•
Sep 26, 2020

iRobot Q3 2020 Earnings Report

Reported strong financial results driven by increased consumer reliance on Roomba and Braava.

Key Takeaways

iRobot reported a strong Q3 2020 with revenue of $413.1 million, a 43% increase year-over-year. The company's performance was driven by increased demand for premium robots and robust direct-to-consumer sales growth. As a result, iRobot expects to exceed its original 2020 targets.

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.

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.

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.

The United States Trade Representative extended iRobot’s Section 301 tariff exclusion for its Roomba® robot vacuums until the end of 2020.

Total Revenue
$413M
Previous year: $289M
+42.8%
EPS
$2.58
Previous year: $1.24
+108.1%
Gross Profit
$199M
Previous year: $137M
+45.3%
Cash and Equivalents
$297M
Previous year: $70.5M
+321.3%
Free Cash Flow
$62.5M
Previous year: -$65.3M
-195.8%
Total Assets
$1.12B
Previous year: $874M
+27.8%

iRobot

iRobot

iRobot Revenue by Geographic Location

Forward Guidance

iRobot expects to deliver strong full-year 2020 results with annual revenue, gross margin, operating profitability and EPS all on course to exceed original 2020 targets.

Positive Outlook

  • Annual revenue is expected to be between $1.365 billion and $1.375 billion.
  • Gross profit is expected to be between $649 million and $657 million.
  • Operating income is expected to be between $127 million and $132 million.
  • Earnings per share is expected to be between $4.52 and $4.62.
  • Tariff exclusion extended until year-end

Challenges Ahead

  • Gross profit Non-GAAP is expected to be between $613 million and $621 million.
  • Operating income Non-GAAP is expected to be between $125 million and $130 million.
  • Earnings per share Non-GAAP is expected to be between $3.43 and $3.53.
  • The impact of COVID-19 on our business, the industry and markets in which we operate, and the global economy
  • The financial strength of our customers and retailers

Revenue & Expenses

Visualization of income flow from segment revenue to net income