Sonos Results Presentation Deck
Reconciliation of Net (Loss) Income to Adjusted EBITDA
Twelve Months Ended
September 30, October 1,
2023
2022
(In thousands, except percentages)
Net (loss) income
Add (deduct):
Depreciation and amortization
Stock-based compensation expense
Interest income
Interest expense
Other (income) expense, net
(Benefit from) provision for 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
September 30, October 1,
2023
2022
$ (31,239)
13,915
17,308
(2,661)
149
6,696
(1,306)
2,944
474
$ 6,280
$ 305,147
(10.2)%
2.1%
$ (64,067)
10,805
18,177
(1,070)
168
8,364
(3,459)
5,529
$ (25,553)
$316,290
(20.3)%
(8.1)%
$ (10,274)
48,969
76,857
(10,201)
733
(15,473)
14,668
32,950
15,649
$ 153,878
$ 1,655,255
(0.6)%
9.3%
$ 67,383
38,504
75,640
(1,655)
552
21,905
1,347
22,873
$ 226,549
$1,752,336
3.8%
12.9%
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.
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