#1Q4 & Fiscal Year 2022 Financial Results d SONOS November 16, 2022#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 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 supply chain; supply chain challenges, including shipping and logistics challenges, component supply-related challenges and inflationary pressures; our ability to effectively manage inventory levels, particularly during periods of fluctuating component availability; the impact of global economic, market, and political events, including the continuing conflict between Russia and Ukraine, 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 July 2, 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 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 Additional information relating to certain of our financial measures contained herein, including non-GAAP financial measures, is available in this presentation, including the appendix.#3FY22 Highlights A • FY22 results impacted by a number of factors, including softer consumer demand and strengthening USD • Record FY revenue of $1.752B, +2% y/y (+5% constant currency) driven by strong demand in 1H22 despite lower promo activity, somewhat offset by constrained product availability and softer demand in 2H22 • FY gross margin of 45.4%, -180bps, driven by increased shipping and logistics costs and increased component costs, partially offset by lower promo activity and higher selling prices • Adjusted EBITDA of $226.5M, 12.9% margin, -330bps driven by higher investments in the business, lower gross margin and lower revenue due to softer demand and FX • In 4Q22 gained significant $ and unit market share in US, UK & DE home theater category, recorded our quarterly highest market share in almost 2 years • Record 2.98 products per household vs. 2.95 LY; ending year in 14.0M homes and existing households represented 44% of new registrations Note: Unaudited. Adjusted EBITDA is a non-GAAP measure. See appendix for reconciliation of GAAP to non-GAAP measures.#4Expansion of our Ecosystem Mayht - Acquisition Announced April 2022 Mayht invented a new, revolutionary approach to audio transducers. Transducers are the foundational element within speakers that create sound, and Mayht has re-engineered them to enable smaller and lighter form factors while producing exceptional sound Sonos Voice Control - May 2022 The first voice experience created purely for listening on Sonos. Designed with privacy at its core, Sonos Voice Control is the simplest way to control your music, offering hands-free command of your Sonos system Sonos Ray - June 2022 - $279 MSRP A compact soundbar with impressive sound for its size. Ray raises the bar for at-home entertainment with new acoustic innovations that deliver balanced sound, crisp dialogue, and solid bass Sub Mini - September 2022 - $429 MSRP The wireless subwoofer that sets a new standard in its category for powerful, balanced bass. Building on the award-winning design of Sub, Sub Mini delivers rich, clear low end in a compact cylindrical design www.#5Expansion of our Brand Brand and advocate partnerships deliver impactful presence across iconic cultural properties and communities that resonate with our target audiences and drive awareness at scale Brand Partnerships ● LFC delivered TV viewership of over 270M in Season 1/ FY22 ESPN delivered 205M impressions in its first season Food52, a platform with a large female following, delivered more than 28M impressions by the end of FY22 Advocacy New colors of Roam presented as an opportunity to reach new households with an exciting ultra portable speaker More than 170 advocates in the outdoor, travel and wellness spaces delivered inspiring video content showcasing how they Feel More with Sonos, resulting in more than 70M impressions in FY22 chor SONOS SONOS FOOD52 MICH BROW == COLLEGE FOOTBALL OFFICIAL SPONSOR SONOS#6Responsibility and Innovation Recognized as one of the best places to work for LGBTQ+ equality by the Human Rights Campaign (HRC) Foundation, earning a top score on the HRC Corporate Equality Index for its policies and practices in LGBTQ workplace equality Publishing annual Listen Better Report on November 29, highlighting the work we have done to improve our efforts as a responsible company. In FY22, we advanced our Climate Action Plan by conducting an annual assessment of our greenhouse gas emissions and