iRobot Corp. (NASDAQ: IRBT), a leader in consumer robots, today announced its financial results for the third quarter ended September 26, 2020.

Colin Angle, chairman and chief executive officer of iRobot, stated, "We delivered an extraordinarily strong financial performance while executing well across our global organization to achieve a number of important strategic milestones. Our third-quarter 2020 revenue growth of 43% over the prior year's quarter reflects another quarter of substantially stronger-than-expected orders from retailers tied to favorable sell-through trends, anticipated demand for the upcoming holiday season and incremental orders to support certain customer events, as well as robust direct-to-consumer sales growth. We saw revenue in each geography exceed our original plans with notable strength in U.S. order levels. The higher-than-expected revenue, combined with a solid gross margin performance and prudent spending, helped drive substantial growth in operating income and EPS."

"The pandemic continues to shine a light on how our robots can help individuals and families keep their floors clean while freeing them to spend their time doing the other things in their lives that they need or want to do," observed Angle. "Consumer demand for our premium Roomba and Braava robots remained robust during the third quarter. We made tangible progress to further differentiate our product offerings and extend high-value innovation across our product portfolio with the launch of the Genius™ Home Intelligence platform and the new Roomba i3 and i3+ during the third quarter. Customer response to our Genius platform and the i3 Series has been excellent thus far."

Angle concluded, "Our team continues to rise to the occasion, addressing a multitude of challenges tied to the global pandemic with commitment, focus and resiliency. As a result of our excellent third-quarter 2020 performance, sustained sell-through trends, the extension of our tariff exclusion until year-end and a range of exciting opportunities ahead, we now expect to deliver strong full-year 2020 results with annual revenue, gross margin, operating profitability and EPS all on course to exceed our original 2020 targets."

Financial Performance Highlights

• Revenue for the third quarter of 2020 was $413.1 million, an increase of 43% from $289.4 million in the third quarter of 2019. The growth primarily reflected an 86% increase in premium robot (list price of $500 or higher) revenue, as well as 36% overall unit growth. Revenue for the first nine months of 2020 was $885.6 million, an increase of 12% over $787.2 million in the comparable period of 2019.
  • The third-quarter 2020 revenue performance was highlighted by 75% growth in the U.S., 22% growth in EMEA and 12% growth in Japan over the prior year period.
  • We estimate that online orders, which span the company's own website and app, dedicated e-commerce websites and the online arms of traditional retailers, grew by approximately 70% and represented approximately 60% of the third-quarter 2020 revenue. Direct-to-consumer revenue of $35 million grew approximately 155% from the prior year's third quarter.
• Third-quarter 2020 GAAP operating income was $81.0 million, compared with GAAP operating income of $42.6 million in the third quarter of 2019. Third-quarter 2020 non-GAAP operating income was $93.1 million, compared with non-GAAP operating income of $50.1 million in the same period one year ago. GAAP operating income for the first nine months of 2020 was $131.1 million, compared with GAAP operating income of $70.1 million in same period of 2019. Non-GAAP operating income for the first nine months of 2020 was $119.3 million versus non-GAAP operating income of $98.9 million in the same period one year ago.
• GAAP net income per share was $3.27 for the third quarter of 2020, compared with GAAP net income per share of $1.24 in the third quarter of 2019. Non-GAAP net income per share was $2.58 for the third quarter of 2020 versus third-quarter 2019 non-GAAP net income per share of $1.50. GAAP net income per share for the first nine months of 2020 was $4.69, compared with $2.27 in the same period of 2019. Non-GAAP net income per share for the first nine months of 2020 was $3.31, compared with $2.93 in the first nine months of 2019.
• As of September 26, 2020, the company's cash, cash equivalents and short-term investments were $357.3 million, compared with $242.3 million as of June 27, 2020 and $256.4 million as of December 28, 2019. The increase reflects the company's strong fundamental performance along with receiving approximately $35 million in tariff-related refunds and approximately $52 million in Teladoc Health stock that the company received in the third quarter when Teladoc Health acquired the company's stake in InTouch Health. iRobot's Teladoc Health stock is subject to sale restrictions until early 2021. iRobot, which has no debt, also has access to an unsecured revolving line of credit of $150 million, with an additional $75 million accordion feature.

Third-Quarter and Recent Business Highlights

• The United States Trade Representative extended iRobot's Section 301 tariff exclusion for its Roomba® robot vacuums until the end of 2020.
• On August 25, 2020, iRobot unveiled personalized cleaning experiences powered by its new iRobot Genius™ Home Intelligence platform that gives users greater control of where, when and how their robots clean. iRobot's Home App was redesigned to maximize the benefits available with the iRobot Genius platform.
• On September 17, 2020, iRobot introduced the Roomba i3+, a stylish new Roomba vacuum that offers intelligent navigation, self-emptying capability with Clean Base® Automatic Dirt Disposal, and an expanded range of personalized cleaning features powered by the recently launched iRobot Genius™ Home Intelligence.
• On July 29, 2020, iRobot introduced the Root rt0 Coding Robot, an easy-to-use and customizable coding robot that brings classroom learning into the home.
• For the sixth consecutive year, Roomba was a featured product in Amazon's Prime Day event.
• The company's community of engaged, connected owners who have opted-in to its digital communications (in-app messaging, email or both) grew to approximately 7.8 million, up approximately 45% since the start of 2020.
• In August 2020, Kiran Smith joined the company as chief marketing officer to lead its consumer marketing strategy in the U.S. and overseas. Before joining iRobot, Kiran served as CEO of Arnold Worldwide, a leading global creative advertising agency. Prior to that role, she held brand marketing leadership roles at Brookstone, Stride Rite, and two of the largest supermarket chains in the U.S.

About iRobot Corp.

iRobot®, the leading global consumer robot company, designs and builds robots that empower people to do more both inside and outside of the home. iRobot created the home robot cleaning category with the introduction of its Roomba® Robot Vacuum in 2002. Today, iRobot is a global enterprise that has sold more than 30 million robots worldwide. iRobot's product line, including the Roomba and the Braava® family of mopping robots, feature proprietary technologies and advanced concepts in cleaning, mapping and navigation. iRobot engineers are building an ecosystem of robots and technologies to enable the smart home. For more information about iRobot, please visit www.irobot.com.