Robotic cleaning appliance company iRobot announced it would undertake a strategic review of alternatives to move the operation forward after reporting a sales decline and continuing losses in its fourth quarter.
The iRobot board of directors has begun a formal strategic review to evaluate alternatives, including, but not limited to, refinancing the company’s debt and exploring a potential sale or strategic transaction, iRobot announced.
In the fourth quarter, iRobot net loss was $77.1 million, or $2.52 per diluted share, versus $63.6 million, or $2.28 per diluted share, in the year-previous quarter. Adjusted for one-time events, net loss was $63 million, or $2.06 per diluted share, versus $50.7 million, or $1.82 per diluted share, in the year-before period.
A MarketBeat analyst consensus fourth quarter estimate called for a loss of $1.45 per adjusted diluted share and revenues of $171 million.
Revenue was $172 million versus $307.5 million in the year-earlier quarter, the company reported Operating loss was $61 million versus $52.2 million in the year-prior period while adjusted operating loss was $44.8 million versus $45.3 million.
For the full fiscal year, net loss was $145.5 million, or $4.92 per diluted share, versus $304.7 million, or $11.01 per diluted share, for the annum previous. Adjusted net loss was $162.5 million, or $5.49 per diluted share, versus $214 million, or $7.73 per diluted share, in the year before.
Revenue was $681.8 million versus $890.6 million a year earlier, the company noted. Operating loss was $103 million versus $264.1 million in the year prior, while adjusted operating loss was $117.8 million versus $198.8 million.
Gary Cohen, iRobot CEO, called 2024 was “a transformational year for iRobot, marked by the continued and successful execution of our five-point iRobot Elevate turnaround strategy as we’ve meaningfully reduced operating losses, improved gross margins and optimized cash flow. iRobot has defined the robotic floorcare category for more than 30 years, and we remain committed to growing and evolving our business across smart home categories amidst a dynamic operating landscape. As we move ahead, we will continue to take decisive action to reclaim our position as the industry leader and build on iRobot’s strong foundation centered around our globally recognized, iconic brand, Roomba.”
Cohen added the company continues to develop new products to enhance its competitive stature.
“Yesterday, we announced the largest product launch in iRobot’s history, better positioning iRobot as the leader in the category that we created,” he said. “Importantly, this strong pipeline of breakthrough new products is expected to be margin-accretive compared to our legacy products and should begin to support year-over-year revenue growth in 2025. We plan to leverage that top-line growth with our lower cost structure to drive improved profitability, and we remain on track to achieve gross-margin expansion and improved cash flow from operations this year.”
New robotic floor care appliances feature what iRobot characterized as an elevated premium design with improved technology supported by an upgraded app offering users more intuitive control. The product introduction delivers the largest and most comprehensive lineup in the company’s 35-year history, according to iRobot.
The new lineup launches on March 18 across North America and select European markets:
- The Roomba105 Vac Robot series, featuring 70 times more power-lifting suction compared to Roomba 600 series robots.
- The Roomba 205 DustCompactor Vac Robot and The Roomba 205 DustCompactor Combo Robot.
- The Roomba Plus 405 Combo Robot + AutoWash Dock, said by the company to produce intense suction and deep scrubbing action, as well as a maintenance-free dock.
- The Roomba Plus 505 Combo Robot + AutoWash Dock (pictured above), incorporating PerfectEdge Technology to get deep into corners and hands-free multi-function dock that automatically empties debris. The model washes and heat-dries mop pads and self-cleans when finished.
iRobot maintained it has made progress strengthening its financial foundation over the past year. Since implementing its operational restructuring plan in January 2024, iRobot has reduced its headcount by more than 50%, lowered and sharpened sales and marketing expense through centralization and consolidation, and decreased inventory and cash outflows. The company reported it also achieved a significant reduction in its product cost through strategically transforming its research and development, and supply chain model while leveraging joint design and contract manufacturing partnerships while increasing innovation and improvements to product features, quality and software.
