Published: Sat, July 07, 2018
Finance | By Claude Patterson

High-end speaker company Sonos is going public

High-end speaker company Sonos is going public

The company made almost $1 billion in revenue in the past fiscal year, although it had a net loss of 14.2 million.

Wireless speaker maker Sonos Inc. filed for a USA initial public offering.

Smart speaker maker Sonos has filed to go public.

Looking at the broader landscape, Sonos emphasizes its role as an independent player that can work with music streaming services like Apple Music, Pandora, Spotify and TuneIn. The company will be listed on Nasdaq with the ticker symbol "SONO".

Per Sonos's S-1 filing Friday, the company had more than 19 million registered speaker products in 6.9 million households globally as of March 31, 2018.

Sonos has a range of speakers that come with Amazon's popular voice assistant, Alexa, built-in, including the Sonos One smart speaker and the Sonos Beam soundbar.

Revenue is growing - in the six months ending on March 31, the company brought in $655.7 million, up 18 percent year-over-year. Those who buy multiple speakers start with an average of 2.9 speakers and end up with 4.9. KKR is its biggest single shareholder, holding 25.7% of pre-IPO outstanding shares in the company, while Index Ventures owns 13% and Redpoint has 5.2%, according to the Sonos filing.

In a piece published in Variety in early 2017, Sonos CEO stated that any new fundraiser public offering "may.be used to reward its nearly 1,500 employees".

The Santa Barbara, California-based company filed with an offering size of $100 million, a placeholder amount used to calculate fees that is likely to change.

But Sonos also acknowledged in the SEC filing that it faces intensifying competition from Amazon, Apple and Google, along with Samsung, Bose, Bang & Olufsen and others. Vying for market share of the speaker and home audio industry is hard, to the say the least. "To partner with a wide variety of streaming music services, voice assistants, connected home integrators", etc.

It's possible that Sonos is going public in order to raise the capital necessary for these projects and partnership negotiations.

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