Why Sonos Chose This Moment for Its IPO

The smart speaker market place is getting more competitive every day, as Amazon, Apple tree, Google, and others roll out new products highlighting what their voice assistants can do. This leaves incumbent speaker companies such equally Sonos in a tough spot.

Sonos has grown its device sales and customer loyalty at a healthy clip over the by half-dozen years only faces some complex bug as information technology continues to grow. New high-cease speakers such as the Sonos Axle rely on cloud service integrations with the tech giants—for example, the Beam uses Amazon Alexa support—while at the same time competing with a ballooning ecosystem of Amazon Repeat devices.

What do you do if yous're Sonos? With strong books on i side approaching $1 billion in acquirement and on the other, mounting contest from major players, the company decided that at present is the sweet spot to go public.

According to Sonos sales statistics from its IPO filing compiled past Statista, Sonos customers have registered more than than 19 1000000 speakers in 6.ix million households worldwide. That means that on average, every Sonos user has 2.vii speakers at domicile.

Sonos has grown its annual unit sales steadily from ane.5 million in 2022 to 4.6 meg in 2022, merely customer loyalty is the near important factor underpinning why Sonos chose to practise its long-awaited IPO now. The filing states that 61 pct of Sonos households are equipped with more than than one speaker, and four in 10 of those households have at least three of the company's products.

That vendor lock-in is fifty-fifty more credible when you expect at buying habits. Sonos stated that customers who buy ane Sonos product buy an average of i.4 additional devices within four years of the initial purchase.

There are plenty of reasons for investors to be skeptical of Sonos stock, peculiarly when its devices' access to cloud and streaming services is at the mercy of the visitor's biggest competitors. While Sonos' financials look strong, the IPO was now or never.

About Rob Marvin

Rob Marvin is PCMag'southward Associate Features Editor. He writes features, news, and trend stories on all manner of emerging technologies. Beats include: startups, business and venture capital, blockchain and cryptocurrencies, AI, augmented and virtual reality, IoT and automation, legal cannabis tech, social media, streaming, security, mobile commerce, M&A, and entertainment. Rob was previously Assistant Editor and Associate Editor in PCMag's Business department. Prior to that, he served as an editor at SD Times. He graduated from Syracuse Academy's S.I. Newhouse School of Public Communications. You can besides find his business organization and tech coverage on Entrepreneur and Fox Business. Rob is as well an unabashed nerd who does occasional amusement writing for …

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