Sonos Officially Files For IPO
Smart speaker and home audio tech company Sonos has officially filed for an initial public offering with the Securities and Exchange Commission. The public filing was first reported back in April, with estimates at the time putting the company’s valuation between $2.5 billion and $3 billion, though suggested share prices were not listed in the filing.
The filing also notes that the company, which was founded in 2002 and has become a leader in multi-room audio and smart-speaker capabilities, has seen customers register "over 19 million products in approximately 6.9 million households globally," and listen to 80 percent more music after purchasing a Sonos product than they had previously. In 2017, the company estimated that its customers listened to 5 billion hours of audio, up 33 percent over 2016, at around 70 hours per month.
Also included is financial information for the fiscal year 2017, noting that Sonos generated $992.5 million in revenue -- up 10 percent over fiscal 2016’s $901.3 million -- though it still lost $14.2 million. More recently, in the six months ended March 31, 2018, the company earned $655.7 million, up 18 percent over the corresponding six month period a year prior, when it earned $555.4 million.
With smart speaker sales having more than tripled in 2017, and voice technology becoming increasingly prevalent -- two areas where Sonos has been on the forefront, particularly with the voice integration into its new Beam smart speaker last month -- as well as the relative success of Spotify’s direct listing on the New York Stock Exchange earlier this year, the market seems receptive to audio tech and digital music companies of late.