Sonos CEO Patrick Spence Steps Down

Sonos has announced that the company’s Board of Directors and CEO Patrick Spence have agreed that Spence will step down as Chief Executive Officer and as a member of the Board. Spence joined Sonos as Chief Commercial Officer in 2012 and became CEO in 2017. If you haven’t been following the Sonos saga that began last spring, the short version is that the company launched a reimagined Sonos app that promised an “easier, faster, and better experience.” But when the app rolled out, it quickly became apparent to users that the app was nowhere near ready. (See our article Sonos Botches App Refresh, Long-Awaited ‘Ace’ Headphones!) 

As I explained in that article, the new app arrived without a number of core capabilities that Sonos users were accustomed to. Simple features like alarms and sleep timers were missing, and important functions like the search and playback of locally-stored files were either missing or unusable. The new app also dropped the ball on accessibility features that were available in the old app, leaving blind and visually-impaired users without crucial voice-control features they relied upon to use their Sonos gear.

It seems that Sonos forced the app rollout before it was ready because the long-rumored Sonos Ace headphones were scheduled to launch, and they couldn’t be used with the old version of the app. While it’s understandable that the company’s leadership didn’t want to delay the release of a potentially significant product, the disastrous app rollout was a major misstep, and it has cost Sonos dearly. Sonos reportedly spent tens of millions to fix the app. As the company scrambled to recover, it was forced to delay the release of the new Sonos Arc Ultra soundbar and Sub 4 subwoofer until the holiday season so that its executive team could focus on damage control for most of the second half of 2024. As we reported recently, CEO Patrick Spence laid out a plan to regain customer trust by improving operations, extending product warranties, and putting a pause on executive bonuses until the company was back on track. (See our article Can Sonos Regain Customer Trust After App Fiasco?) Apparently, this effort was deemed insufficient, and Spence was given the boot. According to SEC filings, Spence received a cash severance of nearly $1.9 million, and will be paid $7,500 per month between January and June of 2025 to serve as a Sonos board advisor. All of Spence’s unvested shares will vest — though the number and value of these shares was not published. (Not a bad payday for a monumental screwup, if you ask me.)

On behalf of the Board, I want to thank Patrick for his contributions as CEO. During his tenure, Patrick built on our pioneering success in wireless home audio and led the company’s expansion into premium audio for home theater, portables, and headphones. We appreciate Patrick's dedication to Sonos.

— Julius Genachowski, Chair of the Board of Directors of Sonos

What’s next for Sonos?

The Sonos Board has appointed an Interim CEO, Tom Conrad, who has been an independent member of the Board since 2017. The co-creator of Pandora, Conrad was Chief Technology Officer and EVP of Product at the pioneering music streaming service, and worked with the Sonos team to integrate Pandora with Sonos hardware starting in 2007. 

Early in his career, Conrad worked at Apple, contributing to the “foundational user interface of the Macintosh,” according to a Sonos press release. Most recently, he has worked as CEO of a subscription digital health platform called Zero Longevity Science. He is leaving that job to take on this Sonos position full-time, while acknowledging that it is a temporary gig, as the Board seeks a candidate for a new CEO.

I am deeply honored to step into this role at such an important moment for Sonos. Nearly two decades ago, when I led the earliest initiative to integrate Pandora and Sonos, I got my first glimpse of the magic that Sonos could bring to millions of lives every day. I am excited to work with our team to restore the reliability and user experience that have defined Sonos, while bringing innovative new products to market. Together, we will focus on delivering extraordinary experiences for our customers and strong results for our shareholders.

— Tom Conrad, Interim CEO of Sonos

Tom has been an engaged and highly valued member of our Board since 2017. …Like many of us, Tom’s first introduction to Sonos came through the company’s great products and his connection to the company dates back nearly two decades when he led the integration of Pandora with Sonos in 2007. …Tom’s mandate is to improve the Sonos core experience for our customers, while optimizing our business to drive innovation and financial performance. With his deep product expertise and long-term relationship with Sonos, Tom is uniquely suited to guide the company forward during the transition and the Board looks forward to partnering with him closely. We are excited about the opportunity ahead.

— Julius Genachowski, Chair of the Board of Directors of Sonos

After the announcement was made, the newly-appointed interim CEO wrote a letter to the company’s employees about his love for and commitment to Sonos. He said that there was a Sonos speaker in the delivery room when his daughter was born last year, and that he has a tattoo of the Sonos Ace headphones on his left forearm. But despite his enthusiasm for all things Sonos, Conrad acknowledged that the 2024 app fiasco left the company in a tough spot. “When it all works, it’s absolute magic,” he said. “It’s also true that when it doesn’t work, our customers are taken out of the moment and are right to feel that we’ve let them down. I think we’ll all agree that this year we’ve let far too many people down.” Conrad did try to raise spirits by mentioning the considerable success of the Arc Ultra soundbar and Sub 4, which enjoyed healthy sales throughout the 2024 holiday season. But, he concluded, these successes don’t undo the damage caused by the inexcusable app problems.

Getting some important things right… is just not enough when our customers’ alarms don’t go off, their kids can’t hear their playlist during breakfast, their surrounds don’t fire, or they can’t pause the music in time to answer the buzzing doorbell. I’m here to get us back on track. But is getting back on track enough? I think the answer is clearly no. Getting back to basics is necessary, but clearly not enough to unlock the future we all envision for Sonos. …There’s a tremendous amount of work in front of us, including what I’m sure will be some very challenging moments, decisions, and trade-offs, but I’m energized by the passion I see all around me for doing right by our customers and getting back to the innovation that is at the heart of Sonos’s incredible history.

— Tom Conrad, Interim CEO of Sonos

The Sonos Board has begun a search for its next CEO, and to that end, has secured the services of a leading executive search firm. The company says that it is “committed to identifying a leader who will build on the Sonos legacy of innovation and excellence in serving its customers while also driving profitable growth.” Sonos is scheduled to report its latest fiscal quarter results on February 6th, 2025, but the leadership change  — and any longterm effects it has on Sonos’s stock valuation — won’t be reflected until the following reporting period.

While the Board has initiated a search for a permanent CEO, we are confident that Tom’s leadership will position Sonos for success during this transition. Last year presented real challenges that required real resilience. We are proud of the way our Sonos team rose to meet them, and the positive response to the Arc Ultra and Sub 4 through the holidays reminds us of our ability to deliver extraordinary sound experiences for our customers. Of course, we have a lot to tackle on the road ahead – and also enormous opportunity. As we enter 2025, we’re reaffirming our commitment to delighting our customers every time they turn to Sonos while we embrace a renewed vision for the future.

— Julius Genachowski, Chair of the Board of Directors of Sonos

The day after the announcement was made about Patrick Spence’s departure from Sonos, interim CEO Tom Conrad informed Sonos employees that Chief Product Officer Maxime Bouvat-Merlin will also be exiting the company. Bouvat-Merlin will serve as an advisor to Conrad during the leadership transition, but the position of CPO is being made redundant. Moving forward, the product team will report directly to Conrad.

More information: Sonos