Sonos (SONO) 10-Q 7 Feb 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	3 Months Ended
	Dec. 29, 2018	Jan. 31, 2019
Document Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 29, 2018
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q1
Entity Registrant Name	Sonos Inc
Entity Central Index Key	1,314,727
Current Fiscal Year End Date	--06-30
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity common stock, shares outstanding		100,843,109

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 29, 2018	Sep. 29, 2018
Current assets:
Cash and cash equivalents	$ 307,373	$ 220,930
Restricted cash	187	190
Accounts receivable, net of allowances	121,654	73,214
Inventories	109,850	193,193
Prepaids and other current assets	13,196	10,073
Total current assets	552,260	497,600
Property and equipment, net	79,327	85,371
Deferred tax assets	699	941
Other noncurrent assets	3,500	3,586
Total assets	635,786	587,498
Current liabilities:
Accounts payable	149,199	195,159
Accrued expenses	59,871	38,687
Accrued compensation	18,782	33,371
Short-term debt	8,333	6,667
Deferred revenue	12,621	11,615
Other current liabilities	22,784	10,858
Total current liabilities	271,590	296,357
Long-term debt	31,449	33,097
Deferred revenue	42,832	39,352
Other noncurrent liabilities	9,887	10,334
Total liabilities	355,758	379,140
Commitments and contingencies (Note 10)
Stockholders’ equity:
Common stock, $0.001 par value	101	101
Treasury stock	(11,072)	(11,072)
Additional paid-in capital	434,111	424,617
Accumulated deficit	(141,944)	(203,611)
Accumulated other comprehensive loss	(1,168)	(1,677)
Total stockholders’ equity	280,028	208,358
Total liabilities and stockholders’ equity	$ 635,786	$ 587,498

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 29, 2018	Sep. 29, 2018
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. 29, 2018	Dec. 30, 2017
Income Statement [Abstract]
Revenue	$ 496,371	$ 468,950
Cost of revenue	301,082	272,749
Gross profit	195,289	196,201
Operating expenses
Research and development	37,095	33,529
Sales and marketing	65,852	94,025
General and administrative	23,823	22,374
Total operating expenses	126,770	149,928
Operating income	68,519	46,273
Other income (expense), net
Interest expense, net	(398)	(1,166)
Other income (expense), net	(3,999)	622
Total other income (expense), net	(4,397)	(544)
Income before provision for income taxes	64,122	45,729
Provision for income taxes	2,455	32
Net income	61,667	45,697
Net income attributable to common stockholders - basic	61,667	24,734
Net income attributable to common stockholders - diluted	$ 61,667	$ 26,633
Net loss per share attributable to common stockholders:
Basic (in USD per share)	$ 0.62	$ 0.42
Diluted (in USD per share)	$ 0.55	$ 0.36
Weighted-average shares used in computing net loss per share attributable to common stockholders:
Weighted-average shares used in computing net loss per share attributable to common stockholders - basic (in shares)	100,148,106	58,772,641
Weighted-average shares used in computing net loss per share attributable to common stockholders - diluted (in shares)	112,088,672	73,546,144
Total comprehensive loss
Net income	$ 61,667	$ 45,697
Change in foreign currency translation adjustment, net of tax	509	379
Comprehensive loss	$ 62,176	$ 46,076

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Treasury Stock	Accumulated Deficit	Accumulated Other Comprehensive Loss
Redeemable Convertible Preferred Stock, beginning balance (in shares) at Oct. 01, 2016	32,482,590
Redeemable Convertible Preferred Stock, beginning balance at Oct. 01, 2016	$ 90,341
Redeemable Convertible Preferred Stock, ending balance (in shares) at Sep. 30, 2017	32,482,590
Redeemable Convertible Preferred Stock, ending balance at Sep. 30, 2017	$ 90,341
Balances, beginning of period at Oct. 01, 2016		59,339,336		(746,462)
Balances, beginning of period (in shares) at Oct. 01, 2016	27	$ 59	$ 200,301	$ (10,161)	$ (188,007)	$ (2,165)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		606,042
Exercise of stock options	2,280	$ 1	2,279
Repurchase of common stock (in shares)				(43,572)
Purchase of treasury stock	(655)			$ (655)
Stock-based compensation expense	9,537		9,537
Net income (loss)	45,697				45,697
Change in foreign currency translation adjustment	379					379
Balances, ending of period at Sep. 30, 2017		59,945,378		(790,034)
Balances, ending of period (in shares) at Sep. 30, 2017	57,265	$ 60	212,117	$ (10,816)	(142,310)	(1,786)
Balances, beginning of period at Sep. 29, 2018		100,868,250		(807,040)
Balances, beginning of period (in shares) at Sep. 29, 2018	$ 208,358	$ 101	424,617	$ (11,072)	(203,611)	(1,677)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	174,453	174,453
Exercise of stock options	$ 462	$ 0	462
Stock-based compensation expense	9,032		9,032
Net income (loss)	61,667				61,667
Change in foreign currency translation adjustment	509					509
Balances, ending of period at Dec. 29, 2018		101,042,703		(807,040)
Balances, ending of period (in shares) at Dec. 29, 2018	$ 280,028	$ 101	$ 434,111	$ (11,072)	$ (141,944)	$ (1,168)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Sep. 30, 2017
Cash flows from operating activities
Net income	$ 61,667	$ 45,697	$ 45,697
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	9,867	9,546
Stock-based compensation expense	9,032	9,537
Other	475	182
Deferred income taxes	226	65
Foreign currency transaction (gain) loss	1,318	(615)
Changes in operating assets and liabilities:
Accounts receivable, net	(49,324)	(18,230)
Inventories, net	81,621	9,956
Other assets	(3,092)	(574)
Accounts payable and accrued expenses	(21,413)	21,684
Accrued compensation	(14,450)	(15,200)
Deferred revenue	4,598	3,384
Other liabilities	11,525	2,535
Net cash provided by operating activities	92,050	67,967
Cash flows from investing activities
Purchases of property and equipment	(5,372)	(12,410)
Net cash used in investing activities	(5,372)	(12,410)
Cash flows from financing activities
Proceeds from borrowings, net of borrowing costs	0	30,000
Repayments of borrowings	0	(30,000)
Payments for purchase of treasury stock	0	(655)
Proceeds from exercise of common stock options	462	2,280
Payments of offering costs	(567)	0
Net cash provided by (used in) financing activities	(105)	1,625
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(133)	652
Net increase (decrease) in cash, cash equivalents and restricted cash	86,440	57,834
Cash, cash equivalents and restricted cash
Beginning of period	221,120	130,788
End of period	307,560	188,622	$ 130,788
Supplemental disclosure
Cash paid for interest	658	1,249
Cash paid for taxes, net of refunds	1,312	192
Supplemental disclosure of non-cash investing and financing activities
Purchases of property and equipment in accounts payable and accrued expenses	2,803	6,479
Deferred offering costs in accounts payable and accrued expenses	$ 18	$ 1,604

