Sonos (SONO) 10-Q 11 Feb 21 2021 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Jan. 02, 2021	Jan. 30, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jan. 2, 2021
Current Fiscal Year End Date	--01-02
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	965-3001
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		119,740,268
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001314727

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jan. 02, 2021	Oct. 03, 2020
Current assets:
Cash and cash equivalents	$ 677,834	$ 407,100
Restricted cash	198	191
Accounts receivable, net of allowances	113,616	54,935
Inventories	88,194	180,830
Prepaids and other current assets	21,076	17,321
Total current assets	900,918	660,377
Property and equipment, net	64,170	60,784
Operating lease right-of-use assets	41,462	42,342
Goodwill	15,545	15,545
Intangible assets, net	25,975	26,394
Deferred tax assets	1,886	1,800
Other noncurrent assets	16,904	8,809
Total assets	1,066,860	816,051
Current liabilities:
Accounts payable	239,760	250,328
Accrued expenses	96,433	45,049
Accrued compensation	29,424	44,517
Short-term debt	24,937	6,667
Deferred revenue, current	16,382	15,304
Other current liabilities	48,828	31,150
Total current liabilities	455,764	393,015
Operating lease liabilities, noncurrent	42,268	50,360
Long-term debt	0	18,251
Deferred revenue, noncurrent	52,459	47,085
Deferred tax liabilities	2,434	2,434
Other noncurrent liabilities	3,726	7,067
Total liabilities	556,651	518,212
Commitments and contingencies (Note 7)
Stockholders’ equity:
Common stock, $0.001 par value	121	114
Treasury stock	(26,004)	(20,886)
Additional paid-in capital	633,335	548,993
Accumulated deficit	(96,200)	(228,492)
Accumulated other comprehensive loss	(1,043)	(1,890)
Total stockholders’ equity	510,209	297,839
Total liabilities and stockholders’ equity	$ 1,066,860	$ 816,051

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jan. 02, 2021	Oct. 03, 2020
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
	Jan. 02, 2021	Dec. 28, 2019
Income Statement [Abstract]
Revenue	$ 645,584	$ 562,083
Cost of revenue	346,159	334,463
Gross profit	299,425	227,620
Operating expenses
Research and development	52,346	52,526
Sales and marketing	74,453	77,423
General and administrative	35,242	30,209
Total operating expenses	162,041	160,158
Operating income	137,384	67,462
Other income (expense), net
Interest income	36	998
Interest expense	(265)	(453)
Other income, net	4,257	4,424
Total other income (expense), net	4,028	4,969
Income before provision for income taxes	141,412	72,431
Provision for income taxes	9,120	1,656
Net income	132,292	70,775
Net income attributable to common stockholders:
Basic	132,292	70,775
Diluted	$ 132,292	$ 70,775
Basic (in USD per share)	$ 1.14	$ 0.65
Diluted (in USD per share)	$ 1.01	$ 0.60
Weighted-average shares used in computing net loss per share attributable to common stockholders:
Basic (in shares)	115,610,523	108,984,683
Diluted (in shares)	130,644,147	118,415,968
Total comprehensive income
Net income	$ 132,292	$ 70,775
Change in foreign currency translation adjustment	847	(519)
Comprehensive income	$ 133,139	$ 70,256

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Treasury Stock	Accumulated Deficit	Accumulated Other Comprehensive Loss
Balance, beginning of period (in shares) at Sep. 28, 2019		109,623,417		(1,020,775)
Balance, beginning of period at Sep. 28, 2019	$ 280,928	$ 110	$ 502,757	$ (13,498)	$ (208,377)	$ (64)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to equity incentive plans (in shares)		1,561,696
Issuance of common stock pursuant to equity incentive plans	7,969	$ 1	7,968
Repurchase of common stock (in shares)				(372,149)
Repurchase of common stock	(5,078)			$ (5,078)
Stock-based compensation expense	13,204		13,204
Net income (loss)	70,775				70,775
Change in foreign currency translation adjustment	(519)					(519)
Balance, end of period (in shares) at Dec. 28, 2019		111,185,113		(1,392,924)
Balance, ending of period at Dec. 28, 2019	367,279	$ 111	523,929	$ (18,576)	(137,602)	(583)
Balance, beginning of period (in shares) at Oct. 03, 2020		113,915,233		(1,571,138)
Balance, beginning of period at Oct. 03, 2020	$ 297,839	$ 114	548,993	$ (20,886)	(228,492)	(1,890)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to equity incentive plans (in shares)	6,173,671	7,075,338
Issuance of common stock pursuant to equity incentive plans	$ 69,505	$ 7	69,498
Repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock unit awards ("RSUs") (in shares)				(307,980)
Repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock unit awards ("RSUs")	(5,118)			$ (5,118)
Stock-based compensation expense	14,844		14,844
Net income (loss)	132,292				132,292
Change in foreign currency translation adjustment	847					847
Balance, end of period (in shares) at Jan. 02, 2021		120,990,571		(1,879,118)
Balance, ending of period at Jan. 02, 2021	$ 510,209	$ 121	$ 633,335	$ (26,004)	$ (96,200)	$ (1,043)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Cash flows from operating activities
Net income	$ 132,292	$ 70,775
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	7,982	9,105
Stock-based compensation expense	14,844	13,204
Other	(1,050)	1,471
Deferred income taxes	12	51
Foreign currency transaction gain	(1,633)	(1,924)
Changes in operating assets and liabilities:
Accounts receivable, net	(56,650)	(31,411)
Inventories	93,495	107,343
Other assets	(7,330)	(11,853)
Accounts payable and accrued expenses	33,271	(39,416)
Accrued compensation	(15,481)	(14,568)
Deferred revenue	5,633	4,879
Other liabilities	9,128	11,184
Net cash provided by operating activities	214,513	118,840
Cash flows from investing activities
Purchases of property and equipment, intangible and other assets	(11,333)	(15,914)
Cash paid for acquisition, net of acquired cash	0	(35,622)
Net cash used in investing activities	(11,333)	(51,536)
Cash flows from financing activities
Repayments of borrowings	0	(1,667)
Payments for repurchase of common stock	0	(5,078)
Proceeds from exercise of common stock options	69,505	7,969
Payments for repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock units	(5,118)	0
Net cash provided by financing activities	64,387	1,224
Effect of exchange rate changes on cash, cash equivalents and restricted cash	3,174	1,254
Net increase in cash, cash equivalents and restricted cash	270,741	69,782
Cash, cash equivalents and restricted cash
Beginning of period	407,291	338,820
End of period	678,032	408,602
Supplemental disclosure
Cash paid for interest	166	472
Cash paid for taxes, net of refunds	2,672	517
Cash paid for amounts included in the measurement of lease liabilities	8,102	4,304
Supplemental disclosure of non-cash investing and financing activities
Purchases of property and equipment in accounts payable and accrued expenses	7,814	7,908
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 1,509	$ 74,683

