Sonos (SONO) 10-Q8 Feb 232023 Q1 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page - shares	3 Months Ended
Cover Page - shares	Dec. 31, 2022	Jan. 31, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 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		127,347,882
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001314727
Current Fiscal Year End Date	--09-30

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Oct. 01, 2022
Current assets:
Cash and cash equivalents	$ 431,533	$ 274,855
Accounts receivable, net of allowances	109,703	101,206
Inventories	306,056	454,288
Prepaids and other current assets	34,765	37,042
Total current assets	882,057	867,391
Property and equipment, net	85,068	86,168
Operating lease right-of-use assets	25,894	28,329
Goodwill	80,941	77,300
Intangible assets, net:
In-process research and development	70,640	64,680
Other intangible assets	24,705	26,384
Deferred tax assets	1,416	1,508
Other noncurrent assets	36,154	36,628
Total assets	1,206,875	1,188,388
Current liabilities:
Accounts payable	236,037	335,758
Accrued expenses	138,344	109,290
Accrued compensation	26,430	23,624
Deferred revenue, current	19,560	27,318
Other current liabilities	57,268	39,649
Total current liabilities	477,639	535,639
Operating lease liabilities, noncurrent	22,318	25,596
Deferred revenue, noncurrent	62,421	56,152
Deferred tax liabilities	10,415	9,642
Other noncurrent liabilities	728	846
Total liabilities	573,521	627,875
Commitments and contingencies (Note 7)
Stockholders’ equity:
Common stock, $0.001 par value	130	130
Treasury stock	(35,047)	(50,896)
Additional paid-in capital	606,420	617,390
Retained earnings (accumulated deficit)	72,674	(2,514)
Accumulated other comprehensive loss	(10,823)	(3,597)
Total stockholders’ equity	633,354	560,513
Total liabilities and stockholders’ equity	$ 1,206,875	$ 1,188,388

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2022	Oct. 01, 2022
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 - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Income Statement [Abstract]
Revenue	$ 672,579	$ 664,481
Cost of revenue	387,522	347,096
Gross profit	285,057	317,385
Operating expenses
Research and development	76,940	61,330
Sales and marketing	78,696	83,736
General and administrative	43,117	39,725
Total operating expenses	198,753	184,791
Operating income	86,304	132,594
Other income (expense), net
Interest income	1,967	33
Interest expense	(158)	(98)
Other income (expense), net	23,576	(1,402)
Total other income (expense), net	25,385	(1,467)
Income before provision for income taxes	111,689	131,127
Provision for income taxes	36,501	7,646
Net income	75,188	123,481
Net income attributable to common stockholders:
Basic and diluted	$ 75,188	$ 123,481
Basic (in USD per share)	$ 0.59	$ 0.97
Diluted (in USD per share)	$ 0.57	$ 0.87
Weighted-average shares used in computing net income per share attributable to common stockholders:
Basic (in shares)	127,212,245	127,662,826
Diluted (in shares)	131,502,986	142,322,448
Total comprehensive income
Net income	$ 75,188	$ 123,481
Change in foreign currency translation adjustment	(7,226)	(360)
Comprehensive income	$ 67,962	$ 123,121

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Treasury Stock	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Loss
Balance, beginning of period (in shares) at Oct. 02, 2021		128,857,085		(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 stock awards (in shares)				(344,198)
Repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards	(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. 01, 2022		129,823,663		(3,154,940)
Balance, beginning of period at Oct. 01, 2022	$ 560,513	$ 130	617,390	$ (50,896)	(2,514)	(3,597)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to equity incentive plans (in shares)	730,376	1,973,506
Issuance of common stock pursuant to equity incentive plans	$ 8,103	$ 2	8,101
Retirement of treasury stock (in shares)	(2,293,416)	(2,293,416)		(2,293,416)
Retirement of treasury stock		$ (2)	(39,266)	$ (39,268)
Purchase of common stock (in shares)	(849,806)			(849,806)
Repurchase of common stock	$ (15,043)			$ (15,043)
Repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards (in shares)				(470,585)
Repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards	(8,376)			$ (8,376)
Stock-based compensation expense	20,195		20,195
Net income	75,188				75,188
Change in foreign currency translation adjustment	(7,226)					(7,226)
Balance, end of period (in shares) at Dec. 31, 2022		129,503,753		(2,181,915)
Balance, ending of period at Dec. 31, 2022	$ 633,354	$ 130	$ 606,420	$ (35,047)	$ 72,674	$ (10,823)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Cash flows from operating activities
Net income	$ 75,188	$ 123,481
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	11,132	9,217
Stock-based compensation expense	20,195	17,459
Other	6,797	1,139
Deferred income taxes	167	14
Foreign currency transaction (gain) loss	(17,700)	494
Changes in operating assets and liabilities:
Accounts receivable, net	(7,286)	(79,000)
Inventories	143,144	(21,800)
Other assets	2,463	4,086
Accounts payable and accrued expenses	(65,917)	185,127
Accrued compensation	2,249	(49,094)
Deferred revenue	(3,950)	(13,510)
Other liabilities	15,804	2,321
Net cash provided by operating activities	182,286	179,934
Cash flows from investing activities
Purchases of property and equipment, and intangible assets	(14,689)	(6,355)
Cash paid for acquisitions, net of acquired cash		(27,101)
Net cash used in investing activities	(14,689)	(33,456)
Cash flows from financing activities
Payments for debt issuance costs		(929)
Payments for repurchase of common stock	(15,043)	(31,365)
Proceeds from exercise of common stock options	8,103	13,232
Payments for repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards	(8,376)	(11,882)
Net cash used in financing activities	(15,316)	(30,944)
Effect of exchange rate changes on cash and cash equivalents	4,397	(1,218)
Net increase in cash and cash equivalents	156,678	114,316
Cash and cash equivalents
Beginning of period	274,855	640,101
End of period	431,533	754,417
Supplemental disclosure
Cash paid for interest	111	23
Cash paid for taxes, net of refunds	1,903	413
Cash paid for amounts included in the measurement of lease liabilities	2,190	3,410
Supplemental disclosure of non-cash investing and financing activities
Purchases of property and equipment in accounts payable and accrued expenses	$ 2,030	5,499
Right-of-use assets obtained in exchange for new operating lease liabilities		$ 2,246