Business overview and basis of

Business overview and basis of presentation	3 Months Ended
	Dec. 29, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business overview and basis of presentation	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 multi-room audio products. 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 throughout the home over the customer’s wireless network. The Company’s products are sold through third-party physical retailers, including custom installers of home audio systems. The Company also sells through 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., Beijing Sonos Technology Co., Ltd., Sonos Japan GK and Sonos Australia Pty Ltd., located in the Netherlands, China, Japan and Australia, respectively. Basis of presentation and preparation The accompanying condensed consolidated financial statements are unaudited. The condensed consolidated balance sheet as of December 29, 2018 has been derived from the audited 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 in management’s opinion, includes all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the Company’s financial position, its results of operations and cash flows for the interim periods presented. The results of operations for the three months ended December 29, 2018 are not necessarily indicative of the results to be expected for the full fiscal year or any other period. The accompanying condensed consolidated financial statements 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 September 29, 2018 (the “Annual Report”), filed with the Securities and Exchange Commission (“SEC”) on November 28, 2018. The Company has a 4-4-5 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 months followed by a 5-week “month.” 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, 2015. The three months ended December 29, 2018 and December 30, 2017 spanned 13 weeks each. As used in this Quarterly Report on Form 10-Q, “fiscal 2019” refers to the fiscal year ending September 28, 2019 and “fiscal 2018” refers to the fiscal year ended September 29, 2018. Initial public offering On August 6, 2018, the Company completed its initial public offering (the “IPO”) of its common stock, in which it sold 6,388,888 shares of its common stock, including 833,333 shares of its common stock pursuant to the underwriters’ over-allotment option, and selling stockholders sold 9,583,333 shares of the Company’s common stock, including 1,250,000 shares pursuant to the underwriters’ over-allotment option. The shares were sold at the IPO price of $15.00 per share for net proceeds of $90.6 million , after deducting underwriting discounts and commissions of $5.3 million . Additionally, offering costs incurred by the Company totaled approximately $4.6 million . Upon the closing of the IPO, all outstanding shares of the Company’s redeemable convertible preferred stock automatically converted into 32,482,590 shares of common stock on a one -for-one basis. Stock split On July 19, 2018, the Company effected a two -for-one stock split of all outstanding shares of the Company’s capital stock, including its common stock and its redeemable convertible preferred stock. All share and per share information presented in the condensed consolidated financial statements has been retroactively adjusted for all periods presented for the effects of the stock split. 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.

Summary of significant accounti

Summary of significant accounting policies	3 Months Ended
	Dec. 29, 2018
Accounting Policies [Abstract]
Summary of significant accounting policies	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 August 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which reduces diversity in practice in how certain transactions are classified in the statement of cash flows. In the first quarter of fiscal 2019, the Company retrospectively adopted this standard to all periods presented in this Quarterly Report on Form 10-Q. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . ASU 2016-16 removes the prohibition in Accounting Standards Codification (“ASC”) Topic 740, Income Taxes , against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. ASU 2016-16 is intended to reduce the complexity of U.S. GAAP and diversity in practice related to the tax consequences of certain types of intra-entity asset transfers, particularly those involving intellectual property. ASU 2016-16 is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which enhances and clarifies the classification and presentation of restricted cash in the statement of cash flows. In the first quarter of fiscal 2019, the Company adopted this standard retrospectively to all periods presented in this Quarterly Report on Form 10-Q. The Company now includes restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling beginning and ending amounts shown on the statement of cash flows. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification , amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule became effective November 5, 2018. In the first quarter of fiscal 2019, the Company adopted this standard for all periods presented in this Quarterly Report on Form 10-Q, presenting the activity of the stockholders’ equity accounts in the accompanying consolidated statements stockholders’ equity (deficit) for the periods presented. Recent accounting pronouncements pending adoption In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , and other subsequent amendments to amend historical lease accounting in order to increase transparency and comparability among entities. The standard requires lessees to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. This standard is effective for public entities for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. The Company expects to adopt the new lease standard in the first quarter of fiscal 2020. Upon adoption, the Company will recognize any qualifying right-of-use assets and lease liabilities on its condensed consolidated balance sheets, which will increase the Company’s total assets and total liabilities. The Company is currently evaluating the impact of adoption on its consolidated financial statements. In November 2018, the FASB issued ASU No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 . This standard resolves the diversity in practice concerning whether certain transactions between collaborative arrangement participants should be accounted for as revenue under Accounting Standards Codification 606, Revenue from Contracts with Customers (“Topic 606”). This standard specifies when a participant is a customer in a collaboration, adds unit of account guidance to align with Topic 606 and provides presentation guidance for collaborative arrangements. This guidance is effective for public entities for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the timing of the adoption and its impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350- 40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . The new guidance aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract, with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard will be effective for the Company in the first quarter of fiscal 2021, with early adoption permitted. The Company is currently evaluating the timing of adoption and impact on the Company's consolidated financial statements.

