iRobot, a global leader in consumer robotics, reported a significant decline in its financial performance for fiscal 2023. The company's total revenue fell to $890.6 million, a 24.7% decrease from the previous year's $1,183.4 million. This decline was attributed to reduced orders from retailers and distributors, driven by a downturn in consumer sentiment and increased market competition. Geographically, domestic revenue dropped by 30.3%, while international revenue decreased by 18.7%. The company's operating loss widened to ($264.1) million, compared to ($240.4) million in the prior year, with a gross margin of 22.0%, down from 29.6%. Despite these challenges, iRobot continued to innovate, launching new products such as the Roomba Combo i5+ and j9+, and introducing iRobot OS features like Dirt Detective and SmartScrub. The company also managed to reduce its...Show More

iRobot, a global leader in consumer robotics, reported a significant decline in its financial performance for fiscal 2023. The company's total revenue fell to $890.6 million, a 24.7% decrease from the previous year's $1,183.4 million. This decline was attributed to reduced orders from retailers and distributors, driven by a downturn in consumer sentiment and increased market competition. Geographically, domestic revenue dropped by 30.3%, while international revenue decreased by 18.7%. The company's operating loss widened to ($264.1) million, compared to ($240.4) million in the prior year, with a gross margin of 22.0%, down from 29.6%. Despite these challenges, iRobot continued to innovate, launching new products such as the Roomba Combo i5+ and j9+, and introducing iRobot OS features like Dirt Detective and SmartScrub. The company also managed to reduce its operating expenses by $130.2 million and inventory levels by $132.8 million, ending the year with $152.5 million in inventory. iRobot secured a $200.0 million Term Loan to fund operations and received a $94.0 million termination fee from Amazon after a mutual agreement to terminate a planned merger. Looking ahead, iRobot plans to focus on gross margin improvements, cost reductions, and aligning its cost structure with revenue expectations to drive profitability.