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BEDFORD, Mass. - iRobot Corp . (NASDAQ: NASDAQ:IRBT), known for its consumer robots and currently valued at $319 million in market capitalization, disclosed its preliminary financial outcomes for the fourth quarter ending December 28, 2024, with an anticipated revenue of about $171 million. The company's stock has experienced significant volatility, with a -17.7% return over the past week despite showing strong momentum in recent months. The company expects a GAAP operating loss of roughly $59 million and a non-GAAP operating loss of about $47 million, according to the unaudited figures. iRobot's cash and cash equivalents are expected to total approximately $134 million at the fiscal year's end, surpassing the company's internal projections and indicating an improved operating cash flow.
The preliminary results, which are subject to adjustments upon the completion of year-end financial processes, were influenced by increased seasonal promotional spending and a one-time charge of $8 million for excess inventory write-offs and losses on purchase commitments. These factors negatively impacted the gross margin and operating loss for the last quarter. According to InvestingPro data, the company's gross profit margin stands at 22.4%, while its overall financial health score indicates challenges ahead. [Discover 8 more exclusive ProTips and comprehensive financial metrics with InvestingPro.]
Gary Cohen, CEO of iRobot, expressed that these results were part of the transition to a new product development approach with contract manufacturers. He stated, "We have fundamentally changed the way we innovate, develop and build our robots, which is central to our strategy for improving financial performance and generating long-term shareholder value." The company also exceeded its 2024 operating expense restructuring targets while investing in areas expected to drive growth.
Looking ahead, iRobot anticipates a return to year-over-year top-line growth in 2025, fueled by new product launches. The company projects that the latter half of 2025 will be stronger than the first, as new products gain traction. Analyst consensus suggests cautious optimism, with price targets ranging from $11 to $11.94, though they don't expect profitability in the current year. InvestingPro subscribers can access detailed analyst forecasts and comprehensive financial analysis to better evaluate iRobot's growth potential. With reduced product costs and shorter development timelines, iRobot expects to see enhanced margins and improved profitability throughout 2025. Additional details, including the outlook for 2025, will be shared in the upcoming fourth-quarter and year-end 2024 conference call.
The management team of iRobot will present at two investor conferences: the ICR Conference 2025 in Orlando, Florida, on Monday and the 27th Annual Needham Growth Conference in New York on Wednesday, January 15, 2025. Both events will be webcast live on the company's investor relations website.
This press release statement serves as the source for the information provided. The preliminary financial results are unaudited and may be subject to change following the finalization of the company's financials.
In other recent news, iRobot Corp. reported significant developments in its financial performance. The company disclosed third-quarter results that surpassed earnings expectations but fell short on revenue. iRobot posted adjusted earnings per share of $0.03, outperforming analyst estimates of a $0.06 loss per share. However, revenue was reported at $193.4 million, missing the consensus forecast of $218.41 million.
The company's revenue experienced a 3.9% year-over-year increase, despite falling short of expectations. These results reflect ongoing challenges in the consumer robotics market, as noted by the company. iRobot also revised its full-year 2024 outlook, with anticipated revenue between $685 million and $710 million, a decrease from its previous guidance.
In other developments, iRobot's shares saw a significant rise over a three-day trading period. This surge marked the highest intraday price since July. These recent developments provide critical insight into iRobot's financial performance and market behavior.
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