Cover Page
Cover Page - shares | 9 Months Ended | |
Jun. 29, 2024 | Jul. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 29, 2024 | |
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 | 301 Coromar Drive | |
Entity Address, City or Town | Santa Barbara | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 93117 | |
City Area Code | 805 | |
Local Phone Number | 965-3001 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | SONO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Small Reporting Company | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 121,009,890 | |
Entity Central Index Key | 0001314727 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-28 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 29, 2024 | Sep. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 227,114 | $ 220,231 |
Marketable securities | 49,515 | 0 |
Accounts receivable, net | 131,581 | 67,583 |
Inventories | 154,903 | 346,521 |
Prepaids and other current assets | 41,343 | 25,296 |
Total current assets | 604,456 | 659,631 |
Property and equipment, net | 103,123 | 87,075 |
Operating lease right-of-use assets | 53,030 | 48,918 |
Goodwill | 80,980 | 80,420 |
Intangible assets, net | ||
In-process research and development | 70,706 | 69,791 |
Other intangible assets | 15,748 | 20,218 |
Deferred tax assets | 1,640 | 1,659 |
Other noncurrent assets | 31,422 | 34,529 |
Total assets | 961,105 | 1,002,241 |
Current liabilities: | ||
Accounts payable | 179,327 | 187,981 |
Accrued expenses | 88,958 | 89,717 |
Accrued compensation | 33,059 | 22,079 |
Deferred revenue, current | 20,796 | 20,188 |
Other current liabilities | 44,741 | 34,253 |
Total current liabilities | 366,881 | 354,218 |
Operating lease liabilities, noncurrent | 53,050 | 54,956 |
Deferred revenue, noncurrent | 62,190 | 60,650 |
Deferred tax liabilities | 10,735 | 9,846 |
Other noncurrent liabilities | 3,858 | 3,914 |
Total liabilities | 496,714 | 483,584 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value | 126 | 130 |
Treasury stock | (72,323) | (72,586) |
Additional paid-in capital | 538,172 | 607,345 |
Retained earnings (accumulated deficit) | 2,159 | (12,788) |
Accumulated other comprehensive loss | (3,743) | (3,444) |
Total stockholders’ equity | 464,391 | 518,657 |
Total liabilities and stockholders’ equity | $ 961,105 | $ 1,002,241 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 29, 2024 | Sep. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Income Statement [Abstract] | ||||
Revenue | $ 397,146 | $ 373,356 | $ 1,262,676 | $ 1,350,108 |
Cost of revenue | 205,505 | 201,594 | 676,320 | 761,672 |
Gross profit | 191,641 | 171,762 | 586,356 | 588,436 |
Operating expenses | ||||
Research and development | 74,223 | 77,758 | 233,780 | 235,484 |
Sales and marketing | 71,643 | 66,600 | 217,428 | 208,917 |
General and administrative | 33,186 | 48,665 | 113,825 | 136,219 |
Total operating expenses | 179,052 | 193,023 | 565,033 | 580,620 |
Operating income (loss) | 12,589 | (21,261) | 21,323 | 7,816 |
Other income, net | ||||
Interest income | 2,629 | 2,391 | 9,638 | 7,540 |
Interest expense | (106) | (274) | (333) | (585) |
Other income (expense), net | (2,464) | 1,424 | 4,507 | 22,169 |
Total other income, net | 59 | 3,541 | 13,812 | 29,124 |
Income (loss) before provision for income taxes | 12,648 | (17,720) | 35,135 | 36,940 |
Provision for income taxes | 8,939 | 5,851 | 20,188 | 15,974 |
Net income (loss) | 3,709 | (23,571) | 14,947 | 20,966 |
Net income (loss) per share attributable to common stockholders: | ||||
Net income (loss) attributable to common stockholders: | $ 3,709 | $ (23,571) | $ 14,947 | $ 20,966 |
Basic (in USD per share) | $ 0.03 | $ (0.18) | $ 0.12 | $ 0.16 |
Diluted (in USD per share) | $ 0.03 | $ (0.18) | $ 0.12 | $ 0.16 |
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders: | ||||
Basic (in shares) | 122,553,129 | 128,311,109 | 123,828,150 | 127,825,410 |
Diluted (in shares) | 127,245,459 | 128,311,109 | 127,886,368 | 132,851,379 |
Total comprehensive income (loss) | ||||
Net income (loss) | $ 3,709 | $ (23,571) | $ 14,947 | $ 20,966 |
Change in foreign currency translation adjustment | 681 | 802 | (267) | (1,882) |
Net unrealized loss on marketable securities | (6) | 0 | (32) | 0 |
Comprehensive income (loss) | $ 4,384 | $ (22,769) | $ 14,648 | $ 19,084 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Treasury stock | Retained earnings (accumulated deficit) | Accumulated other comprehensive loss |
Beginning balances at Oct. 01, 2022 | $ 560,512 | $ 130 | $ 617,390 | $ (50,896) | $ (2,515) | $ (3,597) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock pursuant to equity incentive plans | 4 | 20,038 | ||||
Retirement of treasury stock | (4) | (87,517) | 87,521 | |||
Stock-based compensation expense | 59,549 | |||||
Repurchase of common stock | (45,063) | |||||
Repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards | (23,914) | |||||
Net income (loss) | 20,966 | 20,966 | ||||
Change in foreign currency translation adjustment | (1,882) | (1,882) | ||||
Unrealized loss on investments | 0 | |||||
Ending balances at Jul. 01, 2023 | 590,210 | $ 130 | 609,460 | $ (32,352) | 18,451 | (5,479) |
Balances, beginning of period (in shares) at Oct. 01, 2022 | 129,823,663 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock pursuant to equity incentive plans (in shares) | 5,416,539 | |||||
Balances, ending of period (in shares) at Jul. 01, 2023 | 130,402,086 | |||||
Treasury stock, Beginning balances (in shares) at Oct. 01, 2022 | (3,154,940) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Retirement of treasury stock (in shares) | (4,838,116) | (4,838,116) | ||||
Repurchase of common stock (in shares) | (2,548,184) | |||||
Repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards (in shares) | (1,296,529) | |||||
Treasury stock, Ending balances (in shares) at Jul. 01, 2023 | (2,161,537) | |||||
Beginning balances at Apr. 01, 2023 | 612,914 | $ 130 | 613,505 | $ (36,462) | 42,022 | (6,281) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock pursuant to equity incentive plans | 1 | 2,459 | ||||
Retirement of treasury stock | (1) | (24,833) | 24,834 | |||
Stock-based compensation expense | 18,329 | |||||
Repurchase of common stock | (15,009) | |||||
Repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards | (5,715) | |||||
Net income (loss) | (23,571) | (23,571) | ||||
Change in foreign currency translation adjustment | 802 | 802 | ||||
Unrealized loss on investments | 0 | |||||
Ending balances at Jul. 01, 2023 | 590,210 | $ 130 | 609,460 | $ (32,352) | 18,451 | (5,479) |
Balances, beginning of period (in shares) at Apr. 01, 2023 | 130,355,273 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock pursuant to equity incentive plans (in shares) | 1,271,122 | |||||
Balances, ending of period (in shares) at Jul. 01, 2023 | 130,402,086 | |||||
Treasury stock, Beginning balances (in shares) at Apr. 01, 2023 | (2,085,833) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Retirement of treasury stock (in shares) | (1,224,309) | (1,224,309) | ||||
Repurchase of common stock (in shares) | (932,029) | |||||
Repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards (in shares) | (367,984) | |||||
Treasury stock, Ending balances (in shares) at Jul. 01, 2023 | (2,161,537) | |||||
Beginning balances at Sep. 30, 2023 | 518,657 | $ 130 | 607,345 | $ (72,586) | (12,788) | (3,444) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock pursuant to equity incentive plans | 6 | 16,306 | ||||
Retirement of treasury stock | (10) | (150,440) | 150,450 | |||
Stock-based compensation expense | 64,961 | |||||
Repurchase of common stock | (129,430) | |||||
Repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards | (20,757) | |||||
Net income (loss) | 14,947 | 14,947 | ||||
Change in foreign currency translation adjustment | (267) | (267) | ||||
Unrealized loss on investments | (32) | |||||
Ending balances at Jun. 29, 2024 | $ 464,391 | $ 126 | 538,172 | $ (72,323) | 2,159 | (3,743) |
Balances, beginning of period (in shares) at Sep. 30, 2023 | 130,399,940 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock pursuant to equity incentive plans (in shares) | 4,911,125 | |||||
Balances, ending of period (in shares) at Jun. 29, 2024 | 125,522,090 | |||||
Treasury stock, Beginning balances (in shares) at Sep. 30, 2023 | (5,286,024) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Retirement of treasury stock (in shares) | (9,788,975) | (9,788,975) | (9,788,975) | |||
Repurchase of common stock (in shares) | (7,777,208) | (7,777,208) | ||||
Repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards (in shares) | (1,274,606) | |||||
Treasury stock, Ending balances (in shares) at Jun. 29, 2024 | (4,548,863) | |||||
Beginning balances at Mar. 30, 2024 | $ 494,004 | $ 128 | 577,840 | $ (77,996) | (1,550) | (4,418) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock pursuant to equity incentive plans | 2 | 4,405 | ||||
Retirement of treasury stock | (4) | (66,003) | 66,007 | |||
Stock-based compensation expense | 21,930 | |||||
Repurchase of common stock | (52,820) | |||||
Repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards | (7,514) | |||||
Net income (loss) | 3,709 | 3,709 | ||||
Change in foreign currency translation adjustment | 681 | 681 | ||||
Unrealized loss on investments | (6) | |||||
Ending balances at Jun. 29, 2024 | $ 464,391 | $ 126 | $ 538,172 | $ (72,323) | $ 2,159 | $ (3,743) |
Balances, beginning of period (in shares) at Mar. 30, 2024 | 127,825,196 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock pursuant to equity incentive plans (in shares) | 1,582,772 | |||||
Balances, ending of period (in shares) at Jun. 29, 2024 | 125,522,090 | |||||
Treasury stock, Beginning balances (in shares) at Mar. 30, 2024 | (4,747,402) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Retirement of treasury stock (in shares) | (3,885,878) | (3,885,878) | ||||
Repurchase of common stock (in shares) | (3,253,468) | |||||
Repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards (in shares) | (433,871) | |||||
Treasury stock, Ending balances (in shares) at Jun. 29, 2024 | (4,548,863) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Cash flows from operating activities | ||
Net income (loss) | $ 14,947 | $ 20,966 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation expense | 64,961 | 59,549 |
Depreciation and amortization | 35,154 | 35,054 |
Provision for inventory obsolescence | 2,005 | 14,964 |
Restructuring and abandonment charges | 266 | 5,125 |
