Sonos has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company expects to price its 13.89 million shares in the range of $17 to $19, with an overallotment option for an additional 2.08 million shares. At the maximum price, the entire offering is valued up to $303.47 million. The company intends to list its shares on the Nasdaq under the symbol SONO.
The underwriters for the offering are Morgan Stanley, Goldman Sachs, Allen, RBC Capital Markets, Jefferies, KKR, Raymond James and Stifel.
This company sits at the intersection of emerging trends driving the future of home entertainment. The proliferation of streaming services and the rapid adoption of voice assistants are significantly changing audio consumption habits and how consumers interact with the internet. As one of the leading home sound systems, content partners and developers, Sonos is poised to capitalize on the large market opportunity created by these dynamics.
Sonos debuted the world’s first wireless multi-room home sound system in 2005, and it has since been a leading innovator in wireless home audio. Its products include wireless speakers, home theater speakers and components to address consumers’ evolving home audio needs. The firm launched its first voice-enabled wireless speaker, Sonos One, in October 2017, and its first voice-enabled home theater speaker, Sonos Beam, in July 2018.
In the filing, the company described its finances as follows:
We generated revenue of $655.7 million in the six months ended March 31, 2018, an 18% increase from $555.4 million in the six months ended April 1, 2017. For the six months ended March 31, 2018, our net income was $13.1 million and our adjusted EBITDA was $50.5 million. We generated revenue of $992.5 million in fiscal 2017, a 10% increase from $901.3 million in fiscal 2016. In fiscal 2017, our net loss was $14.2 million and our adjusted EBITDA was $56.0 million.
The company intends 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.
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