Sonos CEO Patrick Spence mentioned on CNBC Thursday that the corporate is driving three secular traits that he expects will preserve progress momentum submit coronavirus pandemic.
“The primary is the golden age of audio. We’re in it,” he mentioned in a “Mad Money” interview with Jim Cramer.
Music streaming has turn into the norm, due to companies supplied by the likes of Spotify and Apple. Their platforms have made music and podcast content material simply accessible from the faucet of a finger.
Spence additionally expects the rise of social audio, resembling Clubhouse and Twitter Areas, to be a lift for Sonos’ slate of audio system and residential sound programs.
Sonos additionally plans to capitalize on the rising quantity of video content material that’s being launched direct-to-consumer, resembling motion pictures and TV reveals carried by Netflix and different streaming firms. Quite a lot of motion pictures, resembling “The Trial of the Chicago 7” and “Mulan,” bypassed movie show releases amid Covid-19 lockdowns final yr.
“We count on that to proceed,” Spence mentioned. “Extra motion pictures being launched proper into the house, extra individuals having fun with it the house.”
In the meantime, Sonos sees alternative in a housing market that turned scorching throughout the shift to distant work. Spence is relying on the “nice reshuffling” to guide extra shoppers to purchase dwelling leisure programs.
“Lots of people that now have new flexibility and freedom to work wherever and they also’re transferring, they’re organising a brand new dwelling and that is good for Sonos,” he mentioned.
The feedback come in the future after Sonos reported outcomes from its fiscal second quarter. The Santa Barbara, California-based firm posted a 90% year-over-year enhance in total gross sales pushed largely by audio system.
The inventory surged 7% in Thursday’s session, closing at $33.83 per share.