Sonos (SONO) 10-Q 10 Aug 22 2022 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Jul. 02, 2022	Jul. 30, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 02, 2022
Document Transition Report	false
Entity File Number	001-38603
Entity Registrant Name	SONOS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	03-0479476
Entity Address, Address Line One	614 Chapala Street
Entity Address, City or Town	Santa Barbara
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	93101
City Area Code	805
Local Phone Number	965-300
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	SONO
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		127,252,324
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001314727
Current Fiscal Year End Date	--01-01

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 02, 2022	Apr. 02, 2022	Oct. 02, 2021
Current assets:
Cash and cash equivalents	$ 439,726		$ 640,101
Accounts receivable, net of allowances	124,884		100,779
Inventories	335,730		185,130
Prepaids and other current assets	23,124		31,504
Total current assets	923,464		957,514
Property and equipment, net	75,862		71,341
Operating lease right-of-use assets	28,093		33,841
Goodwill	79,824		15,545
Intangible assets, net	96,936		24,450
Deferred tax assets	1,804		10,028
Other noncurrent assets	37,247		26,085
Total assets	1,243,230		1,138,804
Current liabilities:
Accounts payable	308,032		214,996
Accrued expenses	107,993		108,029
Accrued compensation	27,250		77,695
Deferred revenue, current	18,334		35,866
Other current liabilities	43,611		39,544
Total current liabilities	505,220		476,130
Operating lease liabilities, noncurrent	26,118		33,960
Deferred revenue, noncurrent	57,487		53,632
Deferred tax liabilities	10,789		2,394
Other noncurrent liabilities	880		3,646
Total liabilities	600,494		569,762
Commitments and contingencies (Note 7)
Stockholders’ equity:
Common stock, $0.001 par value	131		129
Treasury stock	(65,050)		(50,276)
Additional paid-in capital	649,449		690,462
Retained earnings (accumulated deficit)	61,553		(69,897)
Accumulated other comprehensive loss	(3,347)		(1,376)
Total stockholders’ equity	642,736	$ 671,684	569,042
Total liabilities and stockholders’ equity	$ 1,243,230		$ 1,138,804

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jul. 02, 2022	Oct. 02, 2021
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021
Income Statement [Abstract]
Revenue	$ 371,783	$ 378,672	$ 1,436,046	$ 1,357,204
Cost of revenue	195,935	200,811	763,779	714,142
Gross profit	175,848	177,861	672,267	643,062
Operating expenses
Research and development	62,522	55,578	188,798	164,294
Sales and marketing	63,993	67,231	207,684	198,888
General and administrative	42,373	38,323	126,189	113,372
Total operating expenses	168,888	161,132	522,671	476,554
Operating income	6,960	16,729	149,596	166,508
Other income (expense), net
Interest income	429	34	585	114
Interest expense	(196)	(77)	(384)	(525)
Other income (expense), net	(9,858)	1,998	(13,541)	4,678
Total other income (expense), net	(9,625)	1,955	(13,340)	4,267
Income (loss) before provision for (benefit from) income taxes	(2,665)	18,684	136,256	170,775
Provision for (benefit from) income taxes	(2,068)	858	4,805	3,436
Net income (loss)	(597)	17,826	131,451	167,339
Net income (loss) attributable to common stockholders:
Basic and diluted	$ (597)	$ 17,826	$ 131,451	$ 167,339
Basic (in USD per share)	$ 0	$ 0.14	$ 1.03	$ 1.38
Diluted (in USD per share)	$ 0	$ 0.12	$ 0.94	$ 1.20
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
Basic (in shares)	127,884,400	125,138,279	127,886,487	120,876,472
Diluted (in shares)	127,884,400	144,181,632	139,502,527	139,293,775
Total comprehensive income(loss).
Net income	$ (597)	$ 17,826	$ 131,451	$ 167,339
Change in foreign currency translation adjustment	(1,711)	(784)	(1,971)	262
Comprehensive income (loss)	$ (2,308)	$ 17,042	$ 129,480	$ 167,601

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Treasury Stock	Accumulated Deficit	Accumulated Other Comprehensive Loss
Balance, beginning of period (in shares) at Oct. 03, 2020		113,915,233		(1,571,138)
Balance, beginning of period at Oct. 03, 2020	$ 297,839	$ 114	$ 548,993	$ (20,886)	$ (228,492)	$ (1,890)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to equity incentive plans (in shares)		7,075,338
Issuance of common stock pursuant to equity incentive plans	69,505	$ 7	69,498
Repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock unit awards ("RSUs") (in shares)				(307,980)
Repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock unit awards ("RSUs")	(5,118)			$ (5,118)
Stock-based compensation expense	14,844		14,844
Net income	132,292				132,292
Change in foreign currency translation adjustment	847					847
Balance, end of period (in shares) at Jan. 02, 2021		120,990,571		(1,879,118)
Balance, ending of period at Jan. 02, 2021	510,209	$ 121	633,335	$ (26,004)	(96,200)	(1,043)
Balance, beginning of period (in shares) at Oct. 03, 2020		113,915,233		(1,571,138)
Balance, beginning of period at Oct. 03, 2020	297,839	$ 114	548,993	$ (20,886)	(228,492)	(1,890)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	167,339
Change in foreign currency translation adjustment	262
Balance, end of period (in shares) at Jul. 03, 2021		127,687,851		(1,959,717)
Balance, ending of period at Jul. 03, 2021	587,127	$ 128	698,520	$ (48,740)	(61,153)	(1,628)
Balance, beginning of period (in shares) at Jan. 02, 2021		120,990,571		(1,879,118)
Balance, beginning of period at Jan. 02, 2021	510,209	$ 121	633,335	$ (26,004)	(96,200)	(1,043)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to equity incentive plans (in shares)		5,743,359
Issuance of common stock pursuant to equity incentive plans	49,661	$ 6	49,655
Retirement of treasury stock (in shares)		1,017,308		(1,017,308)
Retirement of treasury stock		$ (1)	(14,365)	$ 14,366
Purchase of common stock (in shares)				(19,547)
Repurchase of common stock	(682)			$ (682)
Repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock unit awards ("RSUs") (in shares)				(387,206)
Repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock unit awards ("RSUs")	(13,703)			$ (13,703)
Stock-based compensation expense	16,363		16,363
Net income	17,221				17,221
Change in foreign currency translation adjustment	199					199
Balance, end of period (in shares) at Apr. 03, 2021		125,716,622		(1,268,563)
Balance, ending of period at Apr. 03, 2021	579,268	$ 126	684,988	$ (26,023)	(78,979)	(844)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to equity incentive plans (in shares)		2,377,982
Issuance of common stock pursuant to equity incentive plans	12,371	$ 2	12,369
Retirement of treasury stock (in shares)		406,753		(406,753)
Retirement of treasury stock			14,384	$ (14,384)
Purchase of common stock (in shares)				624,020
Repurchase of common stock	(21,047)			$ 21,047
Repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock unit awards ("RSUs") (in shares)				473,887
Repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock unit awards ("RSUs")	(16,054)			$ 16,054
Stock-based compensation expense	15,547		15,547
Net income	17,826				17,826
Change in foreign currency translation adjustment	(784)					(784)
Balance, end of period (in shares) at Jul. 03, 2021		127,687,851		(1,959,717)
Balance, ending of period at Jul. 03, 2021	587,127	$ 128	698,520	$ (48,740)	(61,153)	(1,628)
Balance, beginning of period (in shares) at Oct. 02, 2021		128,857,085,000		(1,871,812)
Balance, beginning of period at Oct. 02, 2021	569,042	$ 129	690,462	$ (50,276)	(69,897)	(1,376)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to equity incentive plans (in shares)		2,030,373
Issuance of common stock pursuant to equity incentive plans	13,232	$ 2	13,230
Retirement of treasury stock (in shares)		(1,010,286)		1,010,286
Retirement of treasury stock		$ (1)	(38,647)	$ (38,648)
Purchase of common stock (in shares)				(1,032,249)
Repurchase of common stock	(31,365)			$ (31,365)
Repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock unit awards ("RSUs") (in shares)				(344,198)
Repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock unit awards ("RSUs")	(11,882)			$ (11,882)
Stock-based compensation expense	17,459		17,459
Net income	123,481				123,481
Change in foreign currency translation adjustment	(360)					(360)
Balance, end of period (in shares) at Jan. 01, 2022		129,877,172		(2,237,973)
Balance, ending of period at Jan. 01, 2022	679,607	$ 130	682,504	$ (54,875)	53,584	(1,736)
Balance, beginning of period (in shares) at Oct. 02, 2021		128,857,085,000		(1,871,812)
Balance, beginning of period at Oct. 02, 2021	$ 569,042	$ 129	690,462	$ (50,276)	(69,897)	(1,376)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to equity incentive plans (in shares)	3,245,130
Retirement of treasury stock (in shares)	(4,375,584)
Purchase of common stock (in shares)	(4,650,276)
Net income	$ 131,451
Change in foreign currency translation adjustment	(1,971)
Balance, end of period (in shares) at Jul. 02, 2022		130,963,314		(3,345,155)
Balance, ending of period at Jul. 02, 2022	642,736	$ 131	649,449	$ (65,050)	61,553	(3,347)
Balance, beginning of period (in shares) at Jan. 01, 2022		129,877,172		(2,237,973)
Balance, beginning of period at Jan. 01, 2022	679,607	$ 130	682,504	$ (54,875)	53,584	(1,736)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to equity incentive plans (in shares)		2,500,969
Issuance of common stock pursuant to equity incentive plans	16,021	$ 2	16,019
Retirement of treasury stock (in shares)		(2,418,184)		(2,418,184)
Retirement of treasury stock		$ (2)	(71,877)	$ 71,879
Purchase of common stock (in shares)				1,611,921
Repurchase of common stock	(43,115)			$ (43,115)
Repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock unit awards ("RSUs") (in shares)				(376,925)
Repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock unit awards ("RSUs")	(10,720)			$ (10,720)
Stock-based compensation expense	21,225		21,225
Net income	8,566				8,566
Change in foreign currency translation adjustment	100					100
Balance, end of period (in shares) at Apr. 02, 2022		129,959,957		(1,808,635)
Balance, ending of period at Apr. 02, 2022	671,684	$ 130	647,871	$ (36,831)	62,150	(1,636)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to equity incentive plans (in shares)		1,950,471
Issuance of common stock pursuant to equity incentive plans	8,003	$ 2	8,001
Retirement of treasury stock (in shares)		947,114		(947,114)
Retirement of treasury stock		$ 1	25,202	$ (25,203)
Purchase of common stock (in shares)				2,006,106
Repurchase of common stock	(42,611)			$ 42,611
Repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock unit awards ("RSUs") (in shares)				477,528
Repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock unit awards ("RSUs")	(10,811)			$ 10,811
Stock-based compensation expense	18,779		18,779
Net income	(597)				(597)
Change in foreign currency translation adjustment	(1,711)					(1,711)
Balance, end of period (in shares) at Jul. 02, 2022		130,963,314		(3,345,155)
Balance, ending of period at Jul. 02, 2022	$ 642,736	$ 131	$ 649,449	$ (65,050)	$ 61,553	$ (3,347)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jul. 02, 2022	Jul. 03, 2021
Cash flows from operating activities
Net income	$ 131,451	$ 167,339
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	27,699	25,789
Impairment and abandonment charges	62	2,789
Stock-based compensation expense	57,463	46,755
Other	8,594	1,253
Deferred income taxes	(1,238)	95
Foreign currency transaction (gain) loss	4,437	(2,226)
Changes in operating assets and liabilities:
Accounts receivable, net	(28,476)	(13,846)
Inventories	(158,129)	32,333
Other assets	(1,587)	(17,730)
Accounts payable and accrued expenses	97,421	(27,169)
Accrued compensation	(49,769)	21,501
Deferred revenue	(10,958)	7,715
Other liabilities	(1,313)	2,143
Net cash provided by (used in) operating activities	75,657	246,741
Net cash provided by (used in) investing activities
Purchases of property and equipment, intangible and other assets	(24,946)	(34,792)
Cash paid for acquisitions, net of acquired cash	(126,416)
Net cash used in investing activities	(151,362)	(34,792)
Cash flows from financing activities
Payments for debt issuance costs	(929)
Payments of borrowings		(25,000)
Payments for repurchase of common stock	(117,093)	(21,729)
Proceeds from exercise of common stock options	37,257	131,536
Payments for repurchase of common stock related to shares withheld for tax in connection with vesting of RSUs	(33,412)	(34,877)
Net cash provided by (used in) financing activities	(114,177)	49,930
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(10,493)	1,735
Net increase (decrease) in cash, cash equivalents and restricted cash	(200,375)	263,614
Cash, cash equivalents and restricted cash
Beginning of period	640,101	407,291
End of period	439,726	670,905
Supplemental disclosure
Cash paid for interest	223	434
Cash paid for taxes, net of refunds	8,862	3,773
Cash paid for amounts included in the measurement of lease liabilities	11,185	15,078
Supplemental disclosure of non-cash investing and financing activities
Purchases of property and equipment in accounts payable and accrued expenses	10,937	9,046
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 2,141	$ 1,622

