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iRobot(IRBT) - 2024 Q4 - Annual Report
IRBTiRobot(IRBT)2025-03-12 11:09

Financial Performance - Total revenue for fiscal 2024 was 681.8million,adeclineof23.4681.8 million, a decline of 23.4% from 890.6 million in fiscal 2023[205]. - Domestic revenue decreased by 95.8million,or22.495.8 million, or 22.4%, while international revenue declined by 112.9 million, or 24.4%[205]. - Gross profit for fiscal 2024 was 142.4million,withagrossmarginof20.9142.4 million, with a gross margin of 20.9%, compared to 196.4 million and 22.0% in fiscal 2023[215]. - Operating loss for fiscal 2024 was 103.0million,withanoperatingmarginof(15.1)103.0 million, with an operating margin of (15.1)%, compared to a loss of 264.1 million and (29.7)% in fiscal 2023[215]. - GAAP Net Loss for fiscal 2024 was (145,518,000),downfrom(145,518,000), down from (304,710,000) in fiscal 2023, reflecting a decrease of 52.3%[225]. - Non-GAAP Net Loss for fiscal 2024 was (162,519,000),comparedto(162,519,000), compared to (214,047,000) in fiscal 2023, indicating a reduction of 24.1%[225]. - Total operating loss for fiscal 2023 was 264.1million,whiletheoperatinglossforfiscal2024wasreducedto264.1 million, while the operating loss for fiscal 2024 was reduced to 103.0 million, despite a revenue decline of 23%[355][356]. Cost Management - The operational restructuring plan resulted in a total reduction of 126.4millioninoperatingexpensesforfiscal2024comparedtothepriorfiscalyear[208].−Researchanddevelopmentexpensesforfiscal2024were126.4 million in operating expenses for fiscal 2024 compared to the prior fiscal year[208]. - Research and development expenses for fiscal 2024 were 93.3 million, a decrease from 143.5millioninfiscal2023,reflectingthecompany′soperationalrestructuringplan[257].−Sellingandmarketingexpensesforfiscal2024were143.5 million in fiscal 2023, reflecting the company's operational restructuring plan[257]. - Selling and marketing expenses for fiscal 2024 were 138.8 million, down from 199.3millioninfiscal2023,indicatingcost−cuttingmeasuresinresponsetodecliningrevenue[255].−Generalandadministrativeexpensesdecreasedby199.3 million in fiscal 2023, indicating cost-cutting measures in response to declining revenue[255]. - General and administrative expenses decreased by 121.2 million, or 116.4%, to (17.1)millioninfiscal2024,whichis(2.5)17.1) million in fiscal 2024, which is (2.5)% of revenue, down from 11.7% in fiscal 2023[267]. - Restructuring and other expenses increased by 25.8 million, or 315.8%, to 33.9millioninfiscal2024,representing5.033.9 million in fiscal 2024, representing 5.0% of revenue, compared to 0.9% in fiscal 2023[270]. Workforce and Restructuring - The company initiated a workforce reduction of approximately 440 employees, representing 40% of its global workforce as of December 30, 2023[208]. - A restructuring plan was implemented, resulting in a workforce reduction of approximately 440 employees, or 40% of the global workforce[356]. - The operational restructuring plan initiated in January 2024 aims to drive profitability through workforce reduction and targeted marketing expenditures[261]. Product Development and Market Strategy - The company launched new products including the Roomba Combo Essential and Roomba Combo 10 Max, enhancing cleaning capabilities and accessibility[204]. - The company expects to participate more fully in the robotic floorcare market segment with new product launches planned for 2025[205]. - The company plans to continue investing in software intelligence and robotics to enhance product offerings and address emerging market trends[257]. - The company announced the largest product launch in its history on March 11, 2025, with expectations of margin-accretive new products supporting year-over-year revenue growth[302]. Cash Flow and Liquidity - Cash and cash equivalents as of December 28, 2024, totaled 134.3 million, down from 185.1millionayearago[300].−Netcashusedinoperatingactivitiesforfiscal2024was185.1 million a year ago[300]. - Net cash used in operating activities for fiscal 2024 was 33.2 million, driven by a net loss of 145.5million,partiallyoffsetbynon−cashchargesof145.5 million, partially offset by non-cash charges of 78.6 million[286]. - The company has an outstanding term loan of 200.6millionasofDecember28,2024,withamaturitydateofJuly24,2026[301].−Thecompanyanticipatesimprovedcashflowfromoperationsdrivenbythenewproductlaunchandrestructuringactions[360].GoingConcernandStrategicReview−Thereissubstantialdoubtaboutthecompany′sabilitytocontinueasagoingconcernduetopotentialreduceddemandandchallengingmacroeconomicconditions[304].−Theauditor′sreportexpressessubstantialdoubtaboutthecompany′sabilitytocontinueasagoingconcern,resultinginabreachoftheGoingConcernCovenant[305].−TheiRobotBoardofDirectorshasinitiatedaformalstrategicreviewtoexplorepotentialsalesorrefinancingoptionsfortheCompany′sdebt[366].InventoryandAllowances−Inventorywasreducedto200.6 million as of December 28, 2024, with a maturity date of July 24, 2026[301]. - The company anticipates improved cash flow from operations driven by the new product launch and restructuring actions[360]. Going Concern and Strategic Review - There is substantial doubt about the company's ability to continue as a going concern due to potential reduced demand and challenging macroeconomic conditions[304]. - The auditor's report expresses substantial doubt about the company's ability to continue as a going concern, resulting in a breach of the Going Concern Covenant[305]. - The iRobot Board of Directors has initiated a formal strategic review to explore potential sales or refinancing options for the Company's debt[366]. Inventory and Allowances - Inventory was reduced to 76.0 million as of December 28, 2024, compared to 152.5millionayearago,reflectingcarefulmanagementtoalignwithnear−termrevenueexpectations[300].−TheallowanceforproductreturnsasofDecember28,2024,wasrecordedat152.5 million a year ago, reflecting careful management to align with near-term revenue expectations[300]. - The allowance for product returns as of December 28, 2024, was recorded at 14.6 million, reflecting management's expectations based on historical data[332]. - The allowance for product returns decreased to 14.6millionasofDecember28,2024,from14.6 million as of December 28, 2024, from 24.7 million as of December 30, 2023[374].