Business Overview and Basis of

Business Overview and Basis of Presentation	3 Months Ended
	Jan. 02, 2021
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 audio products and services. The Sonos sound system provides customers with an immersive listening experience created by the design of its speakers and components, a proprietary software platform, and the ability to stream content from a variety of sources over the customer’s wireless network or over Bluetooth. The Company’s products are sold through third-party physical retailers, including custom installers of home audio systems, select e-commerce retailers, and its website sonos.com. The Company’s products are distributed in over 50 countries through its wholly owned subsidiaries: Sonos Europe B.V. in the Netherlands, Beijing Sonos Technology Co. Ltd. in China, Sonos Japan GK in Japan, and Sonos Australia Pty Ltd. in Australia. Basis of presentation and preparation The accompanying condensed consolidated financial statements are unaudited. The condensed consolidated balance sheet as of October 3, 2020 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 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 its cash flows for the interim periods presented. The results of operations for the three months ended January 2, 2021 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 October 3, 2020 (the “Annual Report”), filed with the Securities and Exchange Commission (“SEC”) on November 23, 2020. 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 January 2, 2021 and December 28, 2019 spanned 13 weeks each. As used in this Quarterly Report on Form 10-Q, “fiscal 2021” refers to the fiscal year ending October 2, 2021 and “fiscal 2020” refers to the fiscal year ended October 3, 2020. Use of estimates and judgments The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company evaluates its estimates and judgments compared to historical experience and expected trends. In March 2020, the outbreak of the novel coronavirus (COVID-19) was declared a pandemic. While the nature of the situation is dynamic, the Company has considered the impact when developing its estimates and assumptions noted above. Actual results and outcomes may differ from management's estimates and assumptions.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Jan. 02, 2021
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 June 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, and it subsequently issued amendments to the initial guidance (collectively referred to as "Topic 326"), which provide a new impairment model that requires measurement and recognition of expected credit losses for most financial assets and certain other instruments, including accounts receivable. The Company adopted this standard effective October 4, 2020, using a modified retrospective approach. Under the new standard, the allowance for credit losses is based on the Company's assessment of collectibility of accounts, including consideration of the age of invoices, each customer's expected ability to pay and collection history, customer-specific information and current economic conditions that may impact a customer's ability to pay. The adoption of this standard did not have a material impact on the Company's 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 guidance for unit of account to align with Topic 606 and provides presentation guidance for collaborative arrangements. The Company adopted this standard in the first quarter of fiscal 2021. The adoption did not have a material impact on the Company's consolidated financial statements. Recent accounting pronouncements pending adoption In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in Accounting Standards Codification Topic 740 ("ASC 740") as well as by improving consistent application of the topic by clarifying and amending existing guidance. This standard is effective for the Company in the first quarter of fiscal 2022, 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
	Jan. 02, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value MeasurementsThe 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 January 2, 2021 and October 3, 2020 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 January 2, 2021 and October 3, 2020: January 2, 2021 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 391,388 $ — $ — $ 391,388 October 3, 2020 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 281,380 $ — $ — $ 281,380

Revenue and Geographic Informat

Revenue and Geographic Information	3 Months Ended
	Jan. 02, 2021
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 for software upgrades and cloud-based services attributable to each region and is based on ship-to address, as follows: Three Months Ended January 2, 2021 December 28, 2019 (In thousands) Americas $ 367,239 $ 303,194 Europe, Middle East and Africa (“EMEA”) 240,007 212,738 Asia Pacific (“APAC”) 38,338 46,151 Total revenue $ 645,584 $ 562,083 Revenue is attributed to individual countries based on ship-to address and 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 January 2, 2021 December 28, 2019 (In thousands) United States $ 330,896 $ 277,273 Germany 58,145 58,988 Other countries 256,543 225,822 Total revenue $ 645,584 $ 562,083 Revenue by product category 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 January 2, 2021 December 28, 2019 (In thousands) Sonos speakers $ 527,516 $ 466,677 Sonos system products 97,759 61,521 Partner products and other revenue 20,309 33,885 Total revenue $ 645,584 $ 562,083

Balance Sheet Components

Balance Sheet Components	3 Months Ended
	Jan. 02, 2021
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: January 2, 2021 October 3, 2020 (In thousands) Accounts receivable $ 164,912 $ 73,757 Allowance for credit losses (1,538) (1,307) Allowance for sales incentives (49,758) (17,515) Accounts receivable, net of allowances $ 113,616 $ 54,935 Inventories, net Inventories consist of the following: January 2, 2021 October 3, 2020 (In thousands) Finished goods $ 79,213 $ 172,184 Component parts 8,981 8,646 Inventories $ 88,194 $ 180,830 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. 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: January 2, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted-Average Remaining Life (In thousands, except weighted-average remaining life) Technology $ 7,875 $ (2,018) $ 5,857 3.31 Other 39 (21) 18 0.92 Total finite-lived intangible assets 7,914 (2,039) 5,875 3.30 In-process research and development and other intangible assets not subject to amortization 20,100 — 20,100 Total intangible assets $ 28,014 $ (2,039) $ 25,975 The following table summarizes estimated future amortization expense of the Company's intangible assets as of January 2, 2021: Fiscal years ending Future Amortization Expense (In thousands) Remainder of fiscal 2021 $ 1,478 2022 1,955 2023 1,253 2024 1,020 2025 169 2026 and thereafter — Total future amortization expense $ 5,875 Accrued expenses Accrued expenses consist of the following: January 2, 2021 October 3, 2020 (In thousands) Accrued advertising and marketing $ 26,681 $ 10,609 Accrued taxes 20,300 6,252 Accrued inventory 12,130 2,843 Accrued manufacturing, logistics and product development 17,765 9,753 Accrued general and administrative expenses 10,935 10,068 Other accrued payables 8,622 5,524 Total accrued expenses $ 96,433 $ 45,049 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. The following table presents the changes in the Company’s deferred revenue for the three months ended January 2, 2021 and December 28, 2019: January 2, December 28, (In thousands) Deferred revenue, beginning of period $ 62,389 $ 56,449 Recognition of revenue included in beginning of period deferred revenue (3,357) (3,238) Revenue deferred, net of revenue recognized on contracts in the respective period 9,809 8,435 Deferred revenue, end of period $ 68,841 $ 61,646 The Company expects the following recognition of deferred revenue as of January 2, 2021: For the fiscal years ending 2021 2022 2023 2024 2025 and Beyond Total (In thousands) Deferred revenue expected to be recognized $ 12,488 $ 14,772 $ 12,844 $ 10,793 $ 17,944 $ 68,841 Other current liabilities Other current liabilities consist of the following: January 2, 2021 October 3, 2020 (In thousands) Reserve for returns $ 23,723 $ 14,195 Short-term operating lease liabilities 10,831 10,910 Product warranty liability 6,446 3,628 Other 7,828 2,417 Total other current liabilities $ 48,828 $ 31,150 The following table presents the changes in the Company’s warranty liability for the three months ended January 2, 2021 and December 28, 2019: January 2, 2021 December 28, 2019 (In thousands) Warranty liability, beginning of period $ 3,628 $ 3,254 Provision for warranties issued during the period 6,277 5,080 Settlements of warranty claims during the period (3,459) (2,633) Warranty liability, end of period $ 6,446 $ 5,701

