California-based wireless speaker company, Sonos Inc., filed for an initial public offering on Friday amidst growing popularity of streaming music through smartphone apps connected to audio systems. The Company was founded in 2002 and grew into major player in multi-room audio setups.
The filing gives the public a good look at how the Sonos business performed recently. Its widespread service is one of its strengths as it sold 19 Million products to about 6.9 Million households globally by March 31st. With 3 speakers per customer on average, it shows customers who buy one speaker tends to continue to build their setup with more Sonos devices.
The Company estimates customers use about 70 hours of content per month. It didn’t specify the number of shares that would be up for sale but held a placeholder amount of USD 100 Million to show the size of the IPO. Sonos is aiming for a valuation of about USD 2.5 Billion to USD 3 Billion according to reports.
The Company had a net loss of USD 14.2 Million with the revenue of USD 992.5 Million for the 2017 fiscal year, an improvement from 2016 when it had a net loss of USD 38.2 Million with revenue of USD 901.3 Million. It reported a revenue of USD 655.7 Million and a net income of USD 13.1 Million for the six months prior to March 31st.
With growing consumer interest for smart assistants like Amazon’s Echo or Google’s Home, Sonos introduced its first voice-enabled speaker called the “Sonos One” in late 2017. Sonos’ products are distributed in over 50 countries and it reported that 55% of its total revenue in 2017 came from outside the United States.
The Company is backed by private equity firm, KKR Stream Holdings LLC, in a competition against Apple, Sony, Bose and Bang & Olufsen. Sonos intends to list on NASDAQ under the ticker “SONO.” Morgan Stanley, Goldman Sachs and Allen & Co are some of the underwriters for the offering.