Sonos, Inc. · NASDAQ:SONO
Sonos — Q1 FY2021 Earnings Presentation
17 slides from Sonos's earnings presentation, Feb 10, 2021
Slide 1: Q1 FY21 Financial Results
Q1 FY21 Financial Results February 10, 2021 SONOS
Slide 2: Forward Looking Statements
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 2, 2021, our long-term focus, financial, growth and business strategies
Slide 3: Q1 Highlights
Q1 Highlights Record Q1 results and increasing FY21 outlook across all metrics Record Q1 adjusted EBITDA margin of 25.8%, +920 bps from LY Record Q1 revenue of $645.6M, +15% from LY driven by continued DTC strength and strong product demand Record Q1 gross margin of 46.4%, +590 bps from LY driven by
Slide 4: Record Profitability and Strong Revenue Growth
Record Profitability and Strong Revenue Growth Q1 Revenue e $562.1 $496.4 e 1019 1020 1021 O Q1 Adjusted EBITDA $166.3 e $93.2 $87.4 1a19 1020 4021 Note: $ in millions, unaudited. Revenue +15% due to strong demand, continued success of recent new product intros, and strong DTC growth Adjusted EBITDA
Slide 5: Record Gross Margin
Record Gross Margin O Gross Margin @ Gross Margin ex Tariff Duties and Refunds Gross margin +590 bps Y/Y - key drivers: e Mix shifts into higher margin products and channels Reduction in tariff duties $4.5 million tariff refund Product and material cost reductions Offset by increased shipping costs
Slide 6: Strong Opex Leverage
Strong Opex Leverage Research and Development (GAAP) % of revenue Sales and Marketing (GAAP) Restructuring and related charges Adjusted Sales and Marketing (Non-GAAP) % of revenue General and Administrative (GAAP) Legal and transaction related costs Adjusted General and Administrative (Non-GAAP) % o
Slide 7: Significant Cash Flow and Strong Balance Sheet
Significant Cash Flow and Strong Balance Sheet e Cash flow from operations of $214.5M, Ven! +81% from LY 1Q21 1Q20 Change Cash flow from operations $214.5 $118.8 81% e Free cash flow of $203.2M, Capital expenditures $11.3 $15.9 -29% +97% from LY % of 1.89 2.84 . % of revenue 7 " Free cash flow / adj
Slide 8: Outlook
ae | i. 4 Y 24 utlook
Slide 9: FY21 Priorities
FY21 Priorities Delivering innovative new products that both new and existing customers love Services that enhance and further differentiate the customer experience Strengthening our direct-to-consumer efforts Supporting our incredible partnerships Adjusted EBITDA margin expansion Industry-leading g
Slide 10: Raising FY21 Outlook
Raising FY21 Outlook: Profit Margin Expansion Continues; Strong Demand Adjusted EBITDA Adjusted EBITDA Margin Gross Margin Revenue % growth (52 wk vs 52 wk) % growth (as reported) Other Key Assumptions: Tariffs DTC as % of revenue FY20 Actuals $108.5 million 8.2% 43.1% $1.326 billion 3% 5% $32 milli
Slide 11: Upcoming Investor Event
Upcoming Investor Event Tuesday, March 9, 2021 - 4:00 pm Eastern Save the Date! Sonos to host virtual investor event where leadership will update everyone on our strategy and outlook. Further details to come - stay tuned...
Slide 12: Appendix
Slide 13: Non-GAAP Measures
Non-GAAP Measures We have provided in this presentation financial information that has not been prepared in accordance with GAAP. We use these non-GAAP financial measures to evaluate our operating performance and trends and make planning decisions. We believe that these non-GAAP financial measures h
Slide 14: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three Months Ended January 2, 2021 December 28, 2019 Net income $ 132,292 $70,775 Add (deduct): Depreciation and amortization 7,982 9,105 Stock-based compensation expense 14,844 13,204 Interest income (36) (998) Interest expense 265 453 Other income, n
Slide 15: Gross Profit and Margin Excluding the Impact of Tariffs
Gross Profit and Margin Excluding the Impact of Tariffs Three Months Ended January 2, December 28, 2021 2019 Revenue $645,584 $562,083 Reported gross profit 299,425 227,620 Add/deduct: Net tariff impact (3,061) 19,582 Adjusted gross profit 296,364 247,202 Gross margin 46.4% 40.5 % Adjusted gross mar
Slide 16: Reconciliation of Cash Flows Provided by Operating Activities to Free Cash Flow
Reconciliation of Cash Flows Provided by Operating Activities to Free Cash Flow Three Months Ended January 2, December 28, 2021 2019 Cash flows provided by operating activities $214,513 $118,840 Less: purchases of property and equipment, (11,333) (15,914) intangible and other assets Free cash flow 2
Slide 17: SONOS
SONOS