Sonos (SONO) 10-Q 10 Feb 22 2022 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Jan. 01, 2022	Jan. 29, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jan. 1, 2022
Document Transition Report	false
Entity File Number	001-38603
Entity Registrant Name	SONOS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	03-0479476
Entity Address, Address Line One	614 Chapala Street
Entity Address, City or Town	Santa Barbara
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	93101
City Area Code	805
Local Phone Number	965-3001
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		127,608,612
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001314727
Current Fiscal Year End Date	--10-01

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jan. 01, 2022	Oct. 02, 2021
Current assets:
Cash and cash equivalents	$ 754,417	$ 640,101
Accounts receivable, net of allowances	178,257	100,779
Inventories	205,162	185,130
Prepaids and other current assets	22,532	31,504
Total current assets	1,160,368	957,514
Property and equipment, net	68,996	71,341
Operating lease right-of-use assets	33,776	33,841
Goodwill	37,726	15,545
Intangible assets, net	29,862	24,450
Deferred tax assets	9,892	10,028
Other noncurrent assets	32,123	26,085
Total assets	1,372,743	1,138,804
Current liabilities:
Accounts payable	341,343	214,996
Accrued expenses	164,501	108,029
Accrued compensation	28,430	77,695
Deferred revenue, current	17,817	35,866
Other current liabilities	47,171	39,544
Total current liabilities	599,262	476,130
Operating lease liabilities, noncurrent	32,814	33,960
Deferred revenue, noncurrent	57,761	53,632
Deferred tax liabilities	2,394	2,394
Other noncurrent liabilities	905	3,646
Total liabilities	693,136	569,762
Commitments and contingencies (Note 7)
Stockholders’ equity:
Common stock, $0.001 par value	130	129
Treasury stock	(54,875)	(50,276)
Additional paid-in capital	682,504	690,462
Retained earnings (accumulated deficit)	53,584	(69,897)
Accumulated other comprehensive loss	(1,736)	(1,376)
Total stockholders’ equity	679,607	569,042
Total liabilities and stockholders’ equity	$ 1,372,743	$ 1,138,804

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jan. 01, 2022	Oct. 02, 2021
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Income Statement [Abstract]
Revenue	$ 664,481	$ 645,584
Cost of revenue	347,096	346,159
Gross profit	317,385	299,425
Operating expenses
Research and development	61,330	52,346
Sales and marketing	83,736	74,453
General and administrative	39,725	35,242
Total operating expenses	184,791	162,041
Operating income	132,594	137,384
Other income (expense), net
Interest income	33	36
Interest expense	(98)	(265)
Other income (expense), net	(1,402)	4,257
Total other income (expense), net	(1,467)	4,028
Income before provision for income taxes	131,127	141,412
Provision for income taxes	7,646	9,120
Net income	123,481	132,292
Net income attributable to common stockholders:
Basic	123,481	132,292
Diluted	$ 123,481	$ 132,292
Basic (in USD per share)	$ 0.97	$ 1.14
Diluted (in USD per share)	$ 0.87	$ 1.01
Weighted-average shares used in computing net income per share attributable to common stockholders:
Basic (in shares)	127,662,826	115,610,523
Diluted (in shares)	142,322,448	130,644,147
Total comprehensive income
Net income	$ 123,481	$ 132,292
Change in foreign currency translation adjustment	(360)	847
Comprehensive income	$ 123,121	$ 133,139

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Treasury Stock	Accumulated Deficit	Accumulated Other Comprehensive Loss
Balance, beginning of period (in shares) at Oct. 03, 2020		113,915,233		1,571,138
Balance, beginning of period at Oct. 03, 2020	$ 297,839	$ 114	$ 548,993	$ (20,886)	$ (228,492)	$ (1,890)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to equity incentive plans (in shares)		7,075,338
Issuance of common stock pursuant to equity incentive plans	69,505	$ 7	69,498
Repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock unit awards ("RSUs") (in shares)				(307,980)
Repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock unit awards ("RSUs")	(5,118)			$ (5,118)
Stock-based compensation expense	14,844		14,844
Net income	132,292				132,292
Change in foreign currency translation adjustment	847					847
Balance, end of period (in shares) at Jan. 02, 2021		120,990,571		1,879,118
Balance, ending of period at Jan. 02, 2021	510,209	$ 121	633,335	$ (26,004)	(96,200)	(1,043)
Balance, beginning of period (in shares) at Oct. 02, 2021		128,857,085		1,871,812
Balance, beginning of period at Oct. 02, 2021	$ 569,042	$ 129	690,462	$ (50,276)	(69,897)	(1,376)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to equity incentive plans (in shares)	1,076,077	2,030,373
Issuance of common stock pursuant to equity incentive plans	$ 13,232	$ 2	13,230
Retirement of treasury stock (in shares)	(1,010,286)	(1,010,286)		(1,010,286)
Retirement of treasury stock	$ 0	$ (1)	(38,647)	$ 38,648
Purchase of common stock (in shares)	(1,032,249)			(1,032,249)
Repurchase of common stock	$ (31,365)			$ (31,365)
Repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock unit awards ("RSUs") (in shares)				(344,198)
Repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock unit awards ("RSUs")	(11,882)			$ (11,882)
Stock-based compensation expense	17,459		17,459
Net income	123,481				123,481
Change in foreign currency translation adjustment	(360)					(360)
Balance, end of period (in shares) at Jan. 01, 2022		129,877,172		2,237,973
Balance, ending of period at Jan. 01, 2022	$ 679,607	$ 130	$ 682,504	$ (54,875)	$ 53,584	$ (1,736)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Cash flows from operating activities
Net income	$ 123,481	$ 132,292
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	9,217	7,982
Stock-based compensation expense	17,459	14,844
Other	1,139	(1,050)
Deferred income taxes	14	12
Foreign currency transaction (gain) loss	494	(1,633)
Changes in operating assets and liabilities:
Accounts receivable, net	(79,000)	(56,650)
Inventories	(21,800)	93,495
Other assets	4,086	(7,330)
Accounts payable and accrued expenses	185,127	33,271
Accrued compensation	(49,094)	(15,481)
Deferred revenue	(13,510)	5,633
Other liabilities	2,321	9,128
Net cash provided by operating activities	179,934	214,513
Cash flows from investing activities
Purchases of property and equipment, intangible and other assets	(6,355)	(11,333)
Cash paid for acquisitions, net of acquired cash	(27,101)	0
Net cash used in investing activities	(33,456)	(11,333)
Cash flows from financing activities
Payments for debt issuance costs	(929)	0
Payments for repurchase of common stock	(31,365)	0
Proceeds from exercise of common stock options	13,232	69,505
Payments for repurchase of common stock related to shares withheld for tax in connection with vesting of restricted stock units	(11,882)	(5,118)
Net cash provided by (used in) financing activities	(30,944)	64,387
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(1,218)	3,174
Net increase in cash, cash equivalents and restricted cash	114,316	270,741
Cash, cash equivalents and restricted cash
Beginning of period	640,101	407,291
End of period	754,417	678,032
Supplemental disclosure
Cash paid for interest	23	166
Cash paid for taxes, net of refunds	413	2,672
Cash paid for amounts included in the measurement of lease liabilities	3,410	8,102
Supplemental disclosure of non-cash investing and financing activities
Purchases of property and equipment in accounts payable and accrued expenses	5,499	7,814
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 2,246	$ 1,509

