iRobot Reports Second-Quarter 2023 Financial Results

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Aug 08, 2023

PR Newswire

BEDFORD, Mass., Aug. 8, 2023 /PRNewswire/ -- iRobot Corp. (NASDAQ: IRBT), a leader in consumer robots, today announced its financial results for the second quarter ended July 1, 2023.


Q2 2023 Financial Performance Highlights

  • Revenue for the second quarter of 2023 was $236.6 million, compared with $255.4 million in the same period last year.
    • Geographically, second-quarter 2023 revenue grew 9% in Japan, declined 9% in EMEA and declined 6% in the U.S. over the same period last year.
    • Revenue from mid-tier robots (with an MSRP between $300 and $499) and premium robots (with an MSRP of $500 or more) represented 84% of total robot sales in the second quarter of 2023 versus 83% from the same period last year.
    • We estimate that iRobot's second-quarter 2023 revenue from e-commerce, which spans the Company's own website and app, dedicated e-commerce websites and the online arms of traditional retailers, increased approximately 6% from the same period last year and represented approximately 71% of second-quarter 2023 revenue. As expected, the increase is due to order timing. In 2022, certain large orders from an e-tailer customer occurred in the first quarter, and in 2023 these orders were shipped in the second quarter. iRobot's direct-to-consumer (DTC) revenue of $40 million in the second quarter of 2023 increased 1% from the prior-year second quarter.
  • GAAP operating expenses for the second quarter of 2023 were $124.6 million, compared with GAAP operating expenses of $144.9 million in the same period last year. Second-quarter 2023 non-GAAP operating expenses were $105.4 million, compared with non-GAAP operating expenses of $136.2 million in the same period last year. The decrease in operating expenses is attributable to cost-reduction actions in August 2022 and February 2023, along with careful expense management and scaled back working media.
  • GAAP operating loss for the second quarter of 2023 was ($71.1) million, compared with GAAP operating loss of ($63.9) million in the same period last year. Non-GAAP operating loss for the second quarter of 2023 was ($50.5) million, compared with non-GAAP operating loss of ($53.3) million in the same period last year. The Company's operating loss reflected the impact of decreased revenue and a lower gross profit margin, partially offset by the benefits of careful expense management. The lower gross margin was due to increased promotional activities, higher rework costs to our on-hand inventory to fulfill orders as well as costs associated with the Company's contract manufacturers and was partially offset by the benefits from improved product costs and lower ocean freight costs.
  • GAAP net loss per share for the second quarter of 2023 was ($2.93), compared with GAAP net loss per share of ($1.60) in the same period last year. Non-GAAP net loss per share was ($1.42) for the second quarter of 2023, compared with non-GAAP net loss per share of ($0.35) in the same period last year.
  • As of July 1, 2023, the Company's cash and cash equivalents were $58.0 million, compared with $47.9 million as of April 1, 2023, and $117.9 million at the end of 2022. During the second quarter, the Company repaid its total outstanding borrowings of $27 million on its credit facility.
  • The Company's inventory balance was $170.6 million as of July 2, 2023, compared with $285.3 million at the end of 2022. GAAP days in inventory (DII) was 85 days, compared with 95 days at the end of 2022. Non-GAAP DII was 86 days, compared with 96 days at the end of 2022. The decrease in inventory primarily reflected the use of on-hand inventory to fulfill first-half 2023 orders.

Second-Quarter and Recent Business Highlights

  • For the 9th consecutive year, Roomba® was a featured product in Amazon's Prime Day event, which was held on July 11-12, 2023. The Company's products received favorable Prime Day related media coverage in outlets including CNN Underscored, Wall Street Journal and Good Morning America.
  • The Company's Roomba Combo j7+, an advanced 2-in-1 robot introduced in September 2022, won the Gear Patrol Home Award. In addition, New York Magazine's The Strategist named Roomba j7+ as 'Best Overall Robot Vacuum' and Roomba Combo j7+ as 'Best Robot Vacuum for Pet Owners.' The Roomba Combo j7+ also received favorable reviews by Der Spiegel in Germany, El Pais and Deia in Spain, and Pocket Lint in UK.
  • The Company's Roomba s9+ won the Tom's Guide Award for 'Best Robot Vacuum Cleaner.'
  • The Company's community of engaged, connected customers who have opted-in to its digital communications grew 18% to 18.6 million, from the second quarter of 2022.

