Sonos Inc equity, debt and subsidiaries

Accuracy score :
97%

Summary (from the latest annual report 2017 and quarterly report 2018)

  • Total equity: 36 million USD
  • Market Cap is 1.89 billion USD ( the last price of the stock is 19.26 USD)
  • Sonos Inc is engaged in providing home sound systems. The company’s product profile includes speaker sets and other accessories like boost, mounts, stands, and cables and networking
  • Total equity has increased from zero in 2017 to 36 million in 2018
  • The company has 118 million USD in cash on the account (from the latest quarterly report)
  •  In 2018 the company has 40 million USD long-term debt, short-term debt is zero                                                                               (In 2016 total debt was 25 million USD)
  • Company's revenue increased in 2017 to 992.5 million USD from 901 million in 2016
  • Net loss in 2017 was 14 million USD, Net loss in 2016 was 38 million USD

 

Opinion about the company

Fundamentally it is a not good company but in the future we can expect its growth (Total debt is 40 million USD, company has 118 million USD in cash on account, ROE is N/A currently).

Sonos is an American consumer electronics company founded in 2002 by John MacFarlane, Craig Shelburne, Tom Cullen and Trung Mai, based in Santa Barbara, California. The company’s product profile includes speaker sets and other accessories like boost, mounts, stands, and cables and networking. Geographically, the company operates in the Americas, Europe, the Middle East and Africa, and the Asia Pacific. Generating a majority of its revenue from the Americas. The company's products are mostly resold through vendors, such as Best Buy, Apple and Target. However, online retailers, such as Amazon.com and Crutchfield, also play in the role of distributing and reselling the products manufactured by the company. The first official Sonos Store was opened in New York City on July 12, 2016, after that the company opened stores in London and Berlin.

Sonos supports approximately 100 streaming services around the world, providing customers with access to music, internet radio, podcasts, and audiobooks, from whichever services they prefer. A 2018 product study by a leading home audio publication of the top 100 custom integrator professionals ranked Sonos as the leading brand in the wireless audio, soundbar and subwoofer categories. Sonos 84% share in the wireless audio category among these industry professionals significantly outpaces its competitors. Home sound system expansion drives a sustainable financial model, existing households represented 38% of new product registrations in fiscal 2017. These customers are not replacing products, they are adding to their Sonos systems. In December 2017, IKEA and Sonos announced a collaboration to build Sonos' technology into furniture sold by IKEA. The first products resulting from the collaboration will launch in 2019.

Sonos has not turned an annual profit since 2014 but it has narrowed its net losses over the past three years, from $68.8m in fiscal 2015 to $14.2m in the year ending September 2017. Revenues hit $992.5m in fiscal 2017 from 3.9m devices sold which is a 10.1% increase from the previous period:

  • Sonos revenue breakdown by business segment: 35.2% from Home Theater Speakers, 15.3% from Components, 48.5% from Wireless Speakers and 1.1% from Other
  • Sonos revenue breakdown by geographic segment: 5.4% from Asia Pacific, 44.5% from Europe, Middle East and Africa and 50.0% from Americas

Since unveiling its first connected speaker in 2005, Sonos now has 19m registered products in 6.9m customers’ homes. Some 60 percent of Sonos’ customers are repeat buyers and it estimates that customers collectively listened to 5bn hours of audio on Sonos products last year, up 33 percent.  Sonos has priced its IPO (August, 2018) at $15 per share, which valued the company at nearly $1.5 billion. In April, MarketWatch suggested Sonos could be worth up to $3 billion as a public company.