Sonos CEO Patrick Spence said on CNBC Thursday that the company is riding three secular trends that he expects will maintain growth momentum post coronavirus pandemic.
“The first is the golden age of audio. We are in it,” he said in a “Mad Money” interview with Jim Cramer.
Music streaming has become the norm, thanks to services offered by the likes of Spotify and Apple. Their platforms have made music and podcast content easily accessible from the tap of a finger.
Spence also expects the rise of social audio, such as Clubhouse and Twitter Spaces, to be a boost for Sonos’ slate of speakers and home sound systems.
Sonos also plans to capitalize on the growing amount of video content that is being released direct-to-consumer, such as movies and TV shows carried by Netflix and other streaming companies. A number of movies, such as “The Trial of the Chicago 7” and “Mulan,” bypassed movie theater releases amid Covid-19 lockdowns last year.
“We expect that to continue,” Spence said. “More movies being released right into the home, more people enjoying it the home.”
Meanwhile, Sonos sees opportunity in a housing market that turned hot during the shift to remote work. Spence is counting on the “great reshuffling” to lead more consumers to buy home entertainment systems.
“A lot of people that now have new flexibility and freedom to work anywhere and so they’re moving, they’re setting up a new home and that’s perfect for Sonos,” he said.
The comments come one day after Sonos reported results from its fiscal second quarter. The Santa Barbara, California-based company posted a 90% year-over-year increase in overall sales driven largely by speakers.
The stock surged 7% in Thursday’s session, closing at $33.83 per share.
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Source: Business - cnbc.com
