iRobot Reports First-Quarter 2021 Financial Results

BEDFORD, Mass., May 3, 2021

Colin Angle, chairman and chief executive officer of iRobot, stated, "Our first-quarter results demonstrate that we are off to a very good start to 2021. Consumer demand for our products has remained resilient and our value proposition to provide customers with a highly differentiated, personalized cleaning experience has continued to resonate around the world. Just as important, we have continued to make tangible progress executing on our strategy as we enhanced our iRobot Genius platform, expanded our connected customer base, introduced a new complementary product and advanced our commercial activities for new services."

Commenting on the company's outlook, Angle said, "We have increased our expectations for 2021 revenue to reflect our first-quarter performance and solid growth prospects over the coming quarters. At the same time, we have reaffirmed our 2021 operating income and EPS as we plan to carefully manage our spending to offset higher-than-expected costs arising from the tighter availability of semiconductor chips as well as rising raw material, freight and transportation costs. While it is still early in the year and there is substantial work ahead, we are very excited about our potential to deliver upside to our current targets, assuming demand signals remain favorable and we successfully mitigate the semiconductor chip constraints that are disrupting a wide range of industries. As we execute on our strategy, we remain confident about our ability to capitalize on a wide range of opportunities to sustain our top-line growth and drive meaningful profit and EPS expansion in 2022."

Financial Performance Highlights

• Revenue for the first quarter of 2021 was $303.3 million, a 58% increase from $192.5 million in the first quarter of 2020. iRobot's top-line growth reflected robust expansion in each major geographic region with stronger-than-expected demand from the company's distribution partners in EMEA and vibrant retail orders in North America, including certain orders that were previously anticipated for the second quarter.
• iRobot's revenue grew 40% in the U.S., 74% in EMEA and 53% in Japan compared with the same period last year.
• We estimate that iRobot's first-quarter 2021 revenue to support e-commerce, which spans the company's own website and app, dedicated e-commerce websites and the online arms of traditional retailers, grew by approximately 90% over the first quarter of 2020, and represented approximately 56% of first-quarter 2021 revenue. Direct-to-consumer revenue of $35 million in the first quarter of 2021 grew 146% from the same quarter last year.
• Product revenue mix was more evenly balanced in the first quarter of 2021 than in recent quarters, which reflected the combination of introducing the i3 Series in major markets outside of the U.S., limited availability of certain premium Roomba robots and lower pricing on certain other product SKUs.
• GAAP operating income for the first quarter of 2021 was $6.4 million, compared with a GAAP operating loss of $20.2 million in the first quarter of 2020. First-quarter 2021 non-GAAP operating income of $15.0 million compared with a non-GAAP operating loss of $14.4 million in the same period one year ago.
• GAAP net income per share was $0.26 for the first quarter of 2021, compared with a net loss per share of $0.64 in the first quarter of 2020. Non-GAAP net income per share was $0.41 for the first quarter of 2021 versus a non-GAAP first-quarter 2020 net loss per share of $0.32.
• As of April 3, 2021, the company's cash, cash equivalents and short-term investments were $500.8 million, compared with $483.7 million at the end of 2020 and $263.5 million as of March 28, 2020. The company, which has no outstanding debt, also has access to an unsecured revolving line of credit of $150 million, with an additional $75 million accordion feature.

Q121 and Recent Business Highlights

• iRobot introduced the Roomba i3 and i3+ in EMEA and Japan in January 2021.
• During the first quarter of 2021, the company delivered an upgraded version of the iRobot Genius™ Home Intelligence platform, delivering new features and functionality that further personalize the cleaning experience.
• On April 6, 2021, the company announced the launch of the iRobot H1 handheld vacuum as part of its efforts to address the cleaning needs of Roomba and Braava users, diversify its offerings and grow existing customer revenue through its DTC channel. In addition, iRobot detailed its continued progress with new services including Protect/Protect+ extended warranties, a premium care service and iRobot Select, its robot-as-a-service membership program.
• On April 8, iRobot disclosed that it entered into a Rule 10b5-1 plan to repurchase $50 million of common stock in the aggregate beginning April 12, 2021 and ending September 5, 2021. All share repurchases made during this period will be done as part of the company's previously authorized $200 million stock repurchase program.
• During the first quarter of 2021, iRobot further expanded its community of engaged, connected customers who have opted-in to its digital communications to approximately 10.7 million, a 74% increase over the same period one year ago.
• Major accolades for iRobot and its products during first quarter of 2021 included Android Central (North America), Better Homes & Gardens (North America), Navi & Kaden Watch (Japan), BBC Science (United Kingdom) and Chip (Germany).
• In early April 2021, iRobot expanded the set of resources available within iRobot Education that now includes new social-emotional learning resources and multi-language support.

Financial Expectations
iRobot updated its full-year 2021 GAAP and non-GAAP financial expectations for revenue and gross profit and reaffirmed its operating income and EPS expectations, all of which were originally issued on February 10, 2021. A detailed reconciliation between the company's GAAP and non-GAAP expectations is included in the attached financial tables.