Sonos CEO expects to make use of the “golden age of audio” to promote extra house leisure units
Patrick Spence, Sonos CEO, said on CNBC Thursday that the company is tracking three mundane trends that he expects will keep post-coronavirus pandemic growth momentum.
“The first is the golden age of audio. We’re in,” he said in a Mad Money interview with Jim Cramer.
Music streaming has become the norm thanks to the services of Spotify and Apple. Their platforms have made music and podcast content easily accessible with a tap of a finger.
Spence also believes the rise of social audio like Clubhouse and Twitter Spaces will boost Sonos’ speakers and home sound systems.
Sonos also plans to take advantage of the growing amount of video content being sent direct to the consumer, such as: B. Movies and TV shows broadcast by Netflix and other streaming companies. A number of films, such as “The Trial of the Chicago 7” and “Mulan,” bypassed theatrical releases last year when Covid-19 was banned.
“We expect it to stay that way,” said Spence. “More films are released right at home, more people are enjoying it at home.”
Meanwhile, Sonos sees opportunities in a real estate market that has grown hot during the move to remote working. Spence is counting on the “big reshuffle” to get more consumers to buy home entertainment systems.
“A lot of people who now have new flexibility and freedom to work anywhere, and that’s why they’re moving, building a new home, and that’s perfect for Sonos,” he said.
The comments come a day after Sonos reported its fiscal second quarter results. The Santa Barbara, Calif. Based company saw total sales increase 90% year over year, primarily due to speakers.
The stock rose 7% on Thursday to close at $ 33.83 per share.