Sonos Crushed 2020, but Can its Growth Continue?

SONO shares are trading +260% YoY, thanks in part to pandemic related macro trends. Home Renovation mentions increased +41% YoY in 2020 as consumers reshuffled and re-did areas of their home, boosting home speaker demand.

We saw this opportunity developing in SONO and featured the company on our June MegaTrends report -- when shares were trading below $15.  So what is driving growth for the company, aside from consumer behavior tailwinds?

1. Premium Products
2. Consistent Upgrade Cycle
3. Accelerating DTC Performance

Product categories showing strength:

• Sonos speaker revenue: +13% year over year, driven by the continued success of Arc and Move.  This is where LikeFolio data excels.

We can see continued demand elevation for Arc and Move (+65% YoY), but notably lower QoQ. Some of this QoQ weakness may be expected following a strong Holiday season, but the bar is certainly high.

• Sonos system products revenue: +59%, driven by installed channel and component products.

This is a top-notch company with high-quality products. But they've crushed it on previous reports. Without a Holiday season boost, can they sustain explosive growth AND continue to guide accordingly?  SONO reports 21Q2 results Monday after the bell.