Investing.com -- iRobot (NASDAQ:IRBT) Corporation has announced preliminary revenue for the fourth quarter of about $171 million, falling short of the estimated $188 million, according to the consensus.
This news led to a 9.2% drop in the company’s share price.
The company’s preliminary results were affected by higher-than-anticipated seasonal promotional spending, aimed at stimulating sales before the launch of new products in 2025. This increased spending had an impact on the company’s gross margin and operating loss performance in the fourth quarter.
Despite the lower-than-expected revenue for the quarter, iRobot expects to report approximately $134 million in cash and cash equivalents by the end of fiscal 2024. This figure surpasses the company’s internal forecast, indicating an improvement in its use of operating cash.
Looking forward, iRobot’s CEO, Gary Cohen, expects the second half of 2025 to be stronger than the first half as the company’s product lineup ramps up. The company remains optimistic about its future performance, anticipating that the new products set to launch in 2025 will bolster its financial results.
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