Deferred income taxes | 819 | 1,569 |
Other | 2,973 | 4,270 |
Foreign currency transaction gains | (2,750) | (12,698) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (64,218) | (13,934) |
Inventories | 189,613 | 141,054 |
Other assets | (15,285) | 9,375 |
Accounts payable and accrued expenses | (16,942) | (204,012) |
Accrued compensation | 10,251 | 20,640 |
Deferred revenue | 1,685 | (4,093) |
Other liabilities | 4,161 | 382 |
Net cash provided by operating activities | 227,640 | 78,211 |
Cash flows from investing activities | ||
Purchases of marketable securities | (68,676) | 0 |
Purchases of property and equipment | (39,477) | (40,085) |
Maturities of marketable securities | 20,000 | 0 |
Net cash used in investing activities | (88,153) | (40,085) |
Cash flows from financing activities | ||
Payments for repurchase of common stock | (128,739) | (45,063) |
Payments for repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards | (20,757) | (23,914) |
Proceeds from exercise of common stock options | 16,312 | 20,042 |
Net cash used in financing activities | (133,184) | (48,935) |
Effect of exchange rate changes on cash and cash equivalents | 580 | 4,240 |
Net increase (decrease) in cash and cash equivalents | 6,883 | (6,569) |
Cash and cash equivalents | ||
Beginning of period | 220,231 | 274,855 |
End of period | 227,114 | 268,286 |
Supplemental disclosure | ||
Cash paid for interest | 195 | 780 |
Cash paid for taxes, net of refunds | 17,134 | 5,217 |
Cash paid for amounts included in the measurement of lease liabilities | 9,637 | 10,599 |
Supplemental disclosure of non-cash investing and financing activities | ||
Purchases of property and equipment in accounts payable and accrued expenses | 9,910 | 7,129 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 11,277 | 31,547 |
Change in estimate of asset retirement obligations | $ 0 | $ 2,185 |
Business Overview and Basis of
Business Overview and Basis of Presentation | 9 Months Ended |
Jun. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Overview and Basis of Presentation | 1. Business Overview and Basis of Presentation Description of business Sonos, Inc. and its wholly owned subsidiaries (collectively, "Sonos," the "Company," "we," "us" or "our") designs, develops, manufactures, and sells audio products and services. The Sonos sound system provides customers with an immersive listening experience created by the design of its speakers, headphones and components a proprietary software platform, and the ability to stream content from a variety of sources over the customer’s wireless network or over Bluetooth. The Company’s products are sold through third-party physical retailers, including custom installers of home audio systems, select e-commerce retailers, and its website, sonos.com. The Company’s products are distributed in over 60 countries through its wholly owned subsidiaries: Sonos Europe B.V. in the Netherlands, Beijing Sonos Technology Co. Ltd. in China, Sonos Japan GK in Japan, and Sonos Australia Pty Ltd. in Australia. Basis of presentation and preparation The accompanying condensed consolidated financial statements are unaudited. The condensed consolidated balance sheet as of September 30, 2023, 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 September 30, 2023, (the "Annual Report"), filed with the SEC on November 20, 2023. In management’s opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the Company’s financial position, its results of operations, and its cash flows for the interim periods presented. The results of operations for the three and nine months ended June 29, 2024, are not necessarily indicative of the results to be expected for the full fiscal year or any other period. The Company operates on a 52- week or 53- week fiscal year ending on the Saturday nearest September 30 each year. The Company’s fiscal year is divided into four quarters of 13 weeks, each beginning on a Sunday and containing two 4-week periods followed by a 5-week period. An additional week is included in the fourth fiscal quarter approximately every five years to realign fiscal quarters with calendar quarters. This last occurred in the fourth quarter of the Company’s fiscal year ended October 3, 2020, and will reoccur in the fiscal year ending October 3, 2026. The nine months ended June 29, 2024 and July 1, 2023, spanned 39 weeks each. As used in this Quarterly Report on Form 10-Q, "fiscal 2024" refers to the fiscal year ending September 28, 2024, "fiscal 2023" refers to the fiscal year ended September 30, 2023, "fiscal 2022" refers to the fiscal year ended October 1, 2022, "fiscal 2021" refers to the fiscal year ended October 2, 2021, and "fiscal 2020" refers to the fiscal year ended October 3, 2020. Use of estimates and judgments The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company evaluates its estimates and judgments compared to historical experience and expected trends. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 29, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies There have been no changes in the Company’s significant accounting policies, recently adopted accounting pronouncements, or recent accounting pronouncements pending adoption from those disclosed in the Annual Report, except as noted below. Marketable securities The Company’s marketable securities consist of U.S. Treasury securities. Management determines the appropriate classification of its marketable securities at the time of purchase and reevaluates such determination at each balance sheet date. The Company classifies its marketable securities as available-for-sale and reports them at fair value in the condensed consolidated balance sheets, with unrealized gains and losses recorded in accumulated other comprehensive (income) loss. If securities are sold prior to maturity, the cost of securities sold is based on the specific identification method. Realized gains and losses on the sale of securities are recorded in other income (expense), net in the condensed consolidated statement of operations and comprehensive income (loss). For securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more-likely-than-not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through earnings. For securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in accumulated other comprehensive loss in the condensed consolidated balance sheets. Recent accounting pronouncements pending adoption In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This update includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the pronouncement to determine the impact it may have on the Company's condensed consolidated financial statements and related disclosures. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 29, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements The carrying values of the Company’s financial instruments, including accounts receivable and accounts payable, approximate their fair values due to the short period of time to maturity or repayment. The Company utilizes the following fair value hierarchy to establish priorities of the inputs used to measure fair value: • Level 1: Quoted prices in active markets for identical assets or liabilities. • Level 2: Observable inputs other than quoted market prices included in Level 1, such as quoted prices for similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. The following table summarizes fair value measurements by level for the assets measured at fair value on a recurring basis as of June 29, 2024 and September 30, 2023: June 29, 2024 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents: Money market funds $ 30,289 $ — $ — $ 30,289 U.S. Treasury securities — 1,247 — 1,247 Total cash equivalents 30,289 1,247 31,536 Marketable Securities: U.S. Treasury securities — 49,515 — 49,515 Total marketable securities — 49,515 — 49,515 Total assets $ 30,289 $ 50,762 $ — $ 81,051 September 30, 2023 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents: Money market funds $ 51,522 $ — $ — $ 51,522 Total Assets $ 51,522 $ — $ — $ 51,522 |
Financial Instruments
Financial Instruments | 9 Months Ended |
Jun. 29, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | 4. Financial Instruments The Company classifies its marketable securities as available-for-sale and reports them at fair value in the condensed consolidated balance sheets, with unrealized gains and losses recorded in accumulated other comprehensive income (loss). Classification of the Company's marketable securities in the condensed consolidated balance sheets is based on each instrument’s underlying contractual maturity date. Securities with an original maturity of three months or less at time of purchase are recorded in cash and cash equivalents. Securities with an original maturity of greater than three months but less than one year are recorded in marketable securities. As of June 29, 2024, the Company held no securities with original maturities exceeding one year. Realized gains and losses on the sale of securities are recorded in other income (expense), net in the condensed consolidated statements of operations and comprehensive income (loss). The following is a summary of marketable securities as of June 29, 2024 (in thousands): June 29, 2024 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Marketable securities: U.S. Treasury securities $ 50,794 $ 1 $ (33) $ 50,762 Total marketable securities $ 50,794 $ 1 $ (33) $ 50,762 Reported in: Cash and cash equivalents $ 1,247 Marketable securities 49,515 Total $ 50,762 The Company held no marketable securities as of September 30, 2023. There were no realized gains or losses on sales of marketable securities during the three and nine months ended June 29, 2024. For securities in an unrealized loss position, the Company evaluated whether the decline in fair value resulted from credit losses or other factors and concluded these amounts were related to temporary fluctuations in value of the securities and were due primarily to changes in interest rates and market conditions of the underlying securities. The Company does not intend to sell the securities, and it is more-likely-than-not that it will not be required to sell before recovery of their amortized cost basis. Accordingly, an allowance for credit losses was deemed unnecessary for these securities as of June 29, 2024. The Company has elected the practical expedient to exclude the applicable accrued interest from both the fair value and the amortized cost basis of its marketable securities for the purpose of identifying and measuring impairment. The Company presents accrued interest receivable related to its marketable securities in prepaid and other current assets, separate from marketable securities, on its condensed consolidated balance sheets. Accrued interest receivable related to our marketable securities was immaterial as of June 29, 2024. The Company's accounting policy is to not measure an allowance for credit losses for accrued interest receivable and to write-off any uncollectible accrued interest receivable as a reversal of interest income in a timely manner, which it considers to be in the period in which it determines the accrued interest will not be collected. No accrued interest receivables were written off during the three and nine months ended June 29, 2024. |