Debt

Debt	3 Months Ended
	Jan. 02, 2021
Debt Disclosure [Abstract]
Debt	Debt The Company's debt obligations consist of the Secured Credit Facility with J.P. Morgan Chase Bank, N.A. (the “Credit Facility”) and the J.P. Morgan Chase Bank, N.A. Secured Term Loan (the "Term Loan"). The Company’s short- and long-term debt obligations as of January 2, 2021 and October 3, 2020 were as follows: January 2, 2021 October 3, 2020 (In thousands, except percentages) Term loan (1) 2.4 % $ 25,000 2.4 % $ 25,000 Unamortized debt issuance costs (2) (63) (82) Total indebtedness 24,937 24,918 Less short-term portion (24,937) (6,667) Long-term debt $ — $ 18,251 (1) Due in October 2021 and bears interest at a variable rate equal to an adjusted LIBOR plus 2.25%, payable quarterly. Subsequent to the first quarter of fiscal 2021, the Company repaid all of its outstanding principal balance. For more information, refer to Note 14. Subsequent Event. (2) Debt issuance costs are recorded as a debt discount and recorded as interest expense over the term of the agreement. The Credit Facility allows the Company to borrow up to $80.0 million, restricted to the value of the borrowing base, which is based on the value of inventory and accounts receivable and is subject to quarterly redetermination. The Credit Facility matures in October 2021 and may be drawn as Commercial Bank Floating Rate Loans (at the higher of prime rate or adjusted LIBOR plus 2.50%) or Eurocurrency Loans (at LIBOR plus an applicable margin). As of both January 2, 2021 and October 3, 2020, the Company did not have any outstanding borrowings and had $0.1 million and $0.5 million, respectively, in undrawn letters of credit that reduce the availability under the Credit Facility. Debt obligations under 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

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Jan. 02, 2021
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 January 7, 2020, the Company filed a complaint with the U.S. International Trade Commission ("ITC") against Alphabet Inc. ("Alphabet") and Google LLC ("Google") and a lawsuit in the U.S. District Court for the Central District of California against Google. The complaint and lawsuit each allege infringement of certain Sonos patents related to its smart speakers and related technology. On February 6, 2020, the ITC initiated a formal investigation into the Company’s claims. Google and Alphabet filed an initial answer in the ITC action on February 27, 2020 and an amended answer on April 3, 2020, denying infringement and alleging that the asserted patents are invalid. The ITC case is set for trial towards the end of February 2021, and we expect, based on the trial schedule as of the date of this filing, an initial determination from the administrative law judge in the ITC case on or about May 11, 2021. On March 4, 2020, the California District Court stayed the district court proceeding pending resolution of the ITC investigation. On March 11, 2020, Google filed an answer in the California District Court, denying infringement and alleging that the asserted patents are invalid. On September 28, 2020, Google filed for a declaratory judgement of non-infringement in the U.S. District Court for the Northern District of California related to five different Sonos patents. On September 29, 2020, the Company filed a lawsuit against Google in the U.S. District Court for Western District of Texas, alleging infringement of those five Sonos patents and seeking monetary damages and other non-monetary relief. On December 1, 2020, the Company filed a lawsuit against Google in the regional court of Hamburg, Germany, alleging infringement of a Sonos patent related to control of playback of media by mobile and playback devices and seeking non-monetary relief. On June 11, 2020, Google filed a lawsuit in the U.S. District Court for the Northern District of California against the Company, alleging infringement of five Google patents generally related to noise cancellation, digital rights management, media search and wireless relays and seeking monetary damages and other non-monetary relief. On November 2, 2020, the California District Court granted Sonos’ motion and dismissed Google’s allegation of infringement of one of such five Google patents, a patent generally related to media search, finding that the invention at issue is patent ineligible. On June 12, 2020, Google filed lawsuits in District Court Munich I against Sonos Europe B.V. and Sonos, Inc., alleging infringement of two Google patents generally related to digital rights management and search notifications, and seeking monetary damages and an injunction preventing sales of any infringing Sonos products. On August 21, 2020, Google filed a lawsuit against Sonos, Inc. in Canada, alleging infringement of one Google patent generally related to noise cancellation technology. On August 21, 2020, Google filed a lawsuit against Sonos Europe B.V. and Sonos, Inc. in France, alleging infringement of two Google patents generally related to digital rights management and search notifications, and seeking monetary damages and an injunction preventing sales of any infringing Sonos products. In August 2020, Google filed a lawsuit against Sonos Europe B.V. and Sonos, Inc. in the Netherlands alleging infringement of a Google patent related to search notifications, and seeking monetary damages and an injunction preventing sales of any infringing Sonos products. In September 2020, Google filed a lawsuit against Sonos Europe B.V. in the Netherlands, alleging infringement of a Google patent related to digital rights management, and seeking monetary damages and enforcement of an injunction preventing sales of any infringing Sonos products. A range of loss, if any, associated with these matters is not probable or reasonably estimable as of January 2, 2021 and October 3, 2020. 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 January 2, 2021 and October 3, 2020. 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.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Jan. 02, 2021
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Share repurchase program On November 17, 2020, the Board of Directors authorized a common stock repurchase program of up to $50.0 million. No shares of the Company's stock were repurchased under this program during the three months ended January 2, 2021.