Business Overview and Basis of

Business Overview and Basis of Presentation	3 Months Ended
Business Overview and Basis of Presentation	Dec. 31, 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 60 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 1, 2022, 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 1, 2022, (the “Annual Report”), filed with the SEC on November 23, 2022. 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 months ended December 31, 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 three months ended December 31, 2022, and January 1, 2022 , spanned 13 weeks each. As used in this Quarterly Report on Form 10-Q, “fiscal 2023” refers to the fiscal year ending September 30, 2023, “fiscal 2022” refers to the fiscal year ended 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. The Company has considered the impacts of the COVID-19 pandemic when developing its estimates and assumptions noted above. The impacts of, and uncertainty related to, the COVID-19 pandemic and its expected duration persist. Actual results and outcomes may differ from management's estimates and assumptions.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 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. Recent accounting pronouncements pending adoption 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 subsequent amendments to the initial guidance under ASU No. 2021-01 and ASU No. 2022-06 (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, 2024. 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	3 Months Ended
Fair Value Measurements	Dec. 31, 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 December 31, 2022, and October 1, 2022: December 31, 2022 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds (cash equivalents) $ 302,799 $ — $ — $ 302,799 October 1, 2022 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds (cash equivalents) $ 187,170 $ — $ — $ 187,170

Revenue and Geographic Informat

Revenue and Geographic Information	3 Months Ended
Revenue and Geographic Information	Dec. 31, 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 December 31, January 1, (In thousands) Americas $ 396,565 $ 373,813 Europe, Middle East and Africa (“EMEA”) 240,439 245,482 Asia Pacific (“APAC”) 35,575 45,186 Total revenue $ 672,579 $ 664,481 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 December 31, January 1, (In thousands) United States $ 365,974 $ 347,646 Other countries 306,605 316,835 Total revenue $ 672,579 $ 664,481 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 December 31, January 1, (In thousands) Sonos speakers $ 539,196 $ 501,886 Sonos system products 114,434 134,745 Partner products and other revenue 18,949 27,850 Total revenue $ 672,579 $ 664,481

Balance Sheet Components

Balance Sheet Components	3 Months Ended
Balance Sheet Components	Dec. 31, 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: December 31, October 1, (In thousands) Accounts receivable $ 141,587 $ 127,523 Allowance for credit losses ( 3,129 ) ( 2,744 ) Allowance for sales incentives ( 28,755 ) ( 23,573 ) Accounts receivable, net of allowances $ 109,703 $ 101,206 Inventories Inventories, net, consist of the following: December 31, October 1, (In thousands) Finished goods $ 260,734 $ 406,657 Component parts 45,322 47,631 Inventories $ 306,056 $ 454,288 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. As of December 31, 2022, and October 1, 2022, inventory write-downs were $ 15.2 million and $ 8.8 million, respectively. Goodwill The following table presents the changes in carrying amount of goodwill during the three months ended December 31, 2022: (In thousands) Balance as of October 1, 2022 $ 77,300 Effect of exchange rate changes on goodwill 3,641 Balance as of December 31, 2022 $ 80,941 Intangible assets The following table reflects the changes in the net carrying amount of the components of intangible assets associated with the Company's acquisition activity: December 31, 2022 Gross Carrying Amount Accumulated Amortization Impact of FX Net Carrying Value Weighted-Average Remaining Life (In thousands, except weighted-average remaining life) Trade name $ 451 $ ( 52 ) $ ( 7 ) $ 392 5.25 Technology-based 31,480 ( 7,167 ) — 24,313 5.36 Total finite-lived intangible assets 31,931 ( 7,219 ) ( 7 ) 24,705 5.36 In-process research and development not subject to amortization 71,759 — ( 1,119 ) 70,640 Total intangible assets $ 103,690 $ ( 7,219 ) $ ( 1,126 ) $ 95,345 The following table summarizes the estimated future amortization expense of the Company's intangible assets as of December 31, 2022: Fiscal years ending Future Amortization Expense (In thousands) Remainder of fiscal 2023 $ 4,478 2024 5,970 2025 3,369 2026 3,040 2027 3,025 2028 and there after 4,823 Total future amortization expense $ 24,705 Cloud Computing Arrangements The Company incurs costs to implement cloud computing arrangements that are hosted by a third-party vendor. Implementation costs incurred during the application development stage are capitalized until the software is ready for its intended use. The costs are then amortized on a straight-line basis over the term of the associated hosting arrangement and are recognized as an operating expense within the condensed consolidated statements of operations and comprehensive income. Beginning in fiscal 2020, and continuing through April 2022, the Company conducted activities to replace its legacy enterprise resource management system in order to accommodate the Company's expanding operations. In May 2022, the Company went live with its implementation of a new enterprise resource planning ("ERP") system. Capitalized costs, net of accumulated amortization, were $ 20.7 million and $ 21.7 million as of December 31, 2022, and October 1, 2022, 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 for three months ended December 31, 2022 were $ 1.0 million. Accumulated amortization was $ 3.5 million and $ 2.5 million as of December 31, 2022, and October 1, 2022, respectively. Accrued expenses Accrued expenses consisted of the following: December 31, October 1, (In thousands) Accrued taxes $ 52,729 $ 7,081 Accrued inventory and supply chain costs 44,895 51,011 Accrued general and administrative expenses 21,124 21,634 Accrued advertising and marketing 12,893 21,292 Accrued product development 6,392 8,168 Other accrued payables 311 104 Total accrued expenses $ 138,344 $ 109,290 Deferred revenue Amounts invoiced in advance of revenue recognition are recorded as deferred revenue on the condensed consolidated balance sheets. Deferred revenue primarily relates to revenue allocated to unspecified software upgrades and cloud-based services. Recognition of revenue as of December 31, 2022, includes $ 9.2 million of deferred revenue from the fourth quarter of fiscal 2022, related to newly launched products sold to resellers not recognized as revenue until the date of general availability was reached, which was the first quarter of fiscal 2023. Recognition of revenue as of January 1, 2022, 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 the first quarter of fiscal 2022. The following table presents the changes in the Company’s deferred revenue for the three months ended December 31, 2022, and January 1, 2022: December 31, January 1, (In thousands) Deferred revenue, beginning of period $ 83,470 $ 89,498 Recognition of revenue included in beginning of period deferred revenue ( 11,520 ) ( 23,721 ) Revenue deferred, net of revenue recognized on contracts in the respective period 10,031 9,801 Deferred revenue, end of period $ 81,981 $ 75,578 The Company expects the following recognition of deferred revenue as of December 31, 2022: For the fiscal years ending 2023 2024 2025 2026 2027 and Beyond Total (In thousands) Deferred revenue expected to be recognized $ 14,954 $ 17,507 $ 15,214 $ 12,830 $ 21,476 $ 81,981 Other current liabilities Other current liabilities consist of the following: December 31, October 1, (In thousands) Reserve for returns $ 21,197 $ 18,263 Short-term operating lease liabilities 10,827 10,532 Warranty liability 9,917 5,771 Other 15,327 5,083 Total other current liabilities $ 57,268 $ 39,649 The following table presents the changes in the Company’s warranty liability for the three months ended December 31, 2022, and January 1, 2022: December 31, January 1, (In thousands) Warranty liability, beginning of period $ 5,771 $ 5,604 Provision for warranties issued during the period 6,177 5,359 Settlements of warranty claims during the period ( 2,031 ) ( 1,297 ) Warranty liability, end of period $ 9,917 $ 9,666

