![]() Of these, 12.6 million own at least one Sonos product, implying Sonos has achieved less than 11% penetration in its core markets.įuturesource estimates the global premium home audio market to be worth ~$18 billion annually. Growing Brand Presence In Large MarketĪccording to data from Euromonitor International, approximately 116 million households earn at least $75k of disposable income each year in Sonos' core geographies (U.S., Canada, Australia, U.K. For FY 2021 (twelve months ending October 2, 2021), the Company reported $1.7 billion in sales and ~$159 million in net income. As of December 3, 2021, Sonos has a market capitalization of ~$3.9 billion and an enterprise value of ~$3.2 billion. Founded in 2002, the Company pioneered multi-room wireless sound systems and has developed an intellectual property portfolio comprised of nearly 1,000 patents and hundreds more pending applications. ![]() Sonos is one of the leading premium sound brands across the world. I recommend adding to any existing Sonos position or initiating a long-term position at current price levels (~$30). Already, Sonos is ahead of schedule towards achieving its financial targets for fiscal year ("FY") 2024, which were released in March 2021.Īs the Company continues to scale profitability amid strong revenue growth, I believe shares will reward patient investors who buy and hold for years. ![]() The Company has exceeded consensus revenue and earnings estimates for ten of the last thirteen quarters, and management has demonstrated an ability to successfully execute its growth strategy. Sonos continues to perform at record levels, maintaining a streak of sixteen consecutive years of top-line growth and posting a GAAP profit for the first time despite a pandemic and worldwide supply chain difficulties. Now, after some significant share price appreciation (200%+), it is time to reevaluate the investment thesis to determine if it remains intact. I first published a bullish analysis of Sonos (NASDAQ: SONO) in April 2020 where I discussed the Company's consistent historical growth, successful track record of product launches and attractive valuation relative to its growth prospects. Jesse Grant/Getty Images Entertainment Investment Thesis
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