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Jan. 02, 2021
Share-based Payment Arrangement [Abstract]
Stock-based Compensation	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 increase 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 of directors (the "Board"). Stock options Pursuant to the 2018 Plan, the Company issues stock options to employees and directors. The fair value of the stock options is based on the Company’s closing stock price on the trading day immediately prior to the date of grant. The option price, number of shares, and grant date are determined at the discretion of the Board. For so long as the option holder performs services for the Company, the options generally vest over 48 months, on a monthly or quarterly basis, with certain options subject to an initial annual cliff vest, and are exercisable for a period not to exceed ten years from the date of grant. The summary of the Company’s stock option activity is as follows: Weighted-Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In years) (In thousands) Outstanding at October 3, 2020 28,422,940 $ 12.03 5.6 $ 99,053 Granted — — Exercised (6,173,671) 11.26 Forfeited (311,443) 14.16 Outstanding at January 2, 2021 21,937,826 $ 12.21 5.5 $ 245,191 At January 2, 2021 Options exercisable 18,512,188 $ 11.78 5.1 $ 214,871 Options vested and expected to vest 21,533,731 $ 12.17 5.5 $ 241,587 As of January 2, 2021 and October 3, 2020, the Company had $13.7 million and $16.9 million, respectively, of unrecognized stock-based compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 1.4 and 1.5 years, respectively. Restricted stock units ("RSU") Pursuant to the 2018 Plan, the Company issues RSUs to employees and directors. The fair value of RSUs is based on the Company's closing stock price on the trading day immediately preceding the date of grant. RSUs 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 Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value (In thousands) Unvested at October 3, 2020 11,647,951 $ 10.50 $ 180,543 Granted 2,501,828 Vested (901,667) Forfeited (251,801) Unvested at January 2, 2021 12,996,311 $ 11.64 $ 303,984 As of January 2, 2021 and October 3, 2020, the Company had $113.4 million and $92.4 million of unrecognized stock-based compensation expense related to RSUs, which is expected to be recognized over a weighted-average period of 3.1 and 3.0 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 Company estimates the fair value of PSUs on the grant date and recognizes compensation expense in the period it becomes probable that performance conditions will be achieved. On a quarterly basis, the Company re-evaluates the assumption of the probability that performance conditions will be satisfied and revises its estimates as appropriate as new or updated information becomes available. The summary of the Company’s unvested PSU activity is as follows: Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value (In thousands) Unvested at October 3, 2020 — $ — $ — Granted 158,521 Vested — Forfeited — Unvested at January 2, 2021 158,521 $ 22.81 $ 3,708 As of January 2, 2021, the Company had $4.2 million of unrecognized stock-based compensation expense related to PSUs, which is expected to be recognized over a weighted-average period of 1.9 years. Stock-based compensation Total stock-based compensation expense by functional category was as follows: Three Months Ended January 2, 2021 December 28, 2019 (In thousands) Cost of revenue $ 214 $ 282 Research and development 6,258 5,116 Sales and marketing 3,408 3,541 General and administrative 4,964 4,265 Total stock-based compensation expense $ 14,844 $ 13,204

Income Taxes

Income Taxes	3 Months Ended
	Jan. 02, 2021
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 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 recorded a provision for incomes taxes of $9.1 million and $1.7 million for the three months ended January 2, 2021 and December 28, 2019, respectively, related to foreign and U.S. federal and state income taxes. For the three months ended January 2. 2021 the Company's tax provision includes a discrete benefit of $10.2 million for U.S. share based compensation. For the three months ended December 28, 2019, the Company calculated its U.S. income tax provision using the discrete method as though the interim year to date period was an annual period. The application of the estimated annual effective tax rate ("AETR") method generally required by ASC 740 was impractical for the U.S. interim tax provision for the three months ended December 28, 2019 given that normal deviations in the projected pre-tax net income (loss) in the U.S. could have resulted in a disproportionate and unreliable effective tax rate under the AETR method.

Net Income Per Share Attributab

Net Income Per Share Attributable to Common Stockholders	3 Months Ended
	Jan. 02, 2021
Earnings Per Share [Abstract]
Net Income Per Share Attributable to Common Stockholders	Net Income Per Share Attributable to Common Stockholders 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 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 January 2, December 28, (In thousands, except share and per share data) Numerator: Net income attributable to common stockholders - basic and diluted $ 132,292 $ 70,775 Denominator: Weighted-average shares of common stock—basic 115,610,523 108,984,683 Effect of potentially dilutive stock options 8,105,916 6,751,412 Effect of RSUs 6,927,708 2,679,873 Weighted-average shares of common stock—diluted 130,644,147 118,415,968 Net income per share attributable to common stockholders: Basic $ 1.14 $ 0.65 Diluted $ 1.01 $ 0.60 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 January 2, December 28, Stock options to purchase common stock 17,074,467 29,628,623 Restricted stock units 5,489,890 4,278,556 Total 22,564,357 33,907,179

Restructuring Plan

Restructuring Plan	3 Months Ended
	Jan. 02, 2021
Restructuring and Related Activities [Abstract]
Restructuring Plan	Restructuring PlanOn June 23, 2020, the Company initiated a restructuring plan as part of its efforts to reduce operating expenses and preserve liquidity due to the uncertainty and challenges stemming from the COVID-19 pandemic (the "2020 restructuring plan"). As part of the 2020 restructuring plan, the Company eliminated approximately 12% of its global headcount and closed its New York retail store and six satellite offices in order to better align resources to provide further operating flexibility and more efficiently position the business for its long-term strategy. Activities under the 2020 restructuring plan were substantially completed in the first quarter of fiscal 2021. Total pre-tax restructuring and related costs under the 2020 restructuring plan were $26.4 million, which was incurred in fiscal 2020. For the assets deemed to be impaired as part of the 2020 restructuring, the Company estimated fair value using an income-approach based on management’s forecast of future cash flows expected to be derived from the property. In the first quarter of fiscal 2021, the Company negotiated the early termination of a facility lease that was part of the 2020 restructuring and recorded a gain of $2.8 million, representing the difference between the related operating lease liability and previously accrued restructuring expenses versus the early termination payment. The gain was recognized as a credit in sales and marketing expenses on the condensed consolidated statements of operations and comprehensive income. The cash paid related to the settlement of the lease liability as part of the early termination is included within "Cash paid for amounts included in the measurement of lease liabilities" within the supplemental disclosure on the condensed consolidated statements of cash flows. The remaining restructuring and related costs incurred in the first quarter of fiscal 2021 were nominal. Costs incurred in the three months ended January 2, 2021 (In thousands) Employee related costs $ 190 Gain on early termination of facility lease (2,801) Total $ (2,611) The following table represents the restructuring and related costs recorded in the Company's condensed consolidated statements of operations and comprehensive income: Three Months Ended January 2, 2021 (In thousands) Research and development $ 25 Sales and marketing (2,636) Total $ (2,611) The following table summarizes the Company's restructuring activities recorded in accrued expenses and accrued compensation within the condensed consolidated balance sheets: (In thousands) Employee Related Costs Other Restructuring Costs Total Balance at October 3, 2020 $ 1,620 $ 2,971 $ 4,591 Restructuring charges 190 (556) (366) Cash paid (1,224) (1,928) (3,152) Balance at January 2, 2021 $ 586 $ 487 $ 1,073

Retirement plans

Retirement plans	3 Months Ended
	Jan. 02, 2021
Retirement Benefits [Abstract]
Retirement Plans	Retirement PlansThe 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 contribute up to 100% of their annual compensation 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 $1.7 million and $1.6 million for the three months ended January 2, 2021 and December 28, 2019, respectively.

