| Author | Message | ||
     Entrepreneur Kurra Bewarse Username: Entrepreneur Post Number: 3362 Registered: 05-2011 Posted From: 65.35.45.47 Rating: N/A |
SONO is a supplier of multi-room wireless audio products. Its sound system provides an immersive listening experience created by its high-end speakers and components, its proprietary software platform and the ability to wirelessly stream content. Products include wireless and home theater speakers, components, and accessories. SONO also works with a network of partners (Apple Music, Pandora, Spotify, TuneIn) to provide customers with access to voice control, streaming music, internet radio, podcasts and audiobook content. In mid-Nov, SONO surprised investors with a huge earnings beat for Q4 (Sep). Sonos has been a bit of a disappointment since its IPO debut in August 2018. With smart (and cheap) speakers available from Amazon (AMZN), Apple (AAPL) and Google (GOOG), among others, the main question has been how Sonos should attack the market. A key strategy for Sonos is to build its model around high quality products and services that deliver a whole home. The idea is that this creates a virtuous cycle where customers return to add additional Sonos products to their home over time. For this to work, Sonos needs to do two things: add new homes and get existing customers to buy more. On the first, Sonos noted that it just delivered the 15th year in a row of new home growth above 20%, ending this year with nearly 11 mln households globally. On the latter goal, Sonos has typically seen 35-40% of registrations come from existing customers who add another Sonos product. This year, it hit 41% as the launch of Move was a particular success with existing customers. In sum, Sonos believes it's at an inflection point now because it's seeing the kind of free cash flow and adjusted EBITDA that this model can deliver as it scales. In FY20, Sonos posted a record 8.2% adjusted EBITDA margin and that's on track to expand to 12-14% next year. |