SONO earnings call for the period ending December 31, 2024.
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Sonos (SONO 5.19%)
Q1 2025 Earnings Call
Feb 06, 2025, 4:15 p.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Thank you for standing by. My name is Jay, and I will be your conference operator today. At this time, I would like to welcome everyone to the Sonos first quarter fiscal 2025 conference call. [Operator instructions] I would now like to turn the conference over to James Baglanis, head of investor relations.
You may begin.
James Baglanis — Head of Investor Relations and Treasury
Good afternoon, and welcome to Sonos first quarter fiscal 2025 earnings conference call. I am James Baglanis and with me today are Sonos’ interim CEO, Tom Conrad; CFO, Saori Casey; and chief legal and strategy officer, Eddie Lazarus. For those who joined the call early, today’s hold music is a sampling from the Sonos Radio Station, Say It Loud, which is curated in collaboration with Black at Sonos and recognition of Black History Month. Before I hand it over to Tom, I would like to remind everyone that today’s discussion will include forward-looking statements regarding future events and our future financial performance.
These statements reflect our views as of today only and should not be considered as representing our views of any subsequent date. These statements are also subject to material risks and uncertainties that could cause actual results to differ materially from expectations reflected in the forward-looking statements. A discussion of these risk factors is fully detailed under the caption Risk Factors in our filings with the SEC. During this call, we will also refer to certain non-GAAP financial measures.
For information regarding our non-GAAP financials and a reconciliation of GAAP to non-GAAP measures, please refer to today’s press release regarding our first quarter results posted to the investor relations portion of our website. As a reminder, the press release, supplemental earnings presentation, including our guidance and a conference call transcript will be available on our investor relations website, investors.sonos.com. I will now turn the call over to Tom.
Tom Conrad — Interim Chief Financial Officer
Thank you, James, and thank you all for joining us today. I’m now in my fourth week as interim CEO. It’s still early days, but not too soon to make a few observations. First, we have a lot of work to do.
Despite recent progress, our core experience still needs significant improvement. Second, we must continue our effort to bring our expenses in line with our revenue. And third, I’m more convinced than ever that Sonos has a large market opportunity ahead of us, both in its current categories and in close adjacencies, and I know that we have the best team in the world to seize this opportunity. We’re moving quickly and with purpose across all these interrelated fronts.
As a board member, I started working closely with our software team this past fall, and I can tell you that they have an absolute dedication to improving the Sonos experience to a place that exceeds the expectations of all of our customers. I’m all in on reinvigorating and accelerating this essential work, helping with focus and priorities as we tackle what are, frankly, some very complex and long-standing software problems. As a longtime passionate customer and myself, I know the magic of Sonos, but I also know the extreme disappointment of the company’s recent tech challenges. With respect to our expense base, I’m closely partnering with our CFO, Saori Casey, to drive operational efficiency and improve our financial performance.
To accomplish this, I’m returning Sonos to a scrappier and more focused enterprise, drawing on the lessons I’ve learned from the successes and challenges I’ve navigated at companies of all stripes for over 30 years from Apple to Pandora to Snapchat to Quibi. To this end, yesterday, we executed on a set of significant changes to the way we operate. I’ve reorganized our product and engineering staff into functional teams for hardware, software, design, quality and operations and away from dedicated business units devoted to individual product categories. This allows us to bring together rightsized cross functional projects that maximize our efficiency as we continuously evaluate, prioritize and focus on the highest value market opportunities.