Subsequent Event

Subsequent Event	3 Months Ended
	Jan. 02, 2021
Subsequent Events [Abstract]
Subsequent Event	Subsequent EventSubsequent to the first quarter of fiscal 2021, in January 2021, the Company repaid all of its outstanding principal balance of $24.9 million under the Term Loan that had an original maturity date of October 2021.

Business Overview and Basis o_2

Business Overview and Basis of Presentation (Policies)	3 Months Ended
	Jan. 02, 2021
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 3, 2020 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 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 its cash flows for the interim periods presented. The results of operations for the three months ended January 2, 2021 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 October 3, 2020 (the “Annual Report”), filed with the Securities and Exchange Commission (“SEC”) on November 23, 2020. 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 January 2, 2021 and December 28, 2019 spanned 13 weeks each. As used in this Quarterly Report on Form 10-Q, “fiscal 2021” refers to the fiscal year ending 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.
Recently adopted accounting pronouncements and recent accounting pronouncements pending adoption	Recently adopted accounting pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, and it subsequently issued amendments to the initial guidance (collectively referred to as "Topic 326"), which provide a new impairment model that requires measurement and recognition of expected credit losses for most financial assets and certain other instruments, including accounts receivable. The Company adopted this standard effective October 4, 2020, using a modified retrospective approach. Under the new standard, the allowance for credit losses is based on the Company's assessment of collectibility of accounts, including consideration of the age of invoices, each customer's expected ability to pay and collection history, customer-specific information and current economic conditions that may impact a customer's ability to pay. The adoption of this standard did not have a material impact on the Company's 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 guidance for unit of account to align with Topic 606 and provides presentation guidance for collaborative arrangements. The Company adopted this standard in the first quarter of fiscal 2021. The adoption did not have a material impact on the Company's consolidated financial statements. Recent accounting pronouncements pending adoption In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in Accounting Standards Codification Topic 740 ("ASC 740") as well as by improving consistent application of the topic by clarifying and amending existing guidance. This standard is effective for the Company in the first quarter of fiscal 2022, 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
	Jan. 02, 2021
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 January 2, 2021 and October 3, 2020: January 2, 2021 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 391,388 $ — $ — $ 391,388 October 3, 2020 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds (cash equivalents) $ 281,380 $ — $ — $ 281,380

Revenue and Geographic Inform_2

Revenue and Geographic Information (Tables)	3 Months Ended
	Jan. 02, 2021
Revenue from Contract with Customer [Abstract]
Disaggregation of revenue	Revenue by geographical region includes the applicable service revenue for software upgrades and cloud-based services attributable to each region and is based on ship-to address, as follows: Three Months Ended January 2, 2021 December 28, 2019 (In thousands) Americas $ 367,239 $ 303,194 Europe, Middle East and Africa (“EMEA”) 240,007 212,738 Asia Pacific (“APAC”) 38,338 46,151 Total revenue $ 645,584 $ 562,083 Revenue is attributed to individual countries based on ship-to address and 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 January 2, 2021 December 28, 2019 (In thousands) United States $ 330,896 $ 277,273 Germany 58,145 58,988 Other countries 256,543 225,822 Total revenue $ 645,584 $ 562,083 Revenue by product category 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 January 2, 2021 December 28, 2019 (In thousands) Sonos speakers $ 527,516 $ 466,677 Sonos system products 97,759 61,521 Partner products and other revenue 20,309 33,885 Total revenue $ 645,584 $ 562,083

Balance Sheet Components (Table

Balance Sheet Components (Tables)	3 Months Ended
	Jan. 02, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of accounts receivable	Accounts receivable, net of allowances, consist of the following: January 2, 2021 October 3, 2020 (In thousands) Accounts receivable $ 164,912 $ 73,757 Allowance for credit losses (1,538) (1,307) Allowance for sales incentives (49,758) (17,515) Accounts receivable, net of allowances $ 113,616 $ 54,935
Schedule of inventories, net	Inventories consist of the following: January 2, 2021 October 3, 2020 (In thousands) Finished goods $ 79,213 $ 172,184 Component parts 8,981 8,646 Inventories $ 88,194 $ 180,830
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: January 2, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted-Average Remaining Life (In thousands, except weighted-average remaining life) Technology $ 7,875 $ (2,018) $ 5,857 3.31 Other 39 (21) 18 0.92 Total finite-lived intangible assets 7,914 (2,039) 5,875 3.30 In-process research and development and other intangible assets not subject to amortization 20,100 — 20,100 Total intangible assets $ 28,014 $ (2,039) $ 25,975 The following table summarizes estimated future amortization expense of the Company's intangible assets as of January 2, 2021: Fiscal years ending Future Amortization Expense (In thousands) Remainder of fiscal 2021 $ 1,478 2022 1,955 2023 1,253 2024 1,020 2025 169 2026 and thereafter — Total future amortization expense $ 5,875
Schedule of accrued expenses	Accrued expenses consist of the following: January 2, 2021 October 3, 2020 (In thousands) Accrued advertising and marketing $ 26,681 $ 10,609 Accrued taxes 20,300 6,252 Accrued inventory 12,130 2,843 Accrued manufacturing, logistics and product development 17,765 9,753 Accrued general and administrative expenses 10,935 10,068 Other accrued payables 8,622 5,524 Total accrued expenses $ 96,433 $ 45,049
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 January 2, 2021 and December 28, 2019: January 2, December 28, (In thousands) Deferred revenue, beginning of period $ 62,389 $ 56,449 Recognition of revenue included in beginning of period deferred revenue (3,357) (3,238) Revenue deferred, net of revenue recognized on contracts in the respective period 9,809 8,435 Deferred revenue, end of period $ 68,841 $ 61,646
Remaining performance obligation	The Company expects the following recognition of deferred revenue as of January 2, 2021: For the fiscal years ending 2021 2022 2023 2024 2025 and Beyond Total (In thousands) Deferred revenue expected to be recognized $ 12,488 $ 14,772 $ 12,844 $ 10,793 $ 17,944 $ 68,841
Schedule of other current liabilities	Other current liabilities consist of the following: January 2, 2021 October 3, 2020 (In thousands) Reserve for returns $ 23,723 $ 14,195 Short-term operating lease liabilities 10,831 10,910 Product warranty liability 6,446 3,628 Other 7,828 2,417 Total other current liabilities $ 48,828 $ 31,150
Schedule of product warranty liability	The following table presents the changes in the Company’s warranty liability for the three months ended January 2, 2021 and December 28, 2019: January 2, 2021 December 28, 2019 (In thousands) Warranty liability, beginning of period $ 3,628 $ 3,254 Provision for warranties issued during the period 6,277 5,080 Settlements of warranty claims during the period (3,459) (2,633) Warranty liability, end of period $ 6,446 $ 5,701

