Sonos aims to ride 'Sonic Internet' to IPO success

Sonos aims to ride 'Sonic Internet' to IPO success

Sonos aims to ride 'Sonic Internet' to IPO success

The company has a lot of satisfied customers, noting in its filing that 61% of its customers own more than one Sonos product. The company made almost $1 billion in revenue in the past fiscal year, although it had a net loss of 14.2 million.

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.

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 doesn't offer its own music or voice-activation services.

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.

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Wireless speaker company Sonos Inc filed for an initial public offering on Friday, riding on the back of increasing popularity of streaming music though smartphone apps on connected audio systems.

"If Amazon does not maintain the Alexa integration, if Amazon seeks to charge us for this integration, if we have not developed alternative partnerships for similar voice-enabled products or if we have not developed such products on our own, our sales may decline, our reputation may be harmed and our business and operating results may suffer", according to the filing.

An Amazon Echo, left, and a Sonos One. A little over half of its fiscal 2017 revenue came from outside the US.

Also of interest is Sonos' estimate that customers listen to roughly 70 hours of content per month. Of its full-time employees, 66% are based in the USA, with the rest in worldwide locations including Australia, China, Denmark, France, Germany, the Netherlands, Sweden and the United Kingdom. The filing doesn't detail how many shares they plan to sell in the offering. In the potential risks section of its IPO filing, Sonos notes that the U.S. 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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