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iRobot's Q3 Earnings Surpass Estimates, Revenues Increase Y/Y
IRBTiRobot(IRBT) ZACKS·2024-11-07 17:31

Core Insights - iRobot Corporation (IRBT) reported a narrower adjusted loss of 3 cents per share for Q3 2024, compared to a loss of 2.82pershareinthesamequarterlastyear,andbetterthantheZacksConsensusEstimateofalossof5centspershare[1]−Revenueforthequarterwas2.82 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 218million,butreflectingayear−over−yearincreaseof3.9218 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 110million,withunitsshippedincreasingfrom181thousandto445thousand[3]−Domesticoperationscontributed54.4110 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 88.3million[4]MarginProfile−Costofrevenuesdecreasedby5.288.3 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 62.8million,leadingtoanadjustedgrossmarginincreaseof590basispointsto32.462.8 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 29.3million[5]−Adjustedoperatingincomewas29.3 million [5] - Adjusted operating income was 15.1 million, a significant improvement from a loss of 40.6millionintheprioryear,withanadjustedoperatingmarginof7.840.6 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 185.1millionattheendofQ42023,whiletotallong−termliabilitiesdecreasedto185.1 million at the end of Q4 2023, while total long-term liabilities decreased to 227.1 million from 250.1million[7]−Inthefirstninemonthsof2024,thecompanyusednetcashof250.1 million [7] - In the first nine months of 2024, the company used net cash of 30.5 million from operating activities, a reduction from 113.6millionintheprioryear,withcapitalexpendituresforpropertyandequipmentdecliningby96.2113.6 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 175millionand175 million and 200 million, with an adjusted gross margin projected between 24% and 27%, and an adjusted loss per share estimated between 1.2and1.2 and 1.5 [9] - For the full year 2024, management forecasts net sales in the range of 685millionto685 million to 710 million, down from the previous estimate of 765millionto765 million to 800 million, with an adjusted gross margin expected between 25% and 26%, and an adjusted loss per share projected between 4.91and4.91 and 4.60, compared to earlier expectations of a loss between 3.31and3.31 and 3.77 [10]