It has been about a month since the last earnings report for iRobot . Shares have lost about 33.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is iRobot due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
iRobot Reports Q4 Net Loss, Revenues Down 14.1% Y/Y
iRobot reported fourth-quarter 2023 adjusted loss of $1.82 per share. The quarterly loss compares unfavorably with the year-ago quarter’s number.
Revenue Details
iRobot generated revenues of $307.5 million in the reported quarter, almost in line with the Zacks Consensus Estimate of $308 million. On a year-over-year basis, revenues decreased 14.1% due to the low product availability of new products.
Sales derived from premium and mid-tier robots accounted for 83% of IRBT’s total robot revenues, lower than 84% in the year-ago quarter.
Total product units of 1,139 thousand shipped in the quarter reflected a year-over-year decrease of 14.7%, while average selling prices increased 2.2%. For vacuum products, revenues of $291 million reflected a decline of 12.1% from the year-ago quarter. Units shipped were 1,075 thousand, down 11.4% from the prior-year quarter. Revenues from mopping products decreased 37% to $17 million. Units shipped were 64 thousand, down from 122 thousand recorded in the year-ago quarter.
On a regional basis, iRobot sourced 37.3% of revenues from domestic operations and the rest came from the international arena. Domestic revenues totaled $139.8 million, reflecting a 20.3% decline from the year-ago quarter. International revenues declined 8% to $167.7 million.
Margin Profile
In the quarter under review, iRobot’s cost of revenues decreased 8.5% to $249.4 million. Adjusted gross profit was $58.2 million, down 32.8% year over year, while the adjusted gross margin decreased 530 basis points to 18.9%.
Research and development expenses were $27 million, down 33.6% year over year. Selling and marketing expenses decreased 37.8% to $59.7 million. General and administrative expenses were $18.9 million, down 43.6% year over year.
In the fourth quarter, iRobot recorded an adjusted operating loss of $45.3 million compared with the adjusted operating loss of $62 million in the year-ago period. The adjusted operating margin was (14.7%) versus (17.3%) in the year-ago quarter.
Balance Sheet and Cash Flow
While exiting fourth-quarter 2023, iRobot had cash and cash equivalents of $185.1 million compared with $117.9 million recorded at the end of fourth-quarter 2022. Total long-term liabilities were $250.1 million compared with $63.5 million recorded at the end of fourth-quarter 2022.
In 2023, iRobot used net cash of $115 million for operating activities compared with net cash of $90 million used in the prior-year period. Capital used for purchasing property and equipment totaled $2.7 million, decreasing 76.8%.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
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iRobot (IRBT) Down 33.6% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for iRobot . Shares have lost about 33.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is iRobot due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
iRobot Reports Q4 Net Loss, Revenues Down 14.1% Y/Y
iRobot reported fourth-quarter 2023 adjusted loss of $1.82 per share. The quarterly loss compares unfavorably with the year-ago quarter’s number.
Revenue Details
iRobot generated revenues of $307.5 million in the reported quarter, almost in line with the Zacks Consensus Estimate of $308 million. On a year-over-year basis, revenues decreased 14.1% due to the low product availability of new products.
Sales derived from premium and mid-tier robots accounted for 83% of IRBT’s total robot revenues, lower than 84% in the year-ago quarter.
Total product units of 1,139 thousand shipped in the quarter reflected a year-over-year decrease of 14.7%, while average selling prices increased 2.2%. For vacuum products, revenues of $291 million reflected a decline of 12.1% from the year-ago quarter. Units shipped were 1,075 thousand, down 11.4% from the prior-year quarter. Revenues from mopping products decreased 37% to $17 million. Units shipped were 64 thousand, down from 122 thousand recorded in the year-ago quarter.
On a regional basis, iRobot sourced 37.3% of revenues from domestic operations and the rest came from the international arena. Domestic revenues totaled $139.8 million, reflecting a 20.3% decline from the year-ago quarter. International revenues declined 8% to $167.7 million.
Margin Profile
In the quarter under review, iRobot’s cost of revenues decreased 8.5% to $249.4 million. Adjusted gross profit was $58.2 million, down 32.8% year over year, while the adjusted gross margin decreased 530 basis points to 18.9%.
Research and development expenses were $27 million, down 33.6% year over year. Selling and marketing expenses decreased 37.8% to $59.7 million. General and administrative expenses were $18.9 million, down 43.6% year over year.
In the fourth quarter, iRobot recorded an adjusted operating loss of $45.3 million compared with the adjusted operating loss of $62 million in the year-ago period. The adjusted operating margin was (14.7%) versus (17.3%) in the year-ago quarter.
Balance Sheet and Cash Flow
While exiting fourth-quarter 2023, iRobot had cash and cash equivalents of $185.1 million compared with $117.9 million recorded at the end of fourth-quarter 2022. Total long-term liabilities were $250.1 million compared with $63.5 million recorded at the end of fourth-quarter 2022.
In 2023, iRobot used net cash of $115 million for operating activities compared with net cash of $90 million used in the prior-year period. Capital used for purchasing property and equipment totaled $2.7 million, decreasing 76.8%.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.