Core Insights - iRobot Corporation (IRBT) reported a narrower adjusted loss of 3 cents per share for Q3 2024, compared to a loss of $2.82 per share in the same quarter last year, and better than the Zacks Consensus Estimate of a loss of 5 cents per share [1] - Revenue for the quarter was $193.4 million, missing the Zacks Consensus Estimate of $218 million, but reflecting a year-over-year increase of 3.9% due to higher sales of two-in-one products [2] Revenue Details - Sales from premium and mid-tier robots accounted for 79% of total robot revenues, down from 80% in the previous year [2] - Total product units shipped were 732 thousand, a year-over-year increase of 16.8%, while average selling prices decreased by 5.4% [2] - Revenue from solo and other products was $83 million, down 34.1% year over year, with units shipped declining by 35.7% [3] - Revenue from two-in-one products surged 83.3% year over year to $110 million, with units shipped increasing from 181 thousand to 445 thousand [3] - Domestic operations contributed 54.4% of revenues, totaling $105.1 million, a 22.6% increase year over year, while international revenues fell 12.1% to $88.3 million [4] Margin Profile - Cost of revenues decreased by 5.2% year over year to $131.1 million, while adjusted gross profit rose 27% to $62.8 million, leading to an adjusted gross margin increase of 590 basis points to 32.4% [5] - Research and development expenses were reduced by 47.4% to $19.6 million, and selling and marketing expenses decreased by 29.6% to $29.3 million [5] - Adjusted operating income was $15.1 million, a significant improvement from a loss of $40.6 million in the prior year, with an adjusted operating margin of 7.8% compared to (21.8%) previously [6] Balance Sheet and Cash Flow - At the end of Q3, iRobot had cash and cash equivalents of $99.4 million, down from $185.1 million at the end of Q4 2023, while total long-term liabilities decreased to $227.1 million from $250.1 million [7] - In the first nine months of 2024, the company used net cash of $30.5 million from operating activities, a reduction from $113.6 million in the prior year, with capital expenditures for property and equipment declining by 96.2% to $118 million [8] Outlook - For Q4 2024, iRobot expects net sales between $175 million and $200 million, with an adjusted gross margin projected between 24% and 27%, and an adjusted loss per share estimated between $1.2 and $1.5 [9] - For the full year 2024, management forecasts net sales in the range of $685 million to $710 million, down from the previous estimate of $765 million to $800 million, with an adjusted gross margin expected between 25% and 26%, and an adjusted loss per share projected between $4.91 and $4.60, compared to earlier expectations of a loss between $3.31 and $3.77 [10]

Core Viewpoint - iRobot Corporation reported Q3 results showing improvement in margins year-over-year, but the market reacted negatively due to a substantial reduction in guidance, resulting in a 35% decline in share price [1]. Financial Performance - The company demonstrated decent improvement in margins compared to the previous year [1]. Market Reaction - The significant lowering of guidance overshadowed the positive margin improvements, leading to a sharp decline in the company's share price by 35% [1].

Company Overview - iRobot is laying off 105 employees, which constitutes about 16% of its workforce, as part of an operational restructuring plan [1] - Since the beginning of 2024, iRobot has reduced its global workforce by approximately 50% [1] - Earlier this year, iRobot had already cut around 350 jobs, representing about 31% of its workforce [1] Acquisition Details - Amazon had intended to acquire iRobot for $1.7 billion, but the agreement was mutually terminated due to regulatory approval concerns in the European Union [2] - As a result of the termination, iRobot received a $94 million fee from Amazon [2] Operational Changes - iRobot's CEO Gary Cohen stated that the recent layoffs are part of a transformation that has changed the way the company collaborates with partners to develop and build robots [3] - The new operating model is designed to significantly increase new product introductions while utilizing less than half of the internal resources and approximately one-third of the cost [3] - This transformation aims to enhance performance and generate long-term shareholder value [3]