Debt (Tables)

Debt (Tables)	3 Months Ended
	Jan. 02, 2021
Debt Disclosure [Abstract]
Schedule of short and long term debt	The Company’s short- and long-term debt obligations as of January 2, 2021 and October 3, 2020 were as follows: January 2, 2021 October 3, 2020 (In thousands, except percentages) Term loan (1) 2.4 % $ 25,000 2.4 % $ 25,000 Unamortized debt issuance costs (2) (63) (82) Total indebtedness 24,937 24,918 Less short-term portion (24,937) (6,667) Long-term debt $ — $ 18,251 (1) Due in October 2021 and bears interest at a variable rate equal to an adjusted LIBOR plus 2.25%, payable quarterly. Subsequent to the first quarter of fiscal 2021, the Company repaid all of its outstanding principal balance. For more information, refer to Note 14. Subsequent Event. (2) Debt issuance costs are recorded as a debt discount and recorded as interest expense over the term of the agreement.

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Jan. 02, 2021
Share-based Payment Arrangement [Abstract]
Schedule of stock option activity	The summary of the Company’s stock option activity is as follows: Weighted-Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In years) (In thousands) Outstanding at October 3, 2020 28,422,940 $ 12.03 5.6 $ 99,053 Granted — — Exercised (6,173,671) 11.26 Forfeited (311,443) 14.16 Outstanding at January 2, 2021 21,937,826 $ 12.21 5.5 $ 245,191 At January 2, 2021 Options exercisable 18,512,188 $ 11.78 5.1 $ 214,871 Options vested and expected to vest 21,533,731 $ 12.17 5.5 $ 241,587
Schedule of restricted stock unit activity	The summary of the Company’s unvested RSU activity is as follows: Number of Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value (In thousands) Unvested at October 3, 2020 11,647,951 $ 10.50 $ 180,543 Granted 2,501,828 Vested (901,667) Forfeited (251,801) Unvested at January 2, 2021 12,996,311 $ 11.64 $ 303,984
Schedule of performance stock units activity	The summary of the Company’s unvested PSU activity is as follows: Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value (In thousands) Unvested at October 3, 2020 — $ — $ — Granted 158,521 Vested — Forfeited — Unvested at January 2, 2021 158,521 $ 22.81 $ 3,708
Schedule of stock-based compensation expense	Total stock-based compensation expense by functional category was as follows: Three Months Ended January 2, 2021 December 28, 2019 (In thousands) Cost of revenue $ 214 $ 282 Research and development 6,258 5,116 Sales and marketing 3,408 3,541 General and administrative 4,964 4,265 Total stock-based compensation expense $ 14,844 $ 13,204

Net Income Per Share Attribut_2

Net Income Per Share Attributable to Common Stockholders (Tables)	3 Months Ended
	Jan. 02, 2021
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 January 2, December 28, (In thousands, except share and per share data) Numerator: Net income attributable to common stockholders - basic and diluted $ 132,292 $ 70,775 Denominator: Weighted-average shares of common stock—basic 115,610,523 108,984,683 Effect of potentially dilutive stock options 8,105,916 6,751,412 Effect of RSUs 6,927,708 2,679,873 Weighted-average shares of common stock—diluted 130,644,147 118,415,968 Net income per share attributable to common stockholders: Basic $ 1.14 $ 0.65 Diluted $ 1.01 $ 0.60
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 January 2, December 28, Stock options to purchase common stock 17,074,467 29,628,623 Restricted stock units 5,489,890 4,278,556 Total 22,564,357 33,907,179

Restructuring Plan (Tables)

Restructuring Plan (Tables)	3 Months Ended
	Jan. 02, 2021
Restructuring and Related Activities [Abstract]
Summary of Restructuring and Related Costs	Costs incurred in the three months ended January 2, 2021 (In thousands) Employee related costs $ 190 Gain on early termination of facility lease (2,801) Total $ (2,611) The following table represents the restructuring and related costs recorded in the Company's condensed consolidated statements of operations and comprehensive income: Three Months Ended January 2, 2021 (In thousands) Research and development $ 25 Sales and marketing (2,636) Total $ (2,611) The following table summarizes the Company's restructuring activities recorded in accrued expenses and accrued compensation within the condensed consolidated balance sheets: (In thousands) Employee Related Costs Other Restructuring Costs Total Balance at October 3, 2020 $ 1,620 $ 2,971 $ 4,591 Restructuring charges 190 (556) (366) Cash paid (1,224) (1,928) (3,152) Balance at January 2, 2021 $ 586 $ 487 $ 1,073

Business Overview and Basis o_3

Business Overview and Basis of Presentation (Details)	Jan. 02, 2021country
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of countries where products are distributed	50

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Money Market Funds - USD ($) $ in Thousands	Jan. 02, 2021	Oct. 03, 2020
Assets:
Money market funds (cash equivalents)	$ 391,388	$ 281,380
Level 1
Assets:
Money market funds (cash equivalents)	391,388	281,380
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
	Jan. 02, 2021	Dec. 28, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 645,584	$ 562,083
Sonos speakers
Disaggregation of Revenue [Line Items]
Revenue	527,516	466,677
Sonos system products
Disaggregation of Revenue [Line Items]
Revenue	97,759	61,521
Partner products and other revenue
Disaggregation of Revenue [Line Items]
Revenue	20,309	33,885
Americas
Disaggregation of Revenue [Line Items]
Revenue	367,239	303,194
Europe, Middle East and Africa (“EMEA”)
Disaggregation of Revenue [Line Items]
Revenue	240,007	212,738
Asia Pacific (“APAC”)
Disaggregation of Revenue [Line Items]
Revenue	38,338	46,151
United States
Disaggregation of Revenue [Line Items]
Revenue	330,896	277,273
Germany
Disaggregation of Revenue [Line Items]
Revenue	58,145	58,988
Other countries
Disaggregation of Revenue [Line Items]
Revenue	$ 256,543	$ 225,822