immediately began work on reducing our Scope 3 emissions, with a focus on the energy efficiency of our products Won two awards for our product packaging. First-place in 2022 Dieline Awards under the Electronics, Office, E-Commerce, Entertainment, and Self-Promo category for Sonos Roam packaging, and Industrial Designers Society of America IDEA 2022 Jury Chair Award for Sonos Global Packaging System Won CIO 100 award for "IT in a Box," a solution that enabled a scalable and expedient way to build a Sonos office environment in areas where no office exists SONOS 2022 Listen Better Report Environmental, Social and Governance at Sonos#7Fiscal 2022 Financial Summary $1,752 CC: +5% Reported: +2% NET REVENUE $1,261 FY2019 $89 $1,326 ADJUSTED EBITDA FY2019 FY2020 $109 FY2020 $1,717 FY2021 $279 FY2021 FY2022 $227 -19% FY2022 FY22 revenue adversely affected by $49M FX, or -3% y/y as well as softer consumer demand FY22 Adjusted EBITDA decline due to higher investments in the business, lower gross margin and lower revenue due to softer demand and FX Note: $ in millions (unless noted). Adjusted EBITDA and free cash flow are non-GAAP measures. "See appendix for reconciliation of GAAP to non-GAAP measures. GROSS MARGIN 41.8% FY2019 $97 43.1% FREE CASH FLOW FY2019 FY2020 $129 FY2020 47.2% FY2021 $208 FY2021 45.4% -180 bps FY2022 -$74 FY2022 FY22 gross margin impacted by elevated supply chain costs, including 2.5pts from spot market component buys and air freight, partially offset by lower promo and higher selling prices Free cash flow negative due to investment in inventory, softer consumer demand, FX and investments in the business#8Overview of Key Metrics Fiscal year Sonos households (M) New HHs Products registered (M) Change in registrations Products/households Increase Registrations to existing households Products sold (K) Households with 1 product Products per >1 household Total listening hours (B) 2018 7.4 21.0 2.82 36% 5,165 38% 3.94 5.9 2019 9.1 1.7 26.1 5.1 2.87 0.04 36% 6,204 38% 4.01 7.7 2020 10.9 1.8 31.6 5.5 2.90 0.03 41% 5,806 39% 4.11 10.2 2021 12.6 1.7 37.1 5.5 2.95 0.05 46% 6,503 40% 4.25 12.1 2022 14.0 1.4 41.8 4.7 2.98 0.03 44% 6,281 40% 4.30 12.8 Added 1.4 million new households, total ending household base of 14.0 million, +11% y/y O New household acquisition and product registrations adversely impacted by product availability challenges and low promotional activity in 1Q22 holiday period. Registered products grew +13% y/y to 41.8 million registered products Registrations to existing households represented 44% of total Products per household continues to grow, reaching 2.98 in FY22 O Implied products per household with >1 product grew to 4.3 driven by strong repurchase activity Listening hours +6% to 12.8 billion 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.#9Investing in the Business in FY22 R&D (GAAP) Less: Restructuring and related charges Less: Stock-based compensation R&D (Non-GAAP) % of revenue S&M (GAAP) Less: Restructuring and related charges Less: Stock-based compensation S&M (Non-GAAP) % of revenue G&A (GAAP) Less: Stock-based compensation Less: Legal and transaction related costs Adjusted G&A (Non-GAAP) % of revenue Total Operating Expenses (GAAP) % of revenue Less: Restructuring and related charges Less: Stock-based compensation Less: Legal and transaction related costs Adjusted Operating Expenses (Non-GAAP) % of revenue FY22 256.1 30.7 225.3 12.9% 280.3 15.3 265.0 15.1% 170.4 28.0 22.9 119.6 6.8% 706.8 40.3% 74.0 22.9 609.9 34.8% FY21 230.1 25.1 205.0 11.9% 272.1 (2.5) 13.6 261.0 15.2% 152.8 22.5 30.1 100.3 5.8% 655.0 38.2% (2.4) 61.1 30.1 566.3 33.0% Y/Y Change 11% na 23% 10% 100bps 3% na 13% 2% (10bps) 12% 24% (24)% 19% 100bps 8% 210bps na 21% (24)% 8% 180bps GAAP OpEx deleverage of 210 bps y/y O O O O Headcount growth of +21% partially offset by lower bonus Stock-based compensation (SBC) +21% y/y due to increased headcount Adjusted OpEx deleverage of 180 bps y/y: Non-GAAP R&D +10% primarily due to increased headcount and product development costs and professional fees, partially offset by lower bonus Legal and transaction-related costs down 24% y/y Note: $ in millions (unless noted), unaudited. Percentages and sums have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. O Non-GAAP S&M +2% primarily due to higher brand and marketing expenses, professional fees and increased