iRobot Reports Fourth-Quarter and Full-Year 2024 Financial Results

Core Insights - iRobot Corp. has made significant progress in its "iRobot Elevate" turnaround strategy, reducing operating losses, improving gross margins, and optimizing cash flow [2][4] - The company announced its largest product launch in history, which is expected to support revenue growth in 2025 and improve profitability through a lower cost structure [2][4] - The Board of Directors has initiated a strategic review to explore various alternatives, including refinancing debt and potential sales or strategic transactions [2][12][13] Financial Performance - For Q4 2024, iRobot reported revenue of $172.0 million, a decrease of 44$307.5 million in Q4 2023 [4][21] - GAAP gross margin for Q4 2024 was 9.5%, down from 18.9% in Q4 2023, while non-GAAP gross margin was 12.8%, unchanged from the previous year [4][6] - The company experienced a GAAP operating loss of $61.0 million in Q4 2024, compared to a loss of$52.2 million in Q4 2023 [4][5] Yearly Overview - For the full year 2024, iRobot's revenue was $681.8 million, down from$890.6 million in 2023 [6][21] - The GAAP gross margin for FY 2024 was 20.9%, slightly down from 22.0% in FY 2023, while non-GAAP gross margin decreased from 22.5% to 21.9% [6][8] - The company reported a GAAP net loss per share of $4.92 for FY 2024, significantly improved from a loss of$11.01 in FY 2023 [6][8] Operational Changes - iRobot has reduced its headcount by over 50% since the beginning of 2024, now employing approximately 541 individuals [2][18] - The company has centralized and consolidated sales and marketing expenses, leading to a significant reduction in operating expenses [2][4] - iRobot's inventory decreased to $76.0 million as of December 28, 2024, from$152.5 million at the end of Q4 2023 [18][22] Product Launches - The 2025 product lineup includes several new models, such as the Roomba® 105 Vac Robot series and Roomba® Plus 505 Combo Robot, which feature advanced technologies and improvements [7][8] - The company has received positive media coverage and reviews for its new products, enhancing its market position [7][8] Strategic Review - The Board of Directors has engaged financial advisors to assist in the strategic review process, which does not have a set timetable for completion [12][13][14] - The review will evaluate a range of alternatives to strengthen the company's financial position and liquidity [12][13]