Sonos Results Presentation Deck
Reconciliation of Operating (Loss) Income to Adjusted EBITDA
Operating (Loss) Income (GAAP)
Stock-based compensation
Legal and transaction related costs (1)
Amortization of intangibles
Restructuring and abandonment costs (2)
Adjusted Operating Income (Non-GAAP)
Depreciation
Adjusted EBITDA (Non-GAAP)
Three Months Ended
September 30,
2023
$ (28,361)
17,308
2,944
1,493
474
$ (6,142)
12,422
$ 6,280
October 1,
2022
$ (60,064)
18,177
5,529
2,046
$ (34,312)
8,759
$ (25,553)
Twelve Months Ended
October 1,
2022
September 30,
2023
$ (20,547)
76,857
32,950
6,182
15,649
$ 111,091
42,787
$ 153,878
$ 89,532
75,640
22,873
5,206
$ 193,251
33,298
$ 226,549
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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