Provides Annual Guidance for
2024
BEDFORD,
Mass., Feb. 26, 2024 /PRNewswire/ -- iRobot
Corp. (NASDAQ: IRBT), a leader in consumer robots, today announced
its financial results for the fourth quarter and full year ended
December 30, 2023.
Fourth Quarter 2023 Financial Performance Highlights
- Revenue was $307.5 million
compared to $357.9 million last
year
- GAAP net loss per share was ($2.28) compared to GAAP net loss per share of
($3.07) last year
- Non-GAAP net loss per share was ($1.82) compared to non-GAAP net loss per share
of ($1.54) last year
Fiscal 2023 Financial Performance Highlights
- Revenue declined to $890.6
million from $1,183.4 million
in 2022
- GAAP net loss per share was ($11.01) compared to GAAP net loss of
($10.52) in 2022
- Non-GAAP net loss per share was ($7.73) compared to non-GAAP net loss per share
of ($4.50) in 2022
"As we shared last month, we are actively implementing an
operational restructuring plan designed to both stabilize the
business in the current environment and advance our growth
initiatives," said Glen Weinstein,
Interim CEO of iRobot. "The plan will simplify our cost structure,
create a more sustainable business model, and enable us to focus on
our core value drivers. As we move forward with urgency and focus,
our management team and Board are confident in iRobot's ability to
build on our innovation and to navigate this period successfully as
a standalone company."
"We are managing through a challenging period and making
critical strategic progress that we believe will help expand and
better position our business for the future," added Weinstein. "We
are confident that the actions we are taking today will drive
improved performance going forward."
iRobot anticipates full year 2024 revenue between $825 and $865
million. iRobot expects full year 2024 GAAP net loss per
share between ($3.13) and
($2.70) and non-GAAP net loss per
share between ($3.73) and
($3.30).
iRobot's top financial priorities are liquidity and careful cash
management. With the operational restructuring plan announced last
month, iRobot anticipates a significant improvement in cash outflow
from operations in fiscal 2024 compared with the reported cash
outflow from operations of ($114.8)
million for full year 2023. Excluding the net proceeds from
the $94 million break-up fee from
Amazon, iRobot expects negative cash flow from operations in Q1 and
Q2 and anticipates generating modest positive cash flow from
operations in both Q3 and Q4 during fiscal 2024.
Operational Restructuring Plan
As announced on January 29, 2024,
the Company has initiated an operational restructuring plan
designed to more closely align its cost structure with near-term
revenue expectations and drive bottom-line improvement. These
measures include:
- Achieving margin improvements through a focus on
design-to-value and more attractive terms with manufacturing
partners with an anticipated GAAP gross margin of between 31% and
33% and non-GAAP gross margin of between 32% and 34% in 2024;
- Reducing research and development expense by approximately
$25 million through relocating
certain non-core engineering functions and pausing work unrelated
to iRobot's core floorcare business to focus on innovation and
development efforts on the Company's key revenue generators;
- Centralizing global marketing activities to be more efficient
in iRobot's demand generation efforts, which we anticipate will
result in a decrease in overall selling and marketing expenses by
$40 million including working
marketing reduction of $20
million;
- Streamlining the Company's legal entity and real estate
footprint to fit its current business needs and near-term revenue
expectations; and
- Implementing workforce reductions of approximately 350
employees, which represents 31 percent of the Company's workforce
as of December 30, 2023, with the
majority of notifications taking place by March 30, 2024. As part of this workforce
reduction, iRobot expects to record restructuring charges totaling
between $12 million and $13 million, primarily for severance and related
costs.
Fourth-Quarter Operational and Recent Highlights
- Geographically, fourth quarter 2023 revenue declined 20% in the
U.S., 19% in Japan and 5% in EMEA
over the prior period last year. Full year 2023 revenue declined
30% in the U.S., 21% in Japan and
11% in EMEA.
- Revenue from mid-tier robots (with an MSRP between $300 and $499) and
premium robots (with an MSRP of $500
or more) represented 83% of total robot sales in the fourth quarter
of 2023 versus 84% from the same period last year.
- iRobot's product lineup received positive reviews across
regions in media outlets including Reviewed, TechRadar, Homes &
Gardens, CNN Underscored, Lifehacker, TechHive, ZDNET, Xataka, T3,
Tom's Guide and Gear Patrol.
- The iRobot Roomba Combo j9+ was named 'Best Robot Vacuum'
by U.S. News & World Report. The Company's products received
other notable accolades from media outlets including GQ, Popular
Mechanics, Gear Patrol and GoodsPress.
