Latest news with #SonosInc
Yahoo
09-05-2025
- Business
- Yahoo
Sonos Interim CEO Says Company Has Turned a Corner and He Wants the Top Job
(Bloomberg) -- Sonos Inc. interim Chief Executive Officer Tom Conrad said the audio company has 'turned the corner' following setbacks caused by software issues — and that he wants to be named to the top job permanently. Is Trump's Plan to Reopen the Notorious Alcatraz Prison Realistic? As Trump Reshapes Housing Policy, Renters Face Rollback of Rights What's Behind the Rise in Serious Injuries on New York City's Streets? Vail to Borrow Muni Debt to Ease Ski Resort Town Housing Crunch NYC Warns of 17% Drop in Foreign Tourists Due to Trump Policies 'I'm just feeling much more confident that we've turned the corner,' he said in an interview Friday. 'We've made some real breakthroughs in the last 90 days on some deeply esoteric technical challenges.' The longtime board member stepped in as temporary chief in January after his predecessor, Patrick Spence, left following a failed app revamp mired the company in controversy. Last year, Sonos overhauled its iOS and Android apps — along with the underlying software that connects its hardware — and users immediately complained about interface issues, networking problems and equipment not being able to properly play music. The glitches upset many consumers who, in some cases, spent tens of thousands of dollars on Sonos systems placed throughout their homes. Conrad said the latest software release, pushed out this week, helps fix issues that have continued to hit older players — such as the Play 1 and Play 3 — unveiled over a decade ago. He said that releases coming out the rest of the year will help make Sonos' software 'better than it has been in five years.' By spending the past few months fixing the underlying software, the company is now focusing on improving the app's user experience, he said. 'Quantitatively today, the app performs better than the software it replaced,' he said, adding that upcoming releases across the summer and into early fall will 'restore convention' to the user experience and improve usability. 'I feel like we're on a really good path here.' The issues, he said, were difficult to fix because they were so wide-ranging. 'It's not like we made a straightforward set of mistakes where we could just go in and plug some obvious holes.' Conrad credits the turnaround to restructuring the way the company operates. Sonos previously was organized by business units, meaning there was one team for every product line. Now, the company is structured by functionality, meaning it's grouped into areas like hardware, software, design and operations. That mirrors Apple Inc.'s approach. (Besides sporting a Sonos tattoo, Conrad has one of a Mac on his arm.) The old structure 'made it hard for the team to prioritize experience across the business units, which is so fundamental to what Sonos is,' Conrad said. The company, he said, is now staffed for success, has a clear set of goals and a more defined line of escalation to top managers. This 'has unlocked the progress we've made on software and how the team is feeling about what they show up to do here,' he said. Conrad said Sonos hasn't fully determined how it will be impacted by tariffs the US has imposed on foreign imports, but that it stopped building products for the US market in China years ago, instead relying on Malaysia and Vietnam. Still, it's pulling forward manufacturing to bring hardware devices into the US while levies are stable ahead of anticipated changes, he said, because it's premature to try to figure out how this 'multidimensional problem' gets solved. And while Conrad is interim CEO, he is very clear about wanting to drop the first part of that title. 'I hope the next chapter is I get named permanent CEO and I get to lead the company on a 5-year or 10-year plan, not on a 2-year plan,' he said. 'I have big ideas and I can't wait to get going.' US Border Towns Are Being Ravaged by Canada's Furious Boycott Maybe AI Slop Is Killing the Internet, After All Pre-Tariff Car Buying Frenzy Leaves Americans With a Big Debt Problem How the Lizard King Built a Reptile Empire Selling $50,000 Geckos What the US Would Lose If Trump Pushes Out Legal Immigrants ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
09-05-2025
- Business
- Mint
Sonos Interim CEO Says Company Has Turned a Corner and He Wants the Top Job
(Bloomberg) -- Sonos Inc. interim Chief Executive Officer Tom Conrad said the audio company has 'turned the corner' following setbacks caused by software issues — and that he wants to be named to the top job permanently. 'I'm just feeling much more confident that we've turned the corner,' he said in an interview Friday. 'We've made some real breakthroughs in the last 90 days on some deeply esoteric technical challenges.' The longtime board member stepped in as temporary chief in January after his predecessor, Patrick Spence, left following a failed app revamp mired the company in controversy. Last year, Sonos overhauled its iOS and Android apps — along with the underlying software that connects its hardware — and users immediately complained about interface issues, networking problems and equipment not being able to properly play music. The glitches upset many consumers who, in some cases, spent tens of thousands of dollars on Sonos systems placed throughout their homes. Conrad said the latest software release, pushed out this week, helps fix issues that have continued to hit older players — such as the Play 1 and Play 3 — unveiled over a decade ago. He said that releases coming out the rest of the year will help make Sonos' software 'better than it has been in five years.' By spending the past few months fixing the underlying software, the company is now focusing on improving the app's user experience, he said. 'Quantitatively today, the app performs better than the software it replaced,' he said, adding that upcoming releases across the summer and into early fall will 'restore convention' to the user experience and improve usability. 'I feel like we're on a really good path here.' The issues, he said, were difficult to fix because they were so wide-ranging. 