Balance Sheet Components - Acco

Balance Sheet Components - Accounts receivable, net of allowances (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Oct. 03, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts receivable	$ 164,912	$ 73,757
Allowance for credit losses	(1,538)	(1,307)
Allowance for sales incentives	(49,758)	(17,515)
Accounts receivable, net of allowances	$ 113,616	$ 54,935

Balance Sheet Components - Inve

Balance Sheet Components - Inventories, net (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Oct. 03, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finished goods	$ 79,213	$ 172,184
Component parts	8,981	8,646
Inventories	$ 88,194	$ 180,830

Balance Sheet Components - Fini

Balance Sheet Components - Finite-lived intangible assets, future amortization expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 02, 2021	Oct. 03, 2020
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying amount	$ 7,914
Accumulated amortization	(2,039)
Finite-lived intangible assets, net carrying value	5,875
Intangible assets, gross carrying amount (excluding goodwill)	28,014
Intangible assets, net carrying value (excluding goodwill)	$ 25,975	$ 26,394
Weighted-average remaining life	3 years 3 months 18 days
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of fiscal 2021	$ 1,478
2022	1,955
2023	1,253
2024	1,020
2025	169
2026 and thereafter	0
Finite-lived intangible assets, net carrying value	5,875
In progress research and development
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets (excluding goodwill)	20,100
Technology
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying amount	7,875
Accumulated amortization	(2,018)
Finite-lived intangible assets, net carrying value	$ 5,857
Weighted-average remaining life	3 years 3 months 21 days
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Finite-lived intangible assets, net carrying value	$ 5,857
Other
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying amount	39
Accumulated amortization	(21)
Finite-lived intangible assets, net carrying value	$ 18
Weighted-average remaining life	11 months 1 day
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Finite-lived intangible assets, net carrying value	$ 18

Balance Sheet Components - Accr

Balance Sheet Components - Accrued expenses (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Oct. 03, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued advertising and marketing	$ 26,681	$ 10,609
Accrued taxes	20,300	6,252
Accrued inventory	12,130	2,843
Accrued manufacturing, logistics and product development	17,765	9,753
Accrued general and administrative expenses	10,935	10,068
Other accrued payables	8,622	5,524
Total accrued expenses	$ 96,433	$ 45,049

Balance Sheet Components - Chan

Balance Sheet Components - Change in deferred revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Contract with Customer, Liability [Roll Forward]
Deferred revenue, beginning of period	$ 62,389	$ 56,449
Recognition of revenue included in beginning of period deferred revenue	(3,357)	(3,238)
Revenue deferred, net of revenue recognized on contracts in the respective period	9,809	8,435
Deferred revenue, end of period	$ 68,841	$ 61,646

Balance Sheet Components - Expe

Balance Sheet Components - Expected revenue recognition (Details) $ in Thousands	Jan. 02, 2021USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue expected to be recognized	$ 68,841
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-03
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue expected to be recognized	$ 12,488
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied in	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-03
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue expected to be recognized	$ 14,772
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied in	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-02
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue expected to be recognized	$ 12,844
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied in	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue expected to be recognized	$ 10,793
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied in	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-09-29
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue expected to be recognized	$ 17,944
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied in

Balance Sheet Components - Othe

Balance Sheet Components - Other current liabilities (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Oct. 03, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reserve for returns	$ 23,723	$ 14,195
Short-term operating lease liabilities	10,831	10,910
Product warranty liability	6,446	3,628
Other	7,828	2,417
Total other current liabilities	$ 48,828	$ 31,150

Balance Sheet Components - Prod

Balance Sheet Components - Product Warranties (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Warranty liability, beginning of period	$ 3,628	$ 3,254
Provision for warranties issued during the period	6,277	5,080
Settlements of warranty claims during the period	(3,459)	(2,633)
Warranty liability, end of period	$ 6,446	$ 5,701

Debt - Schedule of debt (Detail

Debt - Schedule of debt (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 02, 2021	Oct. 03, 2020
Debt Disclosure [Abstract]
Debt, interest rate	2.40%	2.40%
Debt	$ 25,000	$ 25,000
Unamortized debt issuance costs	(63)	(82)
Total indebtedness	24,937	24,918
Less short-term portion	(24,937)	(6,667)
Long-term debt	$ 0	$ 18,251
LIBOR
Debt Instrument [Line Items]
Interest rate, spread on variable rate	2.25%

Debt - Additional Information (

Debt - Additional Information (Details) $ in Millions	3 Months Ended
	Jan. 02, 2021USD ($)	Oct. 03, 2020USD ($)
Debt Instrument [Line Items]
Fixed charge ratio, covenant one	1
Fixed charge ratio, covenant two	1.15
Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 80
Credit Facility | Letter of Credit
Debt Instrument [Line Items]
Unused borrowing capacity	$ 0.1	$ 0.5
LIBOR
Debt Instrument [Line Items]
Interest rate, spread on variable rate	2.25%
LIBOR | Credit Facility
Debt Instrument [Line Items]
Interest rate, spread on variable rate	2.50%

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Nov. 02, 2020patent	Sep. 29, 2020patent	Jun. 11, 2020patent	Mar. 10, 2017patent	Jan. 02, 2021USD ($)
Long-term Purchase Commitment [Line Items]
Tariff refund | $					$ 29.2
Other Current Assets
Long-term Purchase Commitment [Line Items]
Income taxes receivable | $					2.7
Government
Long-term Purchase Commitment [Line Items]
Income tax examination, liability (refund) | $					$ (4.5)
Alphabet Inc. ("Alphabet") and Google LLC ("Google")
Long-term Purchase Commitment [Line Items]
Gain contingency, patents allegedly infringed upon, number		5
Loss contingency, patents allegedly infringed upon, number			5
Loss contingency, patents found not infringed upon, number	5
Implicit, LLC
Long-term Purchase Commitment [Line Items]
Loss contingency, patents allegedly infringed upon, number				2

Stockholders' Equity - Textual

Stockholders' Equity - Textual information (Details)	Nov. 17, 2020USD ($)
Equity [Abstract]
Stock repurchase program, authorized value	$ 50,000,000

