On August 6, 2024, iRobot Corp (IRBT, Financial) released its 8-K filing detailing its financial results for the second quarter ended June 29, 2024. iRobot Corp, a U.S.-based consumer robot company, designs and builds robots that assist consumers with various home activities. The company's portfolio includes solutions for cleaning, mapping and navigation, human-robot interaction, and physical solutions, primarily sold through retail businesses and online stores.
Performance and Challenges
iRobot Corp (IRBT, Financial) reported a revenue of $166.4 million for Q2 2024, a significant decline from $236.6 million in Q2 2023. This figure fell short of the analyst estimate of $168.98 million. The company also reported a GAAP net loss per share of $2.41, compared to the analyst estimate of -$2.26. The revenue shortfall and increased losses were attributed to a challenging consumer spending environment, heightened competition, and greater-than-expected foreign currency impacts.
Financial Achievements
Despite the challenges, iRobot Corp (IRBT, Financial) made notable progress in several areas. The company successfully reduced its operating expenses and narrowed its operating loss. GAAP operating expenses decreased to $88.5 million from $124.6 million in the same period last year. Additionally, the company reduced its inventory by 41% year-over-year, reflecting a more efficient cost structure.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $166.4 million | $236.6 million |
| GAAP Gross Margin | 16.5% | 22.6% |
| GAAP Operating Loss | ($61.1) million | ($71.1) million |
| GAAP Net Loss Per Share | ($2.41) | ($2.93) |
Balance Sheet and Cash Flow
As of June 29, 2024, iRobot Corp (IRBT, Financial) reported cash and cash equivalents totaling $108.5 million, down from $118.4 million in the first quarter of 2024. The company also had $40.5 million in restricted cash set aside for future repayment of its term loan. Inventory levels were significantly reduced to $101.4 million, a 41% decrease from the previous year.
Market and Product Highlights
iRobot Corp (IRBT, Financial) introduced its most advanced product, the Roomba Combo 10 Max robot + AutoWash Dock, in July 2024. This product represents a significant milestone in the company's innovation roadmap. The company also achieved full distribution coverage for the Roomba Essential, launching in 14,000 stores across all regions. Despite these advancements, revenue from mid-tier and premium robots declined, reflecting the introduction of lower-priced models.
Outlook
Looking ahead, iRobot Corp (IRBT, Financial) has provided a revised outlook for Q3 2024 and the full fiscal year. The company expects Q3 revenue to be between $217 million and $223 million, with a net loss per share ranging from $0.40 to $0.30. For the full year, revenue is projected to be between $765 million and $800 million, with a net loss per share between $3.01 and $2.55.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from iRobot Corp for further details.
