Sonos Inc. officially filed for an initial public offering (IPO) on Friday, banking on growing popularity of its audio products, which range from wireless speakers to hubs and soundbars.
No specifics were offered about the offering, though Sonos did express its concerns over trade tensions between China and the U.S.
"If further tariffs are imposed on a broader range of imports ... we may be required to raise our prices, which may result in the loss of customers and harm our reputation and operating performance," the company said in its filing.
Sonos, founded in 2002, stormed onto the scene with its wireless speakers, which, rather than function on Bluetooth or Wi-Fi like many others, work on their own mesh system to allow for seamless whole-home music. Sonos has gained attention thanks to the ease of use, sound quality, and versatility in terms of music services, as well as tie-ins with popular voice control service like Amazon Alexa. The latest Sonos One speaker can function just like an Alexa-enabled speaker from Amazon. And while that puts it in direct competition with Apple's HomePod, which launched in Canada last month and works with Siri voice control, Sonos speakers do also work with the Apple Music streaming music service.
The wireless and potable speaker market is seeing explosive growth, with Sonos at or near the top of the popularity list.
According to Reuters, Sonos is targeting a valuation of US$2.5-US$3 billion, and is setting a placeholder amount of US$100 million. In 2017, Sonos reported revenues of close to US$1 billion, which represented a 10% jump from 2016.