Sonos, Inc.

Thank you for standing by. My name is JL 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. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask questions during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. I would now like to turn the conference over to James Boglanis, Head of Investor Relations, you may begin.

Good afternoon and welcome to Sonos' first quarter fiscal 2025 earnings conference call. I am James Beglones and with me today are Sonos interim CEO, Tom Conrad, CFO, Sayori 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 in 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.

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 Sonus 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 myself, I know the magic of Sonos, but I also know the extreme disappointment of the company's recent app challenges. With respect to our expense base, I'm closely partnering with our CFO Sayori 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 right-sized, cross-functional projects that maximize our efficiency as we continuously evaluate, prioritize, and focus on the highest value market opportunities. These changes revealed organizational layers and redundancies that were not serving us. This means the difficult task of saying goodbye to about 200 employees, including nearly 50 managers and executives. This is one more step in the structural transformation process that Sayori has been describing on our last two earnings calls. This process began in our GNA function and other parts of Sonos have followed suit. As I just mentioned, our focus is now on the total overhaul of the product organization, which houses more than half of our employees. While these actions represent a major milestone in our transformation journey, we are not finished. We will continue to carefully scrutinize the allocation of all dollars to ensure that they are being applied to the highest return opportunities. The leaner and more effective we are as a company, the better we can capitalize on the opportunities in front of us. It's a wonderful honor to be stepping into LeadSonus at this pivotal juncture. The board will be conducting a robust national search for the next permanent CEO with the assistance of a leading executive search firm, and I will be a candidate. While that process plays out, there's no time to lose in pushing forward the vital work of fixing, restructuring, and innovating. Sonus today has the deepest, most innovative product lineup in its history. There's tremendous opportunity in front of us, and my job is to help Sonus take full advantage of it while running the company with a heightened focus on fiscal responsibility. We have a terrific team, and I look forward to the progress we're going to make together. Now, let me turn things over to Saori to discuss our Q1 results.