iRobot Reports Q4 Adjusted Loss, Misses Revenue Estimates

Core Insights - iRobot Corporation (IRBT) reported a fourth-quarter 2024 adjusted loss of $2.06 per share, which was wider than the Zacks Consensus Estimate of a loss of $1.45 per share, but improved from a net loss of $1.82 per share in the same quarter last year [1] Revenue Details - iRobot generated revenues of $172 million, missing the Zacks Consensus Estimate of $191 million, and reflecting a year-over-year decline of 44.1% due to decreased sales of two-in-one products [2] - Sales from premium and mid-tier robots accounted for 83% of total robot revenues, up from 82% in the year-ago quarter [2] - Total product units shipped were 701 thousand, down 38.5% year over year, while average selling prices decreased by 1.4% [2] Product Performance - Revenues from solo and other products were $72 million, down 61.1% year over year, with units shipped at 279 thousand, a decrease of 60.9% [3] - Revenues from two-in-one products decreased 18.7% year over year to $100 million, with units shipped slightly down from 425 thousand to 422 thousand [3] Regional Performance - iRobot sourced 43.2% of revenues from domestic operations, with domestic revenues totaling $74.3 million, reflecting a 46.9% year-over-year decrease [4] - International revenues decreased 41.7% year over year to $97.7 million [4] Margin Profile - Cost of revenues decreased 37.5% year over year to $155.6 million, while gross profit was $16.4 million, down 71.8% year over year, leading to a gross margin decrease of 940 basis points to 9.5% [5] - Research and development expenses were $16.5 million, down 39% year over year, and selling and marketing expenses declined 33.2% to $39.9 million [5] Operating Loss - iRobot recorded an operating loss of $61 million compared to a loss of $52.2 million in the year-ago quarter, with an adjusted operating margin of (26%) compared to (14.7%) in the previous year [6] Balance Sheet and Cash Flow - At the end of the fourth quarter 2024, iRobot had cash and cash equivalents of $134.3 million, down from $185.1 million at the end of 2023 [7] - Total long-term liabilities decreased to $236.6 million from $250.1 million at the end of 2023 [7] - The company used net cash of $33.2 million from operating activities in 2024, compared to $114.8 million in the prior-year period [7]