Proposed Merger with Amazon and new $200 million Financing Facility
On July 24, 2023, iRobot entered into a $200 million financing facility to fund its ongoing operations. At the same time, iRobot and Amazon amended the existing terms of their merger agreement to reflect a reduction in the price per share. For Amazon, the change in price per share is expected to be largely offset by the increase in iRobot's net debt under the new financing facility. In light of the pending transaction with Amazon, which was originally announced on August 5, 2022, iRobot will not hold a financial results conference call, and its practice of providing full-year financial guidance remains suspended.

About iRobot Corp.
iRobot is a global consumer robot company that designs and builds thoughtful robots and intelligent home innovations that make life better. iRobot introduced the first Roomba robot vacuum in 2002. Today, iRobot is a global enterprise that has sold millions of robots worldwide. iRobot's product portfolio features technologies and advanced concepts in cleaning, mapping and navigation. Working from this portfolio, iRobot engineers are building robots and smart home devices to help consumers make their homes easier to maintain and healthier places to live. For more information about iRobot, please visit

Important Information and Where to Find It
In connection with the proposed transaction between iRobot and Amazon, iRobot will file with the SEC a Proxy Statement, the definitive version of which will be sent or provided to iRobot stockholders. iRobot may also file other documents with the SEC regarding the proposed transaction. This document is not a substitute for the Proxy Statement or any other document which iRobot may file with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS AND DOCUMENTS INCORPORATED BY REFERENCE THEREIN, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders may obtain free copies of the Proxy Statement (when it is available) and other documents that are filed or will be filed with the SEC by iRobot through the website maintained by the SEC at, iRobot's investor relations website at or by contacting iRobot's investor relations department at the following:

Karian Wong
(781) 430-3003

Participants in the Solicitation
iRobot and certain of its directors and executive officers may be deemed to be participants in the solicitation of proxies from iRobot's stockholders in respect of the proposed transaction and any other matters to be voted on at the special meeting. Information regarding iRobot's directors and executive officers, including a description of their direct interests, by security holdings or otherwise, is contained in iRobot's proxy statement for its 2023 annual meeting of stockholders, which was filed with the SEC on April 11, 2023, and will be included in the Proxy Statement (when available). iRobot stockholders may obtain additional information regarding the direct and indirect interests of the participants in the solicitation of proxies in connection with the proposed transaction, including the interests of iRobot directors and executive officers in the transaction, which may be different than those of iRobot stockholders generally, by reading the Proxy Statement and any other relevant documents that are filed or will be filed with the SEC relating to the transaction. You may obtain free copies of these documents using the sources indicated above.

