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Sonos CEO: 'We Want To Be The Sound Experience Leader'

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Sonos CEO: 'We Want To Be The Sound Experience Leader'

High-end stereo maker Sonos Inc (NASDAQ: SONO) hosted its first-ever investor day presentation as a public company on Tuesday.

2024 Outlook: Sonos said it is "just getting started" given its exposure to just 9% of the 116 million affluent households in 2020, the company said in a press release. The company believes that it has a path ahead to grow revenue at a 13% compounded annual growth rate through 2024.

Management is guiding for 2024 revenue to be $2.25 billion, gross margins to be between 45% and 47% while generating an Adjusted EBITDA margin of 15% to 18%. This represents an upward revision from Sonos' prior long-term gross margin outlook of 42% to 44% and long-term adjusted EBITDA margin target of 13% to 15%.

"We think there is a ton of opportunity ahead, we looked at it in multiple ways," Sonos CEO Patrick Spence said Wednesday on CNBC's "Squawk on the Street.

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Re-opening Exposure: As the world slowly emerges from the COVID-19 pandemic, Sonos considers itself part of the re-opening story, the CEO said. The company recognizes a new opportunity to target users that want to go outside their homes so it launched a new $169 portable Bluetooth speaker.

"If the world is in a situation where we go back outside and things change a bit, we still think we have a lot of strength and a lot of opportunity for the future," he said.

Sound Experience Leader: Sonos' penetration within the $18 billion premium home-audio sector is a compelling opportunity to target, but the company is just as interested in addressing the entire $90 billion audio market, Spence said.

"We want to be the sound experience leader and we want to be in all aspects of your life," he said.

Sonos confirmed during its presentation its first leap into the auto market with a partnership with Audi but "we are just getting started," the CEO said.

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(Photo: Sonos)

 

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