Sonos (SONO) reported earnings on Wed 5 Aug 20 (a/h)

• #15

** charts after earnings **

 

The maker of smart speakers announced Wednesday that it generated revenue of $249.3 million for its fiscal third quarter, down from $260.1 million a year earlier but ahead of the $235.8 million that analysts surveyed by FactSet had been expecting. While overall sales fell 4%, Sonos SONO, -18.34% saw a nearly 300% boost in its direct-to-consumer channels as more customers opted to order smart speakers online.

Chief Executive Patrick Spence told MarketWatch that the company doesn’t estimate that it saw much benefit from stimulus payments given its premium customer base. Instead, he thinks the company was able to capitalize on the broader interest in home improvements now that people are spending more time around the house during the COVID-19 shutdowns.

“Our audience was probably less impacted by the layoffs…and in the fortunate position to still have a job and be able to divert spend that might have gone toward travel or eating out to making improvements at home,” he said.

Watch: How an agnostic ‘voice platform’ could talk to all your home devices

The company saw a widening loss in the fiscal third quarter of $57 million, or 52 cents a share, compared with $14 million, or 13 cents a share, in the year-earlier period. Analysts surveyed by FactSet had been modeling a 26-cent loss per share.

Sonos introduced three new products during the quarter following some internal debate about whether to conduct a product launch in the midst of a pandemic. Spence said the company went ahead with a ramp that it “thought was aggressive” but still exited the quarter with a big backlog on seven new and existing products due to greater-than-anticipated demand.

The company “will be in a better inventory position in the [September] quarter,” per its investor letter.

Sonos reinstated financial forecasts after pulling its outlook in its last report. The company expects $1.277 billion to $1.292 billion in revenue for the fiscal year ending in September, which translates to $290 million to $305 million in revenue for the current quarter.

Spence said that new products like the $799 Arc sound bar helped the company grow its base of households as the device catered to a premium audience of people looking to get better audio for their television viewing. At the same time, he said that the company’s partnership with Ikea typically helps bring new customers into the Sonos ecosystem but that it was less impactful in the June quarter given temporary closures of Ikea locations.

IPOs this week : Aug 5 - 9, 19 (wk 32)

IPOs expected to price during the week include:

• BioVie (OTCQB:BIVI) on August 6 
• InMode (INMD) on August 7. 

IPO lockup expirations:

• IPO share lockup expirations arrive on Alector (NASDAQ:ALEC) and ToughBuilt Industries (NASDAQ:TBLTU) on August 6, as well as 
• Gossamer Bio (NASDAQ:GOSS) and Harpoon Therapeutics (NASDAQ:HARP) on August 7. 

Earnings:
A number of recent IPO companies are due to report earnings including

• BioBie (OTCQB:BIVI), Farfetch (NYSE:FTCH), Sonos (NASDAQ:SONO), Eventbrite (NYSE:EB) and Revolve Group (NYSE:RVLV). 

Also bubbling right under the surface, Saudi Aramco (ARMCO) is reportedly restarting preparations to raise $100B by from selling a 5% stake. It could easily be the biggest IPO in history.

====Sonos (SONO) reported earnings on Mon 10 Sept 2018 (a/h)

Sonos reports Q3 (Jun) results in-line with preannouncement; guides FY18 in-line 

• Reports Q3 (Jun) GAAP loss of $0.45 per share, likely not not be comparable to the S&P Capital IQ Consensus of ($0.15), net loss $27 mln vs. $27-29 mln guidance; revenues fell 6.6% year/year to $208.4 mln vs the $207.94 mln S&P Capital IQ Consensus, in-line with $206.4-208.4 million preannouncement from the IPO prospectus.
• Despite the 11.4% increase in products sold, revenue declined 6.6% compared to Q3 of FY2017. This dynamic between year-over-year product unit growth and year-over-year revenue decline can be caused by our new product launches and/or product mix. In Q3 FY2018, the largest driver impacting our year-over-year revenue decline was the Q3 FY2017 launch of our PLAYBASE product. PLAYBASE revenue was ~$18 million lower in Q3 FY2018 than Q3 FY2017, the quarter in which PLAYBASE launched. In addition to the product launch dynamics, overall product mix also impacted quarterly comparability. Our Q3 FY2018 product unit growth was driven by a 25% increase in wireless speaker products sold, and primarily by the Sonos One, a product launched in Q1 FY2018 which carries a $199 U.S. MSRP. The decreasing share of the $699 U.S. MSRP PLAYBASE and increasing share of Sonos One further explains the difference between quarterly product unit growth and the decline in revenue, compared to Q3 FY2017."
• Although it's still early in Beam's life, media, retailer and customer feedback are in line with our expectations thus far.
• Co issues in-line guidance for FY18, sees FY18 revs of $1.109-1.114 bln vs. $1.11 bln S&P Capital IQ Consensus; EBITDA $59-62 mln. 
• "Given the nature of our business and the impact of seasonality and new product launches, we measure our financial progress on an annual basis, not a quarterly basis. We are focused on delivering a compound annual revenue growth rate of at least 10% and growing adjusted EBITDA at a compound annual growth rate of at least 20% over the coming years. We may not achieve these targets every fiscal year, but it is our long-term goal to do so."

