Consumer robot maker iRobot Corp. (NASDAQ:IRBT) shares are trading lower after the company revealed preliminary financial results for the fourth quarter, ending December 28, 2024.
Based on preliminary financial results, the company projects a revenue of approximately $171 million (consensus $187.84 million), alongside an expected GAAP operating loss of $59 million and a non-GAAP operating loss of $47 million.
iRobot had previously expected fourth-quarter revenue to be $175 million – $200 million with a GAAP operating loss of $43 million – $34 million and a non-GAAP operating loss of $31 million – $22 million.
“Our preliminary results reflect higher-than-anticipated seasonal promotional spending to stimulate sell-through prior to our 2025 new product launches,” said CEO Gary Cohen.
In addition, iRobot faced a $8 million non-recurring charge related to the write-off of excess component inventory and losses from non-cancelable purchase commitments.
These factors contributed to the company’s operating loss and affected its gross margin in the fourth quarter.
Despite the challenges, Cohen emphasized that the company is undergoing significant transformations in its product development process, which is expected to improve long-term financial performance.
He also highlighted the company’s efforts to streamline operations while investing in growth areas that will drive future success.
As of the close of FY24, iRobot anticipates holding $134 million in cash and equivalents, exceeding its internal forecasts.
Looking ahead, iRobot is optimistic about returning to year-over-year revenue growth in 2025 as it rolls out new and improved products.
The company predicts that the second half of 2025 will outperform the first, with stronger sales driven by an expanded product line. However, the first quarter of 2025 is expected to reflect ongoing transitions in its product offerings.
With reduced product costs and quicker development cycles, iRobot expects improved margins and profitability as the year progresses.
Price Action: IBRT shares are trading lower by 19.5% at $8.41 on the last check Monday.
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This article iRobot Shares Plunge As Preliminary Q4 Results Misses Mark—But CEO Bets Big On 2025 Comeback originally appeared on Benzinga.com
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