Sonos have put their speakers in homes around the world, now they’re taking their company public and have revealed details of how their entry onto the market will look.
Earlier this year Spotify went public on the New York Stock Exchange and instantly saw their value raise by over $10 billion to $29.5 billion. The music industry took notice of their success and now others are looking to join the stock market with smart speaker staples Sonos the next to go public.
Earlier this month Sonos filed for a public offering to trade their shares on the Nasdaq Global Select Market to raise funding for “marketing and development” but didn’t discuss numbers. Now Sonos have revealed that they plan to offer 5,555,555 shares at a range of $17 to $19 a share. This could see them raise as much as $105 million, although share values have been known to fluctuate throughout the process.
Stockholders are also offering another 8,333,333 shares in the IPO however the funds raised from these shares won’t go to Sonos themselves and instead their shareholders. With the funding they raise from shares as well as their rising profits, revealing an 18% rise to $655.7 million in revenue for the first half of 2018, should lead Sonos towards finally making a profit.
In their IPO filing, Sonos revealed some impressive stats on their audience and customer retention:
As of March 31, 2018, our customers had registered over 19 million products in approximately 6.9 million households globally. Based on customer data, we estimate that, on average, our customers listen to approximately 70 hours of content per month and to approximately 80% more music after purchasing their first Sonos product. We also estimate that our customers listened to five billion hours of audio content using our products in fiscal 2017, which represents 33% growth from fiscal 2016.
Sonos have said before that they plan to use their funding for marketing and development to create bigger and better products as well as reaching new audiences. In their filing Sonos expand on their growth strategies, laying out their primary targets:
- Consistently Introduce Innovative Products
- Invest in Geographic Expansion
- Build Direct Relationships with Existing and Prospective Customers
- Expand Partner Ecosystem to Enhance Platform
- Increase Brand Awareness in Existing Geographic Markets
The company continues to move towards entering the stock market and we look forward to seeing how it performs.