Fair value measurements

Fair value measurements	3 Months Ended
	Dec. 29, 2018
Fair Value Disclosures [Abstract]
Fair value measurements	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 carrying values of the Company’s long-term debt approximate their fair values as of December 29, 2018 and September 29, 2018 as the debt carries a variable rate or market rates that approximate those currently available to the Company. The following table summarizes fair value measurements by level for the assets measured at fair value on a recurring basis as of December 29, 2018 and September 29, 2018 : December 29, 2018 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 100,111 $ — $ — $ 100,111 September 29, 2018 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 140,588 $ — $ — $ 140,588

Revenue and geographic informat

Revenue and geographic information	3 Months Ended
	Dec. 29, 2018
Revenue from Contract with Customer [Abstract]
Revenue and geographic information	Revenue and geographic information Disaggregation of revenue Revenue by geographical region includes the applicable service revenue attributable to each region and is based on ship-to address, as follows: Three Months Ended December 29, 2018 December 30, 2017 (In thousands) Americas $ 258,727 $ 231,738 Europe, Middle East and Africa (“EMEA”) 216,080 215,264 Asia Pacific (“APAC”) 21,564 21,948 Total revenue $ 496,371 $ 468,950 Revenue from external customers is attributed to individual countries based on ship-to address and includes the applicable service revenue attributable to each country. Revenue by significant countries is as follows: Three Months Ended December 29, 2018 December 30, 2017 (In thousands) United States $ 237,112 $ 210,024 United Kingdom 54,497 54,263 Germany 56,055 57,691 Other countries 148,707 146,972 Total revenue $ 496,371 $ 468,950 Revenue by product categories includes the applicable service revenue attributable to each product category. Revenue by major product category is as follows: Three Months Ended December 29, 2018 December 30, 2017 (In thousands) Wireless speakers $ 225,869 $ 273,385 Home theater speakers 210,237 148,430 Components 50,905 42,270 Other 9,360 4,865 Total revenue $ 496,371 $ 468,950

Balance sheet components

Balance sheet components	3 Months Ended
	Dec. 29, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance sheet components	Balance sheet components Accounts receivable, net of allowances Accounts receivable, net of allowances, consist of the following: December 29, 2018 September 29, 2018 (In thousands) Accounts receivable $ 156,999 $ 85,840 Allowance for doubtful accounts (1,140 ) (872 ) Allowance for sales incentives (34,205 ) (11,754 ) Accounts receivable, net of allowances $ 121,654 $ 73,214 Inventories Inventories, net, consist of the following: December 29, 2018 September 29, 2018 (In thousands) Finished goods $ 95,394 $ 176,181 Components 14,456 17,012 Inventories $ 109,850 $ 193,193 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. Deferred revenue Amounts invoiced in advance of revenue recognition are recorded as deferred revenue on the condensed consolidated balance sheets. Changes in deferred revenue balances as of December 29, 2018 and December 30, 2017 were as follows: December 29, 2018 December 30, 2017 (In thousands) Deferred revenue, beginning of period $ 50,967 $ 45,567 Recognition of revenue included in beginning of period deferred revenue (2,986 ) (3,780 ) Revenue deferred, net of revenue recognized on contracts in the respective period 7,472 7,226 Deferred revenue, end of period $ 55,453 $ 49,013 The Company expects the following recognition of revenue as of December 29, 2018 : For the fiscal years ending 2019 2020 2021 2022 2023 and Beyond Total (In thousands) Revenue expected to be recognized $ 9,451 $ 12,051 $ 10,638 $ 8,792 $ 14,521 $ 55,453 Other current liabilities Other current liabilities consist of the following: As of December 29, September 29, (In thousands) Reserve for returns $ 13,920 $ 5,005 Product warranty liability 4,974 2,450 Other 3,890 3,403 Total other current liabilities $ 22,784 $ 10,858 The following table presents the changes in the Company’s warranty liability for the three months ended December 29, 2018 and December 30, 2017 (in thousands): December 29, 2018 December 30, 2017 Warranty liability, beginning of period $ 2,450 $ 2,437 Provision for warranties issued during the period 5,105 2,952 Settlements of warranty claims during the period (2,581 ) (2,404 ) Warranty liability, end of period $ 4,974 $ 2,985

Debt

Debt	3 Months Ended
	Dec. 29, 2018
Debt Disclosure [Abstract]
Debt	Debt The Company’s short- and long-term debt as of December 29, 2018 and September 29, 2018 was as follows: December 29, 2018 September 29, 2018 Rate Balance Rate Balance (dollars in thousands) J.P. Morgan Chase Bank, N.A Secured Term Loan (the “Term Loan”) (1) 4.8 % $ 40,000 4.8 % $ 40,000 Unamortized debt issuance costs (2) (218 ) (236 ) Total indebtedness $ 39,782 $ 39,764 Less short-term portion (8,333 ) (6,667 ) Long-term debt $ 31,449 $ 33,097 (1) Bears interest at a variable rate equal to an adjusted LIBOR plus 2.25% and is payable quarterly. Due in October 2021, with quarterly principal payments beginning in July 2019. (2) Debt issuance costs are recorded as debt discount and recorded as interest expense over the term of the agreement. The Company’s Secured Credit Facility with J.P. Morgan Chase Bank, N.A. (the “Credit Facility”) and the Term Loan require the Company to maintain a consolidated fixed charge ratio of at least 1.0 , restrict distribution of dividends unless certain conditions are met, such as having a fixed charge ratio of at least 1.15 , and require financial statement reporting and delivery of borrowing base certificates. As of December 29, 2018 and September 29, 2018 , the Company was in compliance with all financial covenants. The Company’s obligations under the Credit Facility and the Term Loan are collateralized by eligible inventory and accounts receivable of the Company as well as the Company’s intellectual property including patents and trademarks. As of both December 29, 2018 and September 29, 2018 , the Company did not have any outstanding borrowings and $ 4.5 million in undrawn letters of credit that reduce the availability under the Credit Facility. As of December 29, 2018 and September 29, 2018 , the Company had $ 39.8 million outstanding on the Term Loan.