'It's not like we made a straightforward set of mistakes where we could just go in and plug some obvious holes.' Conrad credits the turnaround to restructuring the way the company operates. Sonos previously was organized by business units, meaning there was one team for every product line. Now, the company is structured by functionality, meaning it's grouped into areas like hardware, software, design and operations. That mirrors Apple Inc.'s approach. (Besides sporting a Sonos tattoo, Conrad has one of a Mac on his arm.) The old structure 'made it hard for the team to prioritize experience across the business units, which is so fundamental to what Sonos is,' Conrad said. The company, he said, is now staffed for success, has a clear set of goals and a more defined line of escalation to top managers. This 'has unlocked the progress we've made on software and how the team is feeling about what they show up to do here,' he said. Conrad said Sonos hasn't fully determined how it will be impacted by tariffs the US has imposed on foreign imports, but that it stopped building products for the US market in China years ago, instead relying on Malaysia and Vietnam. Still, it's pulling forward manufacturing to bring hardware devices into the US while levies are stable ahead of anticipated changes, he said, because it's premature to try to figure out how this 'multidimensional problem' gets solved. And while Conrad is interim CEO, he is very clear about wanting to drop the first part of that title. 'I hope the next chapter is I get named permanent CEO and I get to lead the company on a 5-year or 10-year plan, not on a 2-year plan,' he said. 'I have big ideas and I can't wait to get going.' More stories like this are available on
Washington Post
07-05-2025
- Business
- Washington Post
Sonos: Fiscal Q2 Earnings Snapshot
SANTA BARBARA, Calif. — SANTA BARBARA, Calif. — Sonos Inc. (SONO) on Wednesday reported a loss of $70.1 million in its fiscal second quarter. On a per-share basis, the Santa Barbara, California-based company said it had a loss of 58 cents. Losses, adjusted for restructuring costs and stock option expense, came to 18 cents per share.
Yahoo
07-02-2025
- Business
- Yahoo
Sonos Inc (SONO) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Release Date: February 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sonos Inc (NASDAQ:SONO) delivered Q1 revenue towards the high end of their guidance at $551 million, despite a challenging market environment. The company achieved its highest ever quarterly market share in the US home theater segment on a dollar basis, driven by strong demand for the new Arc Ultra soundbar. GAAP gross margin was 43.8%, exceeding the high end of the guidance range, due to better cost and product mix. Sonos Inc (NASDAQ:SONO) has reorganized its product and engineering staff into functional teams, which is expected to maximize efficiency and focus on high-value market opportunities. The company has resumed share repurchases, returning $27 million to shareholders in Q1, and remains committed to capital allocation strategies that benefit shareholders. Q1 revenue was down 10% year over year, reflecting softer demand due to market conditions and challenges from the 2024 app rollout. The company executed a reduction in force, saying goodbye to about 200 employees, including nearly 50 managers and executives, as part of its structural transformation. Sonos Inc (NASDAQ:SONO) is facing cyclically challenged and highly promotional categories, particularly in portables, impacting overall performance. The company is still working on improving its core experience, with significant software challenges needing to be addressed. Q2 guidance indicates potential negative adjusted EBITDA, reflecting ongoing challenges and investments in app recovery. Warning! GuruFocus has detected 9 Warning Signs with TTWO. Q: The release today was a bit unconventional with the numbers out before the open and then the call happened this afternoon. What drove that behavior? A: Tom Conrad, Interim CEO, explained that the timing was due to the need to balance communicating organizational changes with the earnings call. The reorganization involved significant changes, and the decision was made to announce these after the market closed to minimize uncertainty. Q: Can you give us the top two or three most important changes you think the company has to make going forward? A: Tom Conrad emphasized reorganizing the company into a more efficient structure, rightsizing the expense base, and clarifying focus areas to improve operational and financial performance. The goal is to get Sonos back on track by enhancing the core customer experience and driving innovation. Q: Last quarter, the message was the app was almost there. Where do we think we are today, and how much longer will it take to restore the brand? A: Tom Conrad stated that while progress has been made, there is still work to do to meet his standards. The focus is on performance, reliability, usability, design, and new experiences. He emphasized continuous improvement as a key to success. Q: With all the changes you're implementing, can we still expect two product launches a year? A: Tom Conrad confirmed the commitment to shipping many great products each year but refrained from making specific commitments about the product roadmap. Q: Can you discuss the 12% reduction in force and changes in the software development team? A: Tom Conrad explained that the reduction was focused on the product organization, revealing redundancies and allowing for a more efficient team. Leadership changes were made to ensure the right team is in place to enhance the core experience. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Bloomberg
05-02-2025
- Business
- Bloomberg
Sonos Cuts 12% of Workers in Bid to Improve Product Organization
Sonos Inc. said it's cutting about 12% of its staff, or 200 workers, in a bid to make its product teams 'flatter, smaller and more focused.' Santa Barbara, California-based Sonos, maker of high-end speakers and audio equipment, announced the cuts Wednesday in a companywide call, saying that employees will be informed imminently if they are being laid off.
