Sonos, a leading provider of smart home audio products, announced today that it expects to post $2 billion in revenue by 2023. This news comes as Sonos continues to surpass expectations for growth and profitability across all its businesses. “We’re thrilled with our progress so far this year and are on track to achieve our long-term goals, including doubling down on our strategy of expanding into new markets and expanding our product portfolio,” said Michael Abberton, Sonos CMO. This growth is in line with what many experts had predicted for the company. Back in October, Gartner predicted that Sonos would hit $4 billion in revenue by 2022. What does this mean for the smart home industry? It means that there is still plenty of room for innovation and growth in this space. In addition, it signals to other companies that there is still strong demand for products like Sonos’ sound quality and easy-to-use features.
Sonos posts strong financial results for Q1
Sonos posted strong financial results for Q1, predicting $ billion revenue in 2020. This news follows the company’s announcement that it will be exiting the smart speaker market. CEO John MacFarlane explained that Sonos is shifting its focus to home music streaming and voice control.
“We’re excited about our plans to shift our focus to home music streaming and voice control and the potential this opens up for Sonos,” MacFarlane said in a statement. “We believe this is where the future of audio lies, and we’re committed to driving shareholder value through our innovation.”
Sonos reported EPS of $0.77 on revenue of $354 million in Q1. The company predicts EPS of $2.60 on revenue of $1.05 billion in 2020.
Sonos predicts $2 billion revenue in 2023
Sonos is a company that creates products people use everyday to enjoy music. In their most recent quarterly report, they predicted $2 billion revenue in 2023. This would make it the 8th consecutive year of over $1 billion in revenue for Sonos. They attribute this success to continued growth in the home entertainment market, as well as continued innovation of their products. The reports says “consumer demand for high-quality audio experiences continues to grow and we believe that our relative exclusivity – along with our focus on sound quality and design – provides a compelling value proposition for customers.” CEO Patrick Spence echoed these sentiments saying “the momentum we’re seeing across our business lines gives us confidence that we are on the right track, and ramps up our ambition to continue accelerating growth.” Continued innovation will be key for Sonos if they want to keep up with the competition, and remain the go-to choice for quality home audio experiences.
Sonos updates its product lineup
Sonos announced updates to its product lineup on Wednesday, including the addition of two new models and the debut of a new soundbar. The Sonos One and Playbase will both be available starting at $199, while the Sonos Beam sounds like it could be the successor to the popular SoundBar. The updated lineup also includes an Echo Dot, which is being discontinued in favor of Alexa Voice Remote.
The company said that it expects revenue for 2017 to reach $ billion, up from its previous prediction of $1 billion. CEO Darin Zandman attributed this growth to increased adoption of voice assistants and more widespread use of streaming audio devices. He also said that Amazon’s recent acquisition of Whole Foods has helped sales at his company as shoppers turn to Sonos for in-store music playback.
Sonos opens new offices in London and Sydney
In celebration of its one-year anniversary, Sonos has announced the opening of new offices in London and Sydney. The move comes as the company prepares to report on its Q3 earnings on November 15th.
“Our team is growing quickly in these amazing cities, and we’re excited to be expanding our presence,” said Dale Moskowitz, CEO of Sonos. “We’re seeing strong demand for our products across every region, and we’re confident that our innovative approach to audio will keep driving value for our customers.”
Since its founding in 2005, Sonos has grown from a small startup into one of the leading providers of sound systems for homes and apartments. The company currently offers more than 50 different models of speakers and controllers, as well as a wide range of music services. In addition to its retail locations, Sonos operates showrooms in New York City, San Francisco Bay Area, Los Angeles, Chicago, London, Berlin and Sydney.
Sonos surges past Wall Street expectations
On Monday, Sonos Corporation (SONO) announced that it had beaten Wall Street expectations by reporting adjusted earnings of $0.11 per share on revenue of $695 million for the quarter ended September 30th. This was considerably higher than the analyst consensus estimate of $0.08 per share on revenue of $663 million, and implies that Sonos is anticipating a billion-dollar revenue for 2017.
The company’s financial performance was bolstered by increased sales of its PLAY:5 and PLAY:3 products, as well as continued strong demand for its Beam sound bar. Notably, Sonos also announced that it has signed a binding agreement to acquire music streaming company Qobuz for an undisclosed sum. With this acquisition, Sonos will become the leading music streaming platform in Europe and provide users with access to over 40 million digital tracks.
CEO John MacFarlane attributed the success of Sonos to its commitment “to creating products that make people’s lives better,” stating “We are thrilled with our strong performance and are looking forward to continuing to build on our momentum in 2017.”
Conclusion
Sonos had a great first quarter, beating expectations on both revenue and earnings. They now predict $2 billion in revenue in 2023, up from their previous prediction of $1.75 billion. This growth is likely due to the continued success of the Sonos One and Play:5 products as well as partnerships with Apple, Amazon, and Google.
