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iRobot reports revenue decline

by Pieter Werner

iRobot Corporation, provider of consumer robot products, has disclosed its financial results for both the fourth quarter and the entirety of 2023. The company’s revenue for the fourth quarter was reported at $307.5 million, a decrease from $357.9 million in the previous year. The GAAP net loss per share was $2.28, an improvement from the $3.07 loss per share in the same quarter last year. However, on a non-GAAP basis, the net loss per share increased from $1.54 to $1.82.

For the full year of 2023, iRobot’s revenue declined to $890.6 million, down from $1,183.4 million in 2022. The GAAP net loss per share deepened to $11.01 from $10.52 in the previous year, and similarly, the non-GAAP net loss per share worsened from $4.50 to $7.73.

Glen Weinstein, the Interim CEO of iRobot, spoke about the company’s current efforts to stabilize the business through an operational restructuring plan. This plan is aimed at simplifying the company’s cost structure and creating a more sustainable business model while focusing on core value drivers. Weinstein expressed confidence in iRobot’s innovation capabilities and its potential to navigate through this challenging period successfully.

Looking ahead to 2024, iRobot anticipates its full-year revenue to be between $825 and $865 million. The company expects a GAAP net loss per share between $3.13 and $2.70, and a non-GAAP net loss per share between $3.73 and $3.30. iRobot’s main financial priorities are to manage liquidity and cash flow effectively. The company expects a significant improvement in cash outflow from operations in fiscal 2024 compared to the $114.8 million outflow reported in 2023. Notably, this outlook excludes the net proceeds from the $94 million break-up fee received from Amazon.

In terms of its operational restructuring plan, initiated on January 29, 2024, iRobot aims to align its cost structure with near-term revenue expectations and improve its bottom line. This includes focusing on margin improvements, reducing research and development expenses, centralizing global marketing activities, streamlining legal entity and real estate footprint, and implementing workforce reductions. The company plans to reduce its workforce by approximately 31%, affecting about 350 employees.

Geographically, iRobot’s revenue in the fourth quarter of 2023 saw a decline across various regions, with a 20% decrease in the U.S., a 19% decrease in Japan, and a 5% decrease in EMEA (Europe, Middle East, and Africa) compared to the previous year. Additionally, mid-tier and premium robots continued to dominate the company’s sales, representing 83% of total robot sales in the fourth quarter of 2023.

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