Financial Data and Key Metrics - Q3 2024 revenue totaled $193.4 million, up from $186.2 million in Q3 2023, driven by the timing of certain large orders [23] - Gross margin expanded by 590 basis points year-over-year to 32.4% in Q3 2024, compared to 26.5% in Q3 2023 [9][26] - Operating expenses decreased by 47% year-over-year to $47.7 million in Q3 2024, including a one-time benefit of $13.5 million from an IP litigation settlement [27][28] - Operating income improved to $15.1 million in Q3 2024, compared to an operating loss of $40.6 million in Q3 2023 [31] - Net income per share was $0.03 in Q3 2024, compared to a net loss per share of $2.82 in Q3 2023 [32] Business Line Data and Key Metrics - Two-in-one products represented 57% of total robot sales in Q3 2024 [25] - Mid-tier and premium robots (MSRP $300+) accounted for 79% of total robot sales in Q3 2024, slightly down from 80% in Q3 2023 [25] - Direct-to-consumer (D2C) sales decreased by 1% year-over-year, representing 19% of total revenue in Q3 2024 [25] Market Data and Key Metrics - Revenue increased by 23% in the US, declined by 20% in Japan, and declined by 11% in EMEA in Q3 2024 [24] - Japan's revenue decline was partly due to the weak yen, with a 15% decline excluding foreign currency impact [24] - EMEA is already seeing a return to growth, while the US is expected to return to growth in 2025 [17] Company Strategy and Industry Competition - The company is executing its iRobot Elevate strategy, focusing on operational and organizational changes, new product launches, and gross margin expansion [7][8][15] - iRobot Labs was established to accelerate innovation and reduce time-to-market, leveraging global engineering talent and partnerships [11] - The company has reduced its global workforce by approximately 50% since the start of 2024 to improve efficiency and reduce costs [12] - New product launches, such as the Roomba Combo 2 Essential and Roomba Vac 2 Essential, are expected to drive revenue growth and margin improvement in 2025 [13][14] Management Commentary on Operating Environment and Future Outlook - The company expects a challenging macroeconomic environment to persist through the holiday season, leading to a reset of full-year guidance [10][35] - Full-year 2024 revenue is expected to be in the range of $685 million to $710 million, with gross margin between 25% and 26% [36] - The company anticipates returning to year-over-year organic top-line growth in 2025, driven by new product launches and a revitalized product lineup [39] - Gross margin expansion and improved cash flow from operations are expected to continue in 2025 [17] Other Important Information - The company announced executive leadership changes, with CFO Julie Zeiler and CHRO Russ Campanello retiring, and Karian Wong and Jules Connelly stepping into their roles [18][19] - The company plans to participate in investor conferences, including the Raymond James TMT and Consumer Conference and the Needham Growth Conference [40] Q&A Session Summary Question: Gross Margin Expectations for 2025 - The company expects to launch new products with a stronger margin profile in 2025 but has not provided explicit guidance yet [45] Question: Growth Expectations for 2025 - The company anticipates year-over-year top-line growth for full-year 2025, with stronger performance in the second half as the product lineup ramps up [46] Question: Market Forecast for 2025 - Growth in 2025 is expected to be driven by premium multifunctional products in EMEA and the US, as well as a recovery in the US market after pandemic-related declines [47][48] Question: Essentials Line Impact on Gross Margins - The essentials line is expected to contribute to gross margin improvements, with newer products offering enhanced features and functions [51] Question: Customer Conversations Post-Amazon Process - The company has positive relationships with retailers and is working to secure permanent and expanded retail distribution, with upcoming line reviews determining future placements [52]

