Smart-Speaker Maker Sonos Files for IPO to Challenge Tech Giants

Lloyd Doyle
July 7, 2018

Sonos, the smart home audio system for design/music lovers, just filed for IPO in an attempt to take on the greater connected consumer electronics industry.

Sonos will trade on the Nasdaq under the ticker symbol SONO.

In the filing, Sonos claims to have over 19 million registered products in approximately 6.9 million households globally. In 2017, the company generated $992 million in revenue, a 10% increase from $901.3 million in 2016.

Sonos has a frenemy-style relationship with Amazon, Google and Apple.

In the past year, Sonos has focused its products on voice-enabled speakers. The company named Bang & Olufsen A/S, Bose Corp. and Samsung Electronics Co. among its main rivals, alongside newer entrants Inc., Apple Inc. and Alphabet Inc.'s Google.

In terms of risk factors, the company points to its history of losses, the unpredictability of its revenue growth and the fact that it operates in "highly competitive markets" and is "dependent on partners who offer products that compete with our own". It estimated that customers listened to 5 billion hours of audio content using Sonos products past year, a 33 percent increase from 2016. This year, Sonos also plans to incorporate Apple's Siri, via Airplay 2, as well as Google Assistant. With Alexa-powered Sonos speakers, customers can use voice commands to play music and operate other smart devices. Users listened to 5 billion hours of audio content using Sonos products in fiscal 2017, up 33% year-over-year. Of its full-time employees, 66% are based in the USA, with the rest in worldwide locations including Australia, China, Denmark, France, Germany, the Netherlands, Sweden and the United Kingdom.

The filing gives us our best look at Sonos sales so far. That could impose a huge financial burden on Sonos if Inventec's operations are disrupted.

The company did not specify how many shares would be for sale, nor did it list an estimated offering price.

Sonos had raised $455 million from investors including KKR, Index Ventures and Redpoint Ventures.

Other reports by Iphone Fresh

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