Sonos, Inc. · NASDAQ:SONO

Sonos — Q1 2022 Earnings Presentation

17 slides from Sonos's earnings presentation, Feb 9, 2022

  1. Slide 1: Q1 2022 Financial Summary

    Q1 2022 Financial Summary February 9, 2022

  2. Slide 2: Forward Looking Statements; Non-GAAP Measures

    Forward 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 October 1, 2022; our fiscal 2024 targets; our long-term focus, financial, growth, a

  3. Slide 3: Q1 Highlights

    Q1 Highlights ● Strong Q1 results and increased confidence in FY22 outlook; raising outlook at mid-point ● Record Q1 revenue of $664.5M, +3% from LY driven by: ○ Strong product demand despite lower promotions vs LY ○ Offset by constrained supply (could have sold more if not for supply constraints) ● R

  4. Slide 4: Continued Strong Demand and Profitability

    Continued Strong Demand and Profitability Q1 Revenue $664.5 ● Revenue +3% driven by strong product demand $645.6 +3% despite lower promotional activity offset by $562.1 +15% continuing impact of constrained product +13% availability due to industry-wide supply chain issues ● Adjusted EBITDA -2% driven

  5. Slide 5: Strong Gross Margin Expansion

    Strong Gross Margin Expansion Gross margin +140 bps Y/Y - key drivers: ● Lower promotional activity due to reduced product availability ● Product mix ● Partially offset by higher shipping and logistics costs, primarily air freight to drive greater product availability 47.8% 46.4% 40.5% Q1 20 Q1 21 Q1

  6. Slide 6: Planned Opex Investments to Support Future Growth

    Planned Opex Investments to Support Future Growth Q122 Q121 Y/Y Change ● Excluding restructuring and related charges Research and Development (GAAP) $61.3 $52.3 17.2% and legal and transaction costs, Restructuring and related charges - - N/A year-over-year increases in opex driven by the Adjusted Re

  7. Slide 7: Significant Cash Flow and Strong Balance Sheet

    Significant Cash Flow and Strong Balance Sheet Y/Y ● Cash flow from operations of $179.9M, Q122 Q121 Change -16% from LY Cash flow from operations $179.9 $214.5 (16)% ● Free cash flow of $173.6M, Capital expenditures $6.4 $11.3 (44)% -15% from LY % of revenue 1.0% 1.8% Free cash flow $173.6 $203.2 (15)%

  8. Slide 8: FY22 Outlook

    FY22 Outlook

  9. Slide 9: FY22 Outlook: Raising Outlook at Midpoint

    FY22 Outlook: Raising Outlook at Midpoint Increased Confidence in Delivering Another Record Fiscal Year FY21 Actuals Prior FY22 Outlook New FY22 Outlook Revenue $1.717 billion $1.925 billion - $2.0 billion $1.95 billion - $2.0 billion % growth 29% 12% - 16% 14% - 16% Gross Margin 47.2% 46 - 47% 46 -

  10. Slide 10: Long Term Opportunity

    Long Term Opportunity

  11. Slide 11: FY2024 Financial Targets

    FY2024 Financial Targets Revenue Gross Margin Adjusted EBITDA Margin ~$2.5B ~13% CAGR 45-47% 15-18% Note: Adjusted EBITDA Margin is a 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 mor

  12. Slide 12: Key Drivers of Long Term Growth

    Key Drivers of Long Term Growth “The Sonos Flywheel” - new household growth + existing household repurchases Expansion of our product offerings - launch at least 2 new products per year to delight existing households and attract new ones Large, growing addressable market - just scratching the surface

  13. Slide 13: Appendix

    Appendix

  14. Slide 14: Non-GAAP Measures

    Non-GAAP Measures We have provided in this presentation financial information that has not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). We use these non-GAAP financial measures to evaluate our operating performance and trends and make planning decisions. We

  15. Slide 15: Reconciliation of Net Income to Adjusted EBITDA

    Reconciliation of Net Income to Adjusted EBITDA Three Months Ended January 1, 2022 January 2, 2021 Net income $ 123,481 $ 132,292 Add (deduct): Depreciation and amortization 9,217 7,982 Stock-based compensation expense 17,459 14,844 Interest income (33) (36) Interest expense 98 265 Other (income) ex

  16. Slide 16: Reconciliation of Cash Flows to Free Cash Flow

    Reconciliation of Cash Flows Provided by Operating Activities to Free Cash Flow Three Months Ended January 1, 2022 January 2, 2021 Cash flows provided by operating activities $179,934 $214,513 Less: Purchases of property and equipment, intangible and other assets (6,355) (11,333) Free cash flow $173,5

  17. Slide 17: SONOS

    SONOS

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