Revenue and Geographic Informat
Revenue and Geographic Information | 9 Months Ended |
Jun. 29, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Geographic Information | 5. Revenue and Geographic Information Disaggregation of revenue Revenue is attributed to each region based on ship-to address, and also includes the applicable service revenue for software upgrades and cloud-based services attributable to each region. Revenue by region is as follows: Three Months Ended Nine Months Ended June 29, July 1, June 29, July 1, (In thousands) Americas $ 264,611 $ 251,616 $ 827,238 $ 844,714 Europe, Middle East and Africa ("EMEA") 110,902 105,312 372,074 434,806 Asia Pacific ("APAC") 21,633 16,428 63,364 70,588 Total revenue $ 397,146 $ 373,356 $ 1,262,676 $ 1,350,108 Revenue is attributed to individual countries based on ship-to address and also includes the applicable service revenue for software upgrades and cloud-based services attributable to each country. Revenue by significant countries is as follows: Three Months Ended Nine Months Ended June 29, July 1, June 29, July 1, (In thousands) United States $ 248,094 $ 237,211 $ 765,639 $ 785,062 Other countries 149,052 136,145 497,037 565,046 Total revenue $ 397,146 $ 373,356 $ 1,262,676 $ 1,350,108 Revenue by product category also includes the applicable service revenue for software upgrades and cloud-based services attributable to each product category. In June 2024, the Company introduced its first-ever headphones, Sonos Ace, included within the Sonos speakers category. Revenue by major product category is as follows: Three Months Ended Nine Months Ended June 29, July 1, June 29, July 1, (In thousands) Sonos speakers $ 301,105 $ 289,740 $ 991,378 $ 1,070,117 Sonos system products 75,186 64,224 209,013 222,748 Partner products and other revenue 20,855 19,392 62,285 57,243 Total revenue $ 397,146 $ 373,356 $ 1,262,676 $ 1,350,108 |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Jun. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | 6. Balance Sheet Components Accounts receivable, net Accounts receivable, net consist of the following: June 29, September 30, (In thousands) Accounts receivable $ 178,713 $ 99,369 Allowance for credit losses (2,565) (2,711) Allowance for sales incentives (44,567) (29,075) Accounts receivable, net of allowances $ 131,581 $ 67,583 Inventories Inventories consist of the following: June 29, September 30, (In thousands) Finished goods $ 102,403 $ 281,571 Component parts 52,500 64,950 Inventories $ 154,903 $ 346,521 As of June 29, 2024 and September 30, 2023, inventory write-downs were $28.3 million and $29.7 million, respectively. Goodwill The following table presents the changes in carrying amount of goodwill during the nine months ended June 29, 2024: (In thousands) Balance as of September 30, 2023 $ 80,420 Effect of exchange rate changes on goodwill 560 Balance as of June 29, 2024 $ 80,980 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: June 29, 2024 Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Net Carrying Value Weighted-Average Remaining (In thousands, except weighted-average remaining life) Trade name $ 451 $ (167) $ (6) $ 278 3.75 Technology-based 31,480 (16,010) — 15,470 4.57 Total finite-lived intangible assets 31,931 (16,177) (6) 15,748 4.56 In-process research and development not subject to amortization 71,759 — (1,053) 70,706 Total intangible assets $ 103,690 $ (16,177) $ (1,059) $ 86,454 The following table summarizes the estimated future amortization expense of the Company's intangible assets as of June 29, 2024: Fiscal years ending Future Amortization Expense (In thousands) Remainder of fiscal 2024 $ 1,493 2025 3,369 2026 3,040 2027 3,024 2028 2,908 2029 and thereafter 1,914 Total future amortization expense $ 15,748 Cloud Computing Arrangements Capitalized costs to implement cloud computing arrangements net of accumulated amortization are reported as a component of other noncurrent assets on the Company's condensed consolidated balance sheets and were as follows: June 29, September 30, Cloud computing implementation costs $ 24,601 $ 24,177 Less: accumulated amortization 8,825 6,207 Cloud computing implementation costs, net $ 15,776 $ 17,970 Amortization expenses for implementation costs for cloud-based computing arrangements for the three and nine months ended June 29, 2024, were $0.9 million and $2.6 million, respectively. Amortization expenses for implementation costs for cloud-based computing arrangements for the three and nine months ended July 1, 2023, were $0.9 million and $2.8 million, respectively. Accrued expenses Accrued expenses consisted of the following: June 29, September 30, (In thousands) Accrued inventory and supply chain costs $ 40,858 $ 48,384 Accrued taxes 16,181 11,410 Accrued advertising and marketing 13,208 13,029 Accrued general and administrative expenses 10,109 9,924 Accrued product development 2,845 4,298 Other accrued payables 5,757 2,672 Total accrued expenses $ 88,958 $ 89,717 Deferred revenue Amounts invoiced in advance of revenue recognition are recorded as deferred revenue on the condensed consolidated balance sheets. Deferred revenue primarily relates to revenue allocated to unspecified software upgrades and cloud-based services. Recognition of revenue for the nine months ended July 1, 2023, includes $9.2 million of deferred revenue from the fourth quarter of fiscal 2022, related to newly launched products sold to resellers not recognized as revenue until the date general availability was reached, which was the first quarter of fiscal 2023. The following table presents the changes in the Company’s deferred revenue: Nine Months Ended June 29, July 1, (In thousands) Deferred revenue, beginning of period $ 80,838 $ 83,470 Recognition of revenue included in beginning of period deferred revenue (17,723) (21,049) Revenue deferred, net of revenue recognized on contracts in the respective period 19,871 19,844 Deferred revenue, end of period $ 82,986 $ 82,265 The Company expects the following recognition of deferred revenue as of June 29, 2024: For the fiscal years ending Remainder of 2024 2025 2026 2027 2028 and Total (In thousands) Deferred revenue expected to be recognized $ 5,853 $ 19,668 $ 17,286 $ 14,640 $ 25,539 $ 82,986 Other current liabilities Other current liabilities consist of the following: June 29, September 30, (In thousands) Reserve for returns $ 23,338 $ 21,462 Warranty liability 8,790 7,466 Short-term operating lease liabilities 7,722 1,153 Other 4,891 4,172 Total other current liabilities $ 44,741 $ 34,253 The following table presents the changes in the Company’s warranty liability: June 29, July 1, (In thousands) Warranty liability, beginning of period $ 7,466 $ 5,771 Provision for warranties issued during the period 13,363 10,670 Settlements of warranty claims during the period (12,039) (7,472) Warranty liability, end of period $ 8,790 $ 8,969 |
Debt
Debt | 9 Months Ended |
Jun. 29, 2024 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt On October 13, 2021, the Company entered into a Revolving Credit Agreement with JPMorgan Chase Bank, N.A., as the administrative agent, and Bank of America N.A., Morgan Stanley Senior Funding, Inc., and Goldman Sachs Bank USA as the other lenders party thereto (the "Revolving Credit Agreement"). The Revolving Credit Agreement provides for (i) a five-year senior secured revolving credit facility in the amount of up to $100.0 million and (ii) an uncommitted incremental facility subject to certain conditions. Proceeds are to be used for working capital and general corporate purposes. In June 2023, the Company amended the Revolving Credit Agreement, replacing prior references to LIBOR with references to SOFR as a result of the discontinuation of LIBOR. The facility may be drawn as an Alternative Base Rate Loan (at 1.00% plus an applicable margin) or Term Benchmark Loan (at the Term SOFR Rate, plus the applicable Term SOFR Adjustment ranging from 0.11% to 0.43%, plus an applicable margin (in total, "Adjusted Term SOFR")). 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 Adjusted Term SOFR multiplied by the aggregate face amount of outstanding letters of credit. As of June 29, 2024, the Company did not have any outstanding borrowings and had $1.8 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 June 29, 2024, the Company was in compliance with all financial covenants under the Revolving Credit Agreement. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Commitments to suppliers As of June 29, 2024, the Company's open purchase orders to contract manufacturers for finished goods were approximately $142 million, the majority of which are expected to be paid over the next six months. As of June 29, 2024, the Company's expected commitments to suppliers for components were in the range of $280 million to $320 million, the majority of which is expected to be paid and/or utilized by our contract manufacturers in building finished goods within the next two years. The expected commitments are subject to change as a result of fluctuations in the demand forecast, as well as ongoing negotiations with contract manufacturers and suppliers. These commitments are related to components that can be specific to Sonos products and include the following: 1) indirect obligations to third-party manufacturers and suppliers, 2) the inventory owned by contract manufacturers procured to manufacture Sonos products, and 3) purchase commitments made by contract manufacturers to their upstream suppliers on behalf of the Company. 