Debt

Debt	3 Months Ended
Debt	Dec. 31, 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 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 December 31, 2022 , the Company did not have any outstanding borrowings and had $ 3.0 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 December 31 , 2022, the Company was in compliance with all financial covenants under the Revolving Credit Agreement.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies Commitments to suppliers At December 31, 2022 , the Company's commitments to suppliers were estimated to be approximately $ 260 million, the majority of which is expected to be paid in the next two years , with approximately $ 126 million to $ 150 million expected to be paid in the next twelve months. These commitments are related to electrical components that are specific to Sonos products, and for which the Company typically participates in negotiations directly with the suppliers, and included 1) contractual obligations to third-party manufacturers and suppliers, 2) the inventory owned by contract manufacturers procured to manufacture Sonos products, and 3) purchase commitments made by contract manufacturers to their upstream suppliers. 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 will be 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. The Company’s Lawsuits Against Google: 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 counterpart 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. The counterpart lawsuit is stayed pending completion of the ITC investigation and appeal thereof. The ITC concluded its investigation in January 2022, finding all five of the Company’s asserted patents to be valid and infringed by Google, and further finding that one redesign per patent proposed by Google would avoid infringement. The ITC issued a limited exclusion order and a cease-and-desist order with respect to Google’s infringing products. The outcome of the ITC investigation is currently being appealed by the Company and Google. On September 29, 2020, the Company filed another lawsuit against Google alleging infringement of additional Sonos patents and seeking monetary damages and other non-monetary relief. This suit is pending in the U.S. District Court for the Northern District of California. In this lawsuit, Google has countersued the Company alleging breach of contract and conversion against the Company in connection with Google and the Company’s collaboration in 2013. The Company disputes the claims and intends to defend these claims during the case. In this lawsuit, the judge has already concluded that Google infringes one asserted patent and that patent is not invalid. The judge has also ruled that another asserted patent is not infringed by Google and is invalid. This lawsuit is expected to be tried to a jury in May 2023. 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 seeking non-monetary relief. The Company has since withdrawn this action after having received some preliminary relief. Google’s Lawsuits Against the Company: 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 by the Company of five Google patents and seeking monetary damages and other non-monetary relief. Four of these patents have since been found invalid by the court or by the U.S. Patent and Trademark Office, or have been withdrawn from the case by Google. In this lawsuit, one patent remains asserted against the Company. No trial date is set. 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 and seeking monetary damages and an injunction preventing sales of allegedly infringing products. In March 2021, the District Court Munich stayed the case for infringement of one Google patent pending the outcome of a nullity action concerning the validity of that patent. In June 2021, the Munich court issued a decision dismissing Google's complaint regarding the other Google patent for lack of infringement by the Company. Google has appealed the Munich court's ruling, which is pending. On August 21, 2020, Google filed a lawsuit against the Company in Canada alleging infringement of one Google patent. On July 26, 2022, the Canadian court ruled that the Company does not infringe this patent after a trial on the merits. Google has appealed the Canadian court’s ruling, which is pending. On August 21, 2020, Google filed a lawsuit against Sonos Europe B.V. and Sonos, Inc. in France, alleging infringement of two Google patents and seeking monetary damages and an injunction preventing sales of allegedly infringing products. In February 2021, Google withdrew its infringement allegations regarding one patent in view of prior art brought to the attention of the court by the Company. In March 2022, the French trial court ruled for the Company on Google's other asserted patent. Google has appealed the French trial court's ruling, which is pending. On August 21, 2020, Google filed a lawsuit against Sonos Europe B.V. and Sonos, Inc. in the Netherlands alleging infringement of a Google patent seeking an injunction preventing sales of allegedly infringing products. In October 2022, the Netherlands court ruled that the Company does not infringe Google’s patent. In September 2020, Google filed a lawsuit against Sonos Europe B.V. in the Netherlands, alleging infringement of a Google patent seeking an injunction preventing sales of allegedly infringing products. In February 2022, the Court rejected Google's claims concerning this patent. Google has appealed this decision, which is pending. On August 8, 2022, Google filed two complaints with the ITC against the Company and two counterpart lawsuits in the Northern District of California against the Company, collectively alleging infringement by the Company of seven Google patents generally related to wireless charging, device setup, and voice control, and seeking monetary damages and other non-monetary relief. The ITC investigations are currently pending while the counterpart lawsuits are stayed pending completion of the ITC investigations. The ITC has terminated the investigation as to one Google patent as a result of imminent expiration of that Google patent. One of the two ITC investigations is scheduled for an oral hearing in June 2023 and scheduled for a final decision in January 2024, while the other of the two ITC investigations is scheduled for an oral hearing in July 2023 and scheduled for a final decision in May 2024. A range of loss, if any, associated with these matters is not probable or reasonably estimable as of December 31, 2022. Implicit 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 December 31, 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 ("USTR") 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. On December 16, 2022, the USTR granted an extension through September 30, 2023, of the exclusion for the Company's core speaker products. Tariff refund claims are subject to review and approval by the U.S. Customs and Border Protection. For the three months ended December 31, 2022, the Company recognized $ 4.4 million in refunds based upon acceptance of the Company's refund request, recognized as a reduction to cost of revenue. As of December 31, 2022, the remaining refunds the Company expected to recover totaled approximately $ 5.8 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	3 Months Ended
Stockholders' Equity	Dec. 31, 2022
Equity [Abstract]
Stockholders' Equity	8. Stockholders' Equity On November 16, 2022, the Board of Directors (the "Board") authorized a common stock repurchase program of up to $ 100.0 million. During the three months ended December 31, 2022, the Company repurchased 849,806 shares for an aggregate purchase price of $ 15.0 million at an average price of $ 17.69 per share under the repurchase program. The Company had $ 85.0 million available for share repurchases under the repurchase program as of December 31, 2022. Treasury stock during the three months ended December 31, 2022, included shares withheld to satisfy employees' tax withholding requirements in connection with vesting of stock awards. Additionally, during the three months ended December 31, 2022, the Company retired 2,293,416 shares of treasury stock.