headcount, partially offset by lower bonus Non-GAAP Adjusted G&A +19% due to increased headcount and continued systems and tools investment, partially offset by lower bonus. This includes investments to replace our legacy ERP system with the new system which went live in 3Q22#10Cash Flow & Balance Sheet Highlights Cash flow provided by (used in) operations Capital expenditures % of revenue Free cash flow Free cash flow / Adj EBITDA Ending cash & cash equivalents Total debt FY22 ($28.3) $46.2 2.6% ($74.5) (33)% $274.9 FY21 $253.2 $45.5 2.7% $207.7 75% $640.1 Y/Y Change (111)% 2% (136)% (57)% na Cash and cash equivalents of $274.9M, no debt. Key contributors to y/y decline in cash balance driven by: O O Cash flow used in operations of $28.3M, -111% y/y, mainly due to investments in inventory Capex of $46.2M, largely driven by manufacturing-related investments to support the launch of new products Free cash flow of -$74.5M, -136% y/y O $277M increase in inventories $150M share repurchases $126M of M&A, including Mayht which closed in 3Q22 O Announced new $100M authorization Note: $ in millions (unless noted), unaudited. Free cash flow and adjusted EBITDA are non-GAAP measures. See appendix for reconciliation of GAAP non-GAAP measures. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.#11Disaggregation of Inventory Trends Finished goods % y/y % q/q Components % y/y % q/q Inventories % y/y % q/q 1Q22 145,492 84% (6%) 59,670 564% 95% 205,162 133% 11% 2Q22 208,476 58% 43% 55,929 596% (6%) 264,405 89% 29% Note: $ in millions (unless noted), unaudited. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. 3Q22 258,994 95% 24% 76,736 452% 37% 335,730 129% 27% 4Q22 406,657 163% 57% 47,631 56% (38%) 454,288 145% 35% Inventory balances remain elevated relative to historical levels, driven by both finished goods and components Finished goods largely driven by unit growth, reflects investments made in inventory in response to persistent supply chain disruption, as well as slower demand relative to expectations in 2H22 Component balance growth also driven by supply chain disruption as well as costly spot market purchases, which we expect to rely less on going forward We have adjusted our purchase orders/manufacturing commits and expect to be in a more normal inventory position exiting 1Q23#12Q4 Highlights CK MOUN Large-Scale Projects CLAES OLDENBURG COOSJE VAN BRUGGEN KERRY JAMES MARSHALL Mastry 2 ry heatwyler INSIDE CHEFS Q4 revenue of $316.3M, -12% y/y (-7% constant currency) driven by softer consumer demand, product supply constraints, unfavorable FX and deferred launch of Sub Mini. Q4 gross margin of 39.2%, -720bps y/y driven primarily by timing of expenses related to higher component costs and lower revenue Q4 adjusted EBITDA of -$25.6M, due to higher investments in the business, lower revenue and unusually low gross margin, partially offset by lower bonus pay. Q4 adjusted EBITDA margin of -8.1% Note: Unaudited. Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. *See appendix for reconciliation of GAAP to non-GAAP measures.#13Revenue and Adjusted EBITDA Near High-end of Guide Q4 Revenue $339.8 CC: +14% Reported: +16% 4Q20 Americas (59% of sales): +27% y/y EMEA (34% of sales): +16% y/y APAC (7% of sales): -34% y/y Q4 Adjusted EBITDA $46.4 13.7% margin 4Q20 $359.5 CC: +4% Reported: +6% 4Q21 Americas (55% of sales): -2% y/y EMEA (38% of sales): +18% y/y APAC (7% of sales): +10% y/y $17.1 4.8% margin 4Q21 CC: -7% Reported: -12% $316.3 4Q22 Americas (63% of sales): +2% y/y EMEA (29% of sales): -34% y/y APAC (8% of sales): -2% y/y -$25.6 -8.1% margin 4Q22 Note: $ in millions (unless noted), unaudited. Adjusted EBITDA is a non-GAAP measure. See appendix for reconciliation of GAAP to non-GAAP measures. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. Revenue -7% constant currency, or -12% reported to $316.3M driven by: O Softer consumer demand O OOO Continuation of industry-wide supply chain issues, resulting in constraints and ongoing backlog Unfavorable FX ($16.5M) headwind Deferred launch of Sub Mini In addition to FX and softer demand, EMEA faced tough comparisons due to timing of channel fill in 4Q21 Registrations +5% y/y, with growth across all regions (see slide 14) Adjusted EBITDA declined to -$25.6M, margin of -8.1% Decline driven by investments in the business, O lower revenue and -720bps of GM contraction (see slide 15)#14NEW: Quarterly Underlying Demand Trends % y/y Registrations % y/y Registrations 1Q22 (24%) 2Q22 (0%) Jul +LSD 3Q22 (9%) 4Q22 Aug +LSD Note: calculated as change in total registrations per period. LSD = low single digits, LDD = low double digits 4Q22 5% Sep +LDD 1Q22 registration growth down significantly y/y (consistent with expectations), due to product supply constraints and low holiday promotional activity compared to 1Q21, which adversely affected household acquisition and product registration through the balance FY22 Since softer demand trend observed at end of 3Q22, registrations have been stable-to-improving in 4Q22 October 2022 registrations expected to be consistent with 4Q22 trends#15Gross Margins Pressured by Transitory Effects Gross margin declined -720bps y/y driven by: ● Timing of spot buys due to component shortages Increased reserves for excess component inventory Partially offset by lower air freight costs and higher selling prices ● 47.5% 4Q20 46.4% 4Q21 Note: Unaudited. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. 39.2% 4Q22 45.5% FY23 - guide midpoint#16Investing in the Business in Q4 R&D (GAAP) Less: Stock-based compensation R&D (Non-GAAP) % of revenue S&M (GAAP) Less: Restructuring and related charges Less: Stock-based compensation S&M (Non-GAAP) % of revenue G&A (GAAP) Less: Stock-based compensation Less: Legal and transaction related costs Adjusted G&A (Non-GAAP) % of revenue Total Operating Expenses (GAAP) % of revenue Less: Restructuring and related charges Less: Stock-based compensation Less: Legal and transaction related costs Adjusted Operating Expenses (Non-GAAP) % of revenue Q4'22 67.3 8.0 59.2 18.7% 72.6 3.7 69.0 21.8% 44.2 6.0 5.5 32.7 10.3% 184.2 58.2% 17.7 5.5 160.9 50.9% Q4'21 65.8 6.0 59.8 16.6% 73.2 0.2 3.3 69.8 19.4% 39.5 5.8 5.0 28.6 7.9% 178.5 49.6% 0.2 15.1 5.0 158.2 44.0% Y/Y Change 2% 34% (1)% 210bps (1)% na 13% (1)% 240bps 12% 2% 10% 15% 240bps 3% 860bps na 17% 10% 2% 690bps GAAP OpEx deleverage of 860 bps y/y O O O Non-GAAP Adjusted OpEx deleverage of 690 bps y/y: O Headcount growth partially offset by lower bonus Stock-based compensation +17% y/y due to increased headcount Legal and transaction-related costs +10% y/y O O Non-GAAP S&M -1% primarily due to lower bonus, mostly offset by increased headcount Note: $ in millions (unless noted), unaudited. Percentages and sums have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. Non-GAAP R&D -1% due to lower bonus and product development costs, partially offset by increased headcount Non-GAAP Adjusted G&A +15% due to increased headcount, partly offset by lower bonus#17FY23 Outlook A GOD GEORGE OFWELL MARTIN LUTHER 1884 BIG HISTORY WORKING A BRIEF HISTORY OF TIME : 75018#18FY23 Outlook: Investing in our Product Roadmap and Category Expansion to Drive Long Term Growth Revenue % growth / (decline) % growth - CC Gross Margin Adjusted EBITDA Adjusted EBITDA Margin FY22 Actuals $1.752 billion 2% 5% 45.4% $226.5 million 12.9% FY23 Outlook $1.7 1.8 billion (3%) -3% 1% - 7% 45.0 - 46.0% $145 180 million 8.5% - 10.0% Note: 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. FY23 outlook only as of the date of this presentation. See "Forward-Looking Statements" for more information. Key Assumptions Expect FX to be $79 million headwind to revenue, significant flowthrough to gross profit and Adjusted EBITDA ● Demand trends consistent with stabilized level of 4Q22 Gross margin tailwind from fewer spot component purchases and less reliance on air freight in FY23 to be largely offset by FX headwind and resumption of normal promotional activity in 1Q23 Continued investment in product roadmap, headcount growth at reduced pace compared to FY22#19The Sonos Story **** ARREDARE LA CASA#20Sonos at a Glance 2002 SONOS SONOS SONOS Founded 18 Products 13 Locations Service 1,800+ Employees 2,900+ US Patents and Applications 60 Countries distributed $1.75B FY22 Revenue SONOS#21Broad Product Portfolio Spanning Variety of Price Points All-in-One Speakers SOHOS One $219 Home Theater Move $399 Ray $279 Components and Architectural Amp $699 Port $449 Beam $449 Roam $179 Sonance $659 Sonance $659 Five $549 Sonance $879 Arc $899 IKEA SYMFONISK Bookshelf speaker $119 Automotive IKEA SYMFONISK Speaker lamp $229 CXXO Audi Sub Mini $429 IKEA SYMFONISK Picture frame speaker $249 Sub $749#22Our Market Position