- iRobot products were featured as recommended deals and gifts in
Black Friday/Cyber Monday and holiday gift guide-related coverage
in TODAY, Good Morning America, Esquire and many other top media
outlets.
2024 Financial Outlook
iRobot is providing GAAP and
non-GAAP financial expectations for the fiscal year
ending December 28, 2024. A detailed reconciliation between
the Company's GAAP and non-GAAP expectations is included in the
attached financial tables.
Fiscal Year 2024:
Metric
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
Revenue
|
$825 - $865
million
|
|
—
|
|
$825 - $865
million
|
Gross Margin
|
31% to 33%
|
|
~1%
|
|
32% to 34%
|
Operating
Loss
|
($41) – ($29)
million
|
|
~($17)
million
|
|
($58) – ($46)
million
|
Net Loss Per
Share
|
($3.13) –
($2.70)
|
|
~($0.60)
|
|
($3.73) –
($3.30)
|
- For the first half of 2024, revenue is expected to decline in
the high teens to low 20s percentage range compared to the first
half of 2023, with Q2 expected to be the weaker quarter as the
Company expects a shifting of orders into Q3.
- For the second half of the year, the Company anticipates a
mid-single-digit percentage improvement in revenue compared to the
second half of 2023.
- iRobot anticipates that the majority of the gross margin
improvement will occur in the second half of the year as the
Company ramps its initiatives.
Fourth-Quarter 2023 Results Conference Call
iRobot
will host a live webcast and conference call tomorrow at
8:30 a.m. ET to discuss its
fourth-quarter 2023 financial results and its outlook for fiscal
year 2024. Pertinent conference call details include:
Date:
February 27, 2024
Time:
8:30 a.m. ET
Call-In Number:
203-518-9783
Conference
ID:
IRBTQ423
A live webcast of the conference call will be accessible on the
event section of the Company's website
at https://investor.irobot.com/events/event-details/q4-2023-irobot-corp-earnings-conference-call.
An archived version of the broadcast will be available on the same
website shortly after the conclusion of the live event. A replay of
the telephone conference call will be available through
March 5, and can be accessed by
dialing 402-220-7330.
About iRobot Corp.
iRobot is a global consumer robot company that designs and builds
thoughtful robots and intelligent home innovations that make life
better. iRobot introduced the first Roomba robot vacuum in 2002.
Today, iRobot is a global enterprise that has sold more than 50
million robots worldwide. iRobot's product portfolio features
technologies and advanced concepts in cleaning, mapping and
navigation. Working from this portfolio, iRobot engineers are
building robots and smart home devices to help consumers make their
homes easier to maintain and healthier places to live. For more
information about iRobot, please visit www.irobot.com.
Cautionary Statement Regarding Forward-Looking
Statements
This communication contains "forward-looking
statements" within the meaning of the federal securities laws,
including Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
which relate to, among other things: the Company's expectations
regarding future financial performance, including with respect to
2024 revenue, gross margin, operating loss and loss per share; and
the Company's implementation of its operational restructuring plan,
the expected business and financial impacts thereof, and related
restructuring charges. These forward-looking statements are based
on the Company's current expectations, estimates and projections
about its business and industry, all of which are subject to
change. In this context, forward-looking statements often address
expected future business and financial performance and financial
condition, and often contain words such as "expect," "anticipate,"
"intend," "plan," "believe," "could," "seek," "see," "will," "may,"
"would," "might," "potentially," "estimate," "continue," "expect,"
"target," similar expressions or the negatives of these words or
other comparable terminology that convey uncertainty of future
events or outcomes. All forward-looking statements by their nature
address matters that involve risks and uncertainties, many of which
are beyond our control, and are not guarantees of future results,
such as statements about the consummation of the proposed
transaction and the anticipated benefits thereof. These and other
forward-looking statements are not guarantees of future results and
are subject to risks, uncertainties and assumptions that could
cause actual results to differ materially from those expressed in
any forward-looking statements. Accordingly, there are or will be
important factors that could cause actual results to differ
materially from those indicated in such statements and, therefore,
you should not place undue reliance on any such statements and
caution must be exercised in relying on forward-looking statements.
