- Consumer robot company iRobot Corporation (NASDAQ: IRBT) provided an update on its operations with stronger-than-expected orders
Consumer robot company iRobot Corporation (NASDAQ: IRBT) provided an update on its operations. Specifically, the company revealed stronger-than-expected orders during the second quarter as consumers are relying more on Roomba robot vacuums and Braava robot mops for addressing their home floor care needs.
The company said it is anticipating second-quarter 2020 revenue between $260 million and $270 million compared to prior expectations for second-quarter 2020 revenue to be down modestly from the first-quarter 2020 revenue of $193 million.
And the company’s expected second-quarter 2020 top-line performance reflects order growth for premium products such as the Roomba i7 Series and s9 Series and Braava jet m Series.
The company’s quarterly U.S. revenue is anticipated to grow in the mid-single digit range on a percentage basis over last year’s second quarter. And international revenue for the second quarter is expected to decline modestly as solid growth in Japan is likely to be more than offset by softness in Europe.
Plus iRobot Corporation (NASDAQ: IRBT) anticipates that the substantially higher-than-anticipated second-quarter revenue, aided to a lesser extent by better-than-planned gross margin, and diligent expense management — which will result in a return to operating profitability for the quarter.
This compares with prior expectations for a sizeable second-quarter non-GAAP loss from operations.
“Our anticipated second-quarter 2020 financial performance will be substantially better than we originally expected,” said Colin Angle, iRobot’s chairman and chief executive officer. “We have experienced strong demand thus far into the second quarter, particularly in the U.S., with solid growth in our premium products. Maintaining a clean home has become a higher priority for many consumers as COVID-19 has forced people to spend more time in their homes. Our floor cleaning robots have become true partners to millions of customers around the globe, enabling them to keep their homes tidy while freeing them to focus on other priorities, which may now include working from home, childcare, and homeschooling.”
The year-to-date sell-through growth on a unit basis through the end of May strengthened in the U.S. due to accelerated purchasing over the past two months and it remained positive in EMEA. And the company has enjoyed double-digit sell-through growth in Japan in each of the past four weeks although year-to-date sell-through has remained negative.
“The healthy U.S. sell-through dynamics that we’ve observed, combined with the steps we’ve taken to manage costs, further reinforce our view that our second-half 2020 performance will show meaningful improvement over first-half levels,” added Angle. “We move forward with improved business momentum although there is still considerable uncertainty about the prospects for an economic recovery in different parts of the world, which continues to limit our visibility into the timing and magnitude of future orders. Given these dynamics, we continue to expect lower 2020 annual revenue versus the prior year. We expect to share additional insight into our anticipated full-year 2020 financial performance when we report our second-quarter results in late July.”