Stock-based Compensation

Stock-based Compensation	3 Months Ended
Stock-based Compensation	Dec. 31, 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 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 1, 2022 10,802,882 $ 13.37 4.5 $ 10,956 Exercised ( 730,376 ) 11.10 Forfeited ( 20,943 ) 15.19 Outstanding at December 31, 2022 10,051,563 $ 13.53 4.2 $ 33,834 At December 31, 2022 Options exercisable 10,039,063 $ 13.54 4.2 $ 33,762 Options vested and expected to vest 10,051,332 $ 13.53 4.2 $ 33,833 As of December 31, 2022, and October 1, 2022, the Company had less than $ 0.1 million and had $ 0.4 million, respectively, of unrecognized stock-based compensation expense related to stock options, which are expected to be recognized over weighted-average periods of 0.1 and 0.2 years, respectively. Restricted stock units ("RSU") Pursuant to the 2018 Plan, the Company issues RSUs to employees and directors. 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 1, 2022 8,308,177 $ 19.25 $ 115,484 Granted 4,658,164 17.40 Released ( 992,867 ) 15.97 Forfeited ( 182,718 ) 18.95 Outstanding at December 31, 2022 11,790,756 $ 18.80 $ 199,264 At December 31, 2022 Units expected to vest 9,943,485 $ 18.66 $ 168,045 As of December 31, 2022, and October 1, 2022, the Company had $ 166.6 million and $ 120.6 million of unrecognized stock-based compensation expense related to RSUs, which are expected to be recognized over weighted-average periods of 2.8 and 2.5 years, respectively. Performance stock units ("PSU") Pursuant to the 2018 Plan, the Company has issued and may issue certain PSUs that vest on the satisfaction of service and performance conditions. The number of outstanding PSUs is based on the target number of share awards. The number of shares vested at the end of the performance period is based on achievement of performance conditions and may include adjustments to reflect the extent to which the corresponding performance goals have been achieved. In the first quarter of fiscal 2023, the number of shares vested included performance achievement adjustments of a net reduction of 12,895 units. 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 1, 2022 398,077 $ 26.96 $ 5,533 Granted 249,370 17.54 Vested ( 263,158 ) 26.26 Outstanding at December 31, 2022 384,289 $ 21.33 $ 6,494 As of December 31, 2022, and October 1, 2022, the Company had $ 3.5 million and $ 0.4 million of unrecognized stock-based compensation expense related to PSUs, which are expected to be recognized over weighted-average periods of 2.0 and 0.6 years, respectively. Stock-based compensation Total stock-based compensation expense by functional category was as follows: Three Months Ended December 31, January 1, (In thousands) Cost of revenue $ 570 $ 328 Research and development 9,151 6,738 Sales and marketing 4,113 3,647 General and administrative 6,361 6,746 Total stock-based compensation expense $ 20,195 $ 17,459

Income Taxes

Income Taxes	3 Months Ended
Income Taxes	Dec. 31, 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 provision for income taxes of $ 36.5 million and $ 7.6 million for the three months ended December 31, 2022, and January 1, 2022, respectively, related to U.S. and non-U.S. income taxes. For the three months ended December 31, 2022, the Company’s tax expense increased significantly when compared to the three months ended January 1, 2022, primarily due to the requirement to capitalize and amortize research and development expenses under Section 174 of the U.S. Internal Revenue Code (“Section 174”) effective the quarter ended December 31, 2022. This resulted in the Company recording significant U.S. current tax expense and no corresponding deferred tax benefit due to the valuation allowance maintained against its U.S. deferred tax assets. For the three months ended January 1, 2022, the Company excluded certain foreign jurisdictions from the calculation of the AETR as the Company anticipated an overall ordinary loss for which no tax benefit could be recognized. For the three months ended January 1, 2022, the Company's tax provision included a discrete income tax benefit of $ 3.2 million for the release of a portion of the Company's U.S. valuation allowance because of an acquisition in the quarter and U.S. share-based compensation. For the three months ended December 31, 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 Per Share Attributab