Important risk factors that may cause such a difference include,
but are not limited to: (i) the Company's ability to obtain capital
when desired on favorable terms, if at all; (ii) our restructuring
efforts may not be successful; (iii) the impact of the
COVID-19 pandemic and various global conflicts on the Company's
business and general economic conditions; (iv) the Company's
ability to implement its business strategy; (v) the risk that
disruptions from the proposed restructuring will harm the Company's
business, including current plans and operations; (vi) the ability
of the Company to retain and hire key personnel, including
successfully navigating its leadership transition; (vii)
legislative, regulatory and economic developments affecting the
Company's business; (viii) general economic and market developments
and conditions; (ix) the evolving legal, regulatory and tax regimes
under which the Company operates; (x) potential business
uncertainty, including changes to existing business relationships
that could affect the Company's financial performance; (xi)
unpredictability and severity of catastrophic events, including,
but not limited to, acts of terrorism or outbreak of war or
hostilities, (xii) current supply chain challenges including
current constraints in the availability of certain semiconductor
components used in the Company's products; (xiii) the financial
strength of the Company's customers and retailers; (xiv) the impact
of tariffs on goods imported into the
United States; and (xv) competition, as well as the
Company's response to any of the aforementioned factors. Additional
risks and uncertainties that could cause actual outcomes and
results to differ materially from those contemplated by the
forward-looking statements are included under the caption "Risk
Factors" in the Company's most recent annual and quarterly reports
filed with the SEC and any subsequent reports on Form 10-K, Form
10-Q or Form 8-K filed from time to time and available at
www.sec.gov. While the list of factors presented here is considered
representative, no such list should be considered to be a complete
statement of all potential risks and uncertainties. Unlisted
factors may present significant additional obstacles to the
realization of forward-looking statements. Consequences of material
differences in results as compared with those anticipated in the
forward-looking statements could include, among other things,
business disruption, operational problems, financial loss, legal
liability and similar risks, any of which could have a material
adverse effect on the Company's financial condition, results of
operations, or liquidity. The forward-looking statements included
herein are made only as of the date hereof. The Company does not
assume any obligation to publicly provide revisions or updates to
any forward-looking statements, whether as a result of new
information, future developments or otherwise, should circumstances
change, except as otherwise required by securities and other
applicable laws.
iRobot Corporation
|
Consolidated Statements of
Operations
|
(in thousands, except per share
amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the twelve months
ended
|
|
December 30,
2023
|
|
December 31,
2022
|
|
December 30,
2023
|
|
December 31,
2022
|
|
|
|
|
|
|
|
|
Revenue
|
$
307,544
|
|
$
357,872
|
|
$
890,580
|
|
$
1,183,383
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Cost of product
revenue
|
249,112
|
|
272,367
|
|
693,217
|
|
830,478
|
Amortization of
acquired intangible assets
|
301
|
|
280
|
|
1,166
|
|
2,812
|
Total cost of
revenue
|
249,413
|
|
272,647
|
|
694,383
|
|
833,290
|
|
|
|
|
|
|
|
|
Gross profit
|
58,131
|
|
85,225
|
|
196,197
|
|
350,093
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
26,951
|
|
40,615
|
|
144,087
|
|
166,508
|
Selling and
marketing
|
59,673
|
|
95,952
|
|
201,676
|
|
293,307
|
General and
administrative
|
18,903
|
|
33,527
|
|
109,148
|
|
118,112
|
Amortization of
acquired intangible assets
|
4,837
|
|
(54)
|
|
5,366
|
|
12,549
|
Total operating
expenses
|
110,364
|
|
170,040
|
|
460,277
|
|
590,476
|
|
|
|
|
|
|
|
|
Operating
loss
|
(52,233)
|
|
(84,815)
|
|
(264,080)
|
|
(240,383)
|
|
|
|
|
|
|
|
|
Other expense,
net
|
(4,758)
|
|
(1,393)
|
|
(28,975)
|
|
(21,300)
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
(56,991)
|
|