Core Viewpoint - iRobot reported quarterly earnings of $0.03 per share, surpassing the Zacks Consensus Estimate of a loss of $0.05 per share, marking a significant improvement from a loss of $2.82 per share a year ago, resulting in an earnings surprise of 160% [1] Financial Performance - iRobot's revenues for the quarter ended September 2024 were $193.44 million, which fell short of the Zacks Consensus Estimate by 11.20%, compared to revenues of $186.18 million in the same quarter last year [2] - Over the last four quarters, the company has exceeded consensus EPS estimates two times and has only topped consensus revenue estimates once [2] Stock Performance - iRobot shares have declined approximately 73.1% since the beginning of the year, contrasting with the S&P 500's gain of 21.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $246.04 million, while for the current fiscal year, the estimate is -$3.52 on revenues of $780.24 million [7] - The trend of estimate revisions for iRobot is mixed, and future changes in estimates will be closely monitored following the recent earnings report [6][7] Industry Context - The Industrial Automation and Robotics industry, to which iRobot belongs, is currently ranked in the top 40% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - In Q3 2024, iRobot reported revenue of $193.4 million, a 3.9% increase from $186.2 million in Q3 2023[4] - The non-GAAP gross margin improved by 590 basis points year-over-year, reaching 32.4% compared to 26.5% in Q3 2023[7] - GAAP operating expenses decreased to $55.1 million in Q3 2024 from $107.5 million in Q3 2023, reflecting a significant reduction in costs[4] - iRobot's GAAP net loss per share improved to ($0.21) in Q3 2024, compared to ($2.86) in Q3 2023[6] - Revenue for the three months ended September 28, 2024, was $193,435 thousand, a 3.4% increase from $186,176 thousand for the same period in 2023[22] - Gross profit for the three months ended September 28, 2024, was $62,377 thousand, compared to $47,996 thousand for the same period in 2023, representing a 30.2% increase[22] - Operating income for the three months ended September 28, 2024, was $7,257 thousand, a significant improvement from a loss of $59,494 thousand in the same period last year[22] - Net loss for the nine months ended September 28, 2024, was $68,410 thousand, compared to a net loss of $241,117 thousand for the same period in 2023[24] - Non-GAAP gross profit for the three months was $62.8 million, compared to $49.4 million in the same period last year, reflecting a significant improvement[31] - GAAP operating income was $7.3 million, compared to a loss of $59.5 million in the same quarter last year[31] - Non-GAAP operating income for the three months was $15.1 million, a recovery from a loss of $40.6 million in the same period last year[31] Revenue Breakdown - Revenue from mid-tier and premium robots accounted for 79% of total robot sales in Q3 2024, slightly down from 80% in the same period last year[10] - In Q3 2024, revenue increased by 23% in the U.S., while it declined by 20% in Japan and 11% in EMEA compared to the prior year[9] - Domestic revenue increased to $105.1 million, up 23% from $85.8 million year-over-year, while international revenue decreased by 12% to $88.3 million[25] - Total robot units shipped reached 732, a 17% increase compared to 627 units shipped in the same quarter last year[25] - Average gross selling prices for robot units decreased to $313 from $331 year-over-year[25] Cost Management and Restructuring - iRobot has reduced its total headcount by 41% since the end of 2023 as part of its restructuring efforts[9] - Research and development expenses for the three months ended September 28, 2024, were $19,630 thousand, a decrease from $37,336 thousand in the same period last year[22] - Selling and marketing expenses for the three months ended September 28, 2024, were $29,270 thousand, down from $41,558 thousand in the same period last year[22] - The company is focusing on strategic initiatives and cost restructuring to enhance operational efficiency and productivity[28] Cash and Assets - As of September 28, 2024, iRobot's cash and cash equivalents totaled $99.4 million, down from $108.5 million at the end of Q2 2024[7] - Cash and cash equivalents at the end of the period were $99,447 thousand, down from $189,649 thousand at the end of the same period last year[24] - Total assets as of December 30, 2023, were $733,698 thousand, with total liabilities of $537,211 thousand[23] Future Guidance - iRobot plans to achieve a revenue range of $685 million to $710 million for the full fiscal year 2024[16] - GAAP Gross Profit guidance for Q4 2024 is projected to be between $42 million and $54 million, with a full year guidance of $168 million to $179 million[34] - Non-GAAP Gross Margin for Q4 2024 is expected to be between 24% and 27%, and for FY 2024, it is projected to be between 25% and 26%[34] - GAAP Operating Loss for Q4 2024 is estimated to be between $(43) million and $(34) million, while for FY 2024, it is projected to be between $(84) million and $(75) million[34] - Non-GAAP Operating Loss for Q4 2024 is expected to be between $(31) million and $(22) million, and for FY 2024, it is projected to be between $(104) million and $(95) million[34] - GAAP Net Loss Per Share for Q4 2024 is projected to be between $(1.88) and $(1.58), while for FY 2024, it is expected to be between $(4.27) and $(3.96)[34] - Non-GAAP Net Loss Per Share for Q4 2024 is estimated to be between $(1.50) and $(1.20), and for FY 2024, it is projected to be between $(4.91) and $(4.60)[34] - The number of shares used in diluted per share calculation for Q4 2024 is approximately 30.6 million[34] Operational Metrics - Days sales outstanding increased to 48 days, compared to 36 days in the previous period[32]

BEDFORD, Mass., Nov. 6, 2024 /PRNewswire/ -- iRobot Corp. (NASDAQ: IRBT), a leader in consumer robots, today announced that Julie Zeiler, the company's chief financial officer, and Russ Campanello, the company's chief human resources officer, will retire, effective December 2, 2024. Karian Wong, iRobot's senior vice president and principal accounting officer, will succeed Ms. Zeiler as chief financial officer, and Jules Connelly, the company's former senior director of human resources, will succeed Mr. Camp ...

Continues to Make Progress on "iRobot Elevate" StrategyRevises Full-year 2024 OutlookBEDFORD, Mass., Nov. 6, 2024 /PRNewswire/ -- iRobot Corp. (NASDAQ: IRBT), a leader in consumer robots, today announced its financial results for the third quarter ended September 28, 2024."We continue to make progress on our turnaround strategy," said Gary Cohen, iRobot's CEO. "In the third quarter, we expanded our non-GAAP gross margin by 590 basis points year over year and improved our use of operating cash. However, our ...

BEDFORD, Mass., Oct. 22, 2024 /PRNewswire/ -- iRobot Corp. (NASDAQ: IRBT), a leader in consumer robots, today announced that the company will host its third-quarter 2024 earnings conference call on Wednesday, November 6, 2024. Prior to the call, iRobot will issue a press release announcing its financial results, along with supplemental financial information. The earnings press release will be posted to the company's investor relations website at https://investor.irobot.com/news-releases.Conference call deta ...

Roomba Combo® 2 Essential and Roomba® Vac 2 Essential give customers 2x cleaning power1 and 60 days of hands-free 2-in-1 cleaning with AutoEmpty™ dockBEDFORD, Mass., Oct. 21, 2024 /PRNewswire/ -- iRobot Corp. (NASDAQ: IRBT), a leader in consumer robots, today announced availability of the 2-in-1 Roomba Combo® 2 Essential robot and Roomba® Vac 2 Essential robot in North America. These robots are the first in the company's affordable Essential series that automatically empty their dust bin into an AutoEmpty™  ...