Net Income Per Share Attributable to Common Stockholders	3 Months Ended
Net Income Per Share Attributable to Common Stockholders	Dec. 31, 2022
Earnings Per Share [Abstract]
Net Income Per Share Attributable to Common Stockholders	11. Net Income Per Share Attributable to Common Stockholders Basic net income per share attributable to common stockholders is calculated by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding less shares subject to repurchase. Diluted net income per share attributable to common stockholders adjusts the basic net income 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 per share attributable to common stockholders: Three Months Ended December 31, January 1, (In thousands, except share and per share data) Numerator: Net income attributable to common stockholders - basic and diluted $ 75,188 $ 123,481 Denominator: Weighted-average shares of common stock—basic 127,212,245 127,662,826 Effect of potentially dilutive stock options 1,802,786 8,162,237 Effect of RSUs 2,460,948 6,306,547 Effect of PSUs 27,007 190,838 Weighted-average shares of common stock—diluted 131,502,986 142,322,448 Net income per share attributable to common stockholders: Basic $ 0.59 $ 0.97 Diluted $ 0.57 $ 0.87 The following potentially dilutive shares were excluded from the computation of diluted net income per share attributable to common stockholders because including them would have been antidilutive: Three Months Ended December 31, January 1, Stock options to purchase common stock 8,624,436 5,838,942 Restricted stock units 7,664,566 3,529,909 Performance stock units 61,681 110,669 Total 16,350,683 9,479,520

Retirement Plans

Retirement Plans	3 Months Ended
Retirement Plans	Dec. 31, 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 $ 2.3 million and $ 1.9 million for the three months ended December 31, 2022, and January 1, 2022 , respectively.

Business Overview and Basis o_2

Business Overview and Basis of Presentation (Policies)	3 Months Ended
Business Overview and Basis of Presentation (Policies)	Dec. 31, 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 1, 2022, 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 1, 2022, (the “Annual Report”), filed with the SEC on November 23, 2022. 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 months ended December 31, 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 three months ended December 31, 2022, and January 1, 2022 , spanned 13 weeks each. As used in this Quarterly Report on Form 10-Q, “fiscal 2023” refers to the fiscal year ending September 30, 2023, “fiscal 2022” refers to the fiscal year ended 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. The Company has considered the impacts of the COVID-19 pandemic when developing its estimates and assumptions noted above. The impacts of, and uncertainty related to, the COVID-19 pandemic and its expected duration persist. Actual results and outcomes may differ from management's estimates and assumptions.
Recently adopted accounting pronouncements and recent accounting pronouncements pending adoption	Recent accounting pronouncements pending adoption 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 subsequent amendments to the initial guidance under ASU No. 2021-01 and ASU No. 2022-06 (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, 2024. 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)	3 Months Ended
Fair Value Measurements (Tables)	Dec. 31, 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 December 31, 2022, and October 1, 2022: December 31, 2022 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds (cash equivalents) $ 302,799 $ — $ — $ 302,799 October 1, 2022 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds (cash equivalents) $ 187,170 $ — $ — $ 187,170

Revenue and Geographic Inform_2

Revenue and Geographic Information (Tables)	3 Months Ended
Revenue and Geographic Information (Tables)	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Disaggregation of revenue	Revenue by region is as follows: Three Months Ended December 31, January 1, (In thousands) Americas $ 396,565 $ 373,813 Europe, Middle East and Africa (“EMEA”) 240,439 245,482 Asia Pacific (“APAC”) 35,575 45,186 Total revenue $ 672,579 $ 664,481 Revenue by significant countries is as follows: Three Months Ended December 31, January 1, (In thousands) United States $ 365,974 $ 347,646 Other countries 306,605 316,835 Total revenue $ 672,579 $ 664,481 Revenue by major product category is as follows: Three Months Ended December 31, January 1, (In thousands) Sonos speakers $ 539,196 $ 501,886 Sonos system products 114,434 134,745 Partner products and other revenue 18,949 27,850 Total revenue $ 672,579 $ 664,481

Balance Sheet Components (Table

Balance Sheet Components (Tables)	3 Months Ended
Balance Sheet Components (Tables)	Dec. 31, 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: December 31, October 1, (In thousands) Accounts receivable $ 141,587 $ 127,523 Allowance for credit losses ( 3,129 ) ( 2,744 ) Allowance for sales incentives ( 28,755 ) ( 23,573 ) Accounts receivable, net of allowances $ 109,703 $ 101,206
Schedule of inventories	Inventories, net, consist of the following: December 31, October 1, (In thousands) Finished goods $ 260,734 $ 406,657 Component parts 45,322 47,631 Inventories $ 306,056 $ 454,288
Schedule of goodwill	The following table presents the changes in carrying amount of goodwill during the three months ended December 31, 2022: (In thousands) Balance as of October 1, 2022 $ 77,300 Effect of exchange rate changes on goodwill 3,641 Balance as of December 31, 2022 $ 80,941
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: December 31, 2022 Gross Carrying Amount Accumulated Amortization Impact of FX Net Carrying Value Weighted-Average Remaining Life (In thousands, except weighted-average remaining life) Trade name $ 451 $ ( 52 ) $ ( 7 ) $ 392 5.25 Technology-based 31,480 ( 7,167 ) — 24,313 5.36 Total finite-lived intangible assets 31,931 ( 7,219 ) ( 7 ) 24,705 5.36 In-process research and development not subject to amortization 71,759 — ( 1,119 ) 70,640 Total intangible assets $ 103,690 $ ( 7,219 ) $ ( 1,126 ) $ 95,345 The following table summarizes the estimated future amortization expense of the Company's intangible assets as of December 31, 2022: Fiscal years ending Future Amortization Expense (In thousands) Remainder of fiscal 2023 $ 4,478 2024 5,970 2025 3,369 2026 3,040 2027 3,025 2028 and there after 4,823 Total future amortization expense $ 24,705
Schedule of accrued expenses	Accrued expenses consisted of the following: December 31, October 1, (In thousands) Accrued taxes $ 52,729 $ 7,081 Accrued inventory and supply chain costs 44,895 51,011 Accrued general and administrative expenses 21,124 21,634 Accrued advertising and marketing 12,893 21,292 Accrued product development 6,392 8,168 Other accrued payables 311 104 Total accrued expenses $ 138,344 $ 109,290
Changes in deferred balances and expected revenue recognition	The following table presents the changes in the Company’s deferred revenue for the three months ended December 31, 2022, and January 1, 2022: December 31, January 1, (In thousands) Deferred revenue, beginning of period $ 83,470 $ 89,498 Recognition of revenue included in beginning of period deferred revenue ( 11,520 ) ( 23,721 ) Revenue deferred, net of revenue recognized on contracts in the respective period 10,031 9,801 Deferred revenue, end of period $ 81,981 $ 75,578
Remaining performance obligation	The Company expects the following recognition of deferred revenue as of December 31, 2022: For the fiscal years ending 2023 2024 2025 2026 2027 and Beyond Total (In thousands) Deferred revenue expected to be recognized $ 14,954 $ 17,507 $ 15,214 $ 12,830 $ 21,476 $ 81,981
Schedule of other current liabilities	Other current liabilities consist of the following: December 31, October 1, (In thousands) Reserve for returns $ 21,197 $ 18,263 Short-term operating lease liabilities 10,827 10,532 Warranty liability 9,917 5,771 Other 15,327 5,083 Total other current liabilities $ 57,268 $ 39,649
Schedule of product warranty liability	The following table presents the changes in the Company’s warranty liability for the three months ended December 31, 2022, and January 1, 2022: December 31, January 1, (In thousands) Warranty liability, beginning of period $ 5,771 $ 5,604 Provision for warranties issued during the period 6,177 5,359 Settlements of warranty claims during the period ( 2,031 ) ( 1,297 ) Warranty liability, end of period $ 9,917 $ 9,666