Sonos is differentiated by combination of an open content and control platform with high quality, premium hardware spanning 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 Legacy companies have been focused on acoustics and hardware for decades, offering single product solutions. They lack the software and networking capabilities required to compete in the future of audio Premium Commodity Legacy home audio SONOS Google amazon Walled garden Open platform 22#23Sonos 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#24Yet We Remain the Leader $200+ Home Theater² Brand Rank: #1 Top Products in Category Sonos Arc United States Sonos Sub Sonos Beam Source: NPD for US, GfK UK, DE, Nordics Notes: 1 home theater includes soundbars and wireless subwoofers 2 EMEA includes UK, DE, Nordics 4Q22 Top Ranked Models (by $ share) $150+ All In One Brand Rank: #2 Top Products in Category Sonos One SL Sonos Move Sonos Roam $200+ Home Theater² Brand Rank: #1 Top Products in Category Sonos Arc Sonos Beam EMEA¹ Sonos Sub $150+ All in One Brand Rank: #2 Top Products in Category Sonos One SL Sonos One Sonos Move#25Why the Sonos Ecosystem Wins "Software Eats Audio" Hardware Design Quality Sound Durability Looks Beautiful, Sounds Great, and Lasts + Software Easy to Use Reliable All Works Together Deep Patent Portfolio System + Services 130+ 3rd Party Apps 2 Voice Providers 1st Party Services (Sonos Radio & Sonos Voice Control) Open Platform and Choice#26Our Innovation is Protected by a Deep and Growing Patent Portfolio Total Sonos U.S. Patents and Patent Applications (filed over time, cumulative) 2000 1500 1000 500 ● 0 2 2003 V 2004 2005 24 2 2006 30 2 2007 34 7 2008 Total U.S. Patent Applications Total U.S. Issued Patents Source: internal data 35 8 2009 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 958 2020 1766 1154 2021#27Open 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#28Key Drivers of Long Term Growth 1 "The Sonos Flywheel" New households enter the Sonos ecosystem and existing households purchase additional products at a steady rate Continue to raise the bar in our existing product categories 1 - Source: Futuresource CY2021. 2 Enter new product categories Large, growing addressable market Just scratching the surface: Currently ~2% share of $96B global audio market¹ and -9% share of 158M affluent households2 in our core markets Driven by 3 Expand geographic reach Underpinned by 4 New business initiatives and services Durable secular tailwinds 2- Source: Euromonitor 2022 Core Markets include the United States, Canada, Australia, United Kingdom, Germany, Netherlands, Sweden, Denmark, France, Switzerland, Norway, Belgium, Italy, Austria, Spain, Ireland, Finland and Poland. 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 delivered via Dolby Atmos#29We Have a Large and Growing Install Base Total Households Existing Households 4.6 1.2 FY2016 Net New Households 5.9 1.3 FY2017 7.4 1.5 FY2018 20% CAGR 9.1 1.7 FY2019 10.9 1.8 FY2020 12.6 1.7 FY2021 14.0 1.4 FY2022#30Framing Our Long Term Opportunity: Households PLUS Geographic Expansion 350M Households in Core Markets¹ 158M Affluent ($75k+²) Households ~9% Current Penetration of Total Affluent Households 14M Sonos FY22 Households Source: Euromonitor 2022 1. Core Markets include the United States, Canada, Australia, United Kingdom, Germany, Netherlands, Sweden, Denmark, France, Switzerland, Norway, Belgium, Italy, Austria, Spain, Ireland, Finland and Poland 2. Represents disposable income as defined by the OECD#31Our Current 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 31.6 41% 10.9 1.8 2.90 0.03 4.2 39% 6.6 61% 4.11 0.10 2021 37.1 46% 12.6 1.7 2.95 0.05 5.0 40% 7.5 60% 4.25 0.14 2022 41.8 44% 14.0 1.4 2.98 0.03 5.6 40% 8.4 60% 4.30 0.05 Incremental revenue opportunity: single product HH we have today 5.6M Single product households x 3.30 Additional products X to reach 4.30 $5 billion Incremental revenue opportunity $279 FY22 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 4.30 products 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.