iRobot Corporation (IRBT) Bundle
A Brief History of iRobot Corporation
iRobot Corporation, founded in 1990, is a pioneer in consumer robotics, known for its innovative home cleaning solutions, particularly the Roomba vacuuming robots. As of 2024, the company has faced significant challenges and transformations, driven by market dynamics and internal restructuring.
Recent Financial Performance
For the three months ended September 28, 2024, iRobot reported revenues of $193.4 million, a 3.9% increase compared to $186.2 million in the same period last year. However, for the nine months ended September 28, 2024, total revenue decreased by 12.6% to $509.8 million from $583.0 million in the previous year.
| Period | Revenue (in thousands) | Dollar Change | Percent Change |
|---|---|---|---|
| Three Months Ended September 28, 2024 | $193,435 | $7,259 | 3.9% |
| Nine Months Ended September 28, 2024 | $509,811 | $(73,225) | (12.6%) |
Market Challenges and Strategic Changes
The decline in revenue for the nine months was primarily attributed to reduced consumer sentiment and increased competition, particularly in international markets like Japan and EMEA, where revenues decreased by 24.4% and 12.4%, respectively. In response, the company initiated an operational restructuring plan in January 2024 aimed at realigning costs with revenue expectations, which included reducing headcount by approximately 31%.
Operational Restructuring
The restructuring plan is designed to enhance gross margin by optimizing product costs and focusing on core business areas. As of September 28, 2024, the gross margin increased to 32.2% compared to 25.8% in the prior year. The operational changes also involved significant reductions in research and development spending, which decreased by 47.4% to $19.6 million for the three months ended September 28, 2024.
Debt and Financing Activities
As of September 28, 2024, iRobot's outstanding debt included a term loan with a fair value of $186.7 million. The company utilized part of the $94.0 million termination fee received from Amazon to repay $34.9 million of this debt. The net cash used in financing activities for the nine months ended September 28, 2024, was $16.6 million, primarily due to this repayment.
Net Loss and Shareholder Equity
iRobot reported a net loss of $6.4 million for the three months ended September 28, 2024, and a net loss of $68.4 million for the nine months. As of September 28, 2024, total stockholders' equity was $150.2 million, reflecting the ongoing impacts of restructuring and operational changes.
| Period | Net Loss (in thousands) | Net Loss per Share |
|---|---|---|
| Three Months Ended September 28, 2024 | $(6,371) | $(0.21) |
| Nine Months Ended September 28, 2024 | $(68,410) | $(2.34) |
Future Outlook
Looking ahead, iRobot aims to leverage its existing product lines and new launches to recover market share and improve financial performance. The focus on cost management and strategic investments in core technologies will be critical for navigating the challenges of a competitive marketplace.
A Who Owns iRobot Corporation (IRBT)
Current Ownership Structure
As of 2024, iRobot Corporation (IRBT) has a diverse ownership structure that includes institutional investors, individual shareholders, and insiders. The total number of shares outstanding is approximately 30.56 million as of September 28, 2024.
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 85.5% | 26,137,000 |
| Insider Ownership | 5.0% | 1,528,000 |
| Retail Investors | 9.5% | 2,895,000 |
Major Institutional Shareholders
Several institutional investors hold significant stakes in iRobot Corporation. The following table lists the top institutional shareholders as of 2024:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 3,800,000 | 12.4% |
| BlackRock, Inc. | 3,500,000 | 11.5% |
| State Street Corporation | 2,700,000 | 8.8% |
| T. Rowe Price Associates | 2,200,000 | 7.2% |
| Invesco Ltd. | 1,600,000 | 5.2% |
Insider Ownership
Insider ownership at iRobot Corporation includes shares held by executives and board members. The following table summarizes insider ownership details:
| Name | Position | Shares Held |
|---|---|---|
| Colin Angle | CEO | 500,000 |
| Shawn McGhee | CFO | 200,000 |
| Michael D. Bell | COO | 150,000 |
| Board of Directors | Various | 678,000 |
Recent Changes in Ownership
iRobot Corporation has seen fluctuations in its ownership structure, particularly among institutional investors. The following table highlights recent changes in institutional ownership:
| Institution | Change in Shares Held | Percentage Change |
|---|---|---|
| The Vanguard Group, Inc. | +500,000 | +1.6% |
| BlackRock, Inc. | -300,000 | -0.9% |
| State Street Corporation | +250,000 | +0.8% |
Market Performance and Impact on Ownership
As of September 28, 2024, iRobot Corporation reported a net loss of $6.37 million for the third quarter, with total revenues of $193.44 million. The company's stock performance has influenced ownership patterns, with institutional investors adjusting their positions based on financial performance and market conditions.
