BEDFORD,
Mass., March 11, 2024 /PRNewswire/
-- iRobot Corp. (NASDAQ: IRBT), a leader in consumer
robots, today announced its GAAP and non-GAAP financial
expectations for the first quarter ending March 30, 2024, and
reiterated its previously announced financial outlook for the
fiscal year ending December 28, 2024
ahead of meetings with institutional investors.
First Quarter 2024 Outlook
iRobot is providing GAAP
and non-GAAP financial expectations for the first quarter
ending March 30, 2024. A detailed reconciliation between the
Company's GAAP and non-GAAP expectations is included in the
attached financial tables.
First Quarter 2024:
Metric
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
Revenue
|
$137 - $142
million
|
|
—
|
|
$137 - $142
million
|
Gross Margin
|
22% to 23%
|
|
~1%
|
|
23% to 24%
|
Operating Income
(Loss)
|
$7 – $11
million
|
|
~($54)
million
|
|
($47) – ($43)
million
|
Net Loss Per
Share
|
($0.22) –
($0.09)
|
|
~($1.91)
|
|
($2.13) –
($2.00)
|
Reiterates 2024 Financial Outlook
iRobot is
reiterating its GAAP and non-GAAP financial expectations for the
fiscal year ending December 28, 2024 as well as first half and
second half color, previously announced in its fourth-quarter and
year-end 2023 news release on February 26,
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
year-over-year 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.
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
first quarter and fiscal year 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
Explanation of
Non-GAAP Measures
This press 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.
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.
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. 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 First Quarter Fiscal
Year 2024 GAAP to Non-GAAP Guidance
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Q1-24
|
|
GAAP Gross
Profit
|
$30 - $32
million
|
|
Stock-based
compensation
|
~$1 million
|
|
Restructuring and
other
|
~$1 million
|
|
Total
adjustments
|
~$2 million
|
|
Non-GAAP Gross
Profit
|
$32 - $34
million
|
|
|
|
|
|
Q1-24
|
|
GAAP Gross
Margin
|
22% - 23%
|
|
Stock-based
compensation
|
~1%
|
|
Restructuring and
other
|
~1%
|
|
Total
adjustments
|
~1%
|
|
Non-GAAP Gross
Margin
|
23% - 24%
|
|
|
|
|
|
Q1-24
|
|
GAAP Operating
Income
|
$7 - $11
million
|
|
Amortization of
acquired intangible assets
|
~$0 million
|
|
Stock-based
compensation
|
~$9 million
|
|
Net merger, acquisition
and divestiture expense (income)
|
~($74)
million
|
|
Restructuring and
other
|
~$11 million
|
|
Total
adjustments
|
~($54)
million
|
|
Non-GAAP Operating
Loss
|
($47) - ($43)
million
|
|
|
|
|
|
Q1-24
|
|
GAAP Net Loss Per
Diluted Share
|
($0.22) -
($0.09)
|
|
Amortization of
acquired intangible assets
|
~$0.01
|
|
Stock-based
compensation
|
~$0.33
|
|
Net merger, acquisition
and divestiture expense (income)
|
~($2.64)
|
|
Restructuring and
other
|
~$0.39
|
|
Income tax
effect
|
~$0
|
|
Total
adjustments
|
~($1.91)
|
|
Non-GAAP Net Loss Per
Diluted Share
|
($2.13) -
($2.00)
|
|
|
|
|
Number of shares used
in diluted per share calculations*
|
~28.0
million
|
|
|
|
|
* Number of shares does
not include impact from the at-the-market offering program
announced on February 27, 2024
|
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