Sonos IPO Sets Share Price at $17 to $19

Sonos has set terms for its initial public offering (IPO), saying in a regulatory filing it plans to offer 13.9 million shares priced at $17 to $19 each for a goal of raising $263 million… well above the $100 million figure CE Pro speculated initially. The company will be listed on Nasdaq under the ticker symbol “SONO.”

Sonos lost more than $14 million in the fiscal year ended Sept. 30, 2017.  Indeed, the smart speaker company has lost money for the last three years. However, its most recent quarters are in the black.

Fiscal year 2016 ended with a $38.2 million net loss; 2015 with a $68.8 million loss. Both 2013 and 2014 were profitable for the company, with net income at $8.5 million and $21.9 million, respectively.

Related: Sonos Beam Soundbar is Full of Firsts: AirPlay 2, Siri, HDMI, but No Atmos

Employee compensation comprised a big chunk of those losses. In fiscal 2017, Sonos counted about $26 million in stock-based compensation, which goes towards GAAP expenses.

In the company's non-GAAP adjusted EBITDA for the year, Sonos shows nearly $56 million in the black. In fact, Sonos shows positive adjusted EBITDA in all years since 2013, except for 2015.

Revenues for fiscal 2017 were $992.5 million compared to $901.2 the previous year, a 10 percent increase. For the six months ended March 31, 2018, Sonos had revenues of $655.7 million — up roughly $100 million from the same period last year.

Interestingly, the company reports in its filing that 16 percent of its revenues are generated by Best Buy, the No. 3 company in the CE Pro 100.

Sonos is the leading brand in the 2018 CE Pro 100 Brand Analysis in soundbars with a 72 percent marketshare, subwoofers with a 53 percent marketshare, and wireless audio with an 84 percent marketshare. 

Morgan Stanley, Goldman Sachs, Allen & Co., RBC Capital Markets, Jefferies, KKR, Raymond James and Stifel are underwriters on the deal.