Sonos Inc. (SONO) began trading on the Nasdaq on 2 August 2018

• Sonos markets its high-end, web-connected speakers to audiophiles and music fans as the speaker industry moves toward smart assistants made by Amazon and Google.
• The company's IPO follows a number of high-profile offerings in the first half of 2018.
• Sonos’s growth is slower than some recent IPOs. The company’s revenue rose just 10 percent in its last fiscal year. For comparison, Spotify grew 37 percent and Dropbox 31 percent in the year before they went public.
• And a red flag for those looking to buy into the IPO.: Sonos’s existing shareholders accounted for 8.3 million of the shares sold in the offering.

2nd day

Shares rose as high as $21 after opening at $16.00, just 7 percent higher than the $15 initial selling price. The stock's closing price of $19.91 gives Sonos an implied market value of about $1.95 billion.


Sonos markets its high-end, web-connected speakers to audiophiles and music fans as the speaker industry moves toward smart assistants made by Amazon and Google. Sonos introduced its first voice-enabled speaker, the Sonos One, late last year. It counts traditional speaker makers Bose and Samsung among its competitors, although it also faces competition from speakers built by Apple, Amazon and Google.

But Sonos' competitors are also valuable partners. Sonos speakers can play music from Amazon, Apple and Google's respective streaming services.

"Nobody thought we could put all the competitive streaming services on one platform," Sonos CEO Patrick Spence told CNBC's "Squawk Box" Thursday ahead of the debut trade. "I see no reason that those partners won't continue to want to put their services on really the best multi-room home system."

The company's initial SEC filing revealed a critical flaw in its business model, which subjects it to Amazon's whims on what the internet giant decides to do with its Alexa voice recognition technology. Sonos has said it plans to incorporate Google's Assistant in its products too.

"In the filing, we've just been very upfront about the fact that we could turn off people's service, they could turn them off. We're transparent by nature, so that's in there," Spence said.

The company's IPO follows a number of high-profile offerings in the first half of 2018. Music streaming service Spotify, cloud storage provider Dropbox and software company DocuSign all debuted earlier this year.

Sonos IPO prices below range at $15 a share

Sonos Inc. (SONO) will bring in less money than it hoped in an initial public offering, announcing a price of $15 a share Wednesday evening.

The maker of high-end speakers had hoped to price shares at $17 to $19 apiece, according to previous filings, but said Wednesday evening that it would instead sell 13.89 million shares at a lower price. At that price, Sonos will bring in at least $208 million at a valuation of nearly $1.5 billion.

Sonos NYC store

Underwriters, led by Morgan Stanley and Goldman Sachs, have access to another 2 million shares, split between Sonos and selling shareholders. Sonos is expected to begin trading on the Nasdaq exchange Thursday morning under the ticker symbol SONO.

Sonos (SONO) files for an IPO on the Nasdaq

Sonos is an American consumer electronics company founded by John MacFarlane, Craig Shelburne, Tom Cullen and Trung Mai . Sonos is widely known for the smart speakers it develops and manufactures.

• Headquarters: Santa Barbara, California
• Founded: 2002
• Competitors:  Bang & Olufsen (OTCPK:BGOUF), Bose, Samsung (OTC:SSNLF, OTC:SSNNF) subsidiaries Harman Kardon and JBL, Sony (NYSE:SNE) and Sound United subsidiaries Denon and Polk and developers of voice-enabled speakers and systems such as Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL) and Google (GOOG, GOOGL).

• SEC Form S-1
• website https://www.sonos.com/en-us/home
• The company posted $992 million in revenue for its 2017 fiscal year, up from $901 million in 2016, making for a growth rate of 10%. Sonos recorded a $14 million net loss in 2017, compared with a $38 million net loss in 2016.