Stock-based compensation

Stock-based compensation	3 Months Ended
	Dec. 29, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation	Stock-based compensation In 2003, the Company’s board of directors (the “Board”) established the 2003 Stock Plan (as amended, the “2003 Plan”). In July 2018, the Board adopted the 2018 Equity Incentive Plan (the “2018 Plan”) and ceased granting awards under the 2003 Plan. The 2018 Plan became effective in connection with the IPO. Any remaining shares of common stock available for issuance under the 2003 Plan on the effective date of the 2018 Plan were added to the shares of common stock reserved for issuance under the 2018 Plan as of such date, and additional shares of common stock that become available for issuance under the 2003 Plan in the future will instead become available for issuance under the 2018 Plan, as further discussed in the Annual Report. Stock options Pursuant to the 2018 Plan, the Company issues stock options to employees. The fair value of the stock options is based on the Company’s stock price on 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 optionholder performs services for the Company, the options generally vest over 48 months , with cliff vesting after one year and generally vest on a monthly basis thereafter, 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 Weighted Average Intrinsic Value (in years) (in thousands) Outstanding at September 29, 2018 48,504,182 $ 10.33 6.6 $ 276,959 Granted 976,328 Exercised (174,453 ) Forfeited (720,463 ) Outstanding at December 29, 2018 48,585,594 $ 10.40 6.4 $ 98,745 At December 29, 2018 Options exercisable 32,514,889 $ 8.44 5.3 $ 98,745 Options vested and expected to vest 45,915,517 $ 10.16 6.3 $ 98,745 As of December 29, 2018 and September 29, 2018 , the Company had $66.2 million and $71.5 million, respectively, of unrecognized stock-based compensation expense which is expected to be recognized over a weighted-average period of 2.5 and 2.6 years, respectively. Restricted stock units Pursuant to the 2018 Plan, the Company issues restricted stock units (“RSUs”) to employees. The fair value of RSUs is based on the Company’s stock price on the date of grant. RSUs typically have an initial annual cliff vest and then vest quarterly over the service period, which is generally four years. The summary of the Company’s unvested RSU activity is as follows: Number of Units Weighted Average Grant Date Fair Value Weighted Average Intrinsic Value (in thousands) Unvested at September 29, 2018 — $ — $ — Granted 579,841 Vested — Forfeited — Unvested at December 29, 2018 579,841 $ 14.91 $ 5,619 At December 29, 2018 Units expected to vest 434,360 $ 14.92 $ 4,209 As of December 29, 2018 , the Company had $ 6.2 million of unrecognized stock-based compensation expense related to their RSUs, which is expected to be recognized over a weighted-average period of 3.9 years . Stock-based compensation Total stock-based compensation expense by function category was as follows: Three Months Ended December 29, 2018 December 30, 2017 (In thousands) Cost of revenue $ 184 $ 56 Research and development 3,604 3,381 Sales and marketing 2,681 3,986 General and administrative 2,563 2,114 Total stock-based compensation expense $ 9,032 $ 9,537

Income taxes

Income taxes	3 Months Ended
	Dec. 29, 2018
Income Tax Disclosure [Abstract]
Income taxes	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, 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 particular 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 annual effective tax rate, and if the estimated annual tax rate changes, a cumulative adjustment is made in that quarter. The Company had an income tax expense of $2.5 million and less than $0.1 million for the three months ended December 29, 2018 and December 30, 2017 , respectively. For the three months ended December 29, 2018, we calculated our U.S. income tax provision using the discrete method as though the interim year to date period was an annual period. We believe that the application of the estimated annual effective tax rate (“AETR”) method generally required by ASC 740 is impractical for the U.S. tax provision given that normal deviations in the projected pre-tax net income (loss) in the U.S. could result in a disproportionate and unreliable effective tax rate under the AETR method. Tax Cuts and Jobs Act On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act (the “Tax Act”) into law, introducing significant changes to U.S. income tax law. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017 and the transition of U.S. international taxation from a worldwide tax system to a territorial system. The Company is subject to certain of the provisions of the Tax Act during the year ending September 28, 2019. These provisions include a new tax on global intangible low-taxed income (“GILTI”), a deduction for foreign derived intangible income (“FDII”) and a minimum tax on certain transactions deemed to erode the U.S. tax base (“BEAT”). The Company has elected to account for GILTI as a period cost. In fiscal 2019, the Company does not believe that its effective tax rate will be materially impacted by GILTI or FDII, but the Company may be subject to BEAT. The total BEAT provision for the year is subject to change based on the Company’s results of operations and new Internal Revenue Service (“IRS”) guidance issued during the year. On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118, which allows the Company to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. During the three months ended December 29, 2018, the Company completed the accounting for the elements of the Tax Act. The Company had previously not recorded a provision related to the Tax Act and has determined further adjustment was not required.

