Connected audio-hardware firm Sonos has officially filed to go public, and its S-1 form has plenty of data on how the company has been performing against competition from smart speakers.
“As of March 31, 2018, our customers had registered over 19 million products in approximately 6.9 million households globally,” explained the filing. “Based on customer data, we estimate that, on average, our customers listen to approximately 70 hours of content per month and to approximately 80% more music after purchasing their first Sonos product.”
Sonos also generated $992.5m in its fiscal 2017, up 10% year-on-year, while recording a net loss of $14.2m. Sonos sold 3.9m products in its fiscal 2017, up from 3.5m the year before, and 3.4m the year before that – with predictions that sales will grow to 4.6m devices in its fiscal 2018.
Some attention has already focused on a section in the ‘risk factors’ section of the filing, and a surprising admission. “Our current agreement with Amazon allows Amazon to disable the Alexa integration in our Sonos One and Sonos Beam products with limited notice,” explained Sonos.
“As such, it is possible that Amazon, which sells products that compete with ours, may on limited notice disable the integration, which would cause our Sonos One or Sonos Beam products to lose their voice-enabled functionality. Amazon could also begin charging us for this integration which would harm our operating results.”