Business Overview and Basis of

Business Overview and Basis of Presentation	9 Months Ended
	Jul. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Overview and Basis of Presentation	1. Business Overview and Basis of Presentation Description of business Sonos, Inc. and its wholly owned subsidiaries (collectively, “Sonos,” the “Company,” “we,” “us” or “our”) designs, develops, manufactures, and sells audio products and services. The Sonos sound system provides customers with an immersive listening experience created by the design of its speakers and components, a proprietary software platform, and the ability to stream content from a variety of sources over the customer’s wireless network or over Bluetooth. The Company’s products are sold through third-party physical retailers, including custom installers of home audio systems, select e-commerce retailers, and its website, sonos.com. The Company’s products are distributed in over 50 countries through its wholly owned subsidiaries: Sonos Europe B.V. in the Netherlands, Beijing Sonos Technology Co. Ltd. in China, Sonos Japan GK in Japan, and Sonos Australia Pty Ltd. in Australia. Basis of presentation and preparation The accompanying condensed consolidated financial statements are unaudited. The condensed consolidated balance sheet as of October 2, 2021, has been derived from the audited consolidated financial statements of the Company. The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all the information and footnotes required by U.S. GAAP for annual financial statements. They should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended October 2, 2021, (the “Annual Report”), filed with the SEC on November 22, 2021. In management’s opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the Company’s financial position, its results of operations, and its cash flows for the interim periods presented. The results of operations for the three and nine months ended July 2, 2022, are not necessarily indicative of the results to be expected for the full fiscal year or any other period. The Company operates on a 52- week or 53- week fiscal year ending on the Saturday nearest September 30 each year. The Company’s fiscal year is divided into four quarters of 13 weeks, each beginning on a Sunday and containing two 4-week periods followed by a 5-week period. An additional week is included in the fourth fiscal quarter approximately every five years to realign fiscal quarters with calendar quarters. This last occurred in the fourth quarter of the Company’s fiscal year ended October 3, 2020, and will reoccur in the fiscal year ending October 3, 2026. The nine months ended July 2, 2022, and July 3, 2021 , spanned 39 weeks each. As used in this Quarterly Report on Form 10-Q, “fiscal 2022” refers to the fiscal year ending October 1, 2022, “fiscal 2021” refers to the fiscal year ended October 2, 2021, and "fiscal 2020” refers to the fiscal year ended October 3, 2020. Use of estimates and judgments The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company evaluates its estimates and judgments compared to historical experience and expected trends. In March 2020, the outbreak of the novel coronavirus (COVID-19) was declared a pandemic. While the nature of the situation is dynamic, the Company has considered the impact when developing its estimates and assumptions noted above. Actual results and outcomes may differ from management's estimates and assumptions.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Jul. 02, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies There have been no changes in the Company’s significant accounting policies, recently adopted accounting pronouncements or recent accounting pronouncements pending adoption from those disclosed in the Annual Report, except as noted below. Recently adopted accounting pronouncements In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in Accounting Standards Codification Topic 740 ("ASC 740") as well as by improving consistent application of the topic by clarifying and amending existing guidance. The Company adopted this standard in the first quarter of fiscal 2022. The adoption did not have a material impact on the Company's condensed consolidated financial statements. Recent accounting pronouncements pending adoption In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This update requires that an entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. This standard is effective for the Company in the first quarter of fiscal 2024, with early adoption permitted. The Company is currently evaluating the pronouncement and does not expect it to have a material impact on the Company's consolidated financial statements or disclosures. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of Effects of Reference Rate Reform on Financial Reporting, and then issued a subsequent amendment to the initial guidance under ASU No. 2021-01 (collectively Topic 848). Topic 848 provides practical expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, derivatives, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments in this update apply only to contracts, hedging relationships, derivatives, and other transactions that reference the London interbank offered rate (“LIBOR”) or another reference rate expected to be discontinued as a result of reference rate reform. Topic 848 is currently effective and upon adoption may be applied prospectively to contract modifications and hedging relationships made on or before December 31, 2022. The Company is currently evaluating the pronouncement to determine the impact it may have on the Company's consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Jul. 02, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	3. Fair Value Measurements The carrying values of the Company’s financial instruments, including accounts receivable and accounts payable, approximate their fair values due to the short period of time to maturity or repayment. The following table summarizes fair value measurements by level for the assets measured at fair value on a recurring basis as of July 2, 2022, and October 2, 2021: July 2, 2022 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds (cash equivalents) $ 285,865 $ — $ — $ 285,865 October 2, 2021 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds (cash equivalents) $ 484,482 $ — $ — $ 484,482

Revenue and Geographic Informat

Revenue and Geographic Information	9 Months Ended
	Jul. 02, 2022
Revenue from Contract with Customer [Abstract]
Revenue and Geographic Information	4. Revenue and Geographic Information Disaggregation of revenue Revenue is attributed to each region based on ship-to address, and also includes the applicable service revenue for software upgrades and cloud-based services attributable to each region. Revenue by region is as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, (In thousands) Americas $ 232,421 $ 223,720 $ 844,099 $ 784,898 Europe, Middle East and Africa (“EMEA”) 112,684 126,228 486,473 480,541 Asia Pacific (“APAC”) 26,678 28,724 105,474 91,765 Total revenue $ 371,783 $ 378,672 $ 1,436,046 $ 1,357,204 Revenue is attributed to individual countries based on ship-to address and also includes the applicable service revenue for software upgrades and cloud-based services attributable to each country. Revenue by significant countries is as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, (In thousands) United States $ 211,382 $ 203,387 $ 777,808 $ 712,302 Other countries 160,401 175,285 658,238 644,902 Total revenue $ 371,783 $ 378,672 $ 1,436,046 $ 1,357,204 Revenue by product category also includes the applicable service revenue for software upgrades and cloud-based services attributable to each product category. Revenue by major product category is as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, (In thousands) Sonos speakers $ 314,205 $ 310,233 $ 1,133,825 $ 1,105,283 Sonos system products 38,363 47,621 234,328 197,442 Partner products and other revenue 19,215 20,818 67,893 54,479 Total revenue $ 371,783 $ 378,672 $ 1,436,046 $ 1,357,204

