iRobot(IRBT)2023-11-06 16:00Revenue Performance - Total revenue for the nine months ended September 30, 2023, was $583.0 million, a decline of 29.4% from $825.5 million for the same period in 2022[91]. - Domestic revenue decreased by $150.9 million, or 34.3%, while international revenue declined by $91.6 million, or 23.7%[91]. - Total revenue for the three months ended September 30, 2023, was $186,176 thousand, a decrease from $278,191 thousand in the same period last year, representing a decline of 33.1%[95]. - Revenue for the three months ended September 30, 2023 decreased by $92.0 million to $186.2 million, a decline of 33.1% compared to $278.2 million for the same period in 2022[102]. - Domestic revenue for the three months ended September 30, 2023 decreased by $61.3 million, or 41.7%, while international revenue decreased by $30.7 million, or 23.4%[103]. Profitability and Loss - Gross profit for the three months ended September 30, 2023, was $48.0 million, with a gross margin of 25.8%[94]. - Operating loss for the nine months ended September 30, 2023, was $(211.8) million, with an operating margin of (36.3)%[94]. - Non-GAAP gross profit for the three months ended September 30, 2023, was $49,414 thousand, down from $78,322 thousand year-over-year, reflecting a decrease of 36.9%[95]. - Non-GAAP operating loss for the three months ended September 30, 2023, was $(40,649) thousand, compared to $(34,520) thousand in the same period last year, indicating a worsening of 17.8%[98]. - GAAP net loss for the three months ended September 30, 2023, was $(79,205) thousand, compared to $(128,366) thousand in the same period last year, showing an improvement of 38.3%[98]. - Non-GAAP net loss per diluted share for the three months ended September 30, 2023, was $(2.82), compared to $(1.78) in the same period last year, indicating a decline of 58.4%[98]. - Operating loss for the three months ended September 30, 2023 was $(32.0) million, compared to $(24.6) million in the same period in 2022[104]. - Net loss for the three months ended September 30, 2023 was $(42.5) million, or (42.5)%, compared to $(46.1) million, or (46.1)%, in the same period in 2022[104]. Expenses and Cost Management - Research and development expenses decreased by $4.2 million, or 10.1%, to $37.2 million in the three months ended September 30, 2023[107]. - Selling and marketing expenses decreased by $18.5 million, or 30.7%, to $41.7 million in the three months ended September 30, 2023[108]. - General and administrative expenses decreased by $3.2 million, or 10.0%, to $28.4 million for the three months ended September 30, 2023, compared to $31.5 million for the same period in 2022[109]. - General and administrative expenses increased by $5.7 million, or 6.7%, to $90.2 million for the nine months ended September 30, 2023, compared to $84.6 million for the same period in 2022[109]. - Operating expenses were reduced by $70.5 million for the nine months ended September 30, 2023, compared to the same period last year[120]. Cash Flow and Financing - Cash and cash equivalents were $189.6 million as of September 30, 2023, with working capital of $231.5 million, a slight decrease from $232.1 million as of December 31, 2022[113]. - Net cash used in operating activities for the nine months ended September 30, 2023, was $113.6 million, primarily due to a net loss of $241.1 million[115]. - Net cash used in investing activities for the nine months ended September 30, 2023, was $3.3 million, mainly for the purchase of machinery and tooling for new products[116]. - Net cash provided by financing activities for the nine months ended September 30, 2023, was $186.2 million, primarily from proceeds of the Term Loan[116]. - The company entered into a $200.0 million senior secured term loan credit facility on July 24, 2023, with total proceeds of $188.2 million net of debt issuance costs[117]. Inventory and Orders - Inventory balance as of September 30, 2023, was $244.5 million, a reduction of $40.7 million from the end of fiscal 2022[91]. - Outstanding purchase orders as of September 30, 2023, totaled approximately $205.5 million, including $102.5 million related to inventory purchases[121]. Workforce and Restructuring - The company reduced its workforce by approximately 246 employees since the end of fiscal 2021, representing a total reduction of 18%[91]. - The company reduced its workforce by approximately 246 employees since the end of fiscal 2021, representing a total reduction of 8% and 7% of the workforce in two restructuring initiatives[120]. Product Development - New product introductions in September 2023 included the Roomba Combo i5+, j5+, and j9+, enhancing the product lineup[89]. Market Conditions and Future Outlook - The company anticipates that product availability issues will continue to impact revenue performance, with some orders shifted to the fourth quarter of 2023[103]. - The company plans to continue evaluating its critical accounting policies and estimates, particularly regarding the fair value of the Term Loan, which may significantly impact future valuations[99].