When Sonos filed its S-1 on Friday, the SEC document revealed some figures that indicated a high level of customer satisfaction, which looks good for the speaker company from a potential investor standpoint.
For starters, the number of total registered Sonos speakers from 2013 to 2018 (19 million) was about triple the number of total households that own a Sonos (6.9 million) as of 2018, as this chart from Statista shows. That means customers who buy a Sonos usually buy multiple speakers – 2.7 per household on average. A more precise look at that average, depicted by the chart on the right, shows that over over half of those Sonos households have more than one device and a fourth of them have more than three; only 39% stopped at one speaker.
A major caveat, as the S-1 itself states, is that Sonos relies on larger competitors Apple, Google, and Amazon to provide streaming services to its customers. Investors should be wary of the market it’s entering, given the current appeal of smart speakers and these tech giants’ abilities to pull their functionality from Sonos’ hardware at a moment’s notice.
Besides its customer satisfaction levels, Sonos’ S-1 document also revealed that the company is expected to pass the $1 billion mark for the first time this year.
- Jenny Cheng/Business Insider