Net income per share attributab

Net income per share attributable to common stockholders	3 Months Ended
	Dec. 29, 2018
Earnings Per Share [Abstract]
Net income per share attributable to common stockholders	Net income per share attributable to common stockholders Basic and diluted net income per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. The Company considers its redeemable convertible preferred stock to be participating securities as the holders of redeemable convertible preferred stock were entitled to receive noncumulative dividends in the event that a dividend was paid on common stock. Upon the closing of the IPO, all outstanding shares of the Company’s redeemable convertible preferred stock automatically converted into 32,482,590 shares of common stock on a one -for-one basis. Basic net income attributable to common stockholders per share 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 options and restricted stock, using the treasury stock method, and convertible preferred stock using the as-if-converted 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 29, 2018 December 30, 2017 (In thousands, except share and per share data) Numerator: Net income $ 61,667 $ 45,697 Less: noncumulative dividend to preferred stockholders — (7,293 ) Less: undistributed earnings to participating securities — (13,670 ) Net income attributable to common stockholders—basic $ 61,667 $ 24,734 Add: undistributed earnings reallocated to holders of common stock — 1,899 Net income attributable to common stockholders—diluted $ 61,667 $ 26,633 Denominator: Weighted-average shares of common stock—basic 100,148,106 58,772,641 Weighted-average shares of common stock—diluted 112,088,672 73,546,144 Net income per share attributable to common stockholders: Net income per share attributable to common stockholders—basic $ 0.62 $ 0.42 Net income per share attributable to common stockholders—diluted $ 0.55 $ 0.36 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 29, 2018 December 30, 2017 Convertible preferred stock — 32,482,590 Stock options to purchase common stock 36,135,411 30,969,228 RSUs 247,744 — Total 36,383,155 63,451,818

Commitments and contingencies

Commitments and contingencies	3 Months Ended
	Dec. 29, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	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 October 21, 2014, the Company commenced a patent infringement action in the United States District Court, District of Delaware against D&M Holdings Inc. d/b/a The D+M Group, D&M Holdings U.S. Inc. and Denon Electronics (USA), LLC (collectively, “Denon”). On May 18, 2018, the Company entered into a patent covenant agreement with Denon, effective May 17, 2018, with a term lasting through May 22, 2022. Under the agreement, Denon will make royalty payments over the nine months following the effective date, covering both historical sales and sales throughout the term, at an effective royalty rate materially consistent with the December 14, 2017 jury verdict. Pursuant to the agreement, all claims asserted in the Company’s patent infringement claim against Denon and in Denon’s countersuit against the Company were dismissed with prejudice and the parties released claims of any past infringement of the patents asserted in the litigation between the Company and Denon and any patents related thereto. 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 29, 2018 and September 29, 2018 . The Company is involved in certain other litigation matters not listed above but does not consider the 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.

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	3 Months Ended
	Dec. 29, 2018
Accounting Policies [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 December 29, 2018 has been derived from the audited 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 in management’s opinion, includes all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the Company’s financial position, its results of operations and cash flows for the interim periods presented. The results of operations for the three months ended December 29, 2018 are not necessarily indicative of the results to be expected for the full fiscal year or any other period. The accompanying condensed consolidated financial statements 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 September 29, 2018 (the “Annual Report”), filed with the Securities and Exchange Commission (“SEC”) on November 28, 2018. The Company has a 4-4-5 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 months followed by a 5-week “month.” 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, 2015. The three months ended December 29, 2018 and December 30, 2017 spanned 13 weeks each.
Use of estimates and judgments	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.
Recently adopted accounting pronouncements and recent accounting pronouncements pending adoption	Recently adopted accounting pronouncements In August 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which reduces diversity in practice in how certain transactions are classified in the statement of cash flows. In the first quarter of fiscal 2019, the Company retrospectively adopted this standard to all periods presented in this Quarterly Report on Form 10-Q. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . ASU 2016-16 removes the prohibition in Accounting Standards Codification (“ASC”) Topic 740, Income Taxes , against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. ASU 2016-16 is intended to reduce the complexity of U.S. GAAP and diversity in practice related to the tax consequences of certain types of intra-entity asset transfers, particularly those involving intellectual property. ASU 2016-16 is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which enhances and clarifies the classification and presentation of restricted cash in the statement of cash flows. In the first quarter of fiscal 2019, the Company adopted this standard retrospectively to all periods presented in this Quarterly Report on Form 10-Q. The Company now includes restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling beginning and ending amounts shown on the statement of cash flows. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification , amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule became effective November 5, 2018. In the first quarter of fiscal 2019, the Company adopted this standard for all periods presented in this Quarterly Report on Form 10-Q, presenting the activity of the stockholders’ equity accounts in the accompanying consolidated statements stockholders’ equity (deficit) for the periods presented. Recent accounting pronouncements pending adoption In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , and other subsequent amendments to amend historical lease accounting in order to increase transparency and comparability among entities. The standard requires lessees to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. This standard is effective for public entities for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. The Company expects to adopt the new lease standard in the first quarter of fiscal 2020. Upon adoption, the Company will recognize any qualifying right-of-use assets and lease liabilities on its condensed consolidated balance sheets, which will increase the Company’s total assets and total liabilities. The Company is currently evaluating the impact of adoption on its consolidated financial statements. In November 2018, the FASB issued ASU No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 . This standard resolves the diversity in practice concerning whether certain transactions between collaborative arrangement participants should be accounted for as revenue under Accounting Standards Codification 606, Revenue from Contracts with Customers (“Topic 606”). This standard specifies when a participant is a customer in a collaboration, adds unit of account guidance to align with Topic 606 and provides presentation guidance for collaborative arrangements. This guidance is effective for public entities for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the timing of the adoption and its impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350- 40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . The new guidance aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract, with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard will be effective for the Company in the first quarter of fiscal 2021, with early adoption permitted. The Company is currently evaluating the timing of adoption and impact on the Company's consolidated financial statements.