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended	12 Months Ended
	Jul. 31, 2018	Jan. 02, 2021	Oct. 03, 2020
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		48 months
Unrecognized stock-based compensation expense		$ 13.7	$ 16.9
Unrecognized stock-based compensation expense, period of recognition		1 year 4 months 24 days	1 year 6 months
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense		$ 113.4	$ 92.4
Unrecognized stock-based compensation expense, period of recognition		3 years 1 month 6 days	3 years
Cliff vesting period		4 years
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense		$ 4.2
Unrecognized stock-based compensation expense, period of recognition		1 year 10 months 24 days
2018 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of outstanding stock maximum	5.00%
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
	Jan. 02, 2021	Oct. 03, 2020
Number of Options
Beginning balance (in shares)	28,422,940
Granted (in shares)	0
Exercised (in shares)	(6,173,671)
Forfeited (in shares)	(311,443)
Ending balance (in shares)	21,937,826	28,422,940
Options exercisable (in shares)	18,512,188
Options vested and expected to vest (in shares)	21,533,731
Weighted-Average Exercise Price
Beginning balance (in USD per share)	$ 12.03
Granted (in USD per share)	0
Exercised (in USD per share)	11.26
Forfeited (in USD per share)	14.16
Ending balance (in USD per share)	12.21	$ 12.03
Option exercisable - Weighted Average Exercise Price (in USD per share)	11.78
Options vested and expected to vest - Weighted Average Exercise Price (in USD per share)	$ 12.17
Additional Information
Weighted Average Remaining Contractual Term	5 years 6 months	5 years 7 months 6 days
Option exercisable - Weighted Average Remaining Contractual Term	5 years 1 month 6 days
Options vested and expected to vest - Weighted Average Remaining Contractual Term	5 years 6 months
Aggregate Intrinsic Value	$ 245,191	$ 99,053
Options exercisable - Weighted Average Intrinsic Value	214,871
Options vested and expected to vest - Weighted Average Intrinsic Value	$ 241,587

Stock-based Compensation - Rest

Stock-based Compensation - Restricted Stock Unit Activity (Details) - Restricted Stock Units $ / shares in Units, $ in Thousands	3 Months Ended
	Jan. 02, 2021USD ($)$ / sharesshares
Number of Units
Outstanding, beginning balance (in shares)	11,647,951
Forfeited (in shares)	2,501,828
Exercised (in shares)	(901,667)
Granted (in shares)	(251,801)
Outstanding, ending balance (in shares)	12,996,311
Weighted-Average Grant Date Fair Value
Outstanding, beginning balance (in usd per share) | $ / shares	$ 10.50
Outstanding, ending balance (in usd per share) | $ / shares	$ 11.64
Additional Information
Aggregate Intrinsic Value, beginning balance | $	$ 180,543
Aggregate Intrinsic Value, ending balance | $	$ 303,984

Stock-based Compensation - Perf

Stock-based Compensation - Performance Stock Unit Activity (Details) - Performance Shares $ / shares in Units, $ in Thousands	3 Months Ended
	Jan. 02, 2021USD ($)$ / sharesshares
Number of Units
Outstanding, beginning balance (in shares)	0
Forfeited (in shares)	158,521
Exercised (in shares)	0
Granted (in shares)	0
Outstanding, ending balance (in shares)	158,521
Weighted-Average Grant Date Fair Value
Outstanding, beginning balance (in usd per share) | $ / shares	$ 0
Outstanding, ending balance (in usd per share) | $ / shares	$ 22.81
Additional Information
Aggregate Intrinsic Value, beginning balance | $	$ 0
Aggregate Intrinsic Value, ending balance | $	$ 3,708

Stock-based Compensation - St_2

Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 14,844	$ 13,204
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	214	282
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	6,258	5,116
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	3,408	3,541
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 4,964	$ 4,265

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Income Tax Disclosure [Abstract]
Provision for (benefit from) income taxes	$ 9,120	$ 1,656
Discrete tax benefit	$ 10,200

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
	Jan. 02, 2021	Dec. 28, 2019
Numerator:
Net income	$ 132,292	$ 70,775
Denominator:
Weighted-average shares of common stock - basic (in shares)	115,610,523	108,984,683
Weighted-average shares of common stock - diluted (in shares)	130,644,147	118,415,968
Net income attributable to common stockholders:
Net income (loss) per share attributable to common stockholders - basic (in USD per share)	$ 1.14	$ 0.65
Net income (loss) per share attributable to common stockholders - diluted (in USD per share)	$ 1.01	$ 0.60
Stock Options
Denominator:
Effect of potentially dilutive stock options and RSUs (in shares)	8,105,916	6,751,412
Restricted Stock Units
Denominator:
Effect of potentially dilutive stock options and RSUs (in shares)	6,927,708	2,679,873

Net Income Per Share Attribut_4

Net Income Per Share Attributable to Common Stockholders - Antidilutive Securities (Details) - shares	3 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)	22,564,357	33,907,179
Stock options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)	17,074,467	29,628,623
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)	5,489,890	4,278,556

Restructuring Plan - Narrative

Restructuring Plan - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jan. 02, 2021	Oct. 03, 2020
Restructuring and Related Activities [Abstract]
Restructuring costs		$ 26,400
Gain on early termination of facility lease	$ 2,801

Restructuring Plan - Summary of

Restructuring Plan - Summary of Restructuring and Related Costs (Details) $ in Thousands	3 Months Ended
	Jan. 02, 2021USD ($)
Restructuring Cost and Reserve [Line Items]
Employee related costs	$ 190
Gain on early termination of facility lease	(2,801)
Total	(2,611)
Restructuring charges	(2,611)
Research and development
Restructuring Cost and Reserve [Line Items]
Total	25
Restructuring charges	25
Sales and marketing
Restructuring Cost and Reserve [Line Items]
Total	(2,636)
Restructuring charges	$ (2,636)

Restructuring Plan - Accrued Ex

Restructuring Plan - Accrued Expenses and Compensation (Details) $ in Thousands	3 Months Ended
	Jan. 02, 2021USD ($)
Restructuring Reserve [Roll Forward]
Restructuring charges	$ (2,611)
Employee Related Costs
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	1,620
Restructuring charges	190
Cash paid	(1,224)
Restructuring reserve, ending balance	586
Other Restructuring Costs
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	2,971
Restructuring charges	(556)
Cash paid	(1,928)
Restructuring reserve, ending balance	487
Total
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	4,591
Restructuring charges	(366)
Cash paid	(3,152)
Restructuring reserve, ending balance	$ 1,073

Retirement plans - Additional I

Retirement plans - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Jan. 02, 2021	Dec. 29, 2018
Retirement Benefits [Abstract]
Maximum annual contributions per employee, percent	100.00%
Employer contribution	$ 1.7	$ 1.6

Subsequent event (Details)

Subsequent event (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Oct. 03, 2020
Subsequent Events [Abstract]
Short-term debt	$ 24,937	$ 6,667