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
Stock-based Compensation (Tables)	Dec. 31, 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 1, 2022 10,802,882 $ 13.37 4.5 $ 10,956 Exercised ( 730,376 ) 11.10 Forfeited ( 20,943 ) 15.19 Outstanding at December 31, 2022 10,051,563 $ 13.53 4.2 $ 33,834 At December 31, 2022 Options exercisable 10,039,063 $ 13.54 4.2 $ 33,762 Options vested and expected to vest 10,051,332 $ 13.53 4.2 $ 33,833
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 1, 2022 8,308,177 $ 19.25 $ 115,484 Granted 4,658,164 17.40 Released ( 992,867 ) 15.97 Forfeited ( 182,718 ) 18.95 Outstanding at December 31, 2022 11,790,756 $ 18.80 $ 199,264 At December 31, 2022 Units expected to vest 9,943,485 $ 18.66 $ 168,045
Schedule of performance stock units activity	Number of Units Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value (In thousands) Outstanding at October 1, 2022 398,077 $ 26.96 $ 5,533 Granted 249,370 17.54 Vested ( 263,158 ) 26.26 Outstanding at December 31, 2022 384,289 $ 21.33 $ 6,494
Schedule of stock-based compensation expense	Total stock-based compensation expense by functional category was as follows: Three Months Ended December 31, January 1, (In thousands) Cost of revenue $ 570 $ 328 Research and development 9,151 6,738 Sales and marketing 4,113 3,647 General and administrative 6,361 6,746 Total stock-based compensation expense $ 20,195 $ 17,459

Net Income Per Share Attribut_2

Net Income Per Share Attributable to Common Stockholders (Tables)	3 Months Ended
	Dec. 31, 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 per share attributable to common stockholders: Three Months Ended December 31, January 1, (In thousands, except share and per share data) Numerator: Net income attributable to common stockholders - basic and diluted $ 75,188 $ 123,481 Denominator: Weighted-average shares of common stock—basic 127,212,245 127,662,826 Effect of potentially dilutive stock options 1,802,786 8,162,237 Effect of RSUs 2,460,948 6,306,547 Effect of PSUs 27,007 190,838 Weighted-average shares of common stock—diluted 131,502,986 142,322,448 Net income per share attributable to common stockholders: Basic $ 0.59 $ 0.97 Diluted $ 0.57 $ 0.87
Schedule of antidilutive securities	The following potentially dilutive shares were excluded from the computation of diluted net income per share attributable to common stockholders because including them would have been antidilutive: Three Months Ended December 31, January 1, Stock options to purchase common stock 8,624,436 5,838,942 Restricted stock units 7,664,566 3,529,909 Performance stock units 61,681 110,669 Total 16,350,683 9,479,520

Business Overview and Basis o_3

Business Overview and Basis of Presentation (Details)	Dec. 31, 2022 Country
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of countries where products are distributed	60

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Money Market Funds - USD ($) $ in Thousands	Dec. 31, 2022	Oct. 01, 2022
Assets:
Money market funds (cash equivalents)	$ 302,799	$ 187,170
Level 1
Assets:
Money market funds (cash equivalents)	302,799	187,170
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
	Dec. 31, 2022	Jan. 01, 2022
Disaggregation of Revenue [Line Items]
Revenue	$ 672,579	$ 664,481
Sonos speakers
Disaggregation of Revenue [Line Items]
Revenue	539,196	501,886
Sonos system products
Disaggregation of Revenue [Line Items]
Revenue	114,434	134,745
Partner products and other revenue
Disaggregation of Revenue [Line Items]
Revenue	18,949	27,850
Americas
Disaggregation of Revenue [Line Items]
Revenue	396,565	373,813
Europe, Middle East and Africa (“EMEA”)
Disaggregation of Revenue [Line Items]
Revenue	240,439	245,482
Asia Pacific (“APAC”)
Disaggregation of Revenue [Line Items]
Revenue	35,575	45,186
United States
Disaggregation of Revenue [Line Items]
Revenue	365,974	347,646
Other countries
Disaggregation of Revenue [Line Items]
Revenue	$ 306,605	$ 316,835