(86,208)
|
|
(293,055)
|
|
(261,683)
|
Income tax expense
(benefit)
|
6,603
|
|
(2,107)
|
|
11,655
|
|
24,612
|
Net loss
|
$
(63,594)
|
|
$
(84,101)
|
|
$
(304,710)
|
|
$
(286,295)
|
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
Basic
|
$
(2.28)
|
|
$
(3.07)
|
|
$
(11.01)
|
|
$
(10.52)
|
Diluted
|
$
(2.28)
|
|
$
(3.07)
|
|
$
(11.01)
|
|
$
(10.52)
|
|
|
|
|
|
|
|
|
Number of shares used
in per share calculations:
|
|
|
|
|
|
|
Basic
|
27,880
|
|
27,379
|
|
27,676
|
|
27,214
|
Diluted
|
27,880
|
|
27,379
|
|
27,676
|
|
27,214
|
|
|
|
|
|
|
|
|
Stock-based
compensation included in above figures:
|
|
|
|
|
Cost of
revenue
|
$
935
|
|
$
620
|
|
$
3,160
|
|
$
2,194
|
Research and
development
|
3,653
|
|
2,816
|
|
12,391
|
|
10,473
|
Selling and
marketing
|
1,622
|
|
1,558
|
|
5,843
|
|
6,358
|
General and
administrative
|
3,966
|
|
3,402
|
|
14,662
|
|
12,880
|
Total
|
$
10,176
|
|
$
8,396
|
|
$
36,056
|
|
$
31,905
|
iRobot Corporation
|
Condensed Consolidated Balance
Sheets
|
(unaudited, in thousands)
|
|
|
|
|
|
December 30,
2023
|
|
December 31,
2022
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
185,121
|
|
$
117,949
|
Accounts
receivable, net
|
79,387
|
|
66,025
|
Inventory
|
152,469
|
|
285,250
|
Other current
assets
|
48,513
|
|
59,076
|
Total current
assets
|
465,490
|
|
528,300
|
Property and
equipment, net
|
40,395
|
|
60,909
|
Operating lease
right-of-use assets
|
19,642
|
|
26,084
|
Deferred tax
assets
|
8,512
|
|
16,248
|
Goodwill
|
175,105
|
|
167,724
|
Intangible
assets, net
|
5,044
|
|
11,260
|
Other
assets
|
19,510
|
|
24,918
|
Total assets
|
$
733,698
|
|
$
835,443
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
Accounts
payable
|
$
178,318
|
|
$
184,016
|
Accrued
expenses
|
97,999
|
|
98,959
|
Deferred revenue
and customer advances
|
10,830
|
|
13,208
|
Total current
liabilities
|
287,147
|
|
296,183
|
Term
loan
|
201,501
|
|
-
|
Operating lease
liabilities
|
27,609
|
|
33,247
|
Other long-term
liabilities
|
20,954
|
|
30,297
|
Total long-term
liabilities
|
250,064
|
|
63,544
|
Total
liabilities
|
537,211
|
|
359,727
|
Stockholders'
equity
|
196,487
|
|
475,716
|
Total liabilities and
stockholders' equity
|
$
733,698
|
|
$
835,443
|
iRobot Corporation
|
Consolidated Statements of Cash
Flows
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
For the twelve months
ended
|
|
December 30,
2023
|
|
December 31,
2022
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
(304,710)
|
|
$
(286,295)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
32,791
|
|
47,869
|
Loss on equity
investment
|
3,910
|
|
19,718
|
Stock-based
compensation
|
36,056
|
|
31,905
|
Change in fair value of
term loan
|
5,904
|
|
-
|
Debt issuance costs
expensed under fair value option
|
11,837
|
|
-
|
Deferred income taxes,
net
|
6,563
|
|
18,799
|
Other
|
(17,694)
|
|
(1,003)
|
Changes in operating
assets and liabilities — (use) source
|
|
|
|
Accounts
receivable
|
(11,748)
|
|
94,750
|
Inventory
|
125,710
|
|
49,399
|
Other assets
|
13,941
|
|
52,029
|
Accounts
payable
|
(4,604)
|
|
(73,598)
|
Accrued expenses and
other liabilities
|
(12,749)
|
|
(43,594)
|
Net cash used in
operating activities
|
(114,793)
|
|
(90,021)
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Additions of property
and equipment
|
(2,862)
|
|
(12,325)
|
Purchase of
investments
|
(233)
|
|
(3,150)
|
Sales and maturities of
investments
|
-
|
|
17,723
|
Net cash (used in)
provided by investing activities
|
(3,095)
|
|
2,248
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from employee
stock plans
|
9
|
|
4,719
|
Income tax withholding
payment associated with restricted stock vesting
|
(2,802)
|
|
(1,775)
|
Proceeds from term
loan
|
200,000
|
|
-
|
Payment of debt
issuance costs
|
(11,837)
|
|
-
|
Net cash provided by
financing activities
|
185,370
|
|
2,944
|
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
2,456
|
|
1,321
|
Net increase (decrease)
in cash, cash equivalents and restricted cash
|
69,938
|
|
(83,508)
|
Cash, cash equivalents
and restricted cash, at beginning of period
|
117,949
|
|
201,457
|
Cash, cash equivalents
and restricted cash, at end of period
|
$
187,887
|
|
$
117,949
|
|
|
|
|
Cash, cash equivalents
and restricted cash, at end of period:
|
|
|
|
Cash and cash
equivalents
|
$
185,121
|
|
$
117,949
|
Restricted cash,
current (included in other current assets)
|
1,000
