Sonos’ stock surged 20% Thursday after reporting revenue that blew past Wall Street estimates as the company’s Beam soundbar proved to be a popular new item.
Revenue grew 28% to $273 million in the third quarter, surpassing the consensus of analyst forecasts by $24.3 million. The company posted a net loss of 2 cents a share, above the consensus of a 10-cent-a-share loss.
In a letter to shareholders, the company attributed its stronger-than-expected results to the success of its Beam soundbar, a long, slim, voice-enabled speaker that many couch potatoes place below their TV set to enhance its audio quality. Sonos cited market data from NPD that the Beam had the largest dollar share of the soundbar market, with 8% of the market. Sonos’ five-year-old soundbar, the Playbar, captured the No. 3 spot with a 6.4% share.
Sonos also took a swipe at lower-priced wireless speakers like Amazon’s Echo and Google’s Home, noting that they “seem to flood the market over the holiday season and find their way into drawers or closets by the next year.” Sonos considers them “stepping stones to Sonos” as “the products lack staying power because of gaps in quality, design or sound experience.”
Sonos went public in early August at $15 a share. The stock closed official trading Thursday up 1.7% at $14.16 a share. In after hours trading, Sonos shares were up 20.3% at $17.07 a share, its highest level since early September.