#32Launching 2+ Products Annually Drives Household Acquisition & Repurchase Activity We continue to launch new products across the four categories we currently play in (all in one, home theater, components and portables) All in one Home Theater Partner Products/ Components Portables Services 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 Sub Mini#33Framing Our Long Term Opportunity: Revenue PLUS Audio content, services & business $96B Global Audio $29B Global Home Audio $22B Premium Global Home Audio ~2% Current Penetration of Global Audio Market $1.75B Sonos FY22 Revenue Source: Futuresource CY2021, 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#34Where We Are & Where We Are Going FY23 Guidance Midpoint $1.75B Revenue 45.5% Gross Margin $162.5M Adjusted EBITDA Long Term Financial Targets $2.5B Revenue 45-47% Gross Margin $375-450M Adjusted EBITDA Note: FY23 Adjusted EBITDA target of $162.5 million represents 9.3% Adjusted EBITDA margin. Long term targets if $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. Long term outlook only as of the date of this presentation. See "Forward-Looking Statements" for more information.#35NEW: Diversified Channel Distribution Business mix increasingly shifting toward higher margin channels like DTC and Installer Solutions (44% combined, +260bps 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. See appendix for reconciliation of GAAP to non-GAAP measures. 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% ● Retail & Other (56% of revenue, -260 bps), -2% y/y FY22 performance impacted by limited promotional activity and softer demand in 2H22, partially offset by improved supply O DTC (23% of revenue, -170bps), -5% y/y FY22 performance impacted by softer demand in EMEA and limited promotional activity, partially offset by slight growth in Americas Installer Solutions (21% of revenue, +430 bps), +28% y/y O Channel growth driven by Amp and Port, despite persistent product supply challenges as well as geographic expansion (EMEA and APAC)#36Summary Financial Overview Americas % y/y EMEA % y/y APAC % y/y Total Revenue % y/y % y/y - CC Gross Profit % 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 2018 603 479 55 1,137 489 43.0% 128 11% 255 22% 77 7% 460 40% 69 6.1% 2019 678 12% 485 1% 98 78% 1,261 11% 13% 527 41.8% 154 12% 235 19% 88 7% 476 38% 89 7.0% 2020 756 11% 471 (3%) 100 2% 1,326 5% 6% 572 43.1% 186 14% 229 17% 85 6% 501 38% 109 8.2% 2021 981 30% 618 31% 117 18% 1,717 29% 26% 810 47.2% 205 12% 261 15% 100 6% 566 33% 279 16.2% 2022 1,044 7% 578 (7%) 130 11% 1,752 2% 5% 796 45.4% 225 13% 265 15% 120 7% 610 35% 227 12.9% 2023 - Guidance Midpoint 1,750 0% 4% 796 45.5% 163 9.3% Note: $ in millions (unless noted), CC = constant currency, unaudited. 2023 guidance as of 4Q22. Non-GAAP operating expense figures exclude stock-based compensation, restructuring and related charges and legal and transaction related costs Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.#37EMPORARY ART HITECTURE NOW! LITSHILLIBAT MIND ON MA OZG Q4 & FY22 Appendix सत#38Non-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 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 and other assets. 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.#39Reconciliation of Net Income (Loss) to Adjusted EBITDA Net income (loss) Add (deduct): Depreciation and amortization Stock-based compensation expense Interest income Interest expense Other income (expense), net Provision for (benefit from) income taxes Restructuring and related expenses(1) Legal and transaction related costs(2) Adjusted EBITDA Revenue Three Months Ended October 1, 2022 $(64,067) 10,805 18,177 (1,070) 168 8,364 (3,459) October 2, 2021 $(8,744) 8,093 15,372 (33) 67 2,271 (5,106) 165 5,028 $17,113 $359,539 4.8% Twelve months ended October 1, 2022 $67,383 38,504 75,640 (1,655) 552 21,905 1,347 October 2, 2021 $158,595 22,873 $226,549 $1,752,336 12.9% 33,882 62,127 (146) 592 (2,407) (1,670) (2,446) 5,529 30,058 $(25,553) $278,585 $1,716,744 $316,290 (8.1)% Adjusted EBITDA margin 16.2% (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. (2) 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. Note: $ in thousands, unaudited.#40Reconciliation of Cash Flows Provided by (Used in) Operating Activities to Free Cash Flow Cash flows provided by (used in) operating activities Less: Purchases of property, equipment, and intangible assets Free cash flow Note: $ in thousands, unaudited. Three Months Ended October 1, 2022 $(103,917) (21,269) $(125,186) October 2, 2021 $6,486 (10,739) $(4,253) Twelve months ended October 1, 2022 $(28,260) (46,216) $(74,476) October 2, 2021 $253,226 (45,531) $207,695#41SONOS