Balance Sheet Components

Balance Sheet Components	9 Months Ended
	Jul. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Components	5. Balance Sheet Components Accounts receivable, net of allowances Accounts receivable, net of allowances, consist of the following: July 2, October 2, (In thousands) Accounts receivable $ 148,112 $ 121,486 Allowance for credit losses ( 2,357 ) ( 1,547 ) Allowance for sales incentives ( 20,871 ) ( 19,160 ) Accounts receivable, net of allowances $ 124,884 $ 100,779 Inventories Inventories, net, consist of the following: July 2, October 2, (In thousands) Finished goods $ 258,994 $ 154,608 Component parts 76,736 30,522 Inventories $ 335,730 $ 185,130 The Company writes down inventory as a result of excess and obsolete inventories, or when it believes that the net realizable value of inventories is less than the carrying value. Goodwill The following table presents the changes in carrying amount of goodwill during the nine months ended July 2, 2022: (In thousands) Balance as of October 2, 2021 $ 15,545 Goodwill acquired 66,078 Effect of exchange rate changes on goodwill ( 1,799 ) Balance as of July 2, 2022 $ 79,824 Intangible assets As part of the acquisition of Mayht Holding BV ("Mayht"), the Company recognized $ 71.8 million in intangible assets related to in-process research and development activity, which is not subject to amortization for the current period. In addition, the Company recognized $ 0.5 million in intangible assets subject to amortization, with a weighted-average useful life of approximately 6 years . In the third quarter of fiscal year 2022, the Company determined that the underlying project related to the in-process research and development from the acquisition of Snips was completed. As a result, the acquired $ 20.1 million of in-process research and development was reclassified as definite-lived developed technology and will amortize over its estimated economic life of 7 years . The following table reflects the changes in the net carrying amount of the components of intangible assets associated with the Company's acquisition activity: July 2, 2022 Gross Carrying Amount Accumulated Amortization Impact of FX Net Carrying Value Weighted-Average Remaining Life (In thousands, except weighted-average remaining life) Tradename $ 451 $ ( 19 ) $ — $ 432 5.75 Technology-based 34,563 ( 6,876 ) — 27,687 5.65 Total finite-lived intangible assets 35,014 ( 6,895 ) — 28,119 5.65 In-process research and development not subject to amortization 71,759 — ( 2,942 ) 68,817 Total intangible assets $ 106,773 $ ( 6,895 ) $ ( 2,942 ) $ 96,936 The following table summarizes the estimated future amortization expense of the Company's intangible assets as of July 2, 2022: Fiscal years ending Future Amortization Expense (In thousands) Remainder of fiscal 2022 $ 1,758 2023 6,180 2024 5,968 2025 3,367 2026 3,038 2027 and there after 7,808 Total future amortization expense $ 28,119 Cloud Computing Arrangements The Company incurs costs to implement cloud computing arrangements that are hosted by a third-party vendor. Capitalized implementation costs are expensed on a straight-line basis over the reasonably certain term of the hosting arrangement, beginning when the software is ready for its intended use, and are recognized as an operating expense within the condensed consolidated statements of operations and comprehensive income (loss). In May 2022, the Company went live with its implementation of a new enterprise resource planning ("ERP") system. Capitalized implementation costs were $ 22.7 million and $ 14.3 million, as of July 2, 2022 and October 2, 2021, respectively, and are reported as a component of other noncurrent assets on the Company's condensed consolidated balance sheets. Amortization expenses for implementation costs for cloud-based computing arrangements in the three and nine months ended July 2, 2022 were not material. Accrued expenses Accrued expenses consisted of the following: July 2, October 2, (In thousands) Accrued advertising and marketing $ 14,050 $ 19,989 Accrued taxes 12,880 16,941 Accrued inventory 33,414 37,117 Accrued manufacturing, logistics and product development 20,131 14,943 Accrued general and administrative expenses 21,117 13,066 Other accrued payables 6,401 5,973 Total accrued expenses $ 107,993 $ 108,029 Deferred revenue Amounts invoiced in advance of revenue recognition are recorded as deferred revenue on the condensed consolidated balance sheets. Deferred revenue primarily related to revenue allocated to unspecified software upgrades and cloud-based services. Recognition of revenue includes $ 18.8 million of deferred revenue from the fourth quarter of fiscal 2021 related to newly launched products sold to resellers not recognized as revenue until the date of general availability was reached, which was in the first quarter of fiscal 2022. The following table presents the changes in the Company’s deferred revenue for the nine months ended July 2, 2022, and July 3, 2021: July 2, July 3, (In thousands) Deferred revenue, beginning of period $ 89,498 $ 62,388 Recognition of revenue included in beginning of period deferred revenue ( 35,226 ) ( 13,381 ) Revenue deferred, net of revenue recognized on contracts in the respective period 21,549 21,379 Deferred revenue, end of period $ 75,821 $ 70,386 The Company expects the following recognition of deferred revenue as of July 2, 2022: For the fiscal years ending 2022 2023 2024 2025 2026 and Total (In thousands) Deferred revenue expected to be recognized $ 5,184 $ 17,302 $ 15,251 $ 12,968 $ 25,116 $ 75,821 Other current liabilities Other current liabilities consist of the following: July 2, October 2, (In thousands) Reserve for returns $ 19,634 $ 19,266 Short-term operating lease liabilities 10,254 10,724 Warranty liability 7,428 5,604 Other 6,295 3,950 Total other current liabilities $ 43,611 $ 39,544 The following table presents the changes in the Company’s warranty liability for the nine months ended July 2, 2022, and July 3, 2021: July 2, July 3, (In thousands) Warranty liability, beginning of period $ 5,604 $ 3,628 Provision for warranties issued during the period 9,191 12,218 Settlements of warranty claims during the period ( 7,367 ) ( 10,613 ) Warranty liability, end of period $ 7,428 $ 5,233