|
|
-
|
Restricted cash,
non-current (included in other assets)
|
1,766
|
|
-
|
Cash, cash equivalents
and restricted cash, at end of period
|
$
187,887
|
|
$
117,949
|
iRobot Corporation
|
Supplemental Information
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the twelve months
ended
|
|
December 30,
2023
|
|
December 31,
2022
|
|
December 30,
2023
|
|
December 31,
2022
|
Revenue by Geography:
*
|
|
|
|
|
|
|
|
Domestic
|
$
139,806
|
|
$
175,481
|
|
$
428,531
|
|
$
615,107
|
International
|
167,738
|
|
182,391
|
|
462,049
|
|
568,276
|
Total
|
$
307,544
|
|
$
357,872
|
|
$
890,580
|
|
$
1,183,383
|
|
|
|
|
|
|
|
|
Robot Units Shipped
*
|
|
|
|
|
|
|
|
Vacuum
|
1,075
|
|
1,213
|
|
2,834
|
|
3,772
|
Mopping
|
64
|
|
122
|
|
200
|
|
410
|
Total
|
1,139
|
|
1,335
|
|
3,034
|
|
4,182
|
|
|
|
|
|
|
|
|
Revenue by Product
Category **
|
|
|
|
|
|
|
|
Vacuum***
|
$
291
|
|
$
331
|
|
$
831
|
|
$
1,066
|
Mopping and
other****
|
17
|
|
27
|
|
60
|
|
117
|
Total
|
$
308
|
|
$
358
|
|
$
891
|
|
$
1,183
|
|
|
|
|
|
|
|
|
Average gross selling
prices for robot units
|
$
370
|
|
$
362
|
|
$
360
|
|
$
337
|
|
|
|
|
|
|
|
|
Headcount
|
1,113
|
|
1,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* in
thousands
|
|
|
|
|
|
|
|
** in
millions
|
|
|
|
|
|
|
|
*** Includes Roomba
robot vacuum-related accessory revenue
|
**** Includes Braava
robot mop-related accessory revenue and air purifier, handheld
vacuum and Root
|
|
|
|
|
|
|
|
|
Certain numbers may
not total due to rounding
|
|
|
|
|
|
|
|
iRobot Corporation
Explanation of
Non-GAAP Measures
In addition to disclosing financial results in accordance with
U.S. GAAP, this earnings release contains references to the
non-GAAP financial measures described below. We use non-GAAP
measures to internally evaluate and analyze financial results. We
believe these non-GAAP financial measures provide investors with
useful supplemental information about the financial performance of
our business, enable comparison of financial results between
periods where certain items may vary independent of business
performance, and enable comparison of our financial results with
other public companies, many of which present similar non-GAAP
financial measures.
Our non-GAAP financial measures reflect adjustments based on the
following items. These non-GAAP financial measures should not be
considered a substitute for, or superior to, financial measures
calculated in accordance with GAAP, and the financial results
calculated in accordance with GAAP and reconciliations from these
results should be carefully evaluated.
Amortization of acquired intangible
assets: Amortization of acquired intangible assets
consists of amortization of intangible assets including completed
technology, customer relationships, and reacquired distribution
rights acquired in connection with business combinations as well as
any non-cash impairment charges associated with intangible assets
in connection with our past acquisitions. Amortization charges for
our acquisition-related intangible assets are inconsistent in size
and are significantly impacted by the timing and valuation of our
acquisitions. We exclude these charges from our non-GAAP measures
to facilitate an evaluation of our current operating performance
and comparisons to our past operating performance.
Net Merger, Acquisition and Divestiture (Income) Expense:
Net merger, acquisition and divestiture (income) expense primarily
consists of transaction fees, professional fees, and transition and
integration costs directly associated with mergers, acquisitions
and divestitures, including with respect to the iRobot-Amazon
Merger which was terminated on January 28,
2024. It also includes business combination adjustments
including adjustments after the measurement period has ended. The
occurrence and amount of these costs will vary depending on the
timing and size of these transactions. We exclude these charges
from our non-GAAP measures to facilitate an evaluation of our
current operating performance and comparisons to our past operating
performance.
Stock-Based Compensation: Stock-based compensation
is a non-cash charge relating to stock-based awards. We exclude
this expense as it is a non-cash expense, and we assess our
internal operations excluding this expense and believe it
facilitates comparisons to the performance of other companies.
