Sonos CEO Patrick Spence mentioned on CNBC Thursday that the corporate is using three secular traits that he expects will keep progress momentum put up 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 grow to be the norm, due to providers 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, similar to 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, similar to motion pictures and TV exhibits carried by Netflix and different streaming firms. A lot of motion pictures, similar to “The Trial of the Chicago 7” and “Mulan,” bypassed movie show releases amid Covid-19 lockdowns final yr.
“We anticipate that to proceed,” Spence mentioned. “Extra motion pictures being launched proper into the house, extra folks having fun with it the house.”
In the meantime, Sonos sees alternative in a housing market that turned sizzling throughout the shift to distant work. Spence is relying on the “nice reshuffling” to steer extra customers to purchase residence leisure programs.
“Lots of people that now have new flexibility and freedom to work anyplace and they also’re shifting, they’re establishing a brand new residence and that is good for Sonos,” he mentioned.
The feedback come at some point 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.