Fair value measurements (Tables

Fair value measurements (Tables)	3 Months Ended
	Dec. 29, 2018
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 29, 2018 and September 29, 2018 : December 29, 2018 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 100,111 $ — $ — $ 100,111 September 29, 2018 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 140,588 $ — $ — $ 140,588

Revenue and geographic inform_2

Revenue and geographic information (Tables)	3 Months Ended
	Dec. 29, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of revenue	Disaggregation of revenue Revenue by geographical region includes the applicable service revenue attributable to each region and is based on ship-to address, as follows: Three Months Ended December 29, 2018 December 30, 2017 (In thousands) Americas $ 258,727 $ 231,738 Europe, Middle East and Africa (“EMEA”) 216,080 215,264 Asia Pacific (“APAC”) 21,564 21,948 Total revenue $ 496,371 $ 468,950 Revenue from external customers is attributed to individual countries based on ship-to address and includes the applicable service revenue attributable to each country. Revenue by significant countries is as follows: Three Months Ended December 29, 2018 December 30, 2017 (In thousands) United States $ 237,112 $ 210,024 United Kingdom 54,497 54,263 Germany 56,055 57,691 Other countries 148,707 146,972 Total revenue $ 496,371 $ 468,950 Revenue by product categories includes the applicable service revenue attributable to each product category. Revenue by major product category is as follows: Three Months Ended December 29, 2018 December 30, 2017 (In thousands) Wireless speakers $ 225,869 $ 273,385 Home theater speakers 210,237 148,430 Components 50,905 42,270 Other 9,360 4,865 Total revenue $ 496,371 $ 468,950

Balance sheet components (Table

Balance sheet components (Tables)	3 Months Ended
	Dec. 29, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of accounts receivable	Accounts receivable, net of allowances, consist of the following: December 29, 2018 September 29, 2018 (In thousands) Accounts receivable $ 156,999 $ 85,840 Allowance for doubtful accounts (1,140 ) (872 ) Allowance for sales incentives (34,205 ) (11,754 ) Accounts receivable, net of allowances $ 121,654 $ 73,214
Schedule of inventories, net	Inventories, net, consist of the following: December 29, 2018 September 29, 2018 (In thousands) Finished goods $ 95,394 $ 176,181 Components 14,456 17,012 Inventories $ 109,850 $ 193,193
Changes in deferred balances and expected revenue recognition	The Company expects the following recognition of revenue as of December 29, 2018 : For the fiscal years ending 2019 2020 2021 2022 2023 and Beyond Total (In thousands) Revenue expected to be recognized $ 9,451 $ 12,051 $ 10,638 $ 8,792 $ 14,521 $ 55,453 Changes in deferred revenue balances as of December 29, 2018 and December 30, 2017 were as follows: December 29, 2018 December 30, 2017 (In thousands) Deferred revenue, beginning of period $ 50,967 $ 45,567 Recognition of revenue included in beginning of period deferred revenue (2,986 ) (3,780 ) Revenue deferred, net of revenue recognized on contracts in the respective period 7,472 7,226 Deferred revenue, end of period $ 55,453 $ 49,013
Schedule of other current liabilities	Other current liabilities consist of the following: As of December 29, September 29, (In thousands) Reserve for returns $ 13,920 $ 5,005 Product warranty liability 4,974 2,450 Other 3,890 3,403 Total other current liabilities $ 22,784 $ 10,858
Schedule of product warranty liability	The following table presents the changes in the Company’s warranty liability for the three months ended December 29, 2018 and December 30, 2017 (in thousands): December 29, 2018 December 30, 2017 Warranty liability, beginning of period $ 2,450 $ 2,437 Provision for warranties issued during the period 5,105 2,952 Settlements of warranty claims during the period (2,581 ) (2,404 ) Warranty liability, end of period $ 4,974 $ 2,985

Debt (Tables)

Debt (Tables)	3 Months Ended
	Dec. 29, 2018
Debt Disclosure [Abstract]
Schedule of short and long term debt	The Company’s short- and long-term debt as of December 29, 2018 and September 29, 2018 was as follows: December 29, 2018 September 29, 2018 Rate Balance Rate Balance (dollars in thousands) J.P. Morgan Chase Bank, N.A Secured Term Loan (the “Term Loan”) (1) 4.8 % $ 40,000 4.8 % $ 40,000 Unamortized debt issuance costs (2) (218 ) (236 ) Total indebtedness $ 39,782 $ 39,764 Less short-term portion (8,333 ) (6,667 ) Long-term debt $ 31,449 $ 33,097 (1) Bears interest at a variable rate equal to an adjusted LIBOR plus 2.25% and is payable quarterly. Due in October 2021, with quarterly principal payments beginning in July 2019. (2) Debt issuance costs are recorded as debt discount and recorded as interest expense over the term of the agreement.

Stock-based compensation (Table

Stock-based compensation (Tables)	3 Months Ended
	Dec. 29, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock Option Activity	Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Weighted Average Intrinsic Value (in years) (in thousands) Outstanding at September 29, 2018 48,504,182 $ 10.33 6.6 $ 276,959 Granted 976,328 Exercised (174,453 ) Forfeited (720,463 ) Outstanding at December 29, 2018 48,585,594 $ 10.40 6.4 $ 98,745 At December 29, 2018 Options exercisable 32,514,889 $ 8.44 5.3 $ 98,745 Options vested and expected to vest 45,915,517 $ 10.16 6.3 $ 98,745
Schedule of Restricted Stock Unit Activity	The summary of the Company’s unvested RSU activity is as follows: Number of Units Weighted Average Grant Date Fair Value Weighted Average Intrinsic Value (in thousands) Unvested at September 29, 2018 — $ — $ — Granted 579,841 Vested — Forfeited — Unvested at December 29, 2018 579,841 $ 14.91 $ 5,619 At December 29, 2018 Units expected to vest 434,360 $ 14.92 $ 4,209
Schedule of Stock-based Compensation Expense	Total stock-based compensation expense by function category was as follows: Three Months Ended December 29, 2018 December 30, 2017 (In thousands) Cost of revenue $ 184 $ 56 Research and development 3,604 3,381 Sales and marketing 2,681 3,986 General and administrative 2,563 2,114 Total stock-based compensation expense $ 9,032 $ 9,537