Tariff Refunds: Our exclusion from Section 301 List 3
tariffs was reinstated in March 2022,
which temporarily eliminates tariffs on our Roomba products
imported from China beginning on
October 12, 2021 until December 31, 2022. This temporary exclusion,
which was subsequently extended until December 31, 2023, and then further extended
until May 31, 2024, entitles us to a
refund of all related tariffs previously paid since October 12, 2021. We exclude the refunds for
tariff costs expensed during fiscal 2021 from our 2022 non-GAAP
measures because those tariff refunds associated with tariff costs
incurred in the past have no impact to our current period
earnings.
Restructuring and Other: Restructuring charges are
related to one-time actions associated with realigning resources,
enhancing operational productivity and efficiency, or improving our
cost structure in support of our strategy. Such actions are not
reflective of ongoing operations and include costs primarily
associated with severance costs, certain professional fees, costs
associated with consolidation of facilities, warehouses and any
other leased properties, and other non-recurring costs directly
associated with resource realignments tied to strategic initiatives
or changes in business conditions. We exclude this item from our
non-GAAP measures when evaluating our recent and prospective
business performance as such items vary significantly based on the
magnitude of the action and do not reflect anticipated future
operating costs. In addition, these charges do not necessarily
provide meaningful insight into the fundamentals of current or past
operations of our business.
Gain/Loss on Strategic Investments: Gain/loss on
strategic investments includes fair value adjustments, realized
gains and losses on the sales of these investments and losses on
the impairment of these investments. We exclude these items from
our non-GAAP measures because we do not believe they correlate to
the performance of our core business and may vary in size based on
market conditions and events. We believe that the exclusion of
these gains or losses provides investors with a supplemental view
of our operational performance.
Debt issuance costs: Debt issuance costs include
various incremental fees and commissions paid to third parties in
connection with the issuance of debt.
Income tax adjustments: Income tax adjustments
include the tax effect of the non-GAAP adjustments, calculated
using the appropriate statutory tax rate for each adjustment. We
regularly assess the need to record valuation allowances based on
non-GAAP profitability and other factors. We also exclude certain
tax items, including the impact from stock-based compensation
windfalls/shortfalls, that are not reflective of income tax expense
incurred as a result of current period earnings. During fiscal
2023, we concluded that, based on the introduction of negative
evidence associated with increased expenses expected from the Term
Loan issued during 2023, it is no longer more likely than not that
the net deferred tax assets are recoverable on a non-GAAP basis.
Accordingly, we recorded a valuation allowance as a non-GAAP
adjustment during fiscal 2023. We believe disclosure of the income
tax provision before the effect of such tax items is important to
permit investors' consistent earnings comparison between
periods.
iRobot Corporation
|
Supplemental Reconciliation of GAAP Actuals to
Non-GAAP Actuals
|
(in thousands, except per share
amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the twelve months
ended
|
|
December 30,
2023
|
|
December 31,