Business Overview and Basis of

Business Overview and Basis of Presentation	3 Months Ended
	Jan. 01, 2022
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 2, 2021, has been derived from the audited consolidated financial statements of the Company. The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all the information and footnotes required by U.S. GAAP for annual financial statements. They should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended October 2, 2021, (the “Annual Report”), filed with the SEC on November 22, 2021. In management’s opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the Company’s financial position, its results of operations, and its cash flows for the interim periods presented. The results of operations for the three months ended January 1, 2022, are not necessarily indicative of the results to be expected for the full fiscal year or any other period. The Company operates on a 52- week or 53- week fiscal year ending on the Saturday nearest September 30 each year. The Company’s fiscal year is divided into four quarters of 13 weeks, each beginning on a Sunday and containing two 4-week periods followed by a 5-week period. An additional week is included in the fourth fiscal quarter approximately every five years to realign fiscal quarters with calendar quarters. This last occurred in the fourth quarter of the Company’s fiscal year ended October 3, 2020, and will reoccur in the fiscal year ending October 3, 2026. The three months ended January 1, 2022, and January 2, 2021, spanned 13 weeks each. As used in this Quarterly Report on Form 10-Q, “fiscal 2022” refers to the fiscal year ending October 1, 2022, “fiscal 2021” refers to the fiscal year ended October 2, 2021, and "fiscal 2020” refers to the fiscal year ended October 3, 2020. Use of estimates and judgments The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company evaluates its estimates and judgments compared to historical experience and expected trends. In March 2020, the outbreak of the novel coronavirus (COVID-19) was declared a pandemic. While the nature of the situation is dynamic, the Company has considered the impact when developing its estimates and assumptions noted above. Actual results and outcomes may differ from management's estimates and assumptions.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Jan. 01, 2022
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 December 2019, the Financial Accounting Standards Board ("FASB") issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in Accounting Standards Codification Topic 740 ("ASC 740") as well as by improving consistent application of the topic by clarifying and amending existing guidance. The Company adopted this standard in the first quarter of fiscal 2022. The adoption did not have a material impact on the Company's condensed consolidated financial statements. Recent accounting pronouncements pending adoption In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This update requires that an entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. This standard is effective for the Company in the first quarter of fiscal 2024, with early adoption permitted. The Company is currently evaluating the pronouncement and does not expect it to have a material impact on the Company's consolidated financial statements or disclosures. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of Effects of Reference Rate Reform on Financial Reporting, and then issued a subsequent amendment to the initial guidance under ASU No. 2021-01 (collectively Topic 848). Topic 848 provides practical expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, derivatives, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments in this update apply only to contracts, hedging relationships, derivatives, and other transactions that reference the London interbank offered rate (“LIBOR”) or another reference rate expected to be discontinued as a result of reference rate reform. Topic 848 is currently effective and upon adoption may be applied prospectively to contract modifications and hedging relationships made on or before December 31, 2022. The Company is currently evaluating the pronouncement to determine the impact it may have on the Company's condensed consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Jan. 01, 2022
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 following table summarizes fair value measurements by level for the assets measured at fair value on a recurring basis as of January 1, 2022, and October 2, 2021: January 1, 2022 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds (cash equivalents) $ 480,500 $ — $ — $ 480,500 October 2, 2021 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds (cash equivalents) $ 484,482 $ — $ — $ 484,482

Revenue and Geographic Informat

Revenue and Geographic Information	3 Months Ended
	Jan. 01, 2022
Revenue from Contract with Customer [Abstract]
Revenue and Geographic Information	Revenue and Geographic Information Disaggregation of revenue Revenue by geographical region also includes the applicable service revenue for software upgrades and cloud-based services attributable to each region and is based on ship-to address, is as follows: Three Months Ended January 1, January 2, (In thousands) Americas $ 373,813 $ 367,239 Europe, Middle East and Africa (“EMEA”) 245,482 240,007 Asia Pacific (“APAC”) 45,186 38,338 Total revenue $ 664,481 $ 645,584 Revenue is attributed to individual countries based on ship-to address and also includes the applicable service revenue for software upgrades and cloud-based services attributable to each country. Revenue by significant countries is as follows: Three Months Ended January 1, January 2, (In thousands) United States $ 347,646 $ 330,896 Other countries 316,835 314,688 Total revenue $ 664,481 $ 645,584 Revenue by product category also includes the applicable service revenue for software upgrades and cloud-based services attributable to each product category. Revenue by major product category is as follows: Three Months Ended January 1, January 2, (In thousands) Sonos speakers $ 501,886 $ 527,516 Sonos system products 134,745 97,759 Partner products and other revenue 27,850 20,309 Total revenue $ 664,481 $ 645,584