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. The Company’s Lawsuits Against Google: On January 7, 2020, the Company filed a complaint with the U.S. International Trade Commission ("ITC") against Alphabet Inc. ("Alphabet") and Google LLC ("Google") and a counterpart lawsuit in the U.S. District Court for the Central District of California against Google. The complaint and lawsuit each allege infringement by Alphabet and Google of certain Sonos patents related to its smart speakers and related technology. The counterpart lawsuit is stayed pending completion of the ITC investigation and appeal thereof. The ITC concluded its investigation in January 2022, finding all five of the Company’s asserted patents to be valid and infringed by Google, and further finding that one redesign per patent proposed by Google would avoid infringement. The ITC issued a limited exclusion order and a cease-and-desist order with respect to Google’s infringing products. The Company and Google each appealed the ITC’s determination, which was upheld in its entirety by a panel of the appeals court. Google has filed a petition for rehearing by the full appeals court. A decision is expected on this petition in August 2024. On September 29, 2020, the Company filed another lawsuit against Google alleging infringement of additional Sonos patents and seeking monetary damages and other non-monetary relief. A jury trial was held in May 2023, which found one Sonos patent to be infringed and another Sonos patent not infringed, and returned an award of $32.5 million based on a royalty rate of $2.30 per infringing unit. After trial, the court held Sonos’ patents unenforceable under the doctrine of prosecution laches and invalid as a result of amendments made during prosecution. The Company is appealing the ruling. Google’s Lawsuits Against the Company: On June 11, 2020, Google filed a lawsuit in the U.S. District Court for the Northern District of California against the Company alleging infringement by the Company of five Google patents and seeking monetary damages and other non-monetary relief. Four of these patents have since been found invalid by the Court or by the U.S. Patent and Trademark Office, or have been withdrawn from the case by Google. In this lawsuit, one patent remains asserted against the Company. No trial date is set. On June 12, 2020, Google filed lawsuits in District Court Munich I against Sonos Europe B.V. and Sonos, Inc., alleging infringement of two Google patents seeking monetary damages and an injunction preventing sales of allegedly infringing products. In March 2024, the Company received a judgment from the German Federal Patent Court invalidating one of the patents. Google has now dismissed its case against Sonos concerning this patent. In June 2021, the Munich court issued a decision dismissing Google's complaint regarding the other Google patent for lack of infringement by the Company. Google appealed the Munich court's ruling and, in April 2024, the appellate court in Munich rendered a judgment dismissing Google's appeal. On August 21, 2020, Google filed a lawsuit against Sonos Europe B.V. and Sonos, Inc. in France, alleging infringement of two Google patents seeking monetary damages and an injunction preventing sales of allegedly infringing products. In February 2021, Google withdrew its infringement allegations regarding one patent in view of prior art brought to the attention of the court by the Company. In March 2022, the French trial court ruled for the Company on one of Google's asserted patents. The French trial court found the other Google patent invalid in November 2023. Google appealed the French trial court's March 2022 and November 2023 rulings. In April 2024, Google dismissed its appeal of the November 2023 ruling, which is now final. In May 2024, Google's appeal of the March 2022 judgment was decided against Google and in favor of Sonos. On August 21, 2020, Google filed a lawsuit against Sonos Europe B.V. and Sonos, Inc. in the Netherlands alleging infringement of a Google patent seeking an injunction preventing sales of allegedly infringing products. In October 2022, the Netherlands court ruled that the Company does not infringe Google’s patent. In September 2020, Google filed a lawsuit against Sonos Europe B.V. in the Netherlands, alleging infringement of a Google patent and seeking an injunction preventing sales of allegedly infringing products. In February 2022, the Court rejected Google's claims concerning this patent. Google appealed this decision, which appeal was stayed in April 2024. On August 8, 2022, Google filed two complaints with the ITC against the Company and two counterpart lawsuits in the Northern District of California against the Company, collectively alleging infringement by the Company of seven Google patents generally related to wireless charging, device setup, and voice control, and seeking monetary damages and other non-monetary relief. The counterpart lawsuits are stayed pending completion of the ITC investigations. The ITC has terminated the investigation as to one Google patent as a result of imminent expiration of that Google patent. The first ITC investigation concluded in December 2023 with a final determination of no violation by the Company. Google chose not to appeal this determination. The oral hearing in the second ITC investigation has been postponed after the administrative law judge has indicated that she will be invalidating both Google patents at issue. Implicit On March 10, 2017, Implicit, LLC (“Implicit”) filed a patent infringement action in the United States District Court, District of Delaware against the Company. Implicit is asserting that the Company has infringed on certain claims of two patents in this case. The Company denies the allegations. The claims at issue have been held unpatentable by the U.S. Patent and Trademark Office. Implicit has appealed this ruling, which is currently scheduled to be heard by the appeals court in 2024. 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 June 29, 2024. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Jun. 29, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | 9. Stockholders' Equity On November 15, 2023, the Board of Directors (the "Board") authorized a common stock repurchase program of up to $200.0 million. During the nine months ended June 29, 2024, the Company repurchased 7,777,208 shares for an aggregate purchase price of $128.7 million at an average price of $16.54 per share under the repurchase program. Aggregate purchase price and average price per share exclude commission and excise tax. As of January 1, 2023, the Company's share repurchases in excess of issuances are subject to a 1% excise tax enacted by the Inflation Reduction Act. Any excise tax incurred is recognized as part of the cost basis of the shares acquired in the condensed consolidated statements of equity. The Company had $71.3 million available for share repurchases under the repurchase program as of June 29, 2024. Treasury stock during the nine months ended June 29, 2024, included 1,274,606 shares withheld to satisfy employees' tax withholding requirements in connection with vesting of stock awards. Additionally, during the nine months ended June 29, 2024, the Company retired 9,788,975 shares of treasury stock. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Jun. 29, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 10. 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 January 1 (rounded to the nearest whole share) and (y) a number of shares determined by the Company's Board. Stock options Pursuant to the 2018 Plan, the Company issued stock options to employees and directors. The option price, number of shares, and grant date are determined at the discretion of the Board. For so long as the option holder performs services for the Company, the options generally vest over 48 months, on a monthly or quarterly basis, with certain options subject to an initial annual cliff vest and are exercisable for a period not to exceed ten years from the date of grant. The summary of the Company’s stock option activity is as follows: Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Aggregate Intrinsic Value (In years) (In thousands) Outstanding at September 30, 2023 8,549,957 $ 13.99 3.6 $ 1,689 Exercised (1,282,266) $ 12.72 Forfeited (25,582) $ 14.37 Outstanding at June 29, 2024 7,242,109 $ 14.21 3.1 $ 5,424 As of June 29, 2024 and September 30, 2023, all outstanding stock options have vested and the Company had no unrecognized stock-based compensation expense related to stock options. Restricted stock units ("RSU") Pursuant to the 2018 Plan, the Company issues RSUs to employees and directors. RSUs vest quarterly over the service period, which is generally four years, with certain awards subject to an initial annual cliff vest. The summary of the Company’s RSU activity is as follows: Number of Units Weighted-Average Grant Date Fair Aggregate Intrinsic Value (In thousands) Outstanding at September 30, 2023 7,662,035 $ 19.42 $ 98,917 Granted 9,294,757 $ 11.90 Released (3,573,089) $ 16.34 Forfeited (926,096) $ 15.84 Outstanding at June 29, 2024 12,457,607 $ 14.96 $ 183,874 At June 29, 2024 Units expected to vest 10,483,861 $ 15.06 $ 154,742 As of June 29, 2024 and September 30, 2023, the Company had $137.6 million and $111.6 million of unrecognized stock-based compensation expense related to RSUs, which are expected to be recognized over weighted-average periods of 2.5 and 2.4 years, respectively. Performance stock units ("PSU") Pursuant to the 2018 Plan, the Company has issued and may issue certain PSUs that vest on the satisfaction of service and performance conditions. The number of outstanding PSUs is based on the target number of share awards. The number of shares vested at the end of the performance period is based on achievement of performance conditions and may include adjustments to reflect the extent to which the corresponding performance goals have been achieved. The number of shares released during the nine months ended June 29, 2024, includes performance achievement adjustments of a net reduction of 25,057 units. The summary of the Company’s PSU activity is as follows: Number of Units Weighted-Average Grant Date Fair Aggregate Intrinsic Value (In thousands) Outstanding at September 30, 2023 265,191 $ 21.27 $ 3,424 Granted 499,716 $ 17.64 Released (80,827) $ 23.35 Outstanding at June 29, 2024 684,080 $ 18.37 $ 10,097 As of June 29, 2024 and September 30, 2023, the Company had $3.8 million and $0.3 million of unrecognized stock-based compensation expense related to PSUs, which are expected to be recognized