Sonos Results Presentation Deck slide image

Sonos Results Presentation Deck

Reconciliation of Net (Loss) Income to Adjusted EBITDA (In thousands, except percentages) Net (loss) income Add (deduct): Depreciation and amortization Stock-based compensation expense Interest income Interest expense Other (income) expense, net Provision for (benefit from) income taxes Legal and transaction related costs (1) Restructuring and abandonment costs (2) Adjusted EBITDA Revenue Net (loss) income margin Adjusted EBITDA margin Three Months Ended July 1, 2023 $ (23,571) 12,209 18,329 (2,391) 274 (1,424) 5,851 14,699 10,328 $ 34,304 $ 373,356 (6.3)% 9.2% July 2, 2022 $ (597) 8,907 18,779 (429) 196 9,858 (2,068) 7,459 $ 42,105 $ 371,783 (0.2)% 11.3% July 1, 2023 Nine Months Ended $ 20,966 35,054 59,549 (7,540) 585 (22,169) 15,974 30,006 15,175 $147,600 $ 1,350,108 1.6% 10.9% July 2, 2022 $ 131,451 27,699 57,463 (585) 384 13,541 4,805 17,344 $ 252,102 $ 1,436,046 9.2% 17.6% Notes: $ in thousands, unaudited 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 - On June 14, 2023, the Company initiated a restructuring plan to reduce its cost base (the "2023 restructuring plan"). The 2023 restructuring plan included a reduction in force involving approximately 7% of its employees, further reducing the Company's real estate footprint, and re-evaluating certain program spend. Total pre-tax restructuring and abandonment costs under the 2023 restructuring plan were $11.4 million, substantially all of which were incurred in the third quarter of fiscal 2023, with nominal amounts to be incurred through the first quarter of fiscal 2024. Total restructuring and abandonment costs for the nine months ended July 1, 2023, include $4.8 million non-recurring lease abandonment charges that were incurred in March 2023, when the Company abandoned portions of its office spaces for the remainder of their respective lease terms in support of operational efficiencies. 32
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