Cautionary Statement Regarding Forward-Looking Statements
This communication contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on the Company's current expectations, estimates and projections about its business and industry, all of which are subject to change. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "could," "seek," "see," "will," "may," "would," "might," "potentially," "estimate," "continue," "expect," "target," similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond our control, and are not guarantees of future results, such as statements about the consummation of the proposed transaction and the anticipated benefits thereof. These and other forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: (i) the ability of the parties to consummate the proposed transaction with, Inc in a timely manner or at all; (ii) the satisfaction (or waiver) of closing conditions to the consummation of the proposed transaction, including with respect to the approval of the Company's stockholders; (iii) potential delays in consummating the proposed transaction; (iv) the ability of the Company to timely and successfully achieve the anticipated benefits of the proposed transaction; (v) the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the merger agreement; (vi) the impact of the COVID-19 pandemic and the current conflict between the Russian Federation and Ukraine on the Company's business and general economic conditions; (vii) the Company's ability to implement its business strategy; (viii) significant transaction costs associated with the proposed transaction; (ix) potential litigation relating to the proposed transaction; (x) the risk that disruptions from the proposed transaction will harm the Company's business, including current plans and operations; (xi) the ability of the Company to retain and hire key personnel; (xii) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed transaction; (xiii) legislative, regulatory and economic developments affecting the Company's business; (xiv) general economic and market developments and conditions; (xv) the evolving legal, regulatory and tax regimes under which the Company operates; (xvi) potential business uncertainty, including changes to existing business relationships, during the pendency of the merger that could affect the Company's financial performance; (xvii) restrictions during the pendency of the proposed transaction that may impact the Company's ability to pursue certain business opportunities or strategic transactions; (xviii) unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities, (xviv) current supply chain challenges including current constraints in the availability of certain semiconductor components used in our products; (xx) the financial strength of our customers and retailers; (xxi) the impact of tariffs on goods imported into the United States; and (xxii) competition, as well as the Company's response to any of the aforementioned factors. These risks, as well as other risks associated with the proposed transactions, will be fully discussed in the Proxy Statement to be filed with the SEC in connection with the proposed transaction. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption "Risk Factors" in the Company's most recent annual and quarterly reports filed with the SEC and any subsequent reports on Form 10-K, Form 10-Q or Form 8-K filed from time to time and available at While the list of factors presented here is, and the list of factors presented in the Proxy Statement will be, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability and similar risks, any of which could have a material adverse effect on the Company's financial condition, results of operations, or liquidity. The forward-looking statements included herein are made only as of the date hereof. The Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.

iRobot Corporation

Consolidated Statements of Operations

(in thousands, except per share amounts)


For the three months ended

For the six months ended

July 1, 2023

July 2, 2022

July 1, 2023

July 2, 2022


$ 236,568

$ 255,351

$ 396,860

$ 547,320

Cost of revenue:

Cost of product revenue





Amortization of acquired intangible assets





Total cost of revenue





Gross profit





Operating expenses:

Research and development





Selling and marketing





General and administrative





Amortization of acquired intangible assets





Total operating expenses





Operating loss





Other expense, net





Loss before income taxes





Income tax expense (benefit)





Net loss

$ (80,800)

$ (43,421)

$ (161,912)

$ (73,827)

Net loss per share:


$ (2.93)

$ (1.60)

$ (5.88)

$ (2.72)


$ (2.93)

$ (1.60)

$ (5.88)

$ (2.72)

Number of shares used in per share calculations:











Stock-based compensation included in above figures:

Cost of revenue

$ 801

$ 585

$ 1,387

$ 1,026

Research and development





Selling and marketing





General and administrative






$ 8,573

$ 8,023

$ 16,505

$ 15,231

iRobot Corporation

Condensed Consolidated Balance Sheets

(unaudited, in thousands)

July 1, 2023

December 31, 2022


Cash and cash equivalents

$ 57,954

$ 117,949

Accounts receivable, net






Other current assets



Total current assets



Property and equipment, net



Operating lease right-of-use assets



Deferred tax assets






Intangible assets, net



Other assets



Total assets

$ 634,139

$ 835,443

Liabilities and stockholders' equity

Accounts payable

$ 138,803

$ 184,016

Accrued expenses



Deferred revenue and customer advances



Total current liabilities



Operating lease liabilities



Deferred tax liabilities



Other long-term liabilities



Total long-term liabilities



Total liabilities



Stockholders' equity



Total liabilities and stockholders' equity

$ 634,139

$ 835,443

iRobot Corporation

Consolidated Statements of Cash Flows

(unaudited, in thousands)

For the six months ended

July 1, 2023

July 2, 2022

Cash flows from operating activities:

Net loss

$ (161,912)

$ (73,827)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization



Loss on equity investment



Stock-based compensation



Deferred income taxes, net






Changes in operating assets and liabilities — (use) source

Accounts receivable






Other assets



Accounts payable



Accrued expenses and other liabilities



Net cash used in operating activities



Cash flows from investing activities:

Additions of property and equipment



Purchase of investments



Sales and maturities of investments



Net cash (used in) provided by investing activities



Cash flows from financing activities:

Proceeds from employee stock plans



Income tax withholding payment associated with restricted stock vesting



Proceeds from borrowings



Net cash (used in) provided by financing activities