over weighted-average periods of 1.7 and 1.2 years, respectively. Stock-based compensation Total stock-based compensation expense by functional category was as follows: Three Months Ended Nine Months Ended June 29, July 1, June 29, July 1, (In thousands) Cost of revenue $ 655 $ 450 $ 1,995 $ 1,601 Research and development 9,735 8,637 29,133 27,353 Sales and marketing 4,510 3,590 13,297 12,178 General and administrative 7,030 5,652 20,536 18,417 Total stock-based compensation expense $ 21,930 $ 18,329 $ 64,961 $ 59,549 |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 29, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The Company’s income tax provision and the resulting effective tax rate for interim periods is generally 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 $8.9 million and $5.9 million for the three months ended June 29, 2024 and July 1, 2023, respectively, related to U.S. and non-U.S. income taxes. The Company recorded a provision for income taxes of $20.2 million and $16.0 million for the nine months ended June 29, 2024 and July 1, 2023, respectively, related to U.S. and non-U.S. income taxes. For the three and nine months ended June 29, 2024, and July 1, 2023, 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 AETR method generally required by ASC 740, Income Taxes, was not utilized to calculate the U.S. interim income tax provision given that 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. For the three and nine months ended June 29, 2024, and July 1, 2023, the Company's U.S. income tax provision was adversely impacted by the requirement to capitalize and amortize research and development expenses under Section 174 of the U.S. Internal Revenue Code ("Section 174") as the Company recorded a current U.S. tax expense with no corresponding deferred tax benefit due to the valuation allowance maintained against its U.S. deferred tax assets. For the nine months ended June 29, 2024, the Company concluded that a full valuation allowance on its deferred tax assets in the U.S. continued to be appropriate considering cumulative pre-tax losses in recent years and uncertainty with respect to future taxable income. It is possible that within the next 12 months there may be sufficient positive evidence to release a portion or all of the remaining valuation allowance. Release of the valuation allowance in the U.S. would result in a benefit to the income tax provision in the period the release is recorded, which could have a material impact on net earnings. The timing and amount of the potential valuation allowance release are subject to significant management judgment, as well as prospective earnings in the U.S. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Jun. 29, 2024 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | 12. Net Income (Loss) Per Share Basic net income (loss) per share attributable to common stockholders is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding less shares subject to repurchase. Diluted net income (loss) per share attributable to common stockholders adjusts the basic net income (loss) per share attributable to common stockholders and the weighted-average number of shares of common stock outstanding for the potentially dilutive impact of stock awards, using the treasury stock method. The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share attributable to common stockholders: Three Months Ended Nine Months Ended June 29, July 1, June 29, July 1, (In thousands, except share and per share data) Numerator: Net income (loss) attributable to common stockholders - basic and diluted $ 3,709 $ (23,571) $ 14,947 $ 20,966 Denominator: Weighted-average shares of common stock—basic 122,553,129 128,311,109 123,828,150 127,825,410 Effect of potentially dilutive stock options 1,116,000 — 956,598 2,164,370 Effect of RSUs 3,543,526 — 3,085,571 2,807,869 Effect of PSUs 32,804 — 16,049 53,730 Weighted-average shares of common stock—diluted 127,245,459 128,311,109 127,886,368 132,851,379 Net income (loss) per share attributable to common stockholders: Basic $ 0.03 $ (0.18) $ 0.12 $ 0.16 Diluted $ 0.03 $ (0.18) $ 0.12 $ 0.16 The following potentially dilutive shares were excluded from the computation of diluted net income (loss) per share attributable to common stockholders because including them would have been antidilutive: Three Months Ended Nine Months Ended June 29, July 1, June 29, July 1, Stock options to purchase common stock 6,371,604 9,035,818 6,998,738 7,525,339 Restricted stock units 9,556,879 9,569,869 9,828,619 7,429,364 Performance stock units 187,255 180,762 88,030 119,754 Total 16,115,738 18,786,449 16,915,387 15,074,457 |
Retirement Plans
Retirement Plans | 9 Months Ended |
Jun. 29, 2024 | |
Retirement Benefits [Abstract] | |
Retirement Plans | 13. Retirement Plans |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Pay vs Performance Disclosure | ||||
Net income (loss) attributable to common stockholders: | $ 3,709 | $ (23,571) | $ 14,947 | $ 20,966 |
Insider Trading Arrangements
Insider Trading Arrangements shares in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 29, 2024 shares | Jun. 29, 2024 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Patrick Spence [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On May 9, 2024, Patrick Spence, the Company's Chief Executive Officer and a member of the Board of Directors, adopted a trading plan intended to satisfy the requirements of Rule 10b5-1(c). The plan provides that Mr. Spence may sell up to an aggregate of 15,000 shares of the Company's common stock. The plan terminates on the earlier of the date all shares under the plan are sold or May 12, 2025. | |
Name | Patrick Spence | |
Title | Chief Executive Officer and a member of the Board of Directors | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 9, 2024 | |
Expiration Date | May 12, 2025 | |
Arrangement Duration | 368 days | |
Aggregate Available | 15 | 15 |
Business Overview and Basis o_2
Business Overview and Basis of Presentation (Policies) | 9 Months Ended |
Jun. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation and preparation | The accompanying condensed consolidated financial statements are unaudited. The condensed consolidated balance sheet as of September 30, 2023, 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 September 30, 2023, (the "Annual Report"), filed with the SEC on November 20, 2023. In management’s opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the Company’s financial position, its results of operations, and its cash flows for the interim periods presented. The results of operations for the three and nine months ended June 29, 2024, are not necessarily indicative of the results to be expected for the full fiscal year or any other period. The Company operates on a 52- week or 53- week fiscal year ending on the Saturday nearest September 30 each year. The Company’s fiscal year is divided into four quarters of 13 weeks, each beginning on a Sunday and containing two 4-week periods followed by a 5-week period. An additional week is included in the fourth fiscal quarter approximately every five years to realign fiscal quarters with calendar quarters. This last occurred in the fourth quarter of the Company’s fiscal year ended October 3, 2020, and will reoccur in the fiscal year ending October 3, 2026. The nine months ended June 29, 2024 and July 1, 2023, spanned 39 weeks each. As used in this Quarterly Report on Form 10-Q, "fiscal 2024" refers to the fiscal year ending September 28, 2024, "fiscal 2023" refers to the fiscal year ended September 30, 2023, "fiscal 2022" refers to the fiscal year ended October 1, 2022, "fiscal 2021" refers to the fiscal year ended October 2, 2021, and "fiscal 2020" refers to the fiscal year ended October 3, 2020. |
Use of estimates and judgments | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company evaluates its estimates and judgments compared to historical experience and expected trends. |
Marketable securities | The Company’s marketable securities consist of U.S. Treasury securities. Management determines the appropriate classification of its marketable securities at the time of purchase and reevaluates such determination at each balance sheet date. The Company classifies its marketable securities as available-for-sale and reports them at fair value in the condensed consolidated balance sheets, with unrealized gains and losses recorded in accumulated other comprehensive (income) loss. If securities are sold prior to maturity, the cost of securities sold is based on the specific identification method. Realized gains and losses on the sale of securities are recorded in other income (expense), net in the condensed consolidated statement of operations and comprehensive income (loss). For securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more-likely-than-not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through earnings. For securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in accumulated other comprehensive loss in the condensed consolidated balance sheets. |
Recent accounting pronouncements pending adoption | In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This update includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the pronouncement to determine the impact it may have on the Company's condensed consolidated financial statements and related disclosures. |
Fair value of financial instruments, policy | The Company has elected the practical expedient to exclude the applicable accrued interest from both the fair value and the amortized cost basis of its marketable securities for the purpose of identifying and measuring impairment. The Company presents accrued interest receivable related to its marketable securities in prepaid and other current assets, separate from marketable securities, on its condensed consolidated balance sheets. Accrued interest receivable related to our marketable securities was immaterial as of June 29, 2024. The Company's accounting policy is to not measure an allowance for credit losses for accrued interest receivable and to write-off any uncollectible accrued interest receivable as a reversal of interest income in a timely manner, which it considers to be in the period in which it determines the accrued interest will not be collected |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 29, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following table summarizes fair value measurements by level for the assets measured at fair value on a recurring basis as of June 29, 2024 and September 30, 2023: June 29, 2024 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents: Money market funds $ 30,289 $ — $ — $ 30,289 U.S. Treasury securities — 1,247 — 1,247 Total cash equivalents 30,289 1,247 31,536 Marketable Securities: U.S. Treasury securities — 49,515 — 49,515 Total marketable securities — 49,515 — 49,515 Total assets $ 30,289 $ 50,762 $ — $ 81,051 September 30, 2023 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents: Money market funds $ 51,522 $ — $ — $ 51,522 Total Assets $ 51,522 $ — $ — $ 51,522 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Jun. 29, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | The following is a summary of marketable securities as of June 29, 2024 (in thousands): June 29, 2024 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Marketable securities: U.S. Treasury securities $ 50,794 $ 1 $ (33) $ 50,762 Total marketable securities $ 50,794 $ 1 $ (33) $ 50,762 Reported in: Cash and cash equivalents $ 1,247 Marketable securities 49,515 Total $ 50,762 |