Debt

Debt	9 Months Ended
	Jul. 02, 2022
Debt Disclosure [Abstract]
Debt	6. Debt On October 13, 2021, the Company entered into a Revolving Credit Agreement with JPMorgan Chase Bank, N.A., as the administrative agent, and the lenders party thereto (the “Revolving Credit Agreement”). The Revolving Credit Agreement replaced the Company’s prior $ 80.0 million credit facility with JPMorgan Chase Bank, N.A., which matured in October 2021, in its entirety. The Revolving Credit Agreement provides for (i) a five-year senior secured revolving credit facility in the amount of up to $ 100.0 million and (ii) an uncommitted incremental facility subject to certain conditions. Proceeds are to be used for working capital and general corporate purposes. The facility may be drawn as an Alternative Base Rate Loan (at 1.00 % plus an applicable margin) or Eurocurrency Loans (at LIBOR plus an applicable margin). The Company must also pay (i) an unused commitment fee ranging from 0.200 % to 0.275 % per annum of the average daily unused portion of the aggregate revolving credit commitment under the agreement and (ii) a per annum fee equal to the applicable margin over LIBOR multiplied by the aggregate face amount of outstanding letters of cred it. As of July 2, 2022, the Company did not have any outstanding borrowings and had $ 2.9 million in undrawn letters of credit that reduce the availability under the Revolving Credit Agreement. The Company’s obligations under the Revolving Credit Agreement are secured by substantially all of the Company’s assets. The Revolving Credit Agreement contains customary representations and warranties, customary affirmative and negative covenants, a financial covenant that is tested quarterly and requires the Company to maintain a certain consolidated leverage ratio, and customary events of default. As of July 2, 2022, the Company was in compliance with all financial covenants under the Revolving Credit Agreement.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Jul. 02, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies Legal proceedings From time to time, the Company is involved in legal proceedings in the ordinary course of business, including claims relating to employee relations, business practices, and patent infringement. Litigation can be expensive and disruptive to normal business operations. Moreover, the results of complex legal proceedings are difficult to predict, and the Company’s view of these matters may change in the future as the litigation and events related thereto unfold. The Company expenses legal fees as incurred. The Company records a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. An unfavorable outcome to any legal matter, if material, could have an adverse effect on the Company’s operations or its financial position, liquidity or results of operations. On January 7, 2020, the Company filed a complaint with the U.S. International Trade Commission ("ITC") against Alphabet Inc. ("Alphabet") and Google LLC ("Google") and a lawsuit in the U.S. District Court for the Central District of California against Google. The complaint and lawsuit each allege infringement by Alphabet and Google of certain Sonos patents related to its smart speakers and related technology. On February 6, 2020, the ITC initiated a formal investigation into the Company’s claims. Google and Alphabet filed an initial answer in the ITC action on February 27, 2020, and an amended answer on April 3, 2020, denying infringement and alleging that the asserted patents are invalid. On August 13, 2021, an administrative law judge at the ITC issued an initial determination finding all five of Sonos' asserted patents to be valid and infringed by Google. The judge also ruled that certain proposed redesigns of Google products, one specific redesign per patent, would qualify as non-infringing alternatives to Google's current product designs. On January 6, 2022, the ITC ratified the conclusions of the administrative law judge and issued a limited exclusion order and a cease and desist order with respect to a wide range of accused Google products, including Google media players and computer devices configured to control these media players, such as Pixel phones and tablets. On March 23, 2022, the Company filed a 19 C.F.R. Part 177 Request asking the United States Customs and Border Protection (“Customs”) to enforce the ITC’s limited exclusion order. On June 3, 2022, Customs issued a Ruling Letter confirming that Google Pixel devices that could be used with Google’s new Device Utility app were subject to exclusion. On June 30, 2022, Google filed a Part 177 Request asking Customs to permit the importation of Pixel devices to be used with the Device Utility app and, on July 14, 2022, Google filed a petition to modify the ITC’s limited exclusion order to permit the same. The Company has opposed both requests. On March 4, 2020, the California District Court stayed the district court proceeding pending resolution of the ITC investigation and corresponding appeals. On March 11, 2020, Google filed an answer in the California District Court, denying infringement and alleging that the asserted patents are invalid. On September 28, 2020, Google filed for a declaratory judgement of non-infringement in the U.S. District Court for the Northern District of California related to five different Sonos patents. On September 29, 2020, the Company filed a lawsuit against Google in the U.S. District Court for Western District of Texas, alleging infringement of those five Sonos patents and seeking monetary damages and other non-monetary relief. This dispute over venue has now been resolved, with the case proceeding in the Northern District of California, where the judge has bifurcated the case, scheduling early disposition of two representative claims in October 2022 and trial on all other claims in May 2023. On January 21, 2022, the judge permitted Google to amend its declaratory judgement claim to include claims for breach of contract and conversion against the Company in connection with one of the asserted patents regarding Google and the Company’s collaboration in 2013. The Company disputes the claims and intends to defend these claims during the case. On July 21, 2022, with respect to one of the representative claims scheduled for trial in October, the court granted the Company's motion for summary judgment that Google infringes the patent at issue and rejected Google's arguments disputing patentability. On August 2, 2022, the court also granted Google's motion for summary judgment on the other patent at issue in the early disposition process, holding that patent to be invalid and not infringed. On December 1, 2020, the Company filed a lawsuit against two Google foreign subsidiaries in the regional court of Hamburg, Germany, alleging infringement of a Sonos patent related to control of playback of media by mobile and playback devices and seeking non-monetary relief. Sonos has chosen to withdraw these preliminary injunction actions after having received some preliminary relief. On June 11, 2020, Google filed a lawsuit in the U.S. District Court for the Northern District of California against the Company, alleging infringement of five Google patents generally related to noise cancellation, digital rights management, media search, modifying favorite items and wireless relays, and seeking monetary damages and other non-monetary relief. On November 2, 2020, the California District Court granted Sonos’ motion to dismiss Google’s allegation of infringement of one of these five Google patents, specifically a patent generally related to media search, finding that the invention at issue is patent ineligible. On June 4, 2021, the California District Court granted a stipulation to dismiss Google's allegation of infringement of another asserted patent involving noise cancellation. In May 2021, the Company filed petitions for review at the United States Patent and Trademark Office ("USPTO") of two Google patents asserted against the Company in this matter, specifically the patents related to modifying favorite items and wireless relays. In October and November 2021, the USPTO instituted review of these patents, with a final decision expected in late 2022. In January 2022, the California District Court judge stayed the litigation against the Company with respect to all common issues. On August 8, 2022, Google filed two additional lawsuits in the Northern District of California against the Company, alleging infringement of seven Google patents generally related to wireless charging, device setup, and voice control, and seeking monetary damages and other non-monetary relief. On August 9, 2022, Google filed cases at the ITC alleging infringement of the same seven patents. On June 12, 2020, Google filed lawsuits in District Court Munich I against Sonos Europe B.V. and Sonos, Inc., alleging infringement of two Google patents generally related to digital rights management and search notifications, and seeking monetary damages and an injunction preventing sales of any infringing Sonos products. On January 14, 2021, Google amended its infringement complaint related to the search notifications patent to relate to a limited version of the claims, in view of prior art cited by the Company. On March 3, 2021, the District Court Munich stayed a case for infringement of the search notifications patent pending the outcome of a nullity action based on doubt as to the validity of the patent. On June 23, 2021, the Munich court issued a decision dismissing Google's complaint related to the digital rights management patent for lack of infringement of at least two claim features. On August 30, 2021, Google appealed the Munich court's ruling, which is still pending. On August 21, 2020, Google filed a lawsuit against Sonos, Inc. in Canada, alleging infringement of one Google patent generally related to noise cancellation technology. On July 26, 2022, the court in Canada, after a trial on the merits, ruled that the Company does not infringe Google's asserted patent. On August 21, 2020, Google filed a lawsuit against Sonos Europe B.V. and Sonos, Inc. in France, alleging infringement of two Google patents generally related to digital rights management and search notifications, and seeking monetary damages and an injunction preventing sales of any infringing Sonos products. On February 8, 2021, Google withdrew its infringement allegations regarding the search notifications patent in view of prior art brought to the attention of the court by the Company. On March 8, 2022, the French trial court ruled for Sonos on Google's digital rights management infringement claim. Google has appealed the French trial court's ruling, which is pending. In August 2020, Google filed a lawsuit against Sonos Europe B.V. and Sonos, Inc. in the Netherlands alleging infringement of a Google patent related to search notifications, and seeking monetary damages and an injunction preventing sales of any infringing Sonos products. In September 2020, Google filed a lawsuit against Sonos Europe B.V. in the Netherlands, alleging infringement of a Google patent related to digital rights management, and seeking monetary damages and enforcement of an injunction preventing sales of any infringing Sonos products, which was transferred to the Midden-Netherlands court on March 22, 2021, following the grant of the Company's challenge to improper jurisdiction. On February 9, 2022, the Midden-Netherlands court rejected Google's claims related to the digital rights management patent. On March 22, 2022, Google appealed the Midden-Netherlands' court decision, which is still pending. A range of loss, if any, associated with these matters is not probable or reasonably estimable as of July 2, 2022. On March 10, 2017, Implicit, LLC (“Implicit”) filed a patent infringement action in the United States District Court, District of Delaware against the Company. Implicit is asserting that the Company infringed on two patents in this case. The Company denies the allegations. There is no assurance of a favorable outcome and the Company’s business could be adversely affected as a result of a finding that the Company patents-in-suit are invalid and/or unenforceable. A range of loss, if any, associated with this matter is not probable or reasonably estimable as of July 2, 2022. The Company is involved in certain other litigation matters not listed above but does not consider these matters to be material either individually or in the aggregate at this time. The Company’s view of the matters not listed may change in the future as the litigation and events related thereto unfold. Tariff refunds On May 13, 2020, the Company was granted a temporary exclusion from the August 2019 Section 301 Tariff Action (List 4A) ("Section 301 tariffs"), eliminating the tariffs on the Company's component products imported from China until August 31, 2020. The exclusion for the Company’s component products was not extended past August 31, 2020, with the Section 301 tariffs for our component products automatically reinstated on September 1, 2020. On July 23, 2020, the Company was granted a temporary exclusion from Section 301 tariffs, eliminating the tariffs on the Company’s core speaker products imported from China until August 31, 2020. These exemptions entitled the Company to refunds for tariffs paid from September 2019 through December 2020. On August 28, 2020, the United States Trade Representative granted an extension through December 31, 2020 of the exclusion for the Company’s core speaker products, with the Section 301 tariffs for our core speaker products automatically reinstated on January 1, 2021. On March 23, 2022, the Company was granted an exclusion extension from the Section 301 tariffs, eliminating tariffs on the Company’s core speaker products, including certain new product introductions, imported from China from April 13, 2022 through December 31, 2022. This exemption entitled the Company to refunds for tariffs paid from October 12, 2021 through April 12, 2022. Tariff refund claims are subject to review and approval by the U.S. Customs and Border Protection. For the three and nine months ended July 2, 2022, the Company recognized $ 7.3 million and $ 11.9 million, respectively, in refunds based upon acceptance of the Company's refund request, recognized as a reduction to cost of revenue. As of July 2, 2022, the remaining aggregated refunds the Company expected to recover was approximately $ 14.3 million, for tariffs paid from September 2019 through December 2020, and from October 12, 2021 through April 12, 2022. The Company did not record these potential refunds due to uncertainty of the timing of acceptance of approval, but such refunds will be recognized as a reduction to cost of revenue if and when acceptance occurs.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Jul. 02, 2022
Equity [Abstract]
Stockholders' Equity	8. Stockholders' Equity On November 17, 2021, the Board of Directors (the "Board") authorized a common stock repurchase program of up to $ 150.0 million. During the nine months ended July 2, 2022, the Company repurchased 4,650,276 shares for an aggregate purchase price of $ 117.1 million at an average price of $ 25.16 per share under the repurchase program. The Company had $ 32.9 million available for share repurchases under the repurchase program as of July 2, 2022. Treasury stock during the nine months ended July 2, 2022, included shares withheld to satisfy employees' tax withholding requirements in connection with vesting of RSUs. Additionally, during the nine months ended July 2, 2022, the Company retired 4,375,584 shares of treasury stock.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Jul. 02, 2022
Share-Based Payment Arrangement [Abstract]
Stock-based Compensation	9. Stock-based Compensation 2018 Equity Incentive Plan In July 2018, the Board adopted the 2018 Equity Incentive Plan (the “2018 Plan”). The 2018 Plan became effective in connection with the Company's initial public offering ("IPO"). The number of shares reserved for issuance under the 2018 Plan increases automatically on January 1 of each year beginning in 2019 and continuing through 2028 by a number of shares of common stock equal to the lesser of (x) 5 % of the total outstanding shares of the Company’s common stock and common stock equivalents as of the immediately preceding December 31 (rounded to the nearest whole share) and (y) a number of shares determined by the Company's Board. Stock options Pursuant to the 2018 Plan, the Company issues stock options to employees and directors. The fair value of the stock options is based on the Company’s closing stock price on the trading day immediately prior to the date of grant. The option price, number of shares, and grant date are determined at the discretion of the Board. For so long as the option holder performs services for the Company, the options generally vest over 48 months , on a monthly or quarterly basis, with certain options subject to an initial annual cliff vest, and are exercisable for a period not to exceed ten years from the date of grant. The summary of the Company’s stock option activity is as follows: Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (In years) (In thousands) Outstanding at October 2, 2021 14,545,239 $ 12.86 5.1 $ 282,141 Granted — — Exercised ( 3,245,130 ) 11.48 Expired ( 340 ) 2.50 Forfeited ( 29,983 ) 14.76 Outstanding at July 2, 2022 11,269,786 $ 13.26 4.7 $ 52,563 At July 2, 2022 Options exercisable 10,616,150 $ 13.20 4.6 $ 50,146 Options vested and expected to vest 11,234,657 $ 13.25 4.7 $ 52,424 As of July 2, 2022, and October 2, 2021, the Company had $ 1.5 million and $ 6.2 million, respectively, of unrecognized stock-based compensation expense related to stock options, which are expected to be recognized over weighted-average periods of 0.5 and 0.9 years, respectively. Restricted stock units Pursuant to the 2018 Plan, the Company issues RSUs to employees and directors. The fair value of RSUs is based on the Company's closing stock price on the trading day immediately preceding the date of grant. RSUs vest quarterly over the service period, which is generally four years , with certain awards subject to an initial annual cliff vest. The summary of the Company’s RSU activity is as follows : Number of Units Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value (In thousands) Outstanding at October 2, 2021 9,283,525 $ 12.64 $ 299,487 Granted 3,539,358 30.49 Released ( 3,236,683 ) 13.62 Forfeited ( 699,473 ) 17.52 Outstanding at July 2, 2022 8,886,727 $ 19.00 $ 159,250 At July 2, 2022 Units expected to vest 7,623,960 $ 18.64 $ 136,621 As of July 2, 2022, and October 2, 2021, the Company had $ 128.7 million and $ 90.0 million of unrecognized stock-based compensation expense related to RSUs, which are expected to be recognized over weighted-average periods of 2.6 and 2.5 years, respectively. Performance stock units ("PSU") Pursuant to the 2018 Plan, the Company issues PSUs that vest on the satisfaction of service and performance conditions. The Company estimates the fair value of PSUs on the grant date and recognizes compensation expense in the period it becomes probable that performance conditions will be achieved. On a quarterly basis, the Company re-evaluates the assumption of the probability that performance conditions will be satisfied and revises its estimates as appropriate as new or updated information becomes available. The summary of the Company’s PSU activity is as follows: Number of Units Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value (In thousands) Outstanding at October 2, 2021 158,521 $ 22.81 $ 5,114 Granted 252,296 29.71 Outstanding at July 2, 2022 410,817 $ 27.05 $ 11,371 As of July 2, 2022, and October 2, 2021, the Company had $ 2.4 million and $ 3.6 million of unrecognized stock-based compensation expense related to PSUs, which are expected to be recognized over weighted-average periods of 0.9 and 1.2 years, respectively. Stock-based compensation Total stock-based compensation expense by functional category was as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, (In thousands) Cost of revenue $ 448 $ 248 $ 1,153 $ 723 Research and development 7,858 6,125 22,687 19,067 Sales and marketing 3,826 3,277 11,650 10,317 General and administrative 6,647 5,897 21,973 16,648 Total stock-based compensation expense $ 18,779 $ 15,547 $ 57,463 $ 46,755