Balance Sheet Components

Balance Sheet Components	3 Months Ended
	Jan. 01, 2022
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 1, October 2, (In thousands) Accounts receivable $ 203,120 $ 121,486 Allowance for credit losses (1,998) (1,547) Allowance for sales incentives (22,865) (19,160) Accounts receivable, net of allowances $ 178,257 $ 100,779 Inventories Inventories, net, consist of the following: January 1, October 2, (In thousands) Finished goods $ 145,492 $ 154,608 Component parts 59,670 30,522 Inventories $ 205,162 $ 185,130 The Company writes down inventory as a result of excess and obsolete inventories, or when it believes that the net realizable value of inventories is less than the carrying value. Goodwill The following table presents the changes in carrying amount of goodwill during the three months ended January 1, 2022: (In thousands) Balance as of October 2, 2021 $ 15,545 Goodwill acquired 22,181 Balance as of January 1, 2022 $ 37,726 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 1, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted-Average Remaining Life (In thousands, except weighted-average remaining life) Technology $ 13,932 $ (4,170) $ 9,762 2.85 Total finite-lived intangible assets 13,932 (4,170) 9,762 2.85 In-process research and development not subject to amortization 20,100 — 20,100 Total intangible assets $ 34,032 $ (4,170) $ 29,862 The following table summarizes the estimated future amortization expense of the Company's intangible assets as of January 1, 2022: Fiscal years ending Future Amortization Expense (In thousands) Remainder of fiscal 2022 $ 2,906 2023 3,237 2024 3,024 2025 423 2026 94 2027 and thereafter 78 Total future amortization expense $ 9,762 Accrued expenses Accrued expenses consisted of the following: January 1, October 2, (In thousands) Accrued advertising and marketing $ 27,951 $ 19,989 Accrued taxes 34,292 16,941 Accrued inventory 58,871 37,117 Accrued manufacturing, logistics and product development 21,252 14,943 Accrued general and administrative expenses 12,649 13,066 Other accrued payables 9,486 5,973 Total accrued expenses $ 164,501 $ 108,029 Deferred revenue Amounts invoiced in advance of revenue recognition are recorded as deferred revenue on the condensed consolidated balance sheets. Deferred revenue primarily related to revenue allocated to unspecified software upgrades and cloud-based services. Recognition of revenue included deferred revenue from the fourth quarter of fiscal 2021 related to newly launched products sold to resellers not recognized as revenue until the date of general availability was reached, which was in the first quarter of fiscal 2022. The following table presents the changes in the Company’s deferred revenue for the three months ended January 1, 2022, and January 2, 2021: January 1, January 2, (In thousands) Deferred revenue, beginning of period $ 89,498 $ 62,389 Recognition of revenue included in beginning of period deferred revenue (23,721) (3,357) Revenue deferred, net of revenue recognized on contracts in the respective period 9,801 9,809 Deferred revenue, end of period $ 75,578 $ 68,841 The Company expects the following recognition of deferred revenue as of January 1, 2022: For the fiscal years ending 2022 2023 2024 2025 2026 and Beyond Total (In thousands) Deferred revenue expected to be recognized $ 13,561 $ 16,175 $ 14,103 $ 11,782 $ 19,957 $ 75,578 Other current liabilities Other current liabilities consist of the following: January 1, October 2, (In thousands) Reserve for returns $ 22,648 $ 19,266 Short-term operating lease liabilities 11,268 10,724 Product warranty liability 9,666 5,604 Other 3,589 3,950 Total other current liabilities $ 47,171 $ 39,544 The following table presents the changes in the Company’s warranty liability the three months ended January 1, 2022, and January 2, 2021: January 1, January 2, (In thousands) Warranty liability, beginning of period $ 5,604 $ 3,628 Provision for warranties issued during the period 5,359 6,277 Settlements of warranty claims during the period (1,297) (3,459) Warranty liability, end of period $ 9,666 $ 6,446

Debt

Debt	3 Months Ended
	Jan. 01, 2022
Debt Disclosure [Abstract]
Debt	Debt On October 13, 2021, the Company entered into a Revolving Credit Agreement with JPMorgan Chase Bank, N.A., as the administrative agent, and the lenders party thereto (the “Revolving Credit Agreement”). The Revolving Credit Agreement replaced the Company’s prior $80.0 million credit facility with JPMorgan Chase Bank, N.A., which matured in October 2021, in its entirety. The Revolving Credit Agreement provides for (i) a five-year senior secured revolving credit facility in the amount of up to $100.0 million and (ii) an uncommitted incremental facility subject to certain conditions. Proceeds are to be used for working capital and general corporate purposes. The facility may be drawn as an Alternative Base Rate Loan (at 1.00% plus an applicable margin) or Eurocurrency Loans (at LIBOR plus an applicable margin). The Company must also pay (i) an unused commitment fee ranging from 0.200% to 0.275% per annum of the average daily unused portion of the aggregate revolving credit commitment under the agreement and (ii) a per annum fee equal to the applicable margin over LIBOR multiplied by the aggregate face amount of outstanding letters of credit. As of January 1, 2022, the Company did not have any outstanding borrowings and had $2.9 million in undrawn letters of credit that reduce the availability under the Revolving Credit Agreement. The Company’s obligations under the Revolving Credit Agreement are secured by substantially all of the Company’s assets. The Revolving Credit Agreement contains customary representations and warranties, customary affirmative and negative covenants, a financial covenant that is tested quarterly and requires the Company to maintain a certain consolidated leverage ratio, and customary events of default. As of January 1, 2022, the Company was in compliance with all financial covenants under the Revolving Credit Agreement.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Jan. 01, 2022
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 by Alphabet and Google of certain Sonos patents related to its smart speakers and related technology. On February 6, 2020, the ITC initiated a formal investigation into the Company’s claims. Google and Alphabet filed an initial answer in the ITC action on February 27, 2020, and an amended answer on April 3, 2020, denying infringement and alleging that the asserted patents are invalid. On August 13, 2021, an administrative law judge at the ITC issued an initial determination finding all five of Sonos' asserted patents to be valid and infringed by Google. The judge also ruled that certain proposed redesigns of Google products, one specific redesign per patent, would qualify as non-infringing alternatives to Google's current product designs. On January 6, 2022, the ITC ratified the conclusions of the administrative law judge and issued a limited exclusion order and a cease and desist order with respect to a wide range of accused Google products, including Google media players and computer devices configured to control these media players, such as Pixel phones and tablets. On March 4, 2020, the California District Court stayed the district court proceeding pending resolution of the ITC investigation and corresponding appeals. On March 11, 2020, Google filed an answer in the California District Court, denying infringement and alleging that the asserted patents are invalid. On September 28, 2020, Google filed for a declaratory judgement of non-infringement in the U.S. District Court for the Northern District of California related to five different Sonos patents. On September 29, 2020, the Company filed a lawsuit against Google in the U.S. District Court for Western District of Texas, alleging infringement of those five Sonos patents and seeking monetary damages and other non-monetary relief. This dispute over venue has now been resolved, with the case proceeding in the Northern District of California, where the judge has bifurcated the case, scheduling early disposition of two representative claims in mid-2022 and trial on all other claims in May 2023. On January 21, 2022, the judge permitted Google to amend its declaratory judgement claim to include claims for breach of contract and conversion against the Company in connection with one of the asserted patents regarding Google and the Company’s collaboration in 2013. The Company disputes the claims and intends to defend these claims during the case. On December 1, 2020, the Company filed a lawsuit against two Google foreign subsidiaries in the regional court of Hamburg, Germany, alleging infringement of a Sonos patent related to control of playback of media by mobile and playback devices and seeking non-monetary relief. Sonos has chosen to withdraw these preliminary injunction actions after having received some preliminary relief. On June 11, 2020, Google filed a lawsuit in the U.S. District Court for the Northern District of California against the Company, alleging infringement of five Google patents generally related to noise cancellation, digital rights management, media search, modifying favorite items and wireless relays and seeking monetary damages and other non-monetary relief. On November 2, 2020, the California District Court granted Sonos’ motion to dismiss Google’s allegation of infringement of one of these five Google patents, specifically a patent generally related to media search, finding that the invention at issue is patent ineligible. On June 4, 2021, the California District Court granted a stipulation to dismiss Google's allegation of infringement of another asserted patent involving noise cancellation. In May 2021, the Company filed petitions for review at the United States Patent and Trademark Office ("USPTO") of two Google patents asserted against the Company in this matter, specifically the patents related to modifying favorite items and wireless relays. In October and November 2021, the USPTO instituted review of these patents, with a final decision expected in late 2022. In January 2022, the California District Court judge stayed the litigation against the Company with respect to all common issues. On June 12, 2020, Google filed lawsuits in District Court Munich I against Sonos Europe B.V. and Sonos, Inc., alleging infringement of two Google patents generally related to digital rights management and search notifications, and seeking monetary damages and an injunction preventing sales of any infringing Sonos products. On January 14, 2021, Google amended its infringement complaint related to the search notifications patent to relate to a limited version of the claims, in view of prior art cited by the Company. On March 3, 2021, the District Court Munich stayed a case for infringement of the search notifications patent pending the outcome of a nullity action based on doubt as to the validity of the patent. On June 23, 2021, the Munich court issued a decision dismissing Google's complaint related to the digital rights management patent for lack of infringement of at least two claim features. On August 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. On February 8, 2021, Google withdrew its infringement allegations regarding the search notifications patent in view of prior art brought to the attention of the court by the Company. In August 2020, Google filed a lawsuit against Sonos Europe B.V. and Sonos, Inc. in the Netherlands alleging infringement of a Google patent related to search notifications, and seeking monetary damages and an injunction preventing sales of any infringing Sonos products. In September 2020, Google filed a lawsuit against Sonos Europe B.V. in the Netherlands, alleging infringement of a Google patent related to digital rights management, and seeking monetary damages and enforcement of an injunction preventing sales of any infringing Sonos products, which was transferred to the Midden-Netherlands court on March 22, 2021, following the grant of the Company's challenge to improper jurisdiction. The Netherlands court has now heard argument in both pending Google cases and decisions are expected no earlier than December 2021. A range of loss, if any, associated with these matters is not probable or reasonably estimable as of January 1, 2022. On March 10, 2017, Implicit, LLC (“Implicit”) filed a patent infringement action in the United States District Court, District of Delaware against the Company. Implicit is asserting that the Company infringed on two patents in this case. The Company denies the allegations. There is no assurance of a favorable outcome and the Company’s business could be adversely affected as a result of a finding that the Company patents-in-suit are invalid and/or unenforceable. A range of loss, if any, associated with this matter is not probable or reasonably estimable as of January 1, 2022. The Company is involved in certain other litigation matters not listed above but does not consider these matters to be material either individually or in the aggregate at this time. The Company’s view of the matters not listed may change in the future as the litigation and events related thereto unfold. On May 13, 2020, the Company was granted a temporary exclusion from the August 2019 Section 301 Tariff Action (List 4A) ("Section 301 tariffs") for its component products. On July 23, 2020, the Company was granted a temporary exclusion from Section 301 tariffs for its core speaker products. These exclusions eliminated the tariffs on the Company's component and core speaker products imported from China until August 31, 2020, and entitled

