Sonos ($SONO) is ready for their IPO closeup. This week they plan to come to market on Wednesday night and the deal is already well oversubscribed. The current range is $17-19 on 14m shares. Less than half the shares are being sold by the company, most are from selling shareholders. Here are links to the IPO prospectus and the IPO slide deck.
Post-IPO there will be about 100m shares outstanding for a market cap of $1.8B. That's on a $1.3B revenue run rate and what looks like a profitable year this year. Growth has been slow but improving. The top line is growing at about 15% which compares to 10% last year and 7% the year before.
For background, Sonos has struggled to make consistent progress in the "consumer" market for digital audio. They launched their mainstream PLAY consumer line before the massive adoption of Amazon's Alexa. Everyone wanted their Sonos system to work with systems like Alexa but Sonos was caught flat-footed and took months to come up with working integrations and a longer-term strategy of how to coexist with Alexa.
At this point, the Sonos systems work well and have much better integration with systems like Alexa. Based on current reviews the Sonos software and system workings are still a bit of a "work in progress." For example, the Alexa integration isn't complete, support for other systems like Google Home are still in the works and there are often little annoying limitations like being able to connect to older Sonos PLAY components.
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