iRobot Corporation (NASDAQ:IRBT) Q2 2021 Earnings Conference Call July 29, 2021 8:30 AM ET Company Participants Andrew Kramer - Investor Relations Colin Angle - Chairman and Chief Executive Officer Julie Zeiler - Executive Vice President and Chief Financial Officer Conference Call Participants Ben Rose - Battle Road Research Asiya Merchant - Citigroup John Babcock - Bank of America Derek Soderberg - Colliers Securities Tyler Bailey - Needham Operator Good day, ladies and gentlemen and thank you for standing ...

Financial Data and Key Metrics Changes - Q1 2021 revenue reached $303 million, a 58% increase compared to Q1 2020, with an operating income of $15 million and an operating profit margin of 5% [7][20] - Gross margin for Q1 2021 was 40.7%, largely unchanged from the prior year, with operating expenses increasing by 17% to $109 million, representing 36% of revenue [21][22] - Net income per share for Q1 2021 was $0.41, with cash and short-term investments totaling $501 million, an increase of $17 million from year-end [23] Business Line Data and Key Metrics Changes - Roomba robots and accessories accounted for 89% of Q1 revenue, with strong growth in direct-to-consumer sales, which increased by 146% and represented 12% of Q1 revenue [20][15] - The introduction of the iRobot H1 handheld vacuum complemented existing products and aimed to enhance customer revenue [13][69] Market Data and Key Metrics Changes - Revenue growth was driven by a 40% increase in the U.S. and a 70% increase internationally, with EMEA showing a 74% growth and Japan a 53% increase [20] - Approximately 56% of total Q1 revenue came from e-commerce channels, reflecting a significant shift in consumer purchasing behavior [20] Company Strategy and Development Direction - The company focuses on enhancing customer engagement through AI and machine vision technologies, aiming to integrate cleaning robots into customers' lifestyles [9][10] - iRobot is committed to nurturing lifetime customer relationships and expanding existing customer revenue through new services and purchasing options [12][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from the semiconductor chip shortage and rising costs for raw materials and transportation, but remains optimistic about growth potential [17][18] - The full-year revenue outlook has been raised to a range of $1.67 billion to $1.71 billion, with expectations for continued strong demand [17][24] Other Important Information - The company plans to optimize its iRobot Select Robot-as-a-service membership program and is testing a premium care-as-a-service offering [14] - The company has a strong balance sheet, which will help secure longer lead times for components amid supply chain challenges [25] Q&A Session Summary Question: Clarification on U.S. inventory dynamics and future promotional activities - Management indicated that inventory levels are healthy and there are no unusual risks with channel viability, with expectations for strong sequential growth in Q2 [33][36] Question: Impact of component shortages on revenue guidance - Management confirmed that component shortages influence both revenue and margin guidance, but demand remains strong [50] Question: Trends driving growth in EMEA - Management noted that robot vacuuming is becoming the preferred method for floor care, with low household penetration providing growth opportunities [46] Question: Expectations for new product launches - Management confirmed that two new robots are planned for launch this year, unaffected by supply chain challenges [76] Question: Updates on litigation with Shark - No updates were provided on the litigation status [79]

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $545 million, a 28% year-over-year increase, with full-year revenue at $1.43 billion, an 18% increase [8][25] - Operating income margin for Q4 was 6%, with full-year operating profit margin at 10% [8][25] - EPS for Q4 was $0.84, and for the full year, it was $4.14, up from $3.62 in 2019 [8][26] Business Line Data and Key Metrics Changes - Roomba accounted for 89% of Q4 revenue, with Braava revenue growing by 56% due to strong demand for the m6 model [23] - Premium robot sales grew nearly 50% in 2020, representing 60% of total robot sales [12] - Direct-to-consumer sales more than doubled in Q4, contributing 11% of total 2020 revenue, up from 6% in 2019 [16] Market Data and Key Metrics Changes - U.S. revenue grew by 23%, while international revenue increased by 12%, with Japan showing a 20% growth and EMEA up by 8% [25] - Q4 revenue growth was 28% in the U.S. and 27% internationally, driven by strong demand across all major regions [23] Company Strategy and Development Direction - The company focuses on enhancing customer engagement and differentiating the cleaning experience through software investments in AI and machine vision technologies [9][10] - Plans to introduce new Roomba models and expand digital features through the Genius platform in 2021 [11] - Aims to increase direct-to-consumer sales to at least 15% of total revenue in 2021 and over 20% by the end of 2023 [16] Management's Comments on Operating Environment and Future Outlook - The company anticipates 2021 revenue growth of 14% to 17%, with a target operating profit margin of approximately 7% [19][20] - Management expects gross margin to decline to the low 40% range due to tariffs and initial costs from expanding production in Malaysia [29] - Optimism about long-term prospects, with expectations for stronger performance in 2022 driven by operational improvements and market growth [20][21] Other Important Information - The company ended 2020 with $484 million in cash and short-term investments, reflecting strong cash flow from operations [26] - The company is actively defending its intellectual property, having filed a new patent infringement action against SharkNinja [11] Q&A Session Summary Question: Insights on revenue growth expectations for 2022 - Management highlighted that 2021 investments are expected to lead to revenue growth in 2022, with a focus on under-penetrated markets [41][44] Question: Breakdown of gross margin decline for 2021 - Management indicated that tariffs are a significant factor, along with costs associated with ramping up production in Malaysia and pricing activities [45][46] Question: Supply chain health and confidence - Management expressed pride in their supply chain's performance but acknowledged challenges such as rising freight costs and material shortages [48][49] Question: Long-term vision for Roomba - The company aims to expand Roomba's functionalities beyond cleaning, leveraging AI for enhanced home understanding [50][52] Question: Direct-to-consumer sales growth drivers - Management noted increased customer engagement and improved online capabilities as key factors driving direct sales growth [74][75]