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Jan. 01, 2022
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity On November 17, 2021, the Board of Directors (the "Board") authorized a common stock repurchase program of up to $150.0 million. During the three months ended January 1, 2022, the Company repurchased 1,032,249 shares for an aggregate purchase price of $31.4 million at an average price of $30.37 per share under the repurchase program. The Company had $121.5 million available for share repurchases under the repurchase program as of January 1, 2022. Treasury stock during the three months ended January 1, 2022, included shares withheld to satisfy employees' tax withholding requirements in connection with vesting of RSUs. Additionally, during the three months ended January 1, 2022, the Company retired 1,010,286 shares of treasury stock.

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Jan. 01, 2022
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 increases automatically on January 1 of each year beginning in 2019 and continuing through 2028 by a number of shares of common stock equal to the lesser of (x) 5% of the total outstanding shares of the Company’s common stock and common stock equivalents as of the immediately preceding December 31 (rounded to the nearest whole share) and (y) a number of shares determined by the Company's 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: Number of Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (In years) (In thousands) Outstanding at October 2, 2021 14,545,239 $ 12.86 5.1 $ 282,141 Granted — — Exercised (1,076,077) 12.29 Forfeited (12,043) 14.96 Outstanding at January 1, 2022 13,457,119 $ 12.91 5.0 $ 227,339 At January 1, 2022 Options exercisable 12,395,258 $ 12.79 4.8 $ 210,785 Options vested and expected to vest 13,365,802 $ 12.90 5.0 $ 225,905 As of January 1, 2022, and October 2, 2021, the Company had $4.4 million and $6.2 million, respectively, of unrecognized stock-based compensation expense related to stock options, which are expected to be recognized over weighted-average periods of 0.8 and 0.9 years, respectively. Restricted stock units Pursuant to the 2018 Plan, the Company issues RSUs to employees and directors. The fair value of RSUs is based on the Company's closing stock price on the trading day immediately preceding the date of grant. RSUs vest quarterly over the service period, which is generally four years, with certain awards subject to an initial annual cliff vest. The summary of the Company’s RSU activity is as follows: Number of Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value (In thousands) Outstanding at October 2, 2021 9,283,525 $ 12.64 $ 299,487 Granted 2,128,485 33.94 Released (954,296) 11.85 Forfeited (184,013) 15.00 Outstanding at January 1, 2022 10,273,701 $ 17.08 $ 306,156 At January 1, 2022 Units expected to vest 8,736,544 $ 16.76 $ 260,349 As of January 1, 2022, and October 2, 2021, the Company had $134.5 million and $90.0 million of unrecognized stock-based compensation expense related to RSUs, which are expected to be recognized over weighted-average periods of 2.9 and 2.5 years, respectively. Performance stock units ("PSU") Pursuant to the 2018 Plan, the Company issues PSUs that vest on the satisfaction of service and performance conditions. The Company estimates the fair value of PSUs on the grant date and recognizes compensation expense in the period it becomes probable that performance conditions will be achieved. On a quarterly basis, the Company re-evaluates the assumption of the probability that performance conditions will be satisfied and revises its estimates as appropriate as new or updated information becomes available. The summary of the Company’s PSU activity is as follows: Number of Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value (In thousands) Outstanding at October 2, 2021 158,521 $ 22.81 $ 5,114 Granted 252,296 29.71 Vested — — Forfeited — — Outstanding at January 1, 2022 410,817 $ 27.05 $ 12,242 As of January 1, 2022, and October 2, 2021, the Company had $10.3 million and $3.6 million of unrecognized stock-based compensation expense related to PSUs, which are expected to be recognized over weighted-average periods of 1.4 and 1.2 years, respectively. Stock-based compensation Total stock-based compensation expense by functional category was as follows: Three Months Ended January 1, January 2, (In thousands) Cost of revenue $ 328 $ 214 Research and development 6,738 6,258 Sales and marketing 3,647 3,408 General and administrative 6,746 4,964 Total stock-based compensation expense $ 17,459 $ 14,844