2022
|
|
December 30,
2023
|
|
December 31,
2022
|
GAAP
Revenue
|
$
307,544
|
|
$
357,872
|
|
$
890,580
|
|
$
1,183,383
|
|
|
|
|
|
|
|
|
GAAP Gross
Profit
|
$
58,131
|
|
$
85,225
|
|
$
196,197
|
|
$
350,093
|
Amortization of
acquired intangible assets
|
301
|
|
280
|
|
1,166
|
|
2,812
|
Stock-based
compensation
|
935
|
|
620
|
|
3,160
|
|
2,194
|
Tariff
refunds
|
-
|
|
-
|
|
-
|
|
(11,727)
|
Net merger, acquisition
and divestiture expense
|
(1,159)
|
|
462
|
|
(262)
|
|
462
|
Restructuring and
other
|
-
|
|
-
|
|
174
|
|
4,551
|
Non-GAAP Gross
Profit
|
$
58,208
|
|
$
86,587
|
|
$
200,435
|
|
$
348,385
|
GAAP Gross
Margin
|
18.9 %
|
|
23.8 %
|
|
22.0 %
|
|
29.6 %
|
Non-GAAP Gross
Margin
|
18.9 %
|
|
24.2 %
|
|
22.5 %
|
|
29.4 %
|
|
|
|
|
|
|
|
|
GAAP Operating
Expenses
|
$
110,364
|
|
$
170,040
|
|
$
460,277
|
|
$
590,476
|
Amortization of
acquired intangible assets
|
(4,837)
|
|
54
|
|
(5,366)
|
|
(12,549)
|
Stock-based
compensation
|
(9,241)
|
|
(7,776)
|
|
(32,896)
|
|
(29,711)
|
Net merger, acquisition
and divestiture expense
|
7,167
|
|
(10,079)
|
|
(14,824)
|
|
(18,195)
|
Restructuring and
other
|
81
|
|
(3,628)
|
|
(7,981)
|
|
(9,042)
|
Non-GAAP
Operating Expenses*
|
$
103,534
|
|
$
148,611
|
|
$
399,210
|
|
$
520,979
|
GAAP Operating
Expenses as a % of GAAP Revenue
|
35.9 %
|
|
47.5 %
|
|
51.7 %
|
|
49.9 %
|
Non-GAAP
Operating Expenses as a % of Non-GAAP Revenue*
|
33.7 %
|
|
41.5 %
|
|
44.8 %
|
|
44.0 %
|
|
|
|
|
|
|
|
|
GAAP Operating
Loss
|
$
(52,233)
|
|
$
(84,815)
|
|
$
(264,080)
|
|
$
(240,383)
|
Amortization of
acquired intangible assets
|
5,138
|
|
226
|
|
6,532
|
|
15,361
|
Stock-based
compensation
|
10,176
|
|
8,396
|
|
36,056
|
|
31,905
|
Tariff
refunds
|
-
|
|
-
|
|
-
|
|
(11,727)
|
Net merger, acquisition
and divestiture expense
|
(8,326)
|
|
10,541
|
|
14,562
|
|
18,657
|
Restructuring and
other
|
(81)
|
|
3,628
|
|
8,155
|
|
13,593
|
Non-GAAP
Operating Loss*
|
$
(45,326)
|
|
$
(62,024)
|
|
$
(198,775)
|
|
$
(172,594)
|
GAAP Operating
Margin
|
(17.0) %
|
|
(23.7) %
|
|
(29.7) %
|
|
(20.3) %
|
Non-GAAP
Operating Margin*
|
(14.7) %
|
|
(17.3) %
|
|
(22.3) %
|
|
(14.6) %
|
iRobot Corporation
|
Supplemental Reconciliation of GAAP Actuals to
Non-GAAP Actuals continued
|
(in thousands, except per share
amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the twelve months
ended
|
|
December 30,
2023
|
|
December 31,
2022
|
|
December 30,
2023
|
|
December 31,
2022
|
GAAP Income
Tax Expense (Benefit)
|
$
6,603
|
|
$
(2,107)
|
|
$
11,655
|
|
$
24,612
|
Tax effect of non-GAAP
adjustments
|
155
|
|
(22,986)
|
|
720
|
|
(50,635)
|
Other tax
adjustments
|
(6,182)
|
|
4,690
|
|
(10,331)
|
|
(25,789)
|
Non-GAAP Income
Tax Expense (Benefit)
|
$
576
|
|
$
(20,403)
|
|
$
2,044
|
|
$
(51,812)
|
|
|
|
|
|
|
|
|
GAAP Net
Loss
|
$
(63,594)
|
|
$
(84,101)
|
|
$
(304,710)
|
|
$
(286,295)
|
Amortization of
acquired intangible assets
|
5,138
|
|
226
|
|
6,532
|
|
15,361
|
Stock-based
compensation
|
10,176
|
|
8,396
|
|
36,056
|
|
31,905
|
Tariff
refunds
|
-
|
|
-
|
|
-
|
|
(11,727)
|
Net merger, acquisition
and divestiture expense
|
(8,326)
|
|
10,541
|
|
14,562
|
|
18,657
|
Restructuring and
other
|
(81)
|
|
3,628
|
|
8,155
|
|
13,593
|
Loss on strategic
investments
|
-
|
|
890
|
|
3,910
|
|
19,718
|
Debt issuance
costs
|
-
|
|
-
|
|
11,837
|
|
-
|
Income tax
effect
|
6,027
|
|
18,296
|
|
9,611
|
|
76,424
|
Non-GAAP Net
Loss*
|
$
(50,660)
|
|
$
(42,124)
|
|
$
(214,047)
|
|
$
(122,364)
|
|
|
|
|
|
|
|
|
GAAP Net Loss Per
Diluted Share
|
$
(2.28)
|
|
$
(3.07)
|
|
$
(11.01)
|
|
$
(10.52)
|
Amortization of
acquired intangible assets
|
0.18
