Financial Data and Key Metrics Changes - In Q4 2023, revenue was $308 million, a decline of 14% year-over-year, with a gross margin of 19%, down 5 percentage points from the previous year [7][20] - For the full year 2023, revenue decreased by 25% to $891 million, with a gross margin of 22.5%, down 7 percentage points from 2022 [21][22] - The operating loss for Q4 was $45 million, and the net loss per share was $1.82, while the full year operating loss was $199 million, with a net loss per share of $7.73 [7][21] Business Line Data and Key Metrics Changes - Two-in-one products accounted for 43% of Q4 revenue, while accessory revenue grew 18% year-over-year, representing approximately 7% of total revenue [19] - Direct-to-consumer (D2C) sales declined 9% year-over-year, with D2C revenue making up 21% of total revenue in Q4 [20] Market Data and Key Metrics Changes - Geographically, Q4 revenue declined by 20% in the U.S., 19% in Japan, and 5% in EMEA [19] - The overall market conditions remained challenging, with increased competition noted in EMEA, Japan, and the U.S. throughout 2023 [19] Company Strategy and Development Direction - The company is implementing a restructuring plan aimed at stabilizing operations and advancing long-term growth initiatives, focusing on simplifying the cost structure and enhancing core value drivers [8][31] - The strategy includes leveraging brand and innovative products to reclaim leadership in mid and premium segments and focusing on profitable geographies [8][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged sluggish consumer spending and aggressive competition as ongoing challenges, but expressed confidence in the company's ability to navigate these issues as a standalone entity [6][7] - The company anticipates modest revenue decline in 2024, with expectations of a recovery in the second half of the year [24][25] Other Important Information - The company plans to reduce its workforce by approximately 350 employees, representing about 31% of its workforce, with restructuring charges expected to be between $12 million and $13 million [13] - Liquidity and cash management are top priorities, with expectations of improved cash flow from operations in 2024 compared to 2023 [14][29] Q&A Session Summary Question: Can you elaborate on the gross margin improvement initiatives? - Management indicated that gross margin improvements will come from product mix, fixed cost reductions, and ongoing cost improvements on existing products [34][35][36] Question: What are the expectations for revenue recovery in the second half of the year? - Management noted that large orders may shift between quarters, impacting growth rates, and emphasized the importance of optimizing international channels [39][40] Question: Why is the first half of 2024 expected to be weaker? - Management explained that shifts in large orders and ongoing optimization efforts contribute to the anticipated weakness in the first half, with improvements expected in the second half [42][43]

Shares of iRobot Corp. initially jumped 10% then cooled in after-hours trading Wednesday after the company posted quarterly results that topped analysts’ revenue and earnings estimates. IRobot IRBT, +4.30% reported a fiscal fourth-quarter net loss of $63.6 million, or $2.28 a share, compared with a net loss of $84.1 million, or $3.07 a share, in the same quarter a year ago. Adjusted earnings were a loss of $1.82 a share. Revenue dropped to $307.5 million from $357.9 million in the year-ago quarter. An ...