Income Taxes

Income Taxes	3 Months Ended
	Jan. 01, 2022
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 ("AETR"), adjusted for the effect of discrete items arising in that quarter. The impact of such inclusions could result in a higher or lower effective tax rate during a quarter, based upon the mix and timing of actual earnings or losses versus annual projections. In each quarter, the Company updates its estimate of the AETR, and if the estimated AETR changes, a cumulative adjustment is made in that quarter. The Company recorded a provision for income taxes of $7.6 million and $9.1 million for the three months ended January 1, 2022, and January 2, 2021, respectively, related to U.S. and non-U.S. income taxes. For the three months ended January 1, 2022, the Company excluded certain foreign jurisdictions from the calculation of the estimated AETR as the Company anticipates an overall ordinary loss for which no tax benefit can be recognized. For the three months ended January 1, 2022, the Company's tax provision includes a discrete income tax benefit of $3.2 million for the release of a portion of our U.S. valuation allowance as a result of an acquisition in the quarter and U.S. share-based compensation. For the three months ended January 2, 2021, the Company's tax provision includes a discrete income tax benefit of $10.2 million for U.S. share-based compensation.

Net Income Per Share Attributab

Net Income Per Share Attributable to Common Stockholders	3 Months Ended
	Jan. 01, 2022
Earnings Per Share [Abstract]
Net Income Per Share Attributable to Common Stockholders	Net Income Per Share Attributable to Common Stockholders Basic net income per share attributable to common stockholders is calculated by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding less shares subject to repurchase. Diluted net income per share attributable to common stockholders adjusts the basic net income per share attributable to common stockholders and the weighted-average number of shares of common stock outstanding for the potentially dilutive impact of stock awards, using the treasury stock method. The following table sets forth the computation of the Company’s basic and diluted net income per share attributable to common stockholders: Three Months Ended January 1, January 2, (In thousands, except share and per share data) Numerator: Net income attributable to common stockholders - basic and diluted $ 123,481 $ 132,292 Denominator: Weighted-average shares of common stock—basic 127,662,826 115,610,523 Effect of potentially dilutive stock options 8,162,237 8,105,916 Effect of RSUs 6,306,547 6,927,708 Effect of PSUs 190,838 — Weighted-average shares of common stock—diluted 142,322,448 130,644,147 Net income per share attributable to common stockholders: Basic $ 0.97 $ 1.14 Diluted $ 0.87 $ 1.01 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 1, January 2, Stock options to purchase common stock 5,838,942 17,074,467 Restricted stock units 3,529,909 5,489,890 Performance stock units 110,669 — Total 9,479,520 22,564,357

Retirement Plans

Retirement Plans	3 Months Ended
	Jan. 01, 2022
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 make tax-deferred contributions under the 401(k) plan, but are limited to the maximum annual dollar amount allowable under the Internal Revenue Code of 1986, as amended (the "Code"). The Company matches contributions towards the 401(k) Plan and international defined contribution plans. The Company's matching contributions totaled $1.9 million and $1.7 million for the three months ended January 1, 2022, and January 2, 2021, respectively.

Business Combinations

Business Combinations	3 Months Ended
	Jan. 01, 2022
Business Combination and Asset Acquisition [Abstract]
Business Combinations	Business CombinationsDuring the first quarter of fiscal 2022, the Company completed two acquisitions for a combined aggregate cash consideration of approximately $27.1 million. The acquisitions brought talented employees and strategic intellectual property ("IP") to enhance the experience of Sonos products. The Company accounted for these transactions as business combinations and allocated the purchase consideration to assets acquired and liabilities assumed. In aggregate, $0.2 million was attributed to net assets acquired, $6.2 million to intangible assets, $1.5 million in deferred tax liabilities, and $22.2 million to goodwill. The goodwill recognized was primarily attributable to the assembled workforce and expected post-acquisition synergies from these acquisitions. Goodwill is not deductible for tax purposes. The transaction costs associated with the acquisitions were not material and were expensed as incurred, as general and administrative expenses in the condensed consolidated statements of operations and comprehensive income. Pro forma results of operations for these acquisitions have not been presented because they are not material to the Company's condensed consolidated financial statements, either individually or in the aggregate.

Business Overview and Basis o_2

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

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Jan. 01, 2022
Fair Value Disclosures [Abstract]
Summary of fair value measurements by level for the assets measured on a recurring basis	January 1, 2022, and October 2, 2021: January 1, 2022 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds (cash equivalents) $ 480,500 $ — $ — $ 480,500 October 2, 2021 Level 1 Level 2 Level 3 Total (In thousands) Assets: Money market funds (cash equivalents) $ 484,482 $ — $ — $ 484,482

Revenue and Geographic Inform_2

Revenue and Geographic Information (Tables)	3 Months Ended
	Jan. 01, 2022
Revenue from Contract with Customer [Abstract]
Disaggregation of revenue	Revenue by geographical region also includes the applicable service revenue for software upgrades and cloud-based services attributable to each region and is based on ship-to address, is as follows: Three Months Ended January 1, January 2, (In thousands) Americas $ 373,813 $ 367,239 Europe, Middle East and Africa (“EMEA”) 245,482 240,007 Asia Pacific (“APAC”) 45,186 38,338 Total revenue $ 664,481 $ 645,584 Revenue is attributed to individual countries based on ship-to address and also includes the applicable service revenue for software upgrades and cloud-based services attributable to each country. Revenue by significant countries is as follows: Three Months Ended January 1, January 2, (In thousands) United States $ 347,646 $ 330,896 Other countries 316,835 314,688 Total revenue $ 664,481 $ 645,584 Revenue by product category also includes the applicable service revenue for software upgrades and cloud-based services attributable to each product category. Revenue by major product category is as follows: Three Months Ended January 1, January 2, (In thousands) Sonos speakers $ 501,886 $ 527,516 Sonos system products 134,745 97,759 Partner products and other revenue 27,850 20,309 Total revenue $ 664,481 $ 645,584