|
|
0.01
|
|
0.24
|
|
0.56
|
Stock-based
compensation
|
0.36
|
|
0.31
|
|
1.30
|
|
1.17
|
Tariff
refunds
|
-
|
|
-
|
|
-
|
|
(0.43)
|
Net merger, acquisition
and divestiture expense
|
(0.30)
|
|
0.38
|
|
0.53
|
|
0.69
|
Restructuring and
other
|
-
|
|
0.13
|
|
0.29
|
|
0.50
|
Loss on strategic
investments
|
-
|
|
0.03
|
|
0.14
|
|
0.72
|
Debt issuance
costs
|
-
|
|
-
|
|
0.43
|
|
-
|
Income tax
effect
|
0.22
|
|
0.67
|
|
0.35
|
|
2.81
|
Non-GAAP Net Loss
Per Diluted Share*
|
$
(1.82)
|
|
$
(1.54)
|
|
$
(7.73)
|
|
$
(4.50)
|
|
|
|
|
|
|
|
|
Number of shares used
in diluted per share calculation
|
27,880
|
|
27,379
|
|
27,676
|
|
27,214
|
|
|
|
|
|
|
|
|
Supplemental
Information
|
|
|
|
|
|
|
|
Days sales
outstanding
|
24
|
|
17
|
|
|
|
|
GAAP Days in
inventory
|
56
|
|
95
|
|
|
|
|
Non-GAAP Days in
inventory(1)
|
56
|
|
96
|
|
|
|
|
|
|
|
|
|
|
|
|
* Beginning in the
fourth quarter of 2023, we updated our calculation of non-GAAP
financial measures to no longer exclude "IP litigation expense,
net." The metrics for each period are presented in accordance with
this updated methodology; as a result, the 2022 fiscal year
measures differ from those previously presented by the amount of IP
litigation expense, net recorded in such period.
|
|
|
|
|
|
|
|
|
(1)
Non-GAAP Days in inventory is
calculated as inventory divided by (Revenue minus Non-GAAP Gross
Profit), multiplied by 91 days.
|
iRobot Corporation
|
Supplemental Data - Impact of Section 301
Tariffs
|
(in thousands, except per share
amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
For the twelve months
ended
|
|
December 30,
2023
|
December 31,
2022
|
December 30,
2023
|
December 31,
2022
|
Section 301 Tariff
Costs
|
$
467
|
$
497
|
$
1,560
|
$
2,968
|
Impact of Section 301
tariff costs to gross and operating margin (GAAP &
non-GAAP)
|
(0.2) %
|
(0.1) %
|
(0.2) %
|
(0.3) %
|
Tax effected impact of
Section 301 tariff costs to net income per diluted share
(GAAP)
|
$
(0.02)
|
$
(0.02)
|
$
(0.06)
|
$
(0.11)
|
Tax effected impact of
Section 301 tariff costs to net income per diluted share
(non-GAAP)
|
$
(0.02)
|
$
(0.01)
|
$
(0.06)
|
$
(0.08)
|
|
|
|
|
|
Certain numbers may
not total due to rounding
|
|
|
|
|
iRobot Corporation
|
Supplemental Reconciliation of Fiscal Year 2024 GAAP
to Non-GAAP Guidance
|
(unaudited)
|
|
|
|
|
|
FY-24
|
GAAP Gross
Profit
|
$258 - $288
million
|
Stock-based
compensation
|
~$4 million
|
Restructuring and
other
|
~$2 million
|
Total
adjustments
|
~$6 million
|
Non-GAAP Gross
Profit
|
$264 - $294
million
|
|
|
|
FY-24
|
GAAP Gross
Margin
|
31% - 33%
|
Stock-based
compensation
|
~1%
|
Restructuring and
other
|
~0%
|
Total
adjustments
|
~1%
|
Non-GAAP Gross
Margin
|
32% - 34%
|
|
|
|
FY-24
|
GAAP Operating
Loss
|
($41) - ($29)
million
|
Amortization of
acquired intangible assets
|
~$1 million
|
Stock-based
compensation
|
~$41 million
|
Net merger, acquisition
and divestiture expense (income)
|
~($74)
million
|
Restructuring and
other
|
~$15 million
|
Total
adjustments
|
~($17)
million
|
Non-GAAP Operating
Loss
|
($58) - ($46)
million
|
|
|
|
FY-24
|
GAAP Net Loss Per
Diluted Share
|
($3.13) -
($2.70)
|
Amortization of
acquired intangible assets
|
~$0.03
|
Stock-based
compensation
|
~$1.45
|
Net merger, acquisition
and divestiture expense (income)
|
~($2.61)
|
Restructuring and
other
|
~$0.53
|
Income tax
effect
|
~$0
|
Total
adjustments
|
~($0.60)
|
Non-GAAP Net Loss Per
Diluted Share
|
($3.73) -
($3.30)
|
|
|
Number of shares used
in diluted per share calculations
|
~28.3
million
|
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SOURCE iRobot Corporation