Sonos Results Presentation Deck
Responsibly Investing to Drive Long Term Growth
3Q23
R&D (GAAP)
Less: Stock-based compensation expense
Less: Amortization of intangibles
Less: Restructuring and abandonment costs
R&D (Non-GAAP)
% of revenue
S&M (GAAP)
Less: Stock-based compensation expense
Less: Amortization of intangibles
Less: Restructuring and abandonment costs
S&M (Non-GAAP)
% of revenue
G&A (GAAP)
Less: Stock-based compensation expense
Less: Legal and transaction related costs
Less: Amortization of intangibles
Less: Restructuring and abandonment costs
Adjusted G&A (Non-GAAP)
% of revenue
Total Operating Expenses (GAAP)
% of revenue
Less: Stock-based compensation expense
Less: Legal and transaction related costs
Less: Amortization of intangibles
Less: Restructuring and abandonment costs
Adjusted Operating Expenses (Non-GAAP)
% of revenue
$77.8
8.6
0.5
3.7
$64.9
17.4%
-
$66.6
3.6
4.4
$58.6
15.7%
$ 48.7
5.7
14.7
2.2
$26.1
7.0%
$ 193.0
51.7%
17.9
14.7
0.5
10.3
$ 149.6
40.1%
3Q22
7.9
0.6
14.5%
3.8
16.2%
6.6
7.5
7.6%
45.4%
18.3
7.5
0.7
$62.5
$ 54.0
38.3%
$ 64.0
$ 60.2
$42.4
$168.9
$28.3
$ 142.4
Y/Y Change
24%
10%
(23)%
N/A
20%
290 bps
4%
(6)% •
N/A
N/A
(3)%
-50 bps
15%.
(14)%
97%
N/A
N/A
(8)%
-60 bps
14%
630 bps
(2)%
97%
(22)%.
N/A
5%
180 bps
Committed to managing operating expenses (OpEx)
while making targeted and responsible investment in
product roadmap and category expansion to drive long
term growth
O
GAAP OpEx dollars +14% y/y:
O
O
O
Legal and transaction-related costs +97% y/y
Adjusted OpEx (Non-GAAP) dollars +5% y/y:
O
Announced 7% RIF in mid-June, further
rationalization of real estate footprint and
program spend
O
OpEx (GAAP) deleverage of 630 bps y/y driven
by: headcount growth, $10.3M of
restructuring and abandonment costs
O
Adjusted OpEx (Non-GAAP) deleverage of 180
bps y/y
R&D (Non-GAAP) +20% due to increased
headcount
S&M (Non-GAAP) -3% due to lower
advertising and marketing activity, partially
offset by increased headcount
Adjusted G&A (Non-GAAP) -8% due to lower
overhead costs
Adjusted OpEx (Non-GAAP) dollars -3% q/q:
Sequential decline due to delayed program
and advertising spend and lowered bonus
accrual
Note: $ in millions (unless noted), unaudited. Percentages and sums have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. R&D (non-GAAP), S&M (non-GAAP), Adjusted
G&A (non-GAAP) and Adjusted Operating Expenses (non-GAAP) are each non-GAAP measures.
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