Income Taxes

Income Taxes	9 Months Ended
	Jul. 02, 2022
Income Tax Disclosure [Abstract]
Income Taxes	10. Income Taxes The Company’s tax provision and the resulting effective tax rate for interim periods is determined based upon its estimated annual effective tax rate ("AETR"), adjusted for the effect of discrete items arising in that quarter. The impact of such inclusions could result in a higher or lower effective tax rate during a quarter, based upon the mix and timing of actual earnings or losses versus annual projections. In each quarter, the Company updates its estimate of the AETR, and if the estimated AETR changes, a cumulative adjustment is made in that quarter. The Company recorded a benefit from income taxes of $ 2.1 million and a provision for income taxes of $ 0.9 million for the three months ended July 2, 2022, and July 3, 2021, respectively, related to U.S. and non-U.S. income taxes. The Company recorded a provision for income taxes of $ 4.8 million and $ 3.4 million for the nine months ended July 2, 2022, and July 3, 2021, respectively. For the three months ended July 2, 2022, the Company's tax benefit includes the impact from excess U.S. share-based compensation and a benefit from the release of a non-U.S. valuation allowance. For the three months ended July 3, 2021, the Company's tax provision includes a discrete benefit from U.S. share-based compensation. For the nine months ended July 2, 2022, the Company's tax provision includes discrete income tax benefits from the release of a portion of our U.S. valuation allowance resulting from an acquisition in the first quarter, U.S. share-based compensation, and a non-U.S. valuation allowance release in the current quarter. For the nine months ended July 3, 2021, the Company’s tax provision includes a discrete income tax benefit for U.S. share-based compensation. For the three and nine months ended July 2, 2022, the Company maintained a full valuation allowance on its deferred tax assets in the U.S. and certain other non-US entities due to a history of operating losses. It is possible that within the next 12 months there may be sufficient positive evidence to release a portion or all of the valuation allowance. Release of the valuation allowance in the U.S. and certain other non-US entities would result in a benefit to income tax expense for the period the release is recorded, which could have a material impact on net earnings. The timing and amount of the potential valuation allowance release are subject to significant management judgment, as well as prospective earnings in the U.S. and certain other non-US entities.

Net Income (Loss) Per Share Att

Net Income (Loss) Per Share Attributable to Common Stockholders	9 Months Ended
	Jul. 02, 2022
Earnings Per Share [Abstract]
Net Income (Loss) Per Share Attributable to Common Stockholders	11. Net Income (Loss) Per Share Attributable to Common Stockholders Basic net income (loss) per share attributable to common stockholders is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding less shares subject to repurchase. Diluted net income (loss) per share attributable to common stockholders adjusts the basic net income (loss) per share attributable to common stockholders and the weighted-average number of shares of common stock outstanding for the potentially dilutive impact of stock awards, using the treasury stock method. The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share attributable to common stockholders: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, (In thousands, except share and per share data) Numerator: Net income (loss) attributable to common stockholders - basic and diluted $ ( 597 ) $ 17,826 $ 131,451 $ 167,339 Denominator: Weighted-average shares of common stock—basic 127,884,400 125,138,279 127,886,487 120,876,472 Effect of potentially dilutive stock options — 10,702,443 6,394,897 10,282,836 Effect of RSUs — 8,276,118 5,021,346 8,103,126 Effect of PSUs — 64,792 199,797 31,341 Weighted-average shares of common stock—diluted 127,884,400 144,181,632 139,502,527 139,293,775 Net income (loss) per share attributable to common stockholders: Basic $ 0.00 $ 0.14 $ 1.03 $ 1.38 Diluted $ 0.00 $ 0.12 $ 0.94 $ 1.20 The following potentially dilutive shares were excluded from the computation of diluted net income (loss) per share attributable to common stockholders because including them would have been antidilutive: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, Stock options to purchase common stock 11,635,083 5,887,084 6,393,441 10,161,710 Restricted stock units 9,328,274 2,709,489 4,700,508 3,806,326 Performance stock units 301,507 56,742 101,709 33,653 Total 21,264,864 8,653,315 11,195,658 14,001,689

Retirement Plans

Retirement Plans	9 Months Ended
	Jul. 02, 2022
Retirement Benefits [Abstract]
Retirement Plans	12. Retirement Plans The Company has a defined contribution 401(k) plan (the "401(k) Plan") for the Company’s U.S.-based employees, as well as various defined contribution plans for its international employees. Eligible U.S. employees may make tax-deferred contributions under the 401(k) plan but are limited to the maximum annual dollar amount allowable under the Internal Revenue Code of 1986, as amended (the "Code"). The Company matches contributions towards the 401(k) Plan and international defined contribution plans. The Company's matching contributions totaled $ 2.2 million and $ 1.8 million for the three months ended July 2, 2022, and July 3, 2021, respectively. The Company's matching contributions totaled $ 6.2 million and $ 5.3 million for the nine months ended July 2, 2022, and July 3, 2021 , respectively.

Business Combinations

Business Combinations	9 Months Ended
	Jul. 02, 2022
Business Combination and Asset Acquisition [Abstract]
Business Combinations	13. Business Combinations During the first quarter of fiscal 2022, the Company completed two acquisitions for a combined aggregate cash consideration of approximately $ 27.1 million. The acquisitions brought talented employees and strategic intellectual property ("IP") to enhance the experience of Sonos products. The Company accounted for these transactions as business combinations and allocated the purchase consideration to assets acquired and liabilities assumed. In aggregate, $ 0.2 million was attributed to net assets acquired, $ 6.2 million to intangible assets, $ 1.5 million in deferred tax liabilities, and $ 22.2 million to goodwill. The goodwill recognized was primarily attributable to the assembled workforce and expected post-acquisition synergies from these acquisitions. Goodwill is not deductible for tax purposes. The transaction costs associated with the acquisitions were not material and were expensed as incurred, as general and administrative expenses in the condensed consolidated statements of operations and comprehensive income (loss). Pro forma results of operations for these acquisitions have not been presented because they are not material to the Company's condensed consolidated financial statements, either individually or in the aggregate. On April 8, 2022, the Company completed the acquisition of 100 % of the equity interests of Mayht, a Netherlands-based company that has invented a new approach to audio transducers. The acquisition brought a talented group of employees and strategic technology that is expected to enable the Company to transform its product portfolio. The total purchase price consideration of the acquisition of Mayht was $ 99.3 million paid in cash. The Company accounted for this transaction as a business combination and allocated the purchase consideration to assets acquired and liabilities assumed, with $ 72.2 million in intangible assets, $ 16.8 million in net liabilities assumed, and $ 43.9 million in estimated goodwill. The goodwill recognized was primarily attributable to the assembled workforce and expected post-acquisition synergies from integrating Mayht’s technology into the Company's products. The goodwill is not deductible for income tax purposes. The results of Mayht’s operations have been included in, but are not material to, the Company's condensed consolidated results of operations since the date of acquisition. Pro forma results of operations have not been presented because the effect of the acquisition was not material to the Company's condensed consolidated statement of operations and comprehensive income (loss). One-time acquisition-related costs of $ 1.0 million were expensed as general and administrative expenses as incurred. Additional information, such as that related to income tax and other contingencies, existing as of the acquisition date but unknown to the Company may become known during the remainder of the measurement period, not to exceed 12 months from the acquisition date, which may result in changes to the amounts and allocations recorded.

