iRobot(IRBT)2024-08-06 20:18Revenue and Sales Performance - Q2 2024 revenue declined to $166.4 million, a 29.7% decrease compared to Q2 2023 revenue of $236.6 million[5] - Revenue for the three months ended June 29, 2024 was $166.361 million, a decrease from $236.568 million in the same period in 2023[21] - Total revenue for the three months ended June 29, 2024, was $166.361 million, a decrease from $236.568 million in the same period last year[27] - Domestic revenue for the three months ended June 29, 2024, was $84.364 million, compared to $130.958 million in the prior year period[27] - International revenue for the three months ended June 29, 2024, was $81.997 million, down from $105.610 million in the same period last year[27] - Revenue from mid-tier and premium robots represented 76% of total robot sales in Q2 2024, down from 84% in the same period last year[8] - Total robot units shipped for the three months ended June 29, 2024, were 574,000, a decrease from 831,000 in the prior year period[27] - Average gross selling price for robot units for the three months ended June 29, 2024, was $330, compared to $347 in the same period last year[27] Gross Margin and Profitability - GAAP gross margin for Q2 2024 was 16.5%, down from 22.6% in Q2 2023, impacted by an $18.4 million non-recurring charge related to inventory write-offs[5][6] - GAAP gross margin for the three months ended June 29, 2024, was 16.5%, compared to 22.6% in the same period last year[34] - Non-GAAP gross margin for the three months ended June 29, 2024, was 16.7%, down from 23.2% in the prior year period[34] - GAAP Gross Profit guidance for Q3-24 is $72 - $76 million, with a Gross Margin of 33% - 34%[39] - Non-GAAP Gross Profit guidance for Q3-24 is $72 - $76 million, with a Gross Margin of 33% - 34%[39] Operating Expenses and Losses - GAAP operating loss for the three months ended June 29, 2024, was $61.068 million, compared to $71.056 million in the same period last year[34] - Non-GAAP operating loss for the three months ended June 29, 2024, was $48.203 million, an improvement from $50.485 million in the prior year period[34] - GAAP Operating Expenses for FY-24 are projected to be $267 - $271 million[39] - Non-GAAP Operating Expenses for FY-24 are projected to be $291 - $295 million[39] - Research and development expenses for the six months ended June 29, 2024 were $57.108 million, compared to $79.240 million in the same period in 2023[21] - Selling and marketing expenses for the six months ended June 29, 2024 were $69.696 million, compared to $98.072 million in the same period in 2023[21] Net Loss and Cash Flow - Net loss for the six months ended June 29, 2024 was $62.039 million, compared to a net loss of $161.912 million in the same period in 2023[21] - GAAP Net Loss for the six months ended June 29, 2024, was $(62,039) million, compared to $(161,912) million for the same period in 2023[36] - Non-GAAP Net Loss for the six months ended June 29, 2024, was $(100,581) million, compared to $(85,215) million for the same period in 2023[36] - GAAP Net Loss Per Share guidance for Q3-24 is $(0.40) - $(0.30)[39] - Non-GAAP Net Loss Per Share guidance for Q3-24 is $(0.11) - $(0.01)[39] - Net cash used in operating activities for the six months ended June 29, 2024 was $20.233 million, compared to $58.111 million in the same period in 2023[25] - The company expects to generate modest positive cash flow from operations during the second half of 2024[14] Inventory and Assets - Inventory as of June 29, 2024, totaled $101.4 million, a 41% reduction compared to Q2 2023[7] - Inventory decreased to $101.365 million as of June 29, 2024 from $152.469 million as of December 30, 2023[23] - Non-GAAP Days in Inventory for the six months ended June 29, 2024, was 67 days, compared to 86 days for the same period in 2023[36] - Total assets decreased to $585.939 million as of June 29, 2024 from $733.698 million as of December 30, 2023[23] Cash and Liabilities - Cash and cash equivalents decreased to $108.513 million as of June 29, 2024 from $185.121 million as of December 30, 2023[23] - Total current liabilities decreased to $221.644 million as of June 29, 2024 from $287.147 million as of December 30, 2023[23] - Days Sales Outstanding for the six months ended June 29, 2024, was 37 days, compared to 28 days for the same period in 2023[36] Headcount and Compensation - The company reduced its total headcount by 35% since year-end 2023[7] - Headcount as of June 29, 2024, was 726, a decrease from 1,139 in the prior year period[27] - Stock-based compensation for the six months ended June 29, 2024 was $12.458 million, compared to $16.505 million in the same period in 2023[21] Product Launches and Distribution - The company introduced the Roomba Combo 10 Max robot + AutoWash Dock, its most advanced product, in July 2024[4][10] - The Roomba Essential series achieved full distribution coverage, launching in 14,000 stores across all regions[9] Revenue and Gross Margin Guidance - Q3 2024 revenue is expected to be between $217 million and $223 million, with a GAAP gross margin of 33% to 34%[12] - Full-year 2024 revenue is revised to $765 million to $800 million, with a GAAP gross margin of 27% to 28%[13]