Balance Sheet Components (Table

Balance Sheet Components (Tables)	3 Months Ended
	Jan. 01, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of accounts receivable	Accounts receivable, net of allowances, consist of the following: January 1, October 2, (In thousands) Accounts receivable $ 203,120 $ 121,486 Allowance for credit losses (1,998) (1,547) Allowance for sales incentives (22,865) (19,160) Accounts receivable, net of allowances $ 178,257 $ 100,779
Schedule of inventories	Inventories, net, consist of the following: January 1, October 2, (In thousands) Finished goods $ 145,492 $ 154,608 Component parts 59,670 30,522 Inventories $ 205,162 $ 185,130
Schedule of goodwill	The following table presents the changes in carrying amount of goodwill during the three months ended January 1, 2022: (In thousands) Balance as of October 2, 2021 $ 15,545 Goodwill acquired 22,181 Balance as of January 1, 2022 $ 37,726
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 1, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted-Average Remaining Life (In thousands, except weighted-average remaining life) Technology $ 13,932 $ (4,170) $ 9,762 2.85 Total finite-lived intangible assets 13,932 (4,170) 9,762 2.85 In-process research and development not subject to amortization 20,100 — 20,100 Total intangible assets $ 34,032 $ (4,170) $ 29,862 The following table summarizes the estimated future amortization expense of the Company's intangible assets as of January 1, 2022: Fiscal years ending Future Amortization Expense (In thousands) Remainder of fiscal 2022 $ 2,906 2023 3,237 2024 3,024 2025 423 2026 94 2027 and thereafter 78 Total future amortization expense $ 9,762
Schedule of accrued expenses	Accrued expenses consisted of the following: January 1, October 2, (In thousands) Accrued advertising and marketing $ 27,951 $ 19,989 Accrued taxes 34,292 16,941 Accrued inventory 58,871 37,117 Accrued manufacturing, logistics and product development 21,252 14,943 Accrued general and administrative expenses 12,649 13,066 Other accrued payables 9,486 5,973 Total accrued expenses $ 164,501 $ 108,029
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 1, 2022, and January 2, 2021: January 1, January 2, (In thousands) Deferred revenue, beginning of period $ 89,498 $ 62,389 Recognition of revenue included in beginning of period deferred revenue (23,721) (3,357) Revenue deferred, net of revenue recognized on contracts in the respective period 9,801 9,809 Deferred revenue, end of period $ 75,578 $ 68,841
Remaining performance obligation	The Company expects the following recognition of deferred revenue as of January 1, 2022: For the fiscal years ending 2022 2023 2024 2025 2026 and Beyond Total (In thousands) Deferred revenue expected to be recognized $ 13,561 $ 16,175 $ 14,103 $ 11,782 $ 19,957 $ 75,578
Schedule of other current liabilities	Other current liabilities consist of the following: January 1, October 2, (In thousands) Reserve for returns $ 22,648 $ 19,266 Short-term operating lease liabilities 11,268 10,724 Product warranty liability 9,666 5,604 Other 3,589 3,950 Total other current liabilities $ 47,171 $ 39,544
Schedule of product warranty liability	The following table presents the changes in the Company’s warranty liability the three months ended January 1, 2022, and January 2, 2021: January 1, January 2, (In thousands) Warranty liability, beginning of period $ 5,604 $ 3,628 Provision for warranties issued during the period 5,359 6,277 Settlements of warranty claims during the period (1,297) (3,459) Warranty liability, end of period $ 9,666 $ 6,446

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Jan. 01, 2022
Share-based Payment Arrangement [Abstract]
Schedule of stock option activity	The summary of the Company’s stock option activity is as follows: Number of Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (In years) (In thousands) Outstanding at October 2, 2021 14,545,239 $ 12.86 5.1 $ 282,141 Granted — — Exercised (1,076,077) 12.29 Forfeited (12,043) 14.96 Outstanding at January 1, 2022 13,457,119 $ 12.91 5.0 $ 227,339 At January 1, 2022 Options exercisable 12,395,258 $ 12.79 4.8 $ 210,785 Options vested and expected to vest 13,365,802 $ 12.90 5.0 $ 225,905
Schedule of restricted stock unit activity	The summary of the Company’s RSU activity is as follows: Number of Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value (In thousands) Outstanding at October 2, 2021 9,283,525 $ 12.64 $ 299,487 Granted 2,128,485 33.94 Released (954,296) 11.85 Forfeited (184,013) 15.00 Outstanding at January 1, 2022 10,273,701 $ 17.08 $ 306,156 At January 1, 2022 Units expected to vest 8,736,544 $ 16.76 $ 260,349
Schedule of performance stock units activity	The summary of the Company’s PSU activity is as follows: Number of Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value (In thousands) Outstanding at October 2, 2021 158,521 $ 22.81 $ 5,114 Granted 252,296 29.71 Vested — — Forfeited — — Outstanding at January 1, 2022 410,817 $ 27.05 $ 12,242
Schedule of stock-based compensation expense	Total stock-based compensation expense by functional category was as follows: Three Months Ended January 1, January 2, (In thousands) Cost of revenue $ 328 $ 214 Research and development 6,738 6,258 Sales and marketing 3,647 3,408 General and administrative 6,746 4,964 Total stock-based compensation expense $ 17,459 $ 14,844

Net Income Per Share Attribut_2

Net Income Per Share Attributable to Common Stockholders (Tables)	3 Months Ended
	Jan. 01, 2022
Earnings Per Share [Abstract]
Schedule of earnings per share	The following table sets forth the computation of the Company’s basic and diluted net income per share attributable to common stockholders: Three Months Ended January 1, January 2, (In thousands, except share and per share data) Numerator: Net income attributable to common stockholders - basic and diluted $ 123,481 $ 132,292 Denominator: Weighted-average shares of common stock—basic 127,662,826 115,610,523 Effect of potentially dilutive stock options 8,162,237 8,105,916 Effect of RSUs 6,306,547 6,927,708 Effect of PSUs 190,838 — Weighted-average shares of common stock—diluted 142,322,448 130,644,147 Net income per share attributable to common stockholders: Basic $ 0.97 $ 1.14 Diluted $ 0.87 $ 1.01
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 1, January 2, Stock options to purchase common stock 5,838,942 17,074,467 Restricted stock units 3,529,909 5,489,890 Performance stock units 110,669 — Total 9,479,520 22,564,357

Business Overview and Basis o_3

Business Overview and Basis of Presentation (Details)	Jan. 01, 2022country
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. 01, 2022	Oct. 02, 2021
Assets:
Money market funds (cash equivalents)	$ 480,500	$ 484,482
Level 1
Assets:
Money market funds (cash equivalents)	480,500	484,482
Level 2
Assets:
Money market funds (cash equivalents)	0	0
Level 3
Assets:
Money market funds (cash equivalents)	$ 0	$ 0