Revenue and Geographic Inform_2
Revenue and Geographic Information (Tables) | 9 Months Ended |
Jun. 29, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenue is attributed to each region based on ship-to address, and also includes the applicable service revenue for software upgrades and cloud-based services attributable to each region. Revenue by region is as follows: Three Months Ended Nine Months Ended June 29, July 1, June 29, July 1, (In thousands) Americas $ 264,611 $ 251,616 $ 827,238 $ 844,714 Europe, Middle East and Africa ("EMEA") 110,902 105,312 372,074 434,806 Asia Pacific ("APAC") 21,633 16,428 63,364 70,588 Total revenue $ 397,146 $ 373,356 $ 1,262,676 $ 1,350,108 Revenue is attributed to individual countries based on ship-to address and also includes the applicable service revenue for software upgrades and cloud-based services attributable to each country. Revenue by significant countries is as follows: Three Months Ended Nine Months Ended June 29, July 1, June 29, July 1, (In thousands) United States $ 248,094 $ 237,211 $ 765,639 $ 785,062 Other countries 149,052 136,145 497,037 565,046 Total revenue $ 397,146 $ 373,356 $ 1,262,676 $ 1,350,108 Revenue by product category also includes the applicable service revenue for software upgrades and cloud-based services attributable to each product category. In June 2024, the Company introduced its first-ever headphones, Sonos Ace, included within the Sonos speakers category. Revenue by major product category is as follows: Three Months Ended Nine Months Ended June 29, July 1, June 29, July 1, (In thousands) Sonos speakers $ 301,105 $ 289,740 $ 991,378 $ 1,070,117 Sonos system products 75,186 64,224 209,013 222,748 Partner products and other revenue 20,855 19,392 62,285 57,243 Total revenue $ 397,146 $ 373,356 $ 1,262,676 $ 1,350,108 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Jun. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Accounts Receivable | Accounts receivable, net Accounts receivable, net consist of the following: June 29, September 30, (In thousands) Accounts receivable $ 178,713 $ 99,369 Allowance for credit losses (2,565) (2,711) Allowance for sales incentives (44,567) (29,075) Accounts receivable, net of allowances $ 131,581 $ 67,583 |
Schedule of Inventories | Inventories consist of the following: June 29, September 30, (In thousands) Finished goods $ 102,403 $ 281,571 Component parts 52,500 64,950 Inventories $ 154,903 $ 346,521 |
Schedule of Goodwill | The following table presents the changes in carrying amount of goodwill during the nine months ended June 29, 2024: (In thousands) Balance as of September 30, 2023 $ 80,420 Effect of exchange rate changes on goodwill 560 Balance as of June 29, 2024 $ 80,980 |
Schedule of 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: June 29, 2024 Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Net Carrying Value Weighted-Average Remaining (In thousands, except weighted-average remaining life) Trade name $ 451 $ (167) $ (6) $ 278 3.75 Technology-based 31,480 (16,010) — 15,470 4.57 Total finite-lived intangible assets 31,931 (16,177) (6) 15,748 4.56 In-process research and development not subject to amortization 71,759 — (1,053) 70,706 Total intangible assets $ 103,690 $ (16,177) $ (1,059) $ 86,454 |
Schedule of 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: June 29, 2024 Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Net Carrying Value Weighted-Average Remaining (In thousands, except weighted-average remaining life) Trade name $ 451 $ (167) $ (6) $ 278 3.75 Technology-based 31,480 (16,010) — 15,470 4.57 Total finite-lived intangible assets 31,931 (16,177) (6) 15,748 4.56 In-process research and development not subject to amortization 71,759 — (1,053) 70,706 Total intangible assets $ 103,690 $ (16,177) $ (1,059) $ 86,454 |
Summary of Estimated Future Amortization Expense | The following table summarizes the estimated future amortization expense of the Company's intangible assets as of June 29, 2024: Fiscal years ending Future Amortization Expense (In thousands) Remainder of fiscal 2024 $ 1,493 2025 3,369 2026 3,040 2027 3,024 2028 2,908 2029 and thereafter 1,914 Total future amortization expense $ 15,748 |
Summary of Cloud Computing Arrangements | Capitalized costs to implement cloud computing arrangements net of accumulated amortization are reported as a component of other noncurrent assets on the Company's condensed consolidated balance sheets and were as follows: June 29, September 30, Cloud computing implementation costs $ 24,601 $ 24,177 Less: accumulated amortization 8,825 6,207 Cloud computing implementation costs, net $ 15,776 $ 17,970 |
Schedule of Accrued Expenses | Accrued expenses consisted of the following: June 29, September 30, (In thousands) Accrued inventory and supply chain costs $ 40,858 $ 48,384 Accrued taxes 16,181 11,410 Accrued advertising and marketing 13,208 13,029 Accrued general and administrative expenses 10,109 9,924 Accrued product development 2,845 4,298 Other accrued payables 5,757 2,672 Total accrued expenses $ 88,958 $ 89,717 |
Changes in Deferred Balances and Expected Revenue Recognition | The following table presents the changes in the Company’s deferred revenue: Nine Months Ended June 29, July 1, (In thousands) Deferred revenue, beginning of period $ 80,838 $ 83,470 Recognition of revenue included in beginning of period deferred revenue (17,723) (21,049) Revenue deferred, net of revenue recognized on contracts in the respective period 19,871 19,844 Deferred revenue, end of period $ 82,986 $ 82,265 |
Remaining Performance Obligation | The Company expects the following recognition of deferred revenue as of June 29, 2024: For the fiscal years ending Remainder of 2024 2025 2026 2027 2028 and Total (In thousands) Deferred revenue expected to be recognized $ 5,853 $ 19,668 $ 17,286 $ 14,640 $ 25,539 $ 82,986 |
Schedule of Other Current Liabilities | Other current liabilities consist of the following: June 29, September 30, (In thousands) Reserve for returns $ 23,338 $ 21,462 Warranty liability 8,790 7,466 Short-term operating lease liabilities 7,722 1,153 Other 4,891 4,172 Total other current liabilities $ 44,741 $ 34,253 |
Schedule of Product Warranty Liability | The following table presents the changes in the Company’s warranty liability: June 29, July 1, (In thousands) Warranty liability, beginning of period $ 7,466 $ 5,771 Provision for warranties issued during the period 13,363 10,670 Settlements of warranty claims during the period (12,039) (7,472) Warranty liability, end of period $ 8,790 $ 8,969 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Jun. 29, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The summary of the Company’s stock option activity is as follows: Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Aggregate Intrinsic Value (In years) (In thousands) Outstanding at September 30, 2023 8,549,957 $ 13.99 3.6 $ 1,689 Exercised (1,282,266) $ 12.72 Forfeited (25,582) $ 14.37 Outstanding at June 29, 2024 7,242,109 $ 14.21 3.1 $ 5,424 |
Schedule of Restricted Stock Unit Activity | The summary of the Company’s RSU activity is as follows: Number of Units Weighted-Average Grant Date Fair Aggregate Intrinsic Value (In thousands) Outstanding at September 30, 2023 7,662,035 $ 19.42 $ 98,917 Granted 9,294,757 $ 11.90 Released (3,573,089) $ 16.34 Forfeited (926,096) $ 15.84 Outstanding at June 29, 2024 12,457,607 $ 14.96 $ 183,874 At June 29, 2024 Units expected to vest 10,483,861 $ 15.06 $ 154,742 |
Schedule of Performance Stock Units Activity | The summary of the Company’s PSU activity is as follows: Number of Units Weighted-Average Grant Date Fair Aggregate Intrinsic Value (In thousands) Outstanding at September 30, 2023 265,191 $ 21.27 $ 3,424 Granted 499,716 $ 17.64 Released (80,827) $ 23.35 Outstanding at June 29, 2024 684,080 $ 18.37 $ 10,097 |
Schedule of Stock-based Compensation Expense | Total stock-based compensation expense by functional category was as follows: Three Months Ended Nine Months Ended June 29, July 1, June 29, July 1, (In thousands) Cost of revenue $ 655 $ 450 $ 1,995 $ 1,601 Research and development 9,735 8,637 29,133 27,353 Sales and marketing 4,510 3,590 13,297 12,178 General and administrative 7,030 5,652 20,536 18,417 Total stock-based compensation expense $ 21,930 $ 18,329 $ 64,961 $ 59,549 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Jun. 29, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income (Loss) Per Share | The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share attributable to common stockholders: Three Months Ended Nine Months Ended June 29, July 1, June 29, July 1, (In thousands, except share and per share data) Numerator: Net income (loss) attributable to common stockholders - basic and diluted $ 3,709 $ (23,571) $ 14,947 $ 20,966 Denominator: Weighted-average shares of common stock—basic 122,553,129 128,311,109 123,828,150 127,825,410 Effect of potentially dilutive stock options 1,116,000 — 956,598 2,164,370 Effect of RSUs 3,543,526 — 3,085,571 2,807,869 Effect of PSUs 32,804 — 16,049 53,730 Weighted-average shares of common stock—diluted 127,245,459 128,311,109 127,886,368 132,851,379 Net income (loss) per share attributable to common stockholders: Basic $ 0.03 $ (0.18) $ 0.12 $ 0.16 Diluted $ 0.03 $ (0.18) $ 0.12 $ 0.16 |
