Sonos have set the standard in smart speakers for the past decade-and-a-half and now they are entering a new phase by filing their company for a public offering.
On Friday Sonos officially filed for a public offering, a big step in pushing the company towards profitability as their income leaps up each year. They will trade on the Nasdaq Global Select Market as ‘SONO’ and wish to use any funding towards marketing and development, though they haven’t said how much they hope to earn.
The company reported in their S-1 filing that, as of March 31st, they have sold 19 million products in around 6.9 million households around the world. It’s not just evidence of the company’s booming popularity but also shows that people love their products – based on the household to product sales numbers it looks like customers have roughly 3 speakers to a home. This shows people who buy Sonos love the product and come back for more – a very appealing prospective to potential investors.
Sonos’ S-1 filing read that:
We intend to use the net proceeds from this offering for working capital and other general corporate purposes, which may include sales and marketing activities, research, product development, general and administrative matters and capital expenditures. We may also use a portion of the net proceeds for the acquisition of, or investment in, complementary businesses, products, services, technologies or assets.
Speaking publicly, the company said: “Short-term fluctuations and uneven product cadences are built into our business model. This means we won’t be right for every investor. But if you share our desire to achieve long-term success, our commitment to being open, our dedication to doing the hard things and our excitement about the potential of the Sonic Internet, then we invite you to join us.”
Sonos saw $992.5 million of revenue income in 2017 which was a decent 10% increase on 2016 for the smart speaker makers. Despite their rising sales the company didn’t make a profit for the year and suffered a net loss of $14.2 million for the fiscal year.