Revenue and Geographic Inform_3

Revenue and Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 664,481	$ 645,584
Sonos speakers
Disaggregation of Revenue [Line Items]
Revenue	501,886	527,516
Sonos system products
Disaggregation of Revenue [Line Items]
Revenue	134,745	97,759
Partner products and other revenue
Disaggregation of Revenue [Line Items]
Revenue	27,850	20,309
Americas
Disaggregation of Revenue [Line Items]
Revenue	373,813	367,239
Europe, Middle East and Africa (“EMEA”)
Disaggregation of Revenue [Line Items]
Revenue	245,482	240,007
Asia Pacific (“APAC”)
Disaggregation of Revenue [Line Items]
Revenue	45,186	38,338
United States
Disaggregation of Revenue [Line Items]
Revenue	347,646	330,896
Other countries
Disaggregation of Revenue [Line Items]
Revenue	$ 316,835	$ 314,688

Balance Sheet Components - Acco

Balance Sheet Components - Accounts receivable, net of allowances (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Oct. 02, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts receivable	$ 203,120	$ 121,486
Allowance for credit losses	(1,998)	(1,547)
Allowance for sales incentives	(22,865)	(19,160)
Accounts receivable, net of allowances	$ 178,257	$ 100,779

Balance Sheet Components - Inve

Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Oct. 02, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finished goods	$ 145,492	$ 154,608
Component parts	59,670	30,522
Inventories	$ 205,162	$ 185,130

Balance Sheet Components - Good

Balance Sheet Components - Goodwill (Details) $ in Thousands	3 Months Ended
	Jan. 01, 2022USD ($)
Goodwill [Roll Forward]
Goodwill beginning balance	$ 15,545
Goodwill acquired	22,181
Goodwill ending balance	$ 37,726

Balance Sheet Components - Fini

Balance Sheet Components - Finite-lived intangible assets, future amortization expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 01, 2022	Oct. 02, 2021
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 13,932
Accumulated Amortization	(4,170)
Net Carrying Value	9,762
Intangible assets, gross carrying amount (excluding goodwill)	34,032
Intangible assets, net carrying value (excluding goodwill)	$ 29,862	$ 24,450
Weighted-Average Remaining Life	2 years 10 months 6 days
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of fiscal 2022	$ 2,906
2023	3,237
2024	3,024
2025	423
2026	94
2027 and thereafter	78
Net Carrying Value	9,762
In-process research and development not subject to amortization
Finite-Lived Intangible Assets [Line Items]
In-process research and development not subject to amortization	20,100
Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	13,932
Accumulated Amortization	(4,170)
Net Carrying Value	$ 9,762
Weighted-Average Remaining Life	2 years 10 months 6 days
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net Carrying Value	$ 9,762

Balance Sheet Components - Accr

Balance Sheet Components - Accrued expenses (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Oct. 02, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued advertising and marketing	$ 27,951	$ 19,989
Accrued taxes	34,292	16,941
Accrued inventory	58,871	37,117
Accrued manufacturing, logistics and product development	21,252	14,943
Accrued general and administrative expenses	12,649	13,066
Other accrued payables	9,486	5,973
Total accrued expenses	$ 164,501	$ 108,029

Balance Sheet Components - Chan

Balance Sheet Components - Change in deferred revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Contract with Customer, Liability [Roll Forward]
Deferred revenue, beginning of period	$ 89,498	$ 62,389
Recognition of revenue included in beginning of period deferred revenue	(23,721)	(3,357)
Revenue deferred, net of revenue recognized on contracts in the respective period	9,801	9,809
Deferred revenue, end of period	$ 75,578	$ 68,841

Balance Sheet Components - Expe

Balance Sheet Components - Expected revenue recognition (Details) $ in Thousands	Jan. 01, 2022USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue expected to be recognized	$ 75,578
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-02
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue expected to be recognized	$ 13,561
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]: 2022-10-02
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue expected to be recognized	$ 16,175
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	$ 14,103
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	$ 11,782
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]: 2025-09-28
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue expected to be recognized	$ 19,957
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. 01, 2022	Oct. 02, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reserve for returns	$ 22,648	$ 19,266
Short-term operating lease liabilities	11,268	10,724
Product warranty liability	9,666	5,604
Other	3,589	3,950
Total other current liabilities	$ 47,171	$ 39,544

Balance Sheet Components - Prod

Balance Sheet Components - Product Warranties (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty liability, beginning of period	$ 5,604	$ 3,628
Provision for warranties issued during the period	5,359	6,277
Settlements of warranty claims during the period	(1,297)	(3,459)
Warranty liability, end of period	$ 9,666	$ 6,446

Debt - Additional Information (

Debt - Additional Information (Details) - Credit Facility - Revolving Credit Facility - USD ($) $ in Millions	Oct. 13, 2021	Jan. 01, 2022	Oct. 12, 2021
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 100		$ 80
Term of debt	5 years
Undrawn letters of credit		$ 2.9
Minimum
Debt Instrument [Line Items]
Commitment fee percentage	0.20%
Maximum
Debt Instrument [Line Items]
Commitment fee percentage	0.275%
Base Rate
Debt Instrument [Line Items]
Interest rate, spread on variable rate	1.00%

Commitments and Contingencies -

Commitments and Contingencies - Textual (Details) $ in Millions

Oct. 18, 2021patent

Aug. 13, 2021patent

Jun. 23, 2021claimFeature

Jun. 04, 2021patent

Dec. 01, 2020plaintiff

Nov. 02, 2020patent

Sep. 29, 2020patent

Aug. 21, 2020patent

Jun. 12, 2020patent

Jun. 11, 2020patent

Mar. 10, 2017patent

Jan. 01, 2022USD ($)patent

Loss Contingencies [Line Items]

Tariff refund | $

$ 12.3

Implicit, LLC

Loss Contingencies [Line Items]

Loss contingency, patents allegedly infringed upon, number

2

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

Loss Contingencies [Line Items]

Gain contingency, patents found infringed upon

5

Gain contingency, patents allegedly infringed upon, number

5

Sonos, Inc.