Business Overview and Basis o_2

Business Overview and Basis of Presentation (Policies)	9 Months Ended
	Jul. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of presentation and preparation	Basis of presentation and preparation The accompanying condensed consolidated financial statements are unaudited. The condensed consolidated balance sheet as of October 2, 2021, has been derived from the audited consolidated financial statements of the Company. The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all the information and footnotes required by U.S. GAAP for annual financial statements. They should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended October 2, 2021, (the “Annual Report”), filed with the SEC on November 22, 2021. In management’s opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the Company’s financial position, its results of operations, and its cash flows for the interim periods presented. The results of operations for the three and nine months ended July 2, 2022, are not necessarily indicative of the results to be expected for the full fiscal year or any other period. The Company operates on a 52- week or 53- week fiscal year ending on the Saturday nearest September 30 each year. The Company’s fiscal year is divided into four quarters of 13 weeks, each beginning on a Sunday and containing two 4-week periods followed by a 5-week period. An additional week is included in the fourth fiscal quarter approximately every five years to realign fiscal quarters with calendar quarters. This last occurred in the fourth quarter of the Company’s fiscal year ended October 3, 2020, and will reoccur in the fiscal year ending October 3, 2026. The nine months ended July 2, 2022, and July 3, 2021 , spanned 39 weeks each. As used in this Quarterly Report on Form 10-Q, “fiscal 2022” refers to the fiscal year ending October 1, 2022, “fiscal 2021” refers to the fiscal year ended October 2, 2021, and "fiscal 2020” refers to the fiscal year ended October 3, 2020.
Use of estimates and judgment	Use of estimates and judgments The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company evaluates its estimates and judgments compared to historical experience and expected trends. In March 2020, the outbreak of the novel coronavirus (COVID-19) was declared a pandemic. While the nature of the situation is dynamic, the Company has considered the impact when developing its estimates and assumptions noted above. Actual results and outcomes may differ from management's estimates and assumptions.
Recently adopted accounting pronouncements and recent accounting pronouncements pending adoption	Recently adopted accounting pronouncements In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in Accounting Standards Codification Topic 740 ("ASC 740") as well as by improving consistent application of the topic by clarifying and amending existing guidance. The Company adopted this standard in the first quarter of fiscal 2022. The adoption did not have a material impact on the Company's condensed consolidated financial statements. Recent accounting pronouncements pending adoption In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This update requires that an entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. This standard is effective for the Company in the first quarter of fiscal 2024, with early adoption permitted. The Company is currently evaluating the pronouncement and does not expect it to have a material impact on the Company's consolidated financial statements or disclosures. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of Effects of Reference Rate Reform on Financial Reporting, and then issued a subsequent amendment to the initial guidance under ASU No. 2021-01 (collectively Topic 848). Topic 848 provides practical expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, derivatives, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments in this update apply only to contracts, hedging relationships, derivatives, and other transactions that reference the London interbank offered rate (“LIBOR”) or another reference rate expected to be discontinued as a result of reference rate reform. Topic 848 is currently effective and upon adoption may be applied prospectively to contract modifications and hedging relationships made on or before December 31, 2022. The Company is currently evaluating the pronouncement to determine the impact it may have on the Company's consolidated financial statements.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Jul. 02, 2022
Fair Value Disclosures [Abstract]
Summary of fair value measurements by level for the assets measured on a recurring basis	The following table summarizes fair value measurements by level for the assets measured at fair value on a recurring basis as of July 2, 2022, and October 2, 2021: July 2, 2022 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds (cash equivalents) $ 285,865 $ — $ — $ 285,865 October 2, 2021 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds (cash equivalents) $ 484,482 $ — $ — $ 484,482

Revenue and Geographic Inform_2

Revenue and Geographic Information (Tables)	9 Months Ended
	Jul. 02, 2022
Revenue from Contract with Customer [Abstract]
Disaggregation of revenue	Revenue by region is as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, (In thousands) Americas $ 232,421 $ 223,720 $ 844,099 $ 784,898 Europe, Middle East and Africa (“EMEA”) 112,684 126,228 486,473 480,541 Asia Pacific (“APAC”) 26,678 28,724 105,474 91,765 Total revenue $ 371,783 $ 378,672 $ 1,436,046 $ 1,357,204 Revenue by significant countries is as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, (In thousands) United States $ 211,382 $ 203,387 $ 777,808 $ 712,302 Other countries 160,401 175,285 658,238 644,902 Total revenue $ 371,783 $ 378,672 $ 1,436,046 $ 1,357,204 Revenue by major product category is as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, (In thousands) Sonos speakers $ 314,205 $ 310,233 $ 1,133,825 $ 1,105,283 Sonos system products 38,363 47,621 234,328 197,442 Partner products and other revenue 19,215 20,818 67,893 54,479 Total revenue $ 371,783 $ 378,672 $ 1,436,046 $ 1,357,204

Balance Sheet Components (Table

Balance Sheet Components (Tables)	9 Months Ended
	Jul. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of accounts receivable	Accounts receivable, net of allowances Accounts receivable, net of allowances, consist of the following: July 2, October 2, (In thousands) Accounts receivable $ 148,112 $ 121,486 Allowance for credit losses ( 2,357 ) ( 1,547 ) Allowance for sales incentives ( 20,871 ) ( 19,160 ) Accounts receivable, net of allowances $ 124,884 $ 100,779
Schedule of inventories	Inventories, net, consist of the following: July 2, October 2, (In thousands) Finished goods $ 258,994 $ 154,608 Component parts 76,736 30,522 Inventories $ 335,730 $ 185,130
Schedule of goodwill	The following table presents the changes in carrying amount of goodwill during the nine months ended July 2, 2022: (In thousands) Balance as of October 2, 2021 $ 15,545 Goodwill acquired 66,078 Effect of exchange rate changes on goodwill ( 1,799 ) Balance as of July 2, 2022 $ 79,824
Schedule of finite-lived intangible assets, future amortization expense	The following table reflects the changes in the net carrying amount of the components of intangible assets associated with the Company's acquisition activity: July 2, 2022 Gross Carrying Amount Accumulated Amortization Impact of FX Net Carrying Value Weighted-Average Remaining Life (In thousands, except weighted-average remaining life) Tradename $ 451 $ ( 19 ) $ — $ 432 5.75 Technology-based 34,563 ( 6,876 ) — 27,687 5.65 Total finite-lived intangible assets 35,014 ( 6,895 ) — 28,119 5.65 In-process research and development not subject to amortization 71,759 — ( 2,942 ) 68,817 Total intangible assets $ 106,773 $ ( 6,895 ) $ ( 2,942 ) $ 96,936 The following table summarizes the estimated future amortization expense of the Company's intangible assets as of July 2, 2022: Fiscal years ending Future Amortization Expense (In thousands) Remainder of fiscal 2022 $ 1,758 2023 6,180 2024 5,968 2025 3,367 2026 3,038 2027 and there after 7,808 Total future amortization expense $ 28,119
Changes in deferred balances and expected revenue recognition	The following table presents the changes in the Company’s deferred revenue for the nine months ended July 2, 2022, and July 3, 2021: July 2, July 3, (In thousands) Deferred revenue, beginning of period $ 89,498 $ 62,388 Recognition of revenue included in beginning of period deferred revenue ( 35,226 ) ( 13,381 ) Revenue deferred, net of revenue recognized on contracts in the respective period 21,549 21,379 Deferred revenue, end of period $ 75,821 $ 70,386
Remaining performance obligation	The Company expects the following recognition of deferred revenue as of July 2, 2022: For the fiscal years ending 2022 2023 2024 2025 2026 and Total (In thousands) Deferred revenue expected to be recognized $ 5,184 $ 17,302 $ 15,251 $ 12,968 $ 25,116 $ 75,821
Schedule of product warranty liability	The following table presents the changes in the Company’s warranty liability for the nine months ended July 2, 2022, and July 3, 2021: July 2, July 3, (In thousands) Warranty liability, beginning of period $ 5,604 $ 3,628 Provision for warranties issued during the period 9,191 12,218 Settlements of warranty claims during the period ( 7,367 ) ( 10,613 ) Warranty liability, end of period $ 7,428 $ 5,233

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Jul. 02, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of stock option activity	The summary of the Company’s stock option activity is as follows: Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (In years) (In thousands) Outstanding at October 2, 2021 14,545,239 $ 12.86 5.1 $ 282,141 Granted — — Exercised ( 3,245,130 ) 11.48 Expired ( 340 ) 2.50 Forfeited ( 29,983 ) 14.76 Outstanding at July 2, 2022 11,269,786 $ 13.26 4.7 $ 52,563 At July 2, 2022 Options exercisable 10,616,150 $ 13.20 4.6 $ 50,146 Options vested and expected to vest 11,234,657 $ 13.25 4.7 $ 52,424
Schedule of restricted stock unit activity	The summary of the Company’s RSU activity is as follows Number of Units Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value (In thousands) Outstanding at October 2, 2021 9,283,525 $ 12.64 $ 299,487 Granted 3,539,358 30.49 Released ( 3,236,683 ) 13.62 Forfeited ( 699,473 ) 17.52 Outstanding at July 2, 2022 8,886,727 $ 19.00 $ 159,250 At July 2, 2022 Units expected to vest 7,623,960 $ 18.64 $ 136,621
Schedule of performance stock units activity	The summary of the Company’s PSU activity is as follows: Number of Units Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value (In thousands) Outstanding at October 2, 2021 158,521 $ 22.81 $ 5,114 Granted 252,296 29.71 Outstanding at July 2, 2022 410,817 $ 27.05 $ 11,371
Schedule of stock-based compensation expense	Total stock-based compensation expense by functional category was as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, (In thousands) Cost of revenue $ 448 $ 248 $ 1,153 $ 723 Research and development 7,858 6,125 22,687 19,067 Sales and marketing 3,826 3,277 11,650 10,317 General and administrative 6,647 5,897 21,973 16,648 Total stock-based compensation expense $ 18,779 $ 15,547 $ 57,463 $ 46,755