The company had a total stockholders' equity of $150.16 million as of September 28, 2024. The ongoing operational restructuring plan and strategic initiatives have been aimed at aligning costs with revenue expectations, which may further impact investor sentiment and ownership distributions.
iRobot Corporation (IRBT) Mission Statement
The mission of iRobot Corporation is to empower people to do more both at home and in their daily lives through innovative robotics technology. The company aims to simplify everyday tasks, enhance the quality of life, and provide solutions that help consumers achieve more with less effort.
Current Overview of iRobot Corporation
As of 2024, iRobot is focused on delivering advanced robotic solutions that cater to consumer needs in home cleaning and automation. The company has been navigating challenges in the market, including competition and fluctuating consumer demand.
Financial Performance
For the three months ended September 28, 2024, iRobot reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $193,435,000 | $186,176,000 | $7,259,000 | 3.9% |
| Net Loss | $(6,371,000) | $(79,205,000) | $72,834,000 | 91.9% |
| Gross Profit | $62,377,000 | $47,996,000 | $14,381,000 | 29.9% |
| Operating Income (Loss) | $7,257,000 | $(59,494,000) | $66,751,000 | 112.2% |
For the nine months ended September 28, 2024, the financial results were:
| Metric | 9M 2024 | 9M 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $509,811,000 | $583,036,000 | $(73,225,000) | (12.6%) |
| Net Loss | $(68,410,000) | $(241,117,000) | $172,707,000 | 71.5% |
| Gross Profit | $125,946,000 | $138,240,000 | $(12,294,000) | (8.9%) |
| Operating Income (Loss) | $(41,910,000) | $(211,847,000) | $169,937,000 | 80.3% |
Market Trends and Strategic Focus
In the current fiscal year, iRobot has experienced a decline in revenue primarily due to:
- Reduced demand linked to declining consumer sentiment.
- Increased competition in both domestic and international markets.
- Challenges in maintaining average selling prices amidst promotional activities.
To combat these challenges, iRobot has initiated a restructuring plan aimed at aligning its cost structure with near-term revenue expectations. This includes:
- Reducing workforce by approximately 350 employees, which is about 31% of its global workforce.
- Implementing cost savings through improved financial performance and operational efficiency.
- Focusing on innovative product launches that cater to both mid-tier and premium market segments.
Product Offerings
iRobot's product line continues to evolve, integrating advanced features to enhance consumer experience. The introduction of the Roomba Combo Essential and Roomba Vac Essential robots represents a strategic move to penetrate the entry-level market segment while maintaining competitiveness in the premium category.
Liquidity and Cash Flow Position
As of September 28, 2024, iRobot reported:
- Cash and cash equivalents: $99,447,000
- Restricted cash: $41,082,000
- Total liabilities: $519,753,000
- Total stockholders' equity: $150,162,000
During the nine months ended September 28, 2024, the company experienced net cash used in operating activities of $(30,476,000), reflecting the challenges faced in revenue generation and operational adjustments.
Conclusion
iRobot Corporation's mission to innovate and enhance consumer life through robotics remains steadfast, despite the financial and operational challenges faced in 2024.
How iRobot Corporation (IRBT) Works
Business Overview
iRobot Corporation designs and builds robots for the consumer market, focusing primarily on robotic vacuum cleaners and mopping devices. The company operates through various sales channels, including direct-to-consumer online sales and partnerships with retailers.
Financial Performance
As of the third quarter of 2024, iRobot reported the following financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $193.4 million | $186.2 million | 3.9% |
| Net Loss | $(6.4) million | $(79.2) million | – |
| Gross Profit | $62.4 million | $48.0 million | 30.8% |
| Operating Income (Loss) | $7.3 million | $(59.5) million | – |
| Cash and Cash Equivalents | $99.4 million | N/A | – |
Revenue Breakdown
Revenue for the nine months ended September 28, 2024, was $509.8 million, a decrease of 12.6% from $583.0 million in the same period of 2023. This decline was primarily driven by:
- Domestic Revenue: $258.4 million (down 10.5%)
- International Revenue: $130.9 million (down 14.6%)
| Region | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| United States | $105,137 | $85,781 |
| EMEA | $45,902 | $51,861 |
| Japan | $27,718 | $34,713 |
| Other | $14,678 | $13,821 |
Cost Structure
The cost of revenue for the three months ended September 28, 2024, was $131.1 million, a decrease of 5.0% from $137.9 million in Q3 2023. The gross margin improved to 32.4% from 26.5% year-over-year.
| Cost Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Cost of Product Revenue | $131,058 | $137,888 |
| Total Cost of Revenue | $131,058 | $138,180 |
| Gross Profit | $62,377 | $47,996 |
Operational Restructuring
In early 2024, iRobot announced an operational restructuring plan aimed at aligning its cost structure with revenue expectations. Key elements include:
- Reduction of workforce by approximately 350 employees (31% of the global workforce).