Loss Contingencies [Line Items]

Gain contingency, patents allegedly infringed upon, number

2

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

2

Loss contingency, patents allegedly infringed upon, number

5

Loss contingency, patents found not infringed upon, number

1

1

Loss contingency, patents allegedly infringed, inter parties review granted

1

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

2

Sonos, Inc. | Canada

Loss Contingencies [Line Items]

Gain contingency, patents allegedly infringed upon, number

1

Sonos, Inc. | Europe and France

Loss Contingencies [Line Items]

Gain contingency, patents allegedly infringed upon, number

2

Google Foreign Subsidiaries

Loss Contingencies [Line Items]

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

2

Government

Loss Contingencies [Line Items]

Income tax examination, refund | $

$ 1.7

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Jan. 01, 2022	Nov. 17, 2020
Equity [Abstract]
Stock repurchase program, authorized value		$ 150
Purchase of treasury stock (in shares)	1,032,249
Purchase price of common stock	$ 31.4
Average price per share (in dollars per share)	$ 30.37
Remaining authorized repurchase amount	$ 121.5
Retirement of treasury stock (in shares)	1,010,286

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. 01, 2022	Oct. 02, 2021
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		48 months
Exercisable period		10 years
Unrecognized stock-based compensation expense		$ 4.4	$ 6.2
Unrecognized stock-based compensation expense, period of recognition		9 months 18 days	10 months 24 days
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		4 years
Unrecognized stock-based compensation expense		$ 134.5	$ 90
Unrecognized stock-based compensation expense, period of recognition		2 years 10 months 24 days	2 years 6 months
Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense		$ 10.3	$ 3.6
Unrecognized stock-based compensation expense, period of recognition		1 year 4 months 24 days	1 year 2 months 12 days
2018 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of outstanding stock maximum	5.00%

Stock-based Compensation - Stoc

Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Jan. 01, 2022	Oct. 02, 2021
Number of Options
Beginning balance (in shares)	14,545,239
Granted (in shares)	0
Exercised (in shares)	(1,076,077)
Forfeited (in shares)	(12,043)
Ending balance (in shares)	13,457,119	14,545,239
Options exercisable (in shares)	12,395,258
Options vested and expected to vest (in shares)	13,365,802
Weighted-Average Exercise Price
Beginning balance (in USD per share)	$ 12.86
Granted (in USD per share)	0
Exercised (in USD per share)	12.29
Forfeited (in USD per share)	14.96
Ending balance (in USD per share)	12.91	$ 12.86
Option exercisable - Weighted Average Exercise Price (in USD per share)	12.79
Options vested and expected to vest - Weighted Average Exercise Price (in USD per share)	$ 12.90
Additional Information
Weighted-Average Remaining Contractual Term	5 years	5 years 1 month 6 days
Option exercisable - Weighted Average Remaining Contractual Term	4 years 9 months 18 days
Options vested and expected to vest - Weighted Average Remaining Contractual Term	5 years
Aggregate Intrinsic Value	$ 227,339	$ 282,141
Options exercisable - Average Intrinsic Value	210,785
Options vested and expected to vest - Average Intrinsic Value	$ 225,905

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Unit Activity (Details) - Restricted stock units $ / shares in Units, $ in Thousands	3 Months Ended
	Jan. 01, 2022USD ($)$ / sharesshares
Number of Units
Outstanding, beginning balance (in shares) | shares	9,283,525
Granted (in shares) | shares	2,128,485
Released (in shares) | shares	(954,296)
Forfeited (in shares) | shares	(184,013)
Outstanding, ending balance (in shares) | shares	10,273,701
Units expected to vest (in shares) | shares	8,736,544
Weighted-Average Grant Date Fair Value
Outstanding, beginning balance (in USD per share) | $ / shares	$ 12.64
Granted (in USD per share) | $ / shares	33.94
Released (in USD per share) | $ / shares	11.85
Forfeited (in USD per share) | $ / shares	15
Outstanding, ending balance (in USD per share) | $ / shares	17.08
Vested and expected to vest - Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 16.76
Additional Information
Aggregate Intrinsic Value, beginning balance | $	$ 299,487
Aggregate Intrinsic Value, ending balance | $	306,156
Vested and expected to vest - Weighted Average Intrinsic Value | $	$ 260,349

Stock-based Compensation - Perf

Stock-based Compensation - Performance Stock Unit Activity (Details) - Performance Share Units $ / shares in Units, $ in Thousands	3 Months Ended
	Jan. 01, 2022USD ($)$ / sharesshares
Number of Units
Outstanding, beginning balance (in shares) | shares	158,521
Granted (in shares) | shares	252,296
Vested (in shares) | shares	0
Forfeited (in shares) | shares	0
Outstanding, ending balance (in shares) | shares	410,817
Weighted-Average Grant Date Fair Value
Outstanding, beginning balance (in USD per share) | $ / shares	$ 22.81
Granted (in USD per share) | $ / shares	29.71
Vested (in USD per share) | $ / shares	0
Forfeited (in USD per share) | $ / shares	0
Outstanding, ending balance (in USD per share) | $ / shares	$ 27.05
Additional Information
Aggregate Intrinsic Value, beginning balance | $	$ 5,114
Aggregate Intrinsic Value, ending balance | $	$ 12,242

Stock-based Compensation - St_2

Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 17,459	$ 14,844
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	328	214
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	6,738	6,258
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	3,647	3,408
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 6,746	$ 4,964

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 7,646	$ 9,120
Discrete tax benefit, valuation allowance	$ 3,200
Discrete tax benefit, share-based compensation		$ 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. 01, 2022	Jan. 02, 2021
Numerator:
Net income	$ 123,481	$ 132,292
Denominator:
Weighted-average shares of common stock - basic (in shares)	127,662,826	115,610,523
Weighted-average shares of common stock - diluted (in shares)	142,322,448	130,644,147
Net income attributable to common stockholders:
Net income per share attributable to common stockholders - basic (in USD per share)	$ 0.97	$ 1.14
Net income per share attributable to common stockholders - diluted (in USD per share)	$ 0.87	$ 1.01
Stock Options
Denominator:
Effect of potentially dilutive stock options, RSUs, and PSUs (in shares)	8,162,237	8,105,916
Restricted stock units
Denominator:
Effect of potentially dilutive stock options, RSUs, and PSUs (in shares)	6,306,547	6,927,708
Performance Share Units
Denominator:
Effect of potentially dilutive stock options, RSUs, and PSUs (in shares)	190,838	0

Net Income Per Share Attribut_4

Net Income Per Share Attributable to Common Stockholders - Antidilutive Securities (Details) - shares	3 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)	9,479,520	22,564,357
Stock options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)	5,838,942	17,074,467
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)	3,529,909	5,489,890
Performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive securities (in shares)	110,669	0

Retirement Plans (Details)

Retirement Plans (Details) - USD ($) $ in Millions	3 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Retirement Benefits [Abstract]
Employer contribution	$ 1.9	$ 1.7

Business Combinations - Additio

Business Combinations - Additional Information (Details) $ in Thousands	3 Months Ended
	Jan. 01, 2022USD ($)acquisition	Oct. 02, 2021USD ($)
Business Acquisition [Line Items]
Goodwill	$ 37,726	$ 15,545
Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Number of acquisitions | acquisition	2
Cash consideration	$ 27,100
Net assets acquired, excluding goodwill	200
Intangible assets	6,200
Deferred tax liabilities	1,500
Goodwill	$ 22,200