Net Income (Loss) Per Share A_2

Net Income (Loss) Per Share Attributable to Common Stockholders (Tables)	3 Months Ended	9 Months Ended
	Jul. 02, 2022	Jul. 02, 2022
Earnings Per Share [Abstract]
Schedule of earnings per share	The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share attributable to common stockholders: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, (In thousands, except share and per share data) Numerator: Net income (loss) attributable to common stockholders - basic and diluted $ ( 597 ) $ 17,826 $ 131,451 $ 167,339 Denominator: Weighted-average shares of common stock—basic 127,884,400 125,138,279 127,886,487 120,876,472 Effect of potentially dilutive stock options — 10,702,443 6,394,897 10,282,836 Effect of RSUs — 8,276,118 5,021,346 8,103,126 Effect of PSUs — 64,792 199,797 31,341 Weighted-average shares of common stock—diluted 127,884,400 144,181,632 139,502,527 139,293,775 Net income (loss) per share attributable to common stockholders: Basic $ 0.00 $ 0.14 $ 1.03 $ 1.38 Diluted $ 0.00 $ 0.12 $ 0.94 $ 1.20
Schedule of antidilutive securities		The following potentially dilutive shares were excluded from the computation of diluted net income (loss) per share attributable to common stockholders because including them would have been antidilutive: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, Stock options to purchase common stock 11,635,083 5,887,084 6,393,441 10,161,710 Restricted stock units 9,328,274 2,709,489 4,700,508 3,806,326 Performance stock units 301,507 56,742 101,709 33,653 Total 21,264,864 8,653,315 11,195,658 14,001,689

Business Overview and Basis o_3

Business Overview and Basis of Presentation (Details)	Jul. 02, 2022 Country
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of countries where products are distributed	50

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Money Market Funds - USD ($) $ in Thousands	Jul. 02, 2022	Oct. 02, 2021
Assets:
Money market funds (cash equivalents)	$ 285,865	$ 484,482
Level 1
Assets:
Money market funds (cash equivalents)	285,865	484,482
Level 2
Assets:
Money market funds (cash equivalents)	0	0
Level 3
Assets:
Money market funds (cash equivalents)	$ 0	$ 0

Revenue and Geographic Inform_3

Revenue and Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 371,783	$ 378,672	$ 1,436,046	$ 1,357,204
Sonos speakers
Disaggregation of Revenue [Line Items]
Revenue	314,205	310,233	1,133,825	1,105,283
Sonos system products
Disaggregation of Revenue [Line Items]
Revenue	38,363	47,621	234,328	197,442
Partner products and other revenue
Disaggregation of Revenue [Line Items]
Revenue	19,215	20,818	67,893	54,479
Americas
Disaggregation of Revenue [Line Items]
Revenue	232,421	223,720	844,099	784,898
Europe, Middle East and Africa (“EMEA”)
Disaggregation of Revenue [Line Items]
Revenue	112,684	126,228	486,473	480,541
Asia Pacific (“APAC”)
Disaggregation of Revenue [Line Items]
Revenue	26,678	28,724	105,474	91,765
United States
Disaggregation of Revenue [Line Items]
Revenue	211,382	203,387	777,808	712,302
Other countries
Disaggregation of Revenue [Line Items]
Revenue	$ 160,401	$ 175,285	$ 658,238	$ 644,902

Balance Sheet Components - Acco

Balance Sheet Components - Accounts receivable, net of allowances (Details) - USD ($) $ in Thousands	Jul. 02, 2022	Oct. 02, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts receivable	$ 148,112	$ 121,486
Allowance for credit losses	(2,357)	(1,547)
Allowance for sales incentives	(20,871)	(19,160)
Accounts receivable, net of allowances	$ 124,884	$ 100,779

Balance Sheet Components - Inve

Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands	Jul. 02, 2022	Oct. 02, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finished goods	$ 258,994	$ 154,608
Component parts	76,736	30,522
Inventories	$ 335,730	$ 185,130

Balance Sheet Components - Good

Balance Sheet Components - Goodwill (Details) $ in Thousands	9 Months Ended
	Jul. 02, 2022 USD ($)
Goodwill [Roll Forward]
Goodwill beginning balance	$ 15,545
Goodwill acquired	66,078
Effect of exchange rate changes on goodwill	(1,799)
Goodwill ending balance	$ 79,824

Balance Sheet Components - Fini

Balance Sheet Components - Finite-lived intangible assets, future amortization expense (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Jul. 02, 2022	Jul. 02, 2022	Oct. 02, 2021
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 35,014	$ 35,014
Accumulated Amortization	(6,895)	(6,895)
Net Carrying Value	28,119	28,119
In-process research and development not subject to amortization, impact	(2,942)	(2,942)
Intangible assets, gross carrying amount (excluding goodwill)	106,773	106,773
Intangible assets, net carrying value (excluding goodwill)	$ 96,936	$ 96,936	$ 24,450
Weighted-Average Remaining Life	7 years	5 years 7 months 24 days
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of fiscal 2022	$ 1,758	$ 1,758
2023	6,180	6,180
2024	5,968	5,968
2025	3,367	3,367
2026	3,038	3,038
2027 and there after	7,808	7,808
Net Carrying Value	28,119	28,119
Tradename [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	451	451
Accumulated Amortization	(19)	(19)
Net Carrying Value	432	$ 432
Weighted-Average Remaining Life		5 years 9 months
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net Carrying Value	432	$ 432
In-process research and development not subject to amortization
Finite-Lived Intangible Assets [Line Items]
In-process research and development not subject to amortization	71,759	71,759
In-process research and development not subject to amortization, impact	(2,942)	(2,942)
In-process research and development not subject to amortization, Net	68,817	68,817
Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	34,563	34,563
Accumulated Amortization	(6,876)	(6,876)
Net Carrying Value	27,687	$ 27,687
Weighted-Average Remaining Life		5 years 7 months 24 days
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net Carrying Value	$ 27,687	$ 27,687

Balance Sheet Components - Addi

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Jul. 02, 2022	Jul. 02, 2022	Oct. 02, 2021
Business Acquisition [Line Items]
Weighted-average useful life	7 years	5 years 7 months 24 days
Recognition of revenue		$ 18.8
Capitalized implementation costs	$ 22.7	22.7	$ 14.3
In-Process Research and Development Reclassified as Definite Lived Developed Technology [Member]
Business Acquisition [Line Items]
Acquired in-process research and development reclassified as definite lived developed technology	20.1
Mayht Holding BV [Member]
Business Acquisition [Line Items]
Intangible assets subject to amortization	0.5	$ 0.5
Weighted-average useful life		6 years
Mayht Holding BV [Member] | In-process Research and Development Activity [Member]
Business Acquisition [Line Items]
Intangible not subject to amortization	$ 71.8	$ 71.8

Balance Sheet Components - Accr

Balance Sheet Components - Accrued expenses (Details) - USD ($) $ in Thousands	Jul. 02, 2022	Oct. 02, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued advertising and marketing	$ 14,050	$ 19,989
Accrued taxes	12,880	16,941
Accrued inventory	33,414	37,117
Accrued manufacturing, logistics and product development	20,131	14,943
Accrued general and administrative expenses	21,117	13,066
Other accrued payables	6,401	5,973
Total accrued expenses	$ 107,993	$ 108,029

Balance Sheet Components - Chan

Balance Sheet Components - Change in deferred revenue (Details) - USD ($) $ in Thousands	9 Months Ended
	Jul. 02, 2022	Jul. 03, 2021
Contract with Customer, Liability [Roll Forward]
Deferred revenue, beginning of period	$ 89,498	$ 62,388
Recognition of revenue included in beginning of period deferred revenue	(35,226)	(13,381)
Revenue deferred, net of revenue recognized on contracts in the respective period	21,549	21,379
Deferred revenue, end of period	$ 75,821	$ 70,386

Balance Sheet Components - Expe

Balance Sheet Components - Expected revenue recognition (Details) - USD ($) $ in Thousands	Jul. 02, 2022	Apr. 02, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue expected to be recognized	$ 75,821
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-03
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue expected to be recognized	$ 5,184
Performance obligations expected to be satisfied in	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-02
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue expected to be recognized	$ 17,302
Performance obligations expected to be satisfied in	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue expected to be recognized	$ 15,251
Performance obligations expected to be satisfied in	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-09-29
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue expected to be recognized	$ 12,968
Performance obligations expected to be satisfied in	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-09-28
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue expected to be recognized	$ 25,116
Performance obligations expected to be satisfied in

Balance Sheet Components - Ex_2

Balance Sheet Components - Expected revenue recognition 1 (Details) $ in Thousands	Jul. 02, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue expected to be recognized	$ 75,821

Balance Sheet Components - Othe

Balance Sheet Components - Other current liabilities (Details) - USD ($) $ in Thousands	Jul. 02, 2022	Oct. 02, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reserve for returns	$ 19,634	$ 19,266
Short-term operating lease liabilities	10,254	10,724
Warranty liability	7,428	5,604
Other	6,295	3,950
Total other current liabilities	$ 43,611	$ 39,544

Balance Sheet Components - Prod

Balance Sheet Components - Product Warranties (Details) - USD ($) $ in Thousands	9 Months Ended
	Jul. 02, 2022	Jul. 03, 2021
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty liability, beginning of period	$ 5,604	$ 3,628
Provision for warranties issued during the period	9,191	12,218
Settlements of warranty claims during the period	(7,367)	(10,613)
Warranty liability, end of period	$ 7,428	$ 5,233

Debt - Additional Information (

Debt - Additional Information (Details) - Credit Facility - Revolving Credit Facility - USD ($) $ in Millions	Oct. 13, 2021	Jul. 02, 2022	Oct. 12, 2021
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 100		$ 80
Term of debt	5 years
Undrawn letters of credit		$ 2.9
Minimum
Debt Instrument [Line Items]
Commitment fee percentage	0.20%
Maximum
Debt Instrument [Line Items]
Commitment fee percentage	0.275%
Base Rate
Debt Instrument [Line Items]
Interest rate, spread on variable rate	1%

Commitments and Contingencies -

Commitments and Contingencies - Textual (Details) $ in Millions

3 Months Ended

9 Months Ended

Aug. 08, 2022 Patent

Aug. 13, 2021 Patent

Jun. 23, 2021 Claimfeature

Dec. 01, 2020 Plaintiff

Nov. 02, 2020 Patent

Sep. 29, 2020 Patent

Sep. 28, 2020 Patent

Aug. 21, 2020 Patent

Jun. 12, 2020 Patent

Jun. 11, 2020 Patent

Mar. 10, 2017 Patent

Jul. 02, 2022 USD ($)

Jul. 02, 2022 USD ($) Patent

Loss Contingencies [Line Items]

Tariff refund | $

$ 14.3

$ 14.3

Implicit, LLC

Loss Contingencies [Line Items]

Loss contingency, patents allegedly infringed upon, number

2

Alphabet Inc. ("Alphabet") and Google LLC ("Google")

Loss Contingencies [Line Items]

Gain contingency, patents found infringed upon

5

Gain contingency, patents allegedly infringed upon, number

5

5

Sonos, Inc.