Schedule of Antidilutive Securities | The following potentially dilutive shares were excluded from the computation of diluted net income (loss) per share attributable to common stockholders because including them would have been antidilutive: Three Months Ended Nine Months Ended June 29, July 1, June 29, July 1, Stock options to purchase common stock 6,371,604 9,035,818 6,998,738 7,525,339 Restricted stock units 9,556,879 9,569,869 9,828,619 7,429,364 Performance stock units 187,255 180,762 88,030 119,754 Total 16,115,738 18,786,449 16,915,387 15,074,457 |
Business Overview and Basis o_3
Business Overview and Basis of Presentation (Details) | Jun. 29, 2024 country |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries where products distributed | 60 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Jun. 29, 2024 | Sep. 30, 2023 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 31,536,000 | |
Total assets | 81,051,000 | $ 51,522,000 |
Marketable securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 49,515,000 | 0 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 30,289,000 | |
Total assets | 30,289,000 | 51,522,000 |
Level 1 | Marketable securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 0 | |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,247,000 | |
Total assets | 50,762,000 | 0 |
Level 2 | Marketable securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 49,515,000 | |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | ||
Total assets | 0 | 0 |
Level 3 | Marketable securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 0 | |
Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 30,289,000 | 51,522,000 |
Money market funds | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 30,289,000 | 51,522,000 |
Money market funds | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Money market funds | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | $ 0 |
U.S. Treasury securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,247,000 | |
Marketable securities | 50,762,000 | |
U.S. Treasury securities | Marketable securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 49,515,000 | |
U.S. Treasury securities | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | |
U.S. Treasury securities | Level 1 | Marketable securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 0 | |
U.S. Treasury securities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,247,000 | |
U.S. Treasury securities | Level 2 | Marketable securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 49,515,000 | |
U.S. Treasury securities | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | |
U.S. Treasury securities | Level 3 | Marketable securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | $ 0 |
Financial Instruments - Marketa
Financial Instruments - Marketable Securities (Details) - USD ($) | Jun. 29, 2024 | Sep. 30, 2023 |
Marketable securities | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Estimated Fair Value | $ 49,515,000 | $ 0 |
U.S. Treasury securities | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Amortized Cost | 50,794,000 | |
Unrealized Gain | 1,000 | |
Unrealized Loss | (33,000) | |
Estimated Fair Value | 50,762,000 | |
U.S. Treasury securities | Cash and cash equivalents | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Estimated Fair Value | 1,247,000 | |
U.S. Treasury securities | Marketable securities | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Estimated Fair Value | $ 49,515,000 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Jun. 29, 2024 | Jun. 29, 2024 | Sep. 30, 2023 | |
Debt Securities, Available-for-Sale [Line Items] | |||
Debt securities, available-for-sale, noncurrent | $ 0 | $ 0 | |
Realized gain (loss) | 0 | 0 | |
Debt securities, available-for-sale, allowance for credit loss | 0 | 0 | |
Accrued interest writeoff | 0 | 0 | |
Marketable securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Estimated Fair Value | $ 49,515,000 | $ 49,515,000 | $ 0 |
Revenue and Geographic Inform_3
Revenue and Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 397,146 | $ 373,356 | $ 1,262,676 | $ 1,350,108 |
Sonos speakers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 301,105 | 289,740 | 991,378 | 1,070,117 |
Sonos system products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 75,186 | 64,224 | 209,013 | 222,748 |
Partner products and other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 20,855 | 19,392 | 62,285 | 57,243 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 264,611 | 251,616 | 827,238 | 844,714 |
Europe, Middle East and Africa ("EMEA") | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 110,902 | 105,312 | 372,074 | 434,806 |
Asia Pacific ("APAC") | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 21,633 | 16,428 | 63,364 | 70,588 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 248,094 | 237,211 | 765,639 | 785,062 |
Other countries | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 149,052 | $ 136,145 | $ 497,037 | $ 565,046 |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Sep. 30, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts receivable | $ 178,713 | $ 99,369 |
Allowance for credit losses | (2,565) | (2,711) |
Allowance for sales incentives | (44,567) | (29,075) |
Accounts receivable, net of allowances | $ 131,581 | $ 67,583 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Sep. 30, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Finished goods | $ 102,403 | $ 281,571 |
Component parts | 52,500 | 64,950 |
Inventories | $ 154,903 | $ 346,521 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Mar. 30, 2024 | Jun. 29, 2024 | Jul. 01, 2023 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Inventory write-down | $ 29.7 | $ 28.3 | |||
Amortization expenses | $ 0.9 | $ 0.9 | $ 2.6 | $ 2.8 | |
Revenue recognized from previous period | $ 9.2 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-06-30 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, remaining performance obligation, period | 3 months | 3 months | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-09-29 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, remaining performance obligation, period | 1 year | 1 year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-09-28 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, remaining performance obligation, period | 1 year | 1 year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-10-04 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, remaining performance obligation, period | 1 year | 1 year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-10-03 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, remaining performance obligation, period |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Goodwill (Details) $ in Thousands | 9 Months Ended |
Jun. 29, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | $ 80,420 |
Effect of exchange rate changes on goodwill | 560 |
Goodwill ending balance | $ 80,980 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Finite-Lived Intangible Assets (Details) $ in Thousands | 9 Months Ended |
Jun. 29, 2024 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | $ 31,931 |
Accumulated Amortization | (16,177) |
Foreign Currency Translation | (6) |
Total future amortization expense | $ 15,748 |
Weighted-Average Remaining Life | 4 years 6 months 21 days |
Indefinite-Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | $ 103,690 |
Foreign Currency Translation | (1,059) |
Net Carrying Value | 86,454 |
In-process research and development not subject to amortization | |
Indefinite-Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | 71,759 |
Foreign Currency Translation | (1,053) |
Net Carrying Value | 70,706 |
Trade name | |
Finite-Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | 451 |
Accumulated Amortization | (167) |
Foreign Currency Translation | (6) |
Total future amortization expense | $ 278 |
Weighted-Average Remaining Life | 3 years 9 months |
Technology-based | |
Finite-Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | $ 31,480 |
Accumulated Amortization | (16,010) |
Foreign Currency Translation | 0 |
Total future amortization expense | $ 15,470 |
Weighted-Average Remaining Life | 4 years 6 months 25 days |
Balance Sheet Components - Su_2
Balance Sheet Components - Summary of Estimated Future Amortization Expense (Details) $ in Thousands | Jun. 29, 2024 USD ($) |
Future Amortization Expense | |
Remainder of fiscal 2024 | $ 1,493 |
2025 | 3,369 |
2026 | 3,040 |
2027 | 3,024 |
2028 | 2,908 |
2028 and thereafter | 1,914 |
Total future amortization expense | $ 15,748 |
Balance Sheet Components - Su_3
Balance Sheet Components - Summary of Cloud Computing Arrangements (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Sep. 30, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Cloud computing implementation costs | $ 24,601 | $ 24,177 |
Less: accumulated amortization | 8,825 | 6,207 |
Cloud computing implementation costs, net | $ 15,776 | $ 17,970 |
Balance Sheet Components - Sc_4
Balance Sheet Components - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Sep. 30, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued inventory and supply chain costs | $ 40,858 | $ 48,384 |
Accrued taxes | 16,181 | 11,410 |
Accrued advertising and marketing | 13,208 | 13,029 |
Accrued general and administrative expenses | 10,109 | 9,924 |
Accrued product development | 2,845 | 4,298 |
Other accrued payables | 5,757 | 2,672 |
Accrued expenses | $ 88,958 | $ 89,717 |
Balance Sheet Components - Su_4
Balance Sheet Components - Summary of Changes in Deferred Revenue (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Contract with Customer, Liability [Roll Forward] | ||
Deferred revenue, beginning of period | $ 80,838 | $ 83,470 |
Recognition of revenue included in beginning of period deferred revenue | (17,723) | (21,049) |
Revenue deferred, net of revenue recognized on contracts in the respective period | 19,871 | 19,844 |
Deferred revenue, end of period | $ 82,986 | $ 82,265 |
Balance Sheet Components - Sc_5
Balance Sheet Components - Schedule of Expected Recognition of Deferred Revenue (Details) $ in Thousands | Jun. 29, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized | $ 82,986 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-06-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized | $ 5,853 |
