Despite a difficult economy, smart speaker pioneer Sonos reported that revenues for the quarter ending December 31 grew 1 percent year-over-year to $672.6 million.

“We entered the quarter with our healthiest in-stock inventory position in three years which allowed us to meet the tremendous customer response to our industry-leading product portfolio and gain share across our key categories and geographies,” Sonos CEO Patrick Spence said. “Our results are a testament to the strength of the Sonos brand, our category leadership, and the power of our flywheel.”

Sonos credited its revenue gains to increased volume due to seasonal promotional activity and improved product availability, partially offset by an unfavorable foreign exchange rate. But the firm said it gained “significant” market share in the U.S., UK, and Germany in the quarter and hit its highest market share in over 3 years.

Sonos differentiates its products from those offered by Big Tech by focusing on high quality, premium hardware, and an open content and control platform rather than commoditized products that exist to further a voice assistant strategy with compromised privacy, design, and sound experiences. It is also notably suing one of those companies, Google, for constantly violating its patented technologies. Successfully.

Sonos says it is on track to meet its previous guidance for the current fiscal year. But during its post-earnings conference call, it hinted at a future growth engine that could improve matters significantly.

“There’s a lot more room for additional growth,” Mr. Spence said. “40 percent of our households are single-product households, whereas our average multi-product household has 4.3 products. In other words, we are starting to get into the range we have previously discussed of 4-6 products for every mature Sonos household. We estimate that converting our single-product households to the average multi-product household install size represents a $5 billion revenue opportunity. Of course, this will not happen overnight, but it does highlight the long runway we have to further monetize our installed base. We are investing in the systems and programs to more aggressively go after this opportunity in FY23.”