Net income per share attribut_2

Net income per share attributable to common stockholders (Tables)	3 Months Ended
	Dec. 29, 2018
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 29, 2018 December 30, 2017 (In thousands, except share and per share data) Numerator: Net income $ 61,667 $ 45,697 Less: noncumulative dividend to preferred stockholders — (7,293 ) Less: undistributed earnings to participating securities — (13,670 ) Net income attributable to common stockholders—basic $ 61,667 $ 24,734 Add: undistributed earnings reallocated to holders of common stock — 1,899 Net income attributable to common stockholders—diluted $ 61,667 $ 26,633 Denominator: Weighted-average shares of common stock—basic 100,148,106 58,772,641 Weighted-average shares of common stock—diluted 112,088,672 73,546,144 Net income per share attributable to common stockholders: Net income per share attributable to common stockholders—basic $ 0.62 $ 0.42 Net income per share attributable to common stockholders—diluted $ 0.55 $ 0.36
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 29, 2018 December 30, 2017 Convertible preferred stock — 32,482,590 Stock options to purchase common stock 36,135,411 30,969,228 RSUs 247,744 — Total 36,383,155 63,451,818

Business overview and basis o_2

Business overview and basis of presentation (Details) $ / shares in Units, $ in Thousands	Aug. 06, 2018USD ($)$ / sharesshares	Jul. 19, 2018	Dec. 29, 2018USD ($)country	Dec. 30, 2017USD ($)
Class of Stock [Line Items]
Number of countries where products are distributed | country			50
Stock split, conversion ratio		2
Underwriting discounts and commissions | $			$ 567	$ 0
Common shares issued in conversion of outstanding shares of redeemable convertible preferred stock (shares)	32,482,590
Number of shares of common stock issued for each share of redeemable convertible preferred stock (shares)	1
IPO
Class of Stock [Line Items]
Shares sold in IPO (shares)	6,388,888
Public offering price (in USD per share) | $ / shares	$ 15
Net proceeds from IPO | $	$ 90,600
Underwriting discounts and commissions | $	5,300
Offering costs | $	$ 4,600
Over-Allotment Option
Class of Stock [Line Items]
Shares sold in IPO (shares)	833,333
Initial Public Offering - Shares From Existing Shareholders
Class of Stock [Line Items]
Shares sold in IPO (shares)	9,583,333
Over-Allotment Option - Shares From Existing Shareholders
Class of Stock [Line Items]
Shares sold in IPO (shares)	1,250,000

Fair value measurements (Detail

Fair value measurements (Details) - Money market funds - USD ($) $ in Thousands	Dec. 29, 2018	Sep. 29, 2018
Assets:
Money market funds (cash equivalents)	$ 100,111	$ 140,588
Level 1
Assets:
Money market funds (cash equivalents)	100,111	140,588
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. 29, 2018	Dec. 30, 2017
Disaggregation of Revenue [Line Items]
Revenue	$ 496,371	$ 468,950
Wireless speakers
Disaggregation of Revenue [Line Items]
Revenue	225,869	273,385
Home theater speakers
Disaggregation of Revenue [Line Items]
Revenue	210,237	148,430
Components
Disaggregation of Revenue [Line Items]
Revenue	50,905	42,270
Other
Disaggregation of Revenue [Line Items]
Revenue	9,360	4,865
Americas
Disaggregation of Revenue [Line Items]
Revenue	258,727	231,738
Europe, Middle East and Africa (“EMEA”)
Disaggregation of Revenue [Line Items]
Revenue	216,080	215,264
Asia Pacific (“APAC”)
Disaggregation of Revenue [Line Items]
Revenue	21,564	21,948
United States
Disaggregation of Revenue [Line Items]
Revenue	237,112	210,024
United Kingdom
Disaggregation of Revenue [Line Items]
Revenue	54,497	54,263
Germany
Disaggregation of Revenue [Line Items]
Revenue	56,055	57,691
Other countries
Disaggregation of Revenue [Line Items]
Revenue	$ 148,707	$ 146,972

Balance sheet components - Acco

Balance sheet components - Accounts receivable, net of allowances (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Sep. 29, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts receivable	$ 156,999	$ 85,840
Allowance for doubtful accounts	(1,140)	(872)
Allowance for sales incentives	(34,205)	(11,754)
Accounts receivable, net of allowances	$ 121,654	$ 73,214

Balance sheet components - Inve

Balance sheet components - Inventories, net (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Sep. 29, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finished goods	$ 95,394	$ 176,181
Components	14,456	17,012
Inventories	$ 109,850	$ 193,193

Balance sheet components - Chan

Balance sheet components - Change in deferred revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 29, 2018	Dec. 30, 2017
Contract with Customer, Liability [Roll Forward]
Deferred revenue, beginning of period	$ 50,967	$ 45,567
Recognition of revenue included in beginning of period deferred revenue	(2,986)	(3,780)
Revenue deferred, net of revenue recognized on contracts in the respective period	7,472	7,226
Deferred revenue, end of period	$ 55,453	$ 49,013

Balance sheet components - Expe

Balance sheet components - Expected revenue recognition (Details) $ in Thousands	Dec. 29, 2018USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue expected to be recognized, remainder of fiscal 2019	$ 9,451
Deferred revenue expected to be recognized, fiscal 2020	12,051
Deferred revenue expected to be recognized, fiscal 2021	10,638
Deferred revenue expected to be recognized, fiscal 2022	8,792
Deferred revenue expected to be recognized, thereafter	14,521
Total deferred revenue expected to be recognized	$ 55,453

Balance sheet components - Othe

Balance sheet components - Other current liabilities (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Sep. 29, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reserve for returns	$ 13,920	$ 5,005
Product warranty liability	4,974	2,450
Other	3,890	3,403
Total other current liabilities	$ 22,784	$ 10,858

Balance sheet components - Prod

Balance sheet components - Product Warranties (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 29, 2018	Dec. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Warranty liability at beginning of period	$ 2,450	$ 2,437
Provision for warranties issued during the period	5,105	2,952
Settlements of warranty claims during the period	(2,581)	(2,404)
Warranty liability at end of period	$ 4,974	$ 2,985

