Wireless speaker maker Sonos files for IPO
Highlighting profitability, but risks when it comes to dominant players 🔈
Posted on July 6, 2018 3:07 PM.
Today, the wireless speaker maker Sonos announced their plans to go public.
The VergeChaim Gartenberg
The company, which was founded in 2002, has grown into a dominant force in the speaker industry, with a name that is all but synonymous with the concept of multi-room audio setups. Sonos will trade on the Nasdaq Global Select Market under the symbol “SONO.”
EngadgetNathan Ingraham
Sonos plans to raise $100 million in its IPO, but noted that amount was "estimated as a placeholder."
With the S-1 comes an inside look into Sonos, detailing numbers, and perceived opportunities and threats to their company.
The VergeChaim Gartenberg
As of March 31st, the company reported having sold 19 million products in roughly 6.9 million households around the world, a statistic that speaks to one of Sonos’ biggest strengths.
VentureBeatChris O'Brien
For the first six months of its current fiscal year, it saw revenue jump $100 million $655.7 million, driven in large part by 29.2 increase in the number of units it sold. And it says in its security filing that growth was largely driven by sales of Sonos One.
Despite their encouraging numbers, the filing does have some red flags. One of the primary services on the Sonos is music streaming, from major players like Apple, Google, and Amazon. The problem? All three of them have their own streaming devices, so in one case, as long as consumers are okay with only listening to Apple Music, they could just buy a HomePod 🤷‍♂️ Sonos says the advantage here is the flexibility and freedom to choose streaming services with Sonos. If you subscribe to two, or maybe even three, you wouldn't want to buy three devices, you'd just want one Sonos.
The VergeChaim Gartenberg
The company also notes in the filing that, in particular, its partnership with Amazon, can be revoked by Amazon with “limited notice”, meaning that Amazon could in theory end the Sonos integration if it decides that it wants less competition for its own Echo speaker.
Sonos also just launched its new Alexa-enabled device, Sonos Beam.

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