Sonos reports record 11% revenue growth
November 22, 2019
By Chris Forrester
Wireless speaker specialists Sonos reported revenues up 11 per cent to a record $1.26 billion (€1.14bn) for the year – the third-successive it has exceeded its own financial goals.
Sonos generated more than $97 million in free cash flow in fiscal 2019, ending the year with $339 million in cash. Q4 revenues grew 8 per cent y-o-y, with a gross margin of 42.2 per cent.
“We exited fiscal 2019 with over 9 million homes around the world using Sonos. This is a terrific milestone, and only reinforces our confidence about the opportunities in front of us. The quality of our products, the uniqueness of our platform, and the strength and premium positioning of our brand drove continued growth in purchases by both new and existing customers. In fiscal 2019, we added nearly 1.7 million new households, the most we’ve ever added in a year, and an increase of 9 per cent from last year,” said Patrick Spence, CEO.
Spence told analysts that the average number of units/home grew during the year from 2.8 to 2.9 units/home. Some 1.7 million new homes bought into the Sonos experience, and helped by new trading relationships with the like of IKEA (since August this year).