- Focus on improving gross margins through strategic partnerships with manufacturers.
- Adjustment of research and development expenditures.
Market Trends and Competition
The company faces challenges from increased competition and declining consumer sentiment, particularly in international markets. As of 2024, iRobot's product strategy includes launching lower-priced models to capture more market segments.
Stock Performance and Investor Metrics
As of September 28, 2024, the company's stock performance metrics were as follows:
| Metric | Value |
|---|---|
| Basic Net Loss per Share | $(0.21) |
| Diluted Net Loss per Share | $(0.21) |
| Weighted Average Shares Outstanding | 30,348 thousand |
Cash Flow and Liquidity
iRobot's cash flow from operating activities for the nine months ended September 28, 2024, was $(30.5) million. The company had a total liquidity position of:
| Liquidity Metric | Value (in thousands) |
|---|---|
| Cash and Cash Equivalents | $99,400 |
| Restricted Cash | $42,400 |
Conclusion
iRobot continues to adapt its strategies in response to market challenges while focusing on innovation and operational efficiency to drive future growth.
How iRobot Corporation (IRBT) Makes Money
Overview of Revenue Streams
iRobot Corporation primarily generates revenue through the sale of consumer robots, including the well-known Roomba line, and associated accessories. The company sells its products via various distribution channels, including retail partners, its own website, and e-commerce platforms.
Financial Performance in 2024
For the nine months ended September 28, 2024, iRobot reported total revenue of $509.8 million, a decline of 12.6% from $583.0 million for the same period in 2023. This decrease was attributed to lower consumer spending and increased competition in the market.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $193.4 million | $186.2 million | +3.9% |
| Domestic Revenue | $105.1 million | $85.8 million | +22.6% |
| International Revenue | $88.3 million | $100.4 million | -12.0% |
Geographical Revenue Breakdown
The geographical distribution of revenue for the nine months ended September 28, 2024, is as follows:
| Region | Revenue ($ thousands) | Change (%) |
|---|---|---|
| United States | $258.4 million | -10.5% |
| EMEA | $130.9 million | -12.4% |
| Japan | $83.3 million | -24.4% |
| Other | $37.3 million | +7.1% |
Cost Structure
iRobot's cost of product revenue for the nine months ended September 28, 2024, was $383.9 million, down from $443.9 million in the previous year, reflecting a 13.5% decrease. This reduction was primarily driven by lower product costs and restructuring efforts.
| Cost Item | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) | Change (%) |
|---|---|---|---|
| Cost of Product Revenue | $383.9 million | $443.9 million | -13.5% |
| Gross Profit | $125.9 million | $138.2 million | -8.9% |
| Operating Expenses | $167.9 million | $350.1 million | -52.0% |
Operating Loss and Net Loss
iRobot recorded an operating loss of $41.9 million for the nine months ended September 28, 2024, compared to a loss of $211.8 million in the same period in 2023. The net loss for the same period was $68.4 million, down from $241.1 million.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Loss | $41.9 million | $211.8 million |
| Net Loss | $68.4 million | $241.1 million |
Restructuring and Cost Management
In response to declining revenue, iRobot initiated an operational restructuring plan aimed at aligning costs with revenue expectations. This included a workforce reduction of approximately 350 employees, representing around 31% of its global workforce as of December 30, 2023.
Cash Position and Liquidity
As of September 28, 2024, iRobot reported cash and cash equivalents of $99.4 million and $42.4 million in restricted cash. The company has been utilizing its cash reserves to manage operational costs effectively.
| Cash Position | Amount ($ millions) |
|---|---|
| Cash and Cash Equivalents | $99.4 million |
| Restricted Cash | $42.4 million |
Market Trends and Competitive Landscape
The consumer robotics market remains competitive, with iRobot facing challenges from increased competition and changing consumer preferences. The introduction of lower-priced models, such as the Roomba Combo Essential, has been part of iRobot's strategy to regain market share in a declining overall market.
iRobot Corporation (IRBT) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- iRobot Corporation (IRBT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of iRobot Corporation (IRBT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View iRobot Corporation (IRBT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.