Sonos lists on the Nasdaq (SONO) on Thursday, August 2. It is the 2nd-largest consumer discretionary IPO of 2018, raising $208 million.
With over $1 billion in revenue, Sonos is a major player in the highly-competitive market for home speakers. A number of new product launches have fueled growth, including the voice-enabled Sonos One (MSRP: $199).
Here are 4 things to know about Sonos, likely one of the year's best-known consumer brands to go public
1) People love the brand
The Internet is inundated with positive reviews for Sonos products. It is a top choice for audiophiles, which allows it to command premium pricing. Speaking to its loyal customer base, 38% of new product registrations during fiscal 2017 came from existing customers. If die-hard Sonos fans must have the latest product, that gives investors some confidence in future earnings.
2) It has OK growth and profitability
Sonos grew sales by 10% in the last fiscal year. Our Quick Take on the Sonos profile puts that right in the middle of a Neutral rating on growth (range is 5-15%). With an EBITDA margin of 5.2%, Sonos also comes out as a mid-Neutral on Profitability (range is 0-10%). And with no net debt, leverage is not an issue.