Balance Sheet Components - Acco

Balance Sheet Components - Accounts receivable, net of allowances (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Oct. 01, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts receivable	$ 141,587	$ 127,523
Allowance for credit losses	(3,129)	(2,744)
Allowance for sales incentives	(28,755)	(23,573)
Accounts receivable, net of allowances	$ 109,703	$ 101,206

Balance Sheet Components - Inve

Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Oct. 01, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finished goods	$ 260,734	$ 406,657
Component parts	45,322	47,631
Inventories	$ 306,056	$ 454,288

Balance Sheet Components - Good

Balance Sheet Components - Goodwill (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2022 USD ($)
Goodwill [Roll Forward]
Goodwill beginning balance	$ 77,300
Effect of exchange rate changes on goodwill	3,641
Goodwill ending balance	$ 80,941

Balance Sheet Components - Fini

Balance Sheet Components - Finite-lived intangible assets, future amortization expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Oct. 01, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 31,931
Accumulated Amortization	7,219
Net Carrying Value	24,705
Finite lived intangible assets, impact	(7)
In-process research and development not subject to amortization, impact	(1,126)
In-process research and development not subject to amortization, Net	70,640	$ 64,680
Intangible assets, gross carrying amount (excluding goodwill)	103,690
Intangible assets, net carrying value (excluding goodwill)	$ 95,345
Weighted-Average Remaining Life	5 years 4 months 9 days
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of fiscal 2023	$ 4,478
2024	5,970
2025	3,369
2026	3,040
2027	3,025
2028 and there after	4,823
Net Carrying Value	24,705
Tradename
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	451
Accumulated Amortization	52
Net Carrying Value	392
Finite lived intangible assets, impact	$ (7)
Weighted-Average Remaining Life	5 years 3 months
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net Carrying Value	$ 392
In-process research and development not subject to amortization
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets (excluding goodwill)	71,759
In-process research and development not subject to amortization, impact	(1,119)
In-process research and development not subject to amortization, Net	70,640
Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	31,480
Accumulated Amortization	7,167
Net Carrying Value	24,313
Finite lived intangible assets, impact
Weighted-Average Remaining Life	5 years 4 months 9 days
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net Carrying Value	$ 24,313

Balance Sheet Components - Addi

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions			3 Months Ended
	Dec. 31, 2022	Oct. 01, 2022	Dec. 31, 2022	Jan. 01, 2022
Business Acquisition [Line Items]
Weighted-average useful life			5 years 4 months 9 days
Recognition of revenue			$ 9.2	$ 18.8
Inventory write down	$ 15.2	$ 8.8
Capitalized costs	20.7	21.7	20.7
Amortization expenses			1
Accumulated amortization	$ 3.5	$ 2.5	$ 3.5

Balance Sheet Components - Accr

Balance Sheet Components - Accrued expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Oct. 01, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued taxes	$ 52,729	$ 7,081
Accrued inventory and supply chain costs	44,895	51,011
Accrued general and administrative expenses	21,124	21,634
Accrued advertising and marketing	12,893	21,292
Accrued product development	6,392	8,168
Other accrued payables	311	104
Total accrued expenses	$ 138,344	$ 109,290

Balance Sheet Components - Chan

Balance Sheet Components - Change in deferred revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Contract with Customer, Liability [Roll Forward]
Deferred revenue, beginning of period	$ 83,470	$ 89,498
Recognition of revenue included in beginning of period deferred revenue	(11,520)	(23,721)
Revenue deferred, net of revenue recognized on contracts in the respective period	10,031	9,801
Deferred revenue, end of period	$ 81,981	$ 75,578

Balance Sheet Components - Expe

Balance Sheet Components - Expected revenue recognition (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jul. 02, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue expected to be recognized	$ 81,981
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue expected to be recognized	$ 14,954
Performance obligations expected to be satisfied in	9 months
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	$ 17,507
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	$ 15,214
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	$ 12,830
Performance obligations expected to be satisfied in	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-09-27
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue expected to be recognized		$ 21,476
Performance obligations expected to be satisfied in

Balance Sheet Components - Ex_2

Balance Sheet Components - Expected revenue recognition 1 (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue expected to be recognized	$ 81,981

Balance Sheet Components - Othe

Balance Sheet Components - Other current liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Oct. 01, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reserve for returns	$ 21,197	$ 18,263
Short-term operating lease liabilities	$ 10,827	$ 10,532
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Total other current liabilities	Total other current liabilities
Warranty liability	$ 9,917	$ 5,771
Other	15,327	5,083
Total other current liabilities	$ 57,268	$ 39,649

Balance Sheet Components - Prod

Balance Sheet Components - Product Warranties (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty liability, beginning of period	$ 5,771	$ 5,604
Provision for warranties issued during the period	6,177	5,359
Settlements of warranty claims during the period	(2,031)	(1,297)
Warranty liability, end of period	$ 9,917	$ 9,666

Debt - Additional Information (

Debt - Additional Information (Details) - Credit Facility - Revolving Credit Facility - USD ($) $ in Millions	Oct. 13, 2021	Dec. 31, 2022
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 100
Term of debt	5 years
Undrawn letters of credit		$ 3
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
	Mar. 10, 2017 Patent	Dec. 31, 2022 USD ($)
Loss Contingencies [Line Items]
Commitments to suppliers		$ 260
Commitments to suppliers expected to be paid		2 years
Tariff refund		$ 5.8
Implicit, LLC
Loss Contingencies [Line Items]
Loss contingency, patents allegedly infringed upon, number \| Patent	2
Government
Loss Contingencies [Line Items]
Income tax examination, refund		4.4
Minimum
Loss Contingencies [Line Items]
Commitments to suppliers		126
Maximum
Loss Contingencies [Line Items]
Commitments to suppliers		$ 150

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Dec. 31, 2022	Nov. 16, 2022
Equity [Abstract]
Stock repurchase program, authorized value		$ 100
Purchase of treasury stock (in shares)	849,806
Purchase price of common stock	$ 15
Average price per share (in dollars per share)	$ 17.69
Remaining authorized repurchase amount	$ 85
Retirement of treasury stock (in shares)	2,293,416

