iRobot Reports Second Quarter 2022 Financial Results.

BEDFORD, Mass: iRobot Corp. (NASDAQ: IRBT), a leader in consumer robots, today announced its financial results for the second quarter ended July 2, 2022. Additionally, in a separate release, iRobot announced it has entered into a definitive agreement to be acquired by Amazon.com, Inc. (NASDAQ: AMZN). Under the terms of the agreement, Amazon will acquire all the outstanding shares of iRobot common stock for $61.00 per share in cash for a transaction value of approximately $1.7 billion, including iRobot's net debt.

Financial Performance Highlights

Revenue for the second quarter of 2022 was $255.4 million, compared with $365.6 million in the second quarter of 2021. Revenue for the first half of 2022 was $547.3 million versus $668.9 million in the first half of 2021.

The company's second-quarter 2022 revenue performance was primarily impacted by unanticipated order reductions, delays and cancellations from retailers in North America and EMEA, and, to a much lesser extent, lower-than-anticipated direct-to-consumer (DTC) sales and the impact of changes in foreign exchange rates. Geographically, second-quarter 2022 revenue declined 39% in EMEA, 29% in the U.S. and 18% in Japan over the prior 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 83% of total robot sales in the second quarter of 2022 versus 82% in the same quarter one year ago.

Aeris air purifier revenue was approximately $3 million in the second quarter of 2022.

We estimate that iRobot's second-quarter 2022 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, declined by 35% from the second quarter of 2021 and represented 62% of second-quarter 2022 revenue. iRobot's direct-to-consumer (DTC) revenue of $40 million declined 12% from the prior year's second quarter.

The company