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iRobot Revenue Grows 31 Pct Despite $17M In Unfulfilled Orders

iRobot overcame COVID-related supply chain issues in China that led to $17 million in unfulfilled orders to end the second quarter of 2021 with revenue 31 percent higher than the same time last year.

Revenue for the second quarter of 2021 was $365.6 million, up from $279.9 million in the second quarter of 2020.

The growth primarily reflected “healthy demand” from retailers in North America for mid-tier and premium floor-cleaning robots — up 42 percent and representing 82 percent of the company’s robot sales in the quarter ending June 30 — and from retail and distribution partners in EMEA. The company saw 40 percent revenue growth in the U.S., 29 percent in EMEA and 7 percent in Japan.

“Overall, retailer demand trends and consumer interest in our products remain favorable,” said Colin Angle, chairman and chief executive officer of iRobot. “However, the semiconductor chip shortage, which continues to disrupt a wide range of industries, is constraining our ability to fulfill anticipated second-half orders.”

iRobot’s second-quarter 2021 eCommerce revenue grew by 20 percent over the second quarter of 2020 and represented 66 percent of the company’s second-quarter 2021 revenue. iRobot’s direct-to-consumer revenue of $45 million grew 36 percent from the prior year’s second quarter.

Revenue for the first half of 2021 was $668.9 million versus $472.4 million in the first half of 2020.

The company is adjusting its promotional activities to overcome the supply chain woes and looking into new suppliers, Angle said. The reinstatement of a tariff exclusion should aid the company’s second-half profitability, he said.

“Despite this temporary supply chain headwind, we remain confident in our strategic direction,” Angle said. “We believe our efforts to enhance our supply chain resiliency will help lead to improved availability of components starting in the beginning of next year and steadily strengthen as we move into the second half of 2022.”

iRobot also announced plans to execute a $100 million Accelerated Share Repurchase agreement based on confidence about its future growth. That comes from the fact iRobot sees plenty of potential to get into more homes with the world as a whole becoming increasing connected.

To that end, iRobot’s community of engaged, connected customers who have opted in to its digital communications grew to 11.6 million, an increase of 67 percent from the second quarter of 2020.

iRobot uses post-purchase promotions of insurance to drive the consumer back to and into further interaction with the brand, no matter where they made the original purchase.

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