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended	12 Months Ended
	Jul. 31, 2018	Dec. 31, 2022	Oct. 01, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense, period of recognition		2 years
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			$ 400,000
Unrecognized stock-based compensation expense, period of recognition		1 month 6 days	2 months 12 days
Stock Options \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense		$ 100,000
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		4 years
Unrecognized stock-based compensation expense		$ 166,600,000	$ 120,600,000
Unrecognized stock-based compensation expense, period of recognition		2 years 9 months 18 days	2 years 6 months
Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense		$ 3,500,000	$ 400,000
Unrecognized stock-based compensation expense, period of recognition			7 months 6 days
Performance achievement adjustments		12,895
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) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Oct. 01, 2022	Dec. 31, 2022
Number of Options
Beginning balance (in shares)		10,802,882
Exercised (in shares)		(730,376)
Forfeited (in shares)		(20,943)
Ending balance (in shares)	10,802,882	10,051,563
Options exercisable (in shares)		10,039,063
Options vested and expected to vest (in shares)		10,051,332
Weighted-Average Exercise Price
Beginning balance (in USD per share)		$ 13.37
Exercised (in USD per share)		11.10
Forfeited (in USD per share)		15.19
Ending balance (in USD per share)	$ 13.37	13.53
Option exercisable - Weighted Average Exercise Price (in USD per share)		13.54
Options vested and expected to vest - Weighted Average Exercise Price (in USD per share)		$ 13.53
Additional Information
Weighted-Average Remaining Contractual Term	4 years 6 months	4 years 2 months 12 days
Option exercisable - Weighted Average Remaining Contractual Term		4 years 2 months 12 days
Options vested and expected to vest - Weighted Average Remaining Contractual Term		4 years 2 months 12 days
Aggregate Intrinsic Value	$ 10,956	$ 33,834
Options exercisable - Average Intrinsic Value		33,762
Options vested and expected to vest - Average Intrinsic Value		$ 33,833

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Unit Activity (Details) - Restricted stock units $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2022 USD ($) $ / shares shares
Number of Units
Outstanding, beginning balance (in shares) \| shares	8,308,177
Granted (in shares) \| shares	4,658,164
Released (in shares) \| shares	(992,867)
Forfeited (in shares) \| shares	(182,718)
Outstanding, ending balance (in shares) \| shares	11,790,756
Units expected to vest (in shares) \| shares	9,943,485
Weighted-Average Grant Date Fair Value
Outstanding, beginning balance (in USD per share) \| $ / shares	$ 19.25
Granted (in USD per share) \| $ / shares	17.40
Released (in USD per share) \| $ / shares	15.97
Forfeited (in USD per share) \| $ / shares	18.95
Outstanding, ending balance (in USD per share) \| $ / shares	18.80
Vested and expected to vest - Weighted Average Exercise Price (in dollars per share) \| $ / shares	$ 18.66
Additional Information
Aggregate Intrinsic Value, beginning balance \| $	$ 115,484
Aggregate Intrinsic Value, ending balance \| $	199,264
Vested and expected to vest - Weighted Average Intrinsic Value \| $	$ 168,045

Stock-based Compensation - Perf

Stock-based Compensation - Performance Stock Unit Activity (Details) - Performance Share Units $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2022 USD ($) $ / shares shares
Number of Units
Outstanding, beginning balance (in shares) \| shares	398,077
Granted (in shares) \| shares	249,370
Vested (in shares) \| shares	(263,158)
Outstanding, ending balance (in shares) \| shares	384,289
Weighted-Average Grant Date Fair Value
Outstanding, beginning balance (in USD per share) \| $ / shares	$ 26.96
Granted (in USD per share) \| $ / shares	17.54
Vested (in USD per share) \| $ / shares	26.26
Outstanding, ending balance (in USD per share) \| $ / shares	$ 21.33
Additional Information
Aggregate Intrinsic Value, beginning balance \| $	$ 5,533
Aggregate Intrinsic Value, ending balance \| $	$ 6,494

Stock-based Compensation - St_2

Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 20,195	$ 17,459
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	570	328
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	9,151	6,738
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	4,113	3,647
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 6,361	$ 6,746

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 36,501	$ 7,646
Discrete tax benefit, valuation allowance		3,200
Discrete tax benefit, share-based compensation		$ 3,200

Net Income Per Share Attribut_3

Net Income Per Share Attributable to Common Stockholders - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Numerator:
Net income (loss)	$ 75,188	$ 123,481
Denominator:
Weighted-average shares of common stock - basic (in shares)	127,212,245	127,662,826
Weighted-average shares of common stock - diluted (in shares)	131,502,986	142,322,448
Net income (loss) attributable to common stockholders:
Net income (loss) per share attributable to common stockholders - basic (in USD per share)	$ 0.59	$ 0.97
Net income (loss) per share attributable to common stockholders - diluted (in USD per share)	$ 0.57	$ 0.87
Stock Options
Denominator:
Effect of potentially dilutive stock options, RSUs, and PSUs (in shares)	1,802,786	8,162,237
Restricted stock units
Denominator:
Effect of potentially dilutive stock options, RSUs, and PSUs (in shares)	2,460,948	6,306,547
Performance Share Units
Denominator:
Effect of potentially dilutive stock options, RSUs, and PSUs (in shares)	27,007	190,838

Net Income Per Share Attribut_4

Net Income Per Share Attributable to Common Stockholders - Antidilutive Securities (Details) - shares	3 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)	16,350,683	9,479,520
Stock options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)	8,624,436	5,838,942
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)	7,664,566	3,529,909
Performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)	61,681	110,669

Retirement Plans (Details)

Retirement Plans (Details) - USD ($) $ in Millions	3 Months Ended
Retirement Plans (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Retirement Benefits [Abstract]
Employer contribution	$ 2.3	$ 1.9