA Long Term Financial Targets $2,500M Revenue 45-47% GAAP Gross Margin $375-450M Adjusted EBITDA Note: FY24 Adjusted EBITDA target of $165 million represents 10.0% Adjusted EBITDA margin. Long term targets of $375-450 million represent previously issued Adjusted EBITDA margin targets of 15-18% Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. We do not provide a reconciliation of forward-looking non-GAAP measures to their comparable GAAP financial measures. See "Non-GAAP Measures" for more information. FY24 and long term outlook only as of the date of this presentation. See "Forward-Looking Statements" for more information. 18#19Diversified Channel Distribution Challenges in the retail environment and changes in consumer shopping patterns have resulted in business mix shifts into higher-margin channels, like DTC and Installer Solutions. (45% combined, +90 bps y/y) Retail and Other % yoy DTC % yoy Installer Solutions (IS) % yoy Total Revenue % yoy % of revenue Retail & Other DTC IS % DTC + IS 2018 830 131 176 1,137 73% 12% 15% 27% 2019 930 12% 154 17% 176 0% 1,261 11% 74% 12% 14% 26% 2020 838 (10%) 284 84% 205 16% 1,326 5% 63% 21% 15% 37% 2021 1,011 21% 416 47% 290 41% 1,717 29% 59% 24% 17% 41% Note: $ in millions (unless noted), unaudited. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. 2022 987 (2%) 395 (5%) 371 28% 1,752 2% 56% 23% 21% 44% 2023 918 (7%) 394 (0%) 343 (7%) 1,655 (6%) 55% 24% 21% 45% Fiscal 2023 y/y comparisons impacted by backlog fulfillment and supply normalization in Fiscal 2022 Retail & Other (55% of revenue, -90 bps), -7% y/y Adversely affected by partner channel O inventory reductions, softening consumer demand, particularly in EMEA and APAC, and FX headwinds DTC (24% of revenue, +130 bps), flat y/y O Growth in the Americas is offset by FX headwinds in EMEA and APAC Installer Solutions (21% of revenue, -40 bps), -7% y/y O Decline due to channel destocking throughout Fiscal 2023 19#20Summary Financial Overview Americas % y/y EMEA % y/y APAC % y/y Total Revenue % yly % y/y - CC GAAP Gross Profit % GAAP gross margin Non-GAAP Gross Profit % Non-GAAP gross margin Non-GAAP Operating Expenses R&D % of revenue S&M % of revenue Adjusted G&A % of revenue Total Operating Expenses % of revenue Adjusted EBITDA % margin Cash From/(Used in) Operations Capex Free Cash Flow 2018 603 479 55 1,137 489 43.0% 490 43.1% 128 11% 255 22% 77 7% 460 40% 69 6.1% 31 (36) (5) (7%) 2019 678 12% 485 1% 98 78% 1,261 11% 13% 527 41.8% 528 41.9% 154 12% 235 19% 88 7% 476 38% 89 7.0% 121 (23) 97 2020 756 11% 471 (3%) 100 2% 1,326 5% 6% 572 43.1% 573 43.2% 185 14% 229 17% 85 6% 499 38% 109 8.2% 162 (33) 129 2021 981 30% 618 31% 117 18% 119% 1,717 29% 26% 810 47.2% 812 47.3% 204 12% 261 15% 100 6% 565 33% 279 16.2% 253 (46) 208 2022 1,044 6% 578 (7%) 130 11% 1,752 2% 5% 796 45.4% 800 45.7% 222 13% 265 15% 119 7% 607 35% 227 12.9% (28) (46) (74) (33%) 2023 1,048 0% 518 (10%) 89 (32%) 1,655 (6%) (3%) 716 43.3% 723 43.7% 257 16% 246 15% 108 7% 612 37% 154 9.3% 100 (50) 50 2024 - Guidance Midpoint 33% 1,650 0% 0% 751 45.5% 758 45.9% 110% 75% % of Adjusted EBITDA Note: $ in millions (unless noted), CC = constant currency, unaudited. FY24 guidance as of the date of this presentation. Non-GAAP gross profit/margin exclude stock-based compensation and amortization of intangibles allocated to cost of revenue. Non-GAAP operating expense figures exclude excluding stock-based compensation, legal and transaction related fees, amortization of intangibles, and restructuring and abandonment costs. Non-GAAP gross margin excludes amortization of intangible assets and stock-based compensation allocated to GAAP cost of revenue. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. Adjusted EBITDA, Adjusted EBITDA margin and free cash flow are non-GAAP measures. See "Non-GAAP Measures" for more information. 649 39% 165 10% 20#21SONOS