iRobot v1 Logo 2iRobot has announced its latest financial results for the fourth quarter and full year; it reports a revenue decrease from $357.9 million (£282 million) last year compared to $307.5 million (£242.2 million) last year.

The robotics cleaning company highlights that its top financial priority is “liquidity and careful cash management”, following its operational restructuring plan which it announced last month.

Glen Weinstein, Interim CEO of iRobot, said: “We are actively implementing an operational restructuring plan designed to both stabilise the business in the current environment and advance our growth initiatives.

“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.”

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iRobot’s Roomba vacuum. Credit: Associated Press

iRobot’s 2023 financial performance highlights that its revenue declined to $890.6 million (£701.9 million) from $1.1 billion (£867.1 million) in 2022.

ERT reported on iRobot’s acquisition by Amazon, which broke down following a ruling by the European competition and markets authority – read more about it here.

“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 Mr Weinstein. “We are confident that the actions we are taking today will drive improved performance going forward.”

It plans to implement its operational restructuring plan by:

  • Focusing on design-to-value and creating “more attractive terms” with manufacturing partners with an anticipated GAAP gross margin of between 31 per cent and 33 per cent and non-GAAP gross margin of between 32 per cent and 34 per cent in 2024.
  • It will also be reducing its research and development by an estimated $25 million (£19.7 million).
  • iRobot will also be looking to “streamline” its real estate footprint to fit its current business needs.
  • It will also be reducing its workforce by 350 employees 31 per cent of its staff.

According to Investopedia, non-GAAP reporting is used when a company is undergoing acquisitions or restructuring. This smooths out high-earnings volatility that can result from temporary conditions, providing a clearer picture of ongoing business.