Sonos Officially Files for its IPO
After months of speculation, wireless speaker juggernaut Sonos went ahead and officially submitted its IPO filing today. The move comes a few months after Sonos initially filed with the Securities and Exchange Commission in April, expressing their intent to make an initial public offering. Now, all of their cards are on the table, which gives the public a very detailed look at Sonos’ business.
According to today’s filing, which was first reported on by The Verge, Sonos has sold more than 19 million products to roughly 6.9 million households around the world since it was founded in 2002. So, quick math shows that a typical Sonos customer owns an average of nearly three speakers, lending total credence to the company’s claim that people who buy one speaker are likely to continue building out their Sonos system.
In the filing, the company goes even further to say that its customers listen to approximately 70 hours of content per month, and some 80 percent more music after purchasing their first Sonos product. That being the case, Sonos basically pointed out that its business model is very reliant on its products being able to integrate with other products and service partners like Amazon Music, Apple Music, and Spotify.
Perhaps no better example of that reliance is the Sonos One smart speaker and the recently accounted Sonos Beam smart soundbar. Those products, which, through a partnership with Amazon, have access to the Alexa voice assistant service, could see that service revoked with “limited notice” from Amazon. That means Amazon could, in theory, drop Alexa support from those products if it views Sonos smart speakers as too big of a threat to their own Echo line of products.
As for dollars and cents, Sonos reported that in 2017 the company did $992.5 million in revenue. That was up 10 percent from 2016, but it still left the company in the red with a net fiscal loss of $14.2 million. More recently, Sonos said that it generated $655.7 million in revenue during the six months from October 2017 through March 2018. Slightly more than half (55 percent) of Sonos’ revenue was generated outside of the U.S.