iRobot Corp. (NASDAQ:IRBT) Q3 2020 Results Conference Call October 21, 2020 8:30 AM ET Company Participants Andrew Kramer - IR Colin Angle - Chairman and CEO Julie Zeiler - EVP and CFO Conference Call Participants Charlie Anderson - Collier Securities Jim Ricchiuti - Needham & Company Ben Rose - Battle Road Asiya Merchant - Citigroup John Babcock - Bank of America Mark Strouse - J.P. Morgan Mike Latimore - Northland Capital Markets Jeff Feinberg - Feinberg Investment Operator Good day, everyone. And welcome ...

iRobot Corporation (NASDAQ:IRBT) Q2 2020 Earnings Conference Call July 22, 2020 8:30 AM ET Company Participants Andrew Kramer - Investor Relations Colin Angle - Chairman & Chief Executive Officer Julie Zeiler - Executive Vice President & Chief Financial Officer Conference Call Participants Mike Latimore - Northland Capital Markets John Babcock - Bank of America Merrill Lynch Jim Ricchiuti - Needham & Company Ben Rose - Battle Road Research Mark Strouse - JPMorgan Charles Anderson - Colliers Securities Asiya ...

Financial Data and Key Metrics Changes - First quarter revenue was $193 million, a decline of 19% from the prior year [10][24] - Operating loss for Q1 was $14.4 million, with a net loss per share of $0.32 [10][26] - Gross margin was 41%, down 10.9 percentage points from the previous year, primarily due to lower pricing and higher promotional expenses [25][24] - Cash and investments at the end of Q1 totaled $264 million, with healthy cash flow from operations of $41 million [27][33] Business Line Data and Key Metrics Changes - Roomba accounted for approximately 88% of revenue, with most revenue generated from robots priced at $500 and above [24] - Revenue declined by 28% in the U.S., 11% in EMEA, and 14% in Japan [11][24] Market Data and Key Metrics Changes - U.S. sell-through accelerated in February but was disrupted in March due to COVID-19 [10][11] - The pandemic has led to increased consumer interest in cleaning products, although economic uncertainty may affect purchasing behavior [12][20] Company Strategy and Development Direction - The company is focusing on differentiating its offerings, building direct relationships with customers, and nurturing customer lifetime value [13][15][16] - Cost-reduction actions are being implemented, including a targeted headcount reduction of approximately 5% and a $30 million reduction in spending for 2020 [17][32] - The launch of the Terra robot mower has been suspended due to COVID-19 uncertainties, while other product developments remain on track [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for revenue recovery in the second half of the year, despite anticipating a soft second quarter [20][23] - The uncertainty surrounding COVID-19 has impaired visibility into order activity and financial targets for the year [20][28] Other Important Information - The company received a tariff exclusion that will eliminate a 25% tariff on Roomba imports and provide refunds on previously paid tariffs [19][30] - The company ended Q1 with a healthy inventory level and is managing its supply chain to adapt to changing market conditions [27][71] Q&A Session Summary Question: What are the sales through your direct-to-consumer website? - Direct-to-consumer sales grew 45% year-over-year in 2019, with strong performance in leasing-style purchasing [41][42] Question: Are you anticipating using some of the gross margin benefit from tariff exclusion to be more competitive? - The company will assess how to deploy the tariff exclusion benefits against initiatives versus improving the bottom line [45][46] Question: What allows for R&D changes and cuts? - The focus has shifted towards software differentiation, reducing the need for hardware engineering resources [49][50] Question: How has the current inventory in the channel evolved? - The inventory levels are good, with progress made against sell-through in Q1 [71] Question: What is the rationale for shelving the Terra robot mower? - The decision was based on prioritizing resources and investments in strategic areas amid COVID-19 uncertainties [58][60]