Debt - Schedule of debt (Detail

Debt - Schedule of debt (Details) - USD ($)	3 Months Ended
	Dec. 29, 2018	Sep. 29, 2018
Debt Disclosure [Abstract]
Debt, interest rate, stated percentage	4.81%	4.81%
Debt	$ 40,000,000	$ 40,000,000
Unamortized debt issuance costs	(218,000)	(236,000)
Total indebtedness	39,782,000	39,764,000
Less short-term portion	(8,333,000)	(6,667,000)
Long-term debt	$ 31,449,000	$ 33,097,000
LIBOR
Debt Instrument [Line Items]
Debt, basis spread on variable rate	2.25%

Debt - Additional Information (

Debt - Additional Information (Details) $ in Thousands	Dec. 29, 2018USD ($)	Sep. 29, 2018USD ($)
Debt Instrument [Line Items]
Fixed charge ratio, covenant one	1
Fixed charge ratio, covenant two	1.15
Outstanding debt	$ 39,782	$ 39,764
Letter of credit
Debt Instrument [Line Items]
Unused borrowing capacity	$ 4,500	$ 4,500

Stock-based compensation - Addi

Stock-based compensation - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 29, 2018	Sep. 29, 2018
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	48 months
Unrecognized stock-based compensation expense	$ 66.2	$ 71.5
Unrecognized stock-based compensation expense, period of recognition	2 years 6 months	2 years 7 months 6 days
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	$ 6.2
Unrecognized stock-based compensation expense, period of recognition	3 years 10 months 24 days
2003 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercisable period	10 years

Stock-based compensation - Stoc

Stock-based compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 29, 2018	Sep. 30, 2017	Sep. 29, 2018
Number of Options
Beginning balance (in shares)	48,504,182
Granted (in shares)	976,328
Exercised (in shares)	(174,453)
Forfeited (in shares)	(720,463)
Ending balance (in shares)	48,585,594
Weighted Average Exercise Price
Beginning balance (in USD per share)	$ 10.33
Granted (in USD per share)
Exercised (in USD per share)
Forfeited (in USD per share)
Ending balance (in USD per share)	$ 10.40
Additional Information
Weighted Average Remaining Contractual Term	6 years 4 months 24 days	6 years 7 months 6 days
Weighted Average Intrinsic Value	$ 98,745		$ 276,959
Options exercisable	32,514,889
Option exercisable - Weighted Average Exercise Price (in USD per share)	$ 8.44
Option exercisable - Weighted Average Remaining Contractual Term	5 years 3 months 18 days
Options exercisable - Weighted Average Intrinsic Value	$ 98,745
Options vested and expected to vest	45,915,517
Options vested and expected to vest - Weighted Average Exercise Price (in USD per share)	$ 10.16
Options vested and expected to vest - Weighted Average Remaining Contractual Term	6 years 3 months 18 days
Options vested and expected to vest - Weighted Average Intrinsic Value	$ 98,745

Stock-based compensation - Rest

Stock-based compensation - Restricted Stock Unit Activity (Details) - Restricted Stock Units - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 29, 2018	Sep. 29, 2018
Number of Units
Outstanding, beginning balance (in shares)	0
Forfeited (in shares)	579,841
Exercised (in shares)	0
Granted (in shares)	0
Outstanding, ending balance (in shares)	579,841
Weighted Average Grant Date Fair Value
Outstanding, beginning balance (in usd per share)	$ 0
Outstanding, ending balance (in usd per share)	$ 14.91
Additional Information
Options vested and expected to vest	434,360
Options vested and expected to vest - Weighted Average Exercise Price (in USD per share)	$ 14.92
Options vested and expected to vest - Weighted Average Intrinsic Value	$ 4,209
Weighted Average Intrinsic Value	$ 5,619	$ 0

Stock-based compensation - St_2

Stock-based compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 29, 2018	Dec. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 9,032	$ 9,537
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	184	56
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	3,604	3,381
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	2,681	3,986
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 2,563	$ 2,114

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 29, 2018	Dec. 30, 2017
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 2,455	$ 32

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	Aug. 06, 2018	Dec. 29, 2018	Dec. 30, 2017	Sep. 30, 2017
Earnings Per Share [Abstract]
Common shares issued in conversion of outstanding shares of redeemable convertible preferred stock (shares)	32,482,590
Number of shares of common stock issued for each share of redeemable convertible preferred stock (shares)	1
Numerator:
Net income		$ 61,667	$ 45,697	$ 45,697
Less: noncumulative dividend to preferred stockholders		0	(7,293)
Less: undistributed earnings to participating securities		0	(13,670)
Net loss attributable to common stockholders—basic		61,667	24,734
Add: undistributed earnings reallocated to holders of common stock		0	1,899
Net loss attributable to common stockholders—diluted		$ 61,667	$ 26,633
Denominator:
Weighted-average shares of common stock - basic (in shares)		100,148,106	58,772,641
Weighted-average shares of common stock - diluted (in shares)		112,088,672	73,546,144
Net loss per share attributable to common stockholders:
Net income per share attributable to common stockholders - basic (in USD per share)		$ 0.62	$ 0.42
Net income per share attributable to common stockholders - diluted (in USD per share)		$ 0.55	$ 0.36

Net income per share attribut_4

Net income per share attributable to common stockholders - Antidilutive Securities (Details) - shares	3 Months Ended
	Dec. 29, 2018	Dec. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)	36,383,155	63,451,818
Convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)	0	32,482,590
Stock options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)	36,135,411	30,969,228
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)	247,744	0

Commitments and contingencies (

Commitments and contingencies (Details)	Mar. 10, 2017patent
Implicit, LLC
Long-term Purchase Commitment [Line Items]
Loss contingency, patents allegedly infringed upon, number	2