Revenue, remaining performance obligation, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-09-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized | $ 19,668 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-09-28 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized | $ 17,286 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-10-04 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized | $ 14,640 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-10-03 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue expected to be recognized | $ 25,539 |
Revenue, remaining performance obligation, period |
Balance Sheet Components - Sc_6
Balance Sheet Components - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Sep. 30, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Reserve for returns | $ 23,338 | $ 21,462 |
Warranty liability | 8,790 | 7,466 |
Short-term operating lease liabilities | $ 7,722 | $ 1,153 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total other current liabilities | Total other current liabilities |
Other | $ 4,891 | $ 4,172 |
Total other current liabilities | $ 44,741 | $ 34,253 |
Balance Sheet Components - Sc_7
Balance Sheet Components - Schedule of Warranty Liability (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty liability, beginning of period | $ 7,466 | $ 5,771 |
Provision for warranties issued during the period | 13,363 | 10,670 |
Settlements of warranty claims during the period | (12,039) | (7,472) |
Warranty liability, end of period | $ 8,790 | $ 8,969 |
Debt (Details)
Debt (Details) - Credit Facility - USD ($) $ in Millions | 1 Months Ended | ||
Oct. 13, 2021 | Jun. 30, 2023 | Jun. 29, 2024 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Term of debt | 5 years | ||
Maximum borrowing capacity | $ 100 | ||
Revolving Credit Facility | Minimum | |||
Debt Instrument [Line Items] | |||
Commitment fee percentage | 0.20% | ||
Revolving Credit Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Commitment fee percentage | 0.275% | ||
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 1.8 | ||
Base Rate | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Interest rate, spread on variable rate | 1% | ||
Secured Overnight Financing Rate (SOFR) | Revolving Credit Facility | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate, spread on variable rate | 0.11% | ||
Secured Overnight Financing Rate (SOFR) | Revolving Credit Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate, spread on variable rate | 0.43% |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 1 Months Ended | 9 Months Ended | ||||||||
Aug. 08, 2022 patent complaint defendant | Aug. 21, 2020 patent | Jun. 12, 2020 patent | Jun. 11, 2020 patent | Mar. 10, 2017 patent | Mar. 30, 2024 patent | May 31, 2023 USD ($) patent | Mar. 31, 2022 patent | Jan. 31, 2022 patent | Jun. 29, 2024 USD ($) | |
Lawsuits Against Google | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Gain contingency, patents found infringed upon | 1 | 5 | ||||||||
Amount awarded to other party | $ | $ 32,500,000 | |||||||||
Royalty rate per infringing unit (in dollars per share) | $ | $ 2.30 | |||||||||
Google Lawsuits Against Sonos | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, patents allegedly infringed upon, number | 7 | 2 | 5 | |||||||
Loss contingency, patents found not infringed upon, number | 1 | 4 | 1 | 1 | ||||||
Loss contingency, pending claims, number | 2 | 1 | ||||||||
Loss contingency, claims dismissed, number | 1 | |||||||||
Loss contingency, number of defendants | defendant | 2 | |||||||||
Google Lawsuits Against Sonos | FRANCE | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, patents allegedly infringed upon, number | 2 | |||||||||
Implicit Against Sonos | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, patents allegedly infringed upon, number | 2 | |||||||||
Supply Commitment | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Commitments expected to be paid | 2 years | |||||||||
Supply Commitment | Minimum | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Commitments to suppliers | $ | $ 280,000,000 | |||||||||
Supply Commitment | Maximum | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Commitments to suppliers | $ | 320,000,000 | |||||||||
Purchase Commitment | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Purchase commitments | $ | $ 142,000,000 | |||||||||
Commitments expected to be paid | 6 months |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Jun. 29, 2024 | Nov. 15, 2023 | |
Equity [Abstract] | ||
Stock repurchase program, authorized amount | $ 200 | |
Repurchase of common stock (in shares) | 7,777,208 | |
Purchase price of common stock | $ 128.7 | |
Average price per share (in dollars per share) | $ 16.54 | |
Remaining authorized repurchase amount | $ 71.3 | |
Treasury stock withheld for employees' tax withholding requirements (in shares) | 1,274,606 | |
Retirement of treasury stock (in shares) | 9,788,975 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Jul. 31, 2018 | Dec. 30, 2023 | Jun. 29, 2024 | Sep. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation expense | $ 0 | $ 0 | ||
Stock options to purchase common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 48 months | |||
Exercisable period | 10 years | |||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Unrecognized stock-based compensation expense | $ 137,600,000 | 111,600,000 | ||
Unrecognized stock-based compensation expense, period of recognition | 2 years 4 months 24 days | 2 years 6 months | ||
Performance stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation expense | $ 3,800,000 | $ 300,000 | ||
Unrecognized stock-based compensation expense, period of recognition | 1 year 2 months 12 days | 1 year 8 months 12 days | ||
Performance achievement adjustments (in shares) | 25,057 | |||
2018 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of outstanding stock maximum | 5% |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 29, 2024 | Sep. 30, 2023 | |
Number of Options | ||
Beginning balance (in shares) | 8,549,957 | |
Exercised (in shares) | (1,282,266) | |
Forfeited (in shares) | (25,582) | |
Ending balance (in shares) | 7,242,109 | 8,549,957 |
Weighted-Average Grant Date Fair Value | ||
Beginning balance (in USD per share) | $ 13.99 | |
Exercised (in USD per share) | 12.72 | |
Forfeited (in USD per share) | 14.37 | |
Ending balance (in USD per share) | $ 14.21 | $ 13.99 |
Weighted-Average Remaining Contractual Term | 3 years 1 month 6 days | 3 years 7 months 6 days |
Aggregate Intrinsic Value | $ 5,424 | $ 1,689 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Unit Activity (Details) - Restricted stock units - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Jun. 29, 2024 | Sep. 30, 2023 | |
Number of Units | ||
Outstanding, beginning balance (in shares) | 7,662,035 | |
Granted (in shares) | 9,294,757 | |
Released (in shares) | (3,573,089) | |
Forfeited (in shares) | (926,096) | |
Outstanding, ending balance (in shares) | 12,457,607 | |
Units expected to vest (in shares) | 10,483,861 | |
Weighted-Average Grant Date Fair Value | ||
Outstanding, beginning balance (in USD per share) | $ 19.42 | |
Granted (in USD per share) | 11.90 | |
Released (in USD per share) | 16.34 | |
Forfeited (in USD per share) | 15.84 | |
Outstanding, ending balance (in USD per share) | 14.96 | |
Vested and expected to vest - Weighted Average Exercise Price (in USD per share) | $ 15.06 | |
Aggregate Intrinsic Value | $ 183,874 | $ 98,917 |
Vested and expected to vest - average intrinsic value | $ 154,742 |
Stock-based Compensation - Perf
Stock-based Compensation - Performance Stock Units Activity (Details) - Performance stock units - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Jun. 29, 2024 | Sep. 30, 2023 | |
Number of Units | ||
Outstanding, beginning balance (in shares) | 265,191 | |
Granted (in shares) | 499,716 | |
Released (in shares) | (80,827) | |
Outstanding, ending balance (in shares) | 684,080 | |
Weighted-Average Grant Date Fair Value | ||
Outstanding, beginning balance (in USD per share) | $ 21.27 | |
Granted (in USD per share) | 17.64 | |
Released (in USD per share) | 23.35 | |
Outstanding, ending balance (in USD per share) | $ 18.37 | |
Aggregate Intrinsic Value | $ 10,097 | $ 3,424 |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 21,930 | $ 18,329 | $ 64,961 | $ 59,549 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 655 | 450 | 1,995 | 1,601 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 9,735 | 8,637 | 29,133 | 27,353 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 4,510 | 3,590 | 13,297 | 12,178 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 7,030 | $ 5,652 | $ 20,536 | $ 18,417 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 8,939 | $ 5,851 | $ 20,188 | $ 15,974 |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Numerator: | ||||
Net income (loss) | $ 3,709 | $ (23,571) | $ 14,947 | $ 20,966 |
Denominator: | ||||
Weighted-average shares of common stock - basic (in shares) | 122,553,129 | 128,311,109 | 123,828,150 | 127,825,410 |
Weighted-average shares of common stock - diluted (in shares) | 127,245,459 | 128,311,109 | 127,886,368 | 132,851,379 |
Net income (loss) per share attributable to common stockholders: | ||||
Basic (in USD per share) | $ 0.03 | $ (0.18) | $ 0.12 | $ 0.16 |
Diluted (in USD per share) | $ 0.03 | $ (0.18) | $ 0.12 | $ 0.16 |
Effect of potentially dilutive stock options | ||||
Denominator: | ||||
Effect of potentially dilutive stock options, RSUs, and PSUs (in shares) | 1,116,000 | 0 | 956,598 | 2,164,370 |
Effect of RSUs | ||||
Denominator: | ||||
Effect of potentially dilutive stock options, RSUs, and PSUs (in shares) | 3,543,526 | 0 | 3,085,571 | 2,807,869 |
Effect of PSUs | ||||
Denominator: | ||||
Effect of potentially dilutive stock options, RSUs, and PSUs (in shares) | 32,804 | 0 | 16,049 | 53,730 |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Antidilutive Securities (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially antidilutive securities (in shares) | 16,115,738 | 18,786,449 | 16,915,387 | 15,074,457 |
Stock options to purchase common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially antidilutive securities (in shares) | 6,371,604 | 9,035,818 | 6,998,738 | 7,525,339 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially antidilutive securities (in shares) | 9,556,879 | 9,569,869 | 9,828,619 | 7,429,364 |
Performance stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially antidilutive securities (in shares) | 187,255 | 180,762 | 88,030 | 119,754 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Retirement Benefits [Abstract] | ||||
Employer contribution | $ 2.5 | $ 2.5 | $ 7.4 | $ 7.2 |