Revenue Performance - iRobot's total revenue for fiscal 2023 was $890.6 million, a decline of 24.7% from $1,183.4 million in fiscal 2022[91]. - Domestic revenue decreased by $186.6 million, or 30.3%, while international revenue declined by $106.2 million, or 18.7%[91]. - Revenue for fiscal 2023 decreased 24.7% to $890.6 million from $1,183.4 million in fiscal 2022, with domestic revenue down 30.3% and international revenue down 18.7%[119]. - Total revenue for the fiscal year ended December 30, 2023, was $890,580, a decrease of 24.8% from $1,183,383 in the previous year[178]. - Revenue from the United States was $428.53 million, down 30.3% from $615.11 million in the previous year[237]. Profitability and Losses - iRobot reported an operating loss of $264.1 million in fiscal 2023, with an operating margin of (29.7)%[98]. - GAAP Net Loss for Q4 2023 was $(304,710) thousand, worsening from $(286,295) thousand in Q4 2022, representing an increase in losses of approximately 6.5%[102]. - Net loss for fiscal 2023 was $(304.7) million, compared to $(286.3) million in fiscal 2022, highlighting ongoing financial difficulties[124]. - Operating loss for fiscal 2023 was $(264.1) million, compared to $(240.4) million in fiscal 2022, indicating continued challenges in profitability[124]. - Basic loss per share for the fiscal year ended December 30, 2023, was $(11.01), compared to $(10.52) in 2022[229]. Expenses and Cost Management - The company reduced operating expenses by $130.2 million in fiscal 2023 compared to the previous year[91]. - Total operating expenses for fiscal 2023 were $460.3 million, down from $590.5 million in fiscal 2022, reflecting a reduction in research and development and marketing expenses[124]. - Research and development expenses for fiscal 2023 were $144.1 million, down from $166.5 million in fiscal 2022, indicating a strategic focus on cost management[124]. - Selling and marketing expenses decreased by $91.6 million, or 31.2%, to $201.7 million, representing 22.6% of revenue in fiscal 2023[132]. - General and administrative expenses decreased by $9.0 million, or 7.6%, to $109.1 million, representing 12.3% of revenue in fiscal 2023[134]. Inventory and Cash Management - As of December 30, 2023, iRobot's inventory balance was $152.5 million, a reduction of $132.8 million from the end of fiscal 2022[91]. - Inventory balance as of December 30, 2023, was $152.5 million, a reduction of $132.8 million from fiscal 2022, equating to 56 days of inventory[192]. - Cash and cash equivalents as of December 30, 2023, were $185.1 million, a significant increase from $117.9 million as of December 31, 2022[142]. - The company experienced a net cash used in operating activities of $114.79 million, an increase from $90.02 million in the prior year[185]. Restructuring and Future Plans - The company plans to implement an operational restructuring plan aimed at improving gross margins and profitability following the termination of a merger agreement[124]. - The operational restructuring plan announced on January 29, 2024, includes workforce reduction and a shift to contract manufacturers[127]. - The company plans to reduce headcount by approximately 350 employees, representing about 31% of its global workforce, with total reductions since fiscal 2021 expected to reach approximately 550 employees[192]. - The Company expects to incur restructuring charges of approximately $12 million to $13 million in the first two quarters of 2024 related to the workforce reduction[192]. Product Development and Market Competition - iRobot introduced new products including the Roomba Combo i5+ and j9+, along with new features in iRobot OS to enhance user experience[91]. - The decrease in revenue was attributed to a 27.5% decline in total robots shipped and increased pricing competition in the market[119]. - The gross margin decline was driven by increased promotional activities and higher rework costs, despite some cost reductions in product and freight expenses[124]. Debt and Financing - iRobot entered into a $200 million Term Loan in July 2023 to fund ongoing operations[93]. - The company entered into a $200.0 million senior secured term loan credit facility, receiving total proceeds of $188.2 million net of debt issuance costs[148]. - The Company incurred $10.6 million of interest expense related to the Term Loan during fiscal 2023, with $4.5 million unpaid and included in accrued expenses[266]. Impairments and Reserves - The Company recorded an impairment charge of $4.9 million related to acquired intangible assets during the fourth quarter of 2023[208]. - The Company recorded impairment charges of $3.9 million for non-marketable equity securities in both fiscal 2023 and 2022[211]. - The Company had reserves for product returns of $24.6 million and other credits and incentives of $95.3 million as of December 30, 2023, compared to $49.2 million and $106.5 million, respectively, in 2022[233].

BEDFORD, Mass., Feb. 15, 2024 /PRNewswire/ -- iRobot Corp. (NASDAQ: IRBT), a leader in consumer robots, announced today it will issue its fourth-quarter 2023 financial results after market close on Monday, February 26, 2024. The earnings press release will be posted at https://investor.irobot.com/news-releases.  In conjunction with this news, iRobot will host a live webcast and conference call, open to all interested investors, to review its fourth-quarter 2023 financial results and discuss its outlook on T ...

In this podcast, Motley Fool analyst Jason Moser and host Deidre Woollard discuss:Why Amazon ended the iRobot deal.Where iRobot could go next.If Sofi is building the next big bank.Eric Siegel, author of The AI Playbook, explains some of the challenges facing companies looking to adopt artificial intelligence.To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows t ...

Amazon's (AMZN -0.95%) bid to buy iRobot (IRBT -6.39%) is over. But this hardly ends the robot maker's saga as the company deals with losses and growing debt on its balance sheet. Travis Hoium covers the challenge ahead in this video.*Stock prices used were end-of-day prices of Jan. 29, 2024. The video was published on Jan. 30, 2024. ...

By now, you've probably heard the news: The European Commission (EC) wanted Amazon (AMZN 0.66%) to make unspecified concessions to allay its concerns that allowing the e-commerce giant to acquire iRobot (IRBT -7.65%) wouldn't hinder competition among manufacturers of robot vacuums. iRobot refused, making it unlikely the EC would approve Amazon taking iRobot in house. And today, Amazon made it official: It's walking away from the merger, and is in fact so uninterested in acquiring iRobot at this point that i ...

Plans by Amazon and vacuum cleaner maker iRobot to merge have been abandoned following concerns that the move would harm competition.The $1.4bn (£1.1bn) deal, which was first announced in August 2022, had previously been approved by UK regulators. But in November the European Commission expressed concerns the online retailer might give iRobot's products preferential treatment on its website - ahead of rival vacuum companies - if the merger went ahead.Amazon confirmed on Monday that the deal had now collapse ...

Even as the artificial intelligence (AI) boom continues, some companies in the space are struggling. For iRobot (NASDAQ:IRBT), the future appears questionable at best. The company best known for producing the iconic Roomba vacuum has been trending downward for the past month, but recently, it has made three troubling announcements. To start, Amazon (NASDAQ:AMZN) has decided not to acquire the company due to regulatory concerns. But it only gets worse from there. iRobot is about to lay off more than 30% of i ...

Irobot (NASDAQ:IRBT) layoffs are coming for the Roomba company’s employees after its plans to be acquired by Amazon (NASDAQ:AMZN) fell apart.With the Amazon deal no longer moving forward, iRobot has revealed that it is laying off roughly 31% of its workers. That means about 350 of the company’s employees are losing their jobs.To go along with these layoffs, iRobot has announced that chairman and CEO Colin Angle is stepping down from the company. Now the company plans to focus on improving margins, reducing ...