Wireless speaker pioneer Sonos files for U.S. IPO

Sonos files for $100M IPO as it seeks to stem losses in face of growing competition

Sonos files for $100M IPO as it seeks to stem losses in face of growing competition

However, the company has been hit by the HomePod launch - a product I considered to be a Sonos Play 5 killer - and is facing increasing competition from both Google and Amazon smart speakers.

Sonos is diversifying its voice offerings, promising integration with Google Assistant and Apple's Siri this year.

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.

In the six months ending in March, Sonos notched $655.7 million in revenue, an increase of 18 percent, or approximately $100 million over the same time a year ago. "Looking back 10 years from now, this will be the point where we made the leap into the next phase of Sonos", he said.

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


Backed by KKR Stream Holdings LLC, Sonos has grown to become a big player in the competitive home audio market, battling established players such as Bang & Olufsen, Bose and Sony as well as iPhone maker Apple.

Sonos acknowledged the risks in its IPO prospectus: "To the extent products offered by our partners compete with our products, they may choose to promote their own products over ours, or could end our partnerships and cease selling or promoting our products entirely", the company said. Sonos is betting on its ability to sell customers on higher quality speakers than the Google Home or Amazon Echo that cost more but work with a variety of digital assistants and streaming services.

According to Sonos, customers listen to an average of 70 hours of audio content per month. Today, its products are distributed in over 50 countries with 55 percent of its revenue coming from outside the United States.

In May, Sonos laid off 96 employees, which was viewed as preparation for an IPO.

The company did not specify how many shares would be for sale, nor did it list an estimated offering price. In the potential risks section of its IPO filing, Sonos notes that the USA big-box retailer Best Buy accounted for 17% of its revenue for the first half of this year, and the ALSO Group-its distributor in Germany, Sweden, Denmark and Norway-accounted for 12%.

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