Loss Contingencies [Line Items]

Gain contingency, patents allegedly infringed upon, number

2

Gain contingency, patents allegedly infringed upon, number of claim features scheduled for early disposition

2

Loss contingency, patents allegedly infringed upon, number

5

Loss contingency, patents found not infringed upon, number

1

Gain contingency, patents found not infringed, number of claim features | Claimfeature

2

Sonos, Inc. | Subsequent Event

Loss Contingencies [Line Items]

Loss contingency, patents allegedly infringed upon, number

7

Sonos, Inc. | Canada

Loss Contingencies [Line Items]

Gain contingency, patents allegedly infringed upon, number

1

Sonos, Inc. | Europe and France

Loss Contingencies [Line Items]

Gain contingency, patents allegedly infringed upon, number

2

Google Foreign Subsidiaries

Loss Contingencies [Line Items]

Gain contingency, patent allegedly infringed upon, number of defendants | Plaintiff

2

Government

Loss Contingencies [Line Items]

Income tax examination, refund | $

$ 7.3

$ 11.9

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Jul. 02, 2022	Nov. 17, 2021
Equity [Abstract]
Stock repurchase program, authorized value		$ 150
Purchase of treasury stock (in shares)	4,650,276
Purchase price of common stock	$ 117.1
Average price per share (in dollars per share)	$ 25.16
Remaining authorized repurchase amount	$ 32.9
Retirement of treasury stock (in shares)	4,375,584

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Details) - USD ($) $ in Millions	1 Months Ended	9 Months Ended	12 Months Ended
	Jul. 31, 2018	Jul. 02, 2022	Oct. 02, 2021
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		48 months
Exercisable period		10 years
Unrecognized stock-based compensation expense		$ 1.5	$ 6.2
Unrecognized stock-based compensation expense, period of recognition		6 months	10 months 24 days
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		4 years
Unrecognized stock-based compensation expense		$ 128.7	$ 90
Unrecognized stock-based compensation expense, period of recognition		2 years 7 months 6 days	2 years 6 months
Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense		$ 2.4	$ 3.6
Unrecognized stock-based compensation expense, period of recognition		10 months 24 days	1 year 2 months 12 days
2018 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of outstanding stock maximum	5%

Stock-based Compensation - Stoc

Stock-based Compensation - Stock Option Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Jul. 02, 2022 USD ($) $ / shares shares	Oct. 02, 2021 USD ($) $ / shares shares
Number of Options
Beginning balance (in shares) | shares	14,545,239
Granted (in shares) | shares	0
Exercised (in shares) | shares	(3,245,130)
Expired (in shares) | shares	(340)
Forfeited (in shares) | shares	(29,983)
Ending balance (in shares) | shares	11,269,786	14,545,239
Options exercisable (in shares) | shares	10,616,150
Options vested and expected to vest (in shares) | shares	11,234,657
Weighted-Average Exercise Price
Beginning balance (in USD per share) | $ / shares	$ 12.86
Granted (in USD per share) | $ / shares	0
Exercised (in USD per share) | $ / shares	11.48
Expired (in USD per share) | $ / shares	2.50
Forfeited (in USD per share) | $ / shares	14.76
Ending balance (in USD per share) | $ / shares	13.26	$ 12.86
Option exercisable - Weighted Average Exercise Price (in USD per share) | $ / shares	13.20
Options vested and expected to vest - Weighted Average Exercise Price (in USD per share) | $ / shares	$ 13.25
Additional Information
Weighted-Average Remaining Contractual Term	4 years 8 months 12 days	5 years 1 month 6 days
Option exercisable - Weighted Average Remaining Contractual Term	4 years 7 months 6 days
Options vested and expected to vest - Weighted Average Remaining Contractual Term	4 years 8 months 12 days
Aggregate Intrinsic Value | $	$ 52,563	$ 282,141
Options exercisable - Average Intrinsic Value | $	50,146
Options vested and expected to vest - Average Intrinsic Value | $	$ 52,424

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Unit Activity (Details) - Restricted stock units $ / shares in Units, $ in Thousands	9 Months Ended
	Jul. 02, 2022 USD ($) $ / shares shares
Number of Units
Outstanding, beginning balance (in shares) | shares	9,283,525
Granted (in shares) | shares	3,539,358
Released (in shares) | shares	(3,236,683)
Forfeited (in shares) | shares	(699,473)
Outstanding, ending balance (in shares) | shares	8,886,727
Units expected to vest (in shares) | shares	7,623,960
Weighted-Average Grant Date Fair Value
Outstanding, beginning balance (in USD per share) | $ / shares	$ 12.64
Granted (in USD per share) | $ / shares	30.49
Released (in USD per share) | $ / shares	13.62
Forfeited (in USD per share) | $ / shares	17.52
Outstanding, ending balance (in USD per share) | $ / shares	19
Vested and expected to vest - Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 18.64
Additional Information
Aggregate Intrinsic Value, beginning balance | $	$ 299,487
Aggregate Intrinsic Value, ending balance | $	159,250
Vested and expected to vest - Weighted Average Intrinsic Value | $	$ 136,621

Stock-based Compensation - Perf

Stock-based Compensation - Performance Stock Unit Activity (Details) - Performance Share Units $ / shares in Units, $ in Thousands	9 Months Ended
	Jul. 02, 2022 USD ($) $ / shares shares
Number of Units
Outstanding, beginning balance (in shares) | shares	158,521
Granted (in shares) | shares	252,296
Outstanding, ending balance (in shares) | shares	410,817
Weighted-Average Grant Date Fair Value
Outstanding, beginning balance (in USD per share) | $ / shares	$ 22.81
Granted (in USD per share) | $ / shares	29.71
Outstanding, ending balance (in USD per share) | $ / shares	$ 27.05
Additional Information
Aggregate Intrinsic Value, beginning balance | $	$ 5,114
Aggregate Intrinsic Value, ending balance | $	$ 11,371

Stock-based Compensation - St_2

Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 18,779	$ 15,547	$ 57,463	$ 46,755
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	448	248	1,153	723
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	7,858	6,125	22,687	19,067
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	3,826	3,277	11,650	10,317
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 6,647	$ 5,897	$ 21,973	$ 16,648

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021
Income Tax Disclosure [Abstract]
Provision for (benefit from) income taxes	$ (2,068)	$ 858	$ 4,805	$ 3,436

Net Income (Loss) Per Share A_3

Net Income (Loss) Per Share Attributable to Common Stockholders - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Jul. 02, 2022	Apr. 02, 2022	Jan. 01, 2022	Jul. 03, 2021	Apr. 03, 2021	Jan. 02, 2021	Jul. 02, 2022	Jul. 03, 2021
Numerator:
Net income (loss)	$ (597)	$ 8,566	$ 123,481	$ 17,826	$ 17,221	$ 132,292	$ 131,451	$ 167,339
Denominator:
Weighted-average shares of common stock - basic (in shares)	127,884,400			125,138,279			127,886,487	120,876,472
Weighted-average shares of common stock - diluted (in shares)	127,884,400			144,181,632			139,502,527	139,293,775
Net income (loss) attributable to common stockholders:
Net income (loss) per share attributable to common stockholders - basic (in USD per share)	$ 0			$ 0.14			$ 1.03	$ 1.38
Net income (loss) per share attributable to common stockholders - diluted (in USD per share)	$ 0			$ 0.12			$ 0.94	$ 1.20
Stock Options
Denominator:
Effect of potentially dilutive stock options, RSUs, and PSUs (in shares)				10,702,443			6,394,897	10,282,836
Restricted stock units
Denominator:
Effect of potentially dilutive stock options, RSUs, and PSUs (in shares)				8,276,118			5,021,346	8,103,126
Performance Share Units
Denominator:
Effect of potentially dilutive stock options, RSUs, and PSUs (in shares)				64,792			199,797	31,341

Net Income (Loss) Per Share A_4

Net Income (Loss) Per Share Attributable to Common Stockholders - Antidilutive Securities (Details) - shares	3 Months Ended		9 Months Ended
	Jul. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)		8,653,315		14,001,689
Stock options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)		5,887,084		10,161,710
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)		2,709,489		3,806,326
Performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)		56,742		33,653

Retirement Plans (Details)

Retirement Plans (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 02, 2022	Jul. 03, 2021	Jul. 02, 2022	Jul. 03, 2021
Retirement Benefits [Abstract]
Employer contribution	$ 2.2	$ 1.8	$ 6.2	$ 5.3

Business Combinations - Additio

Business Combinations - Additional Information (Details) $ in Thousands		3 Months Ended
	Apr. 08, 2022 USD ($)	Jan. 01, 2022 USD ($) Acquisition	Jul. 02, 2022 USD ($)	Oct. 02, 2021 USD ($)
Business Acquisition [Line Items]
Goodwill			$ 79,824	$ 15,545
Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Cash consideration		$ 27,100
Number of acquisitions | Acquisition		2
Net assets acquired, excluding goodwill		$ 200
Intangible assets		6,200
Deferred tax liabilities		1,500
Goodwill		$ 22,200
Mayht Holding BV [Member]
Business Acquisition [Line Items]
Cash consideration	$ 99,300
Intangible assets	72,200
Net liabilities assumed	16,800
Goodwill	$ 43,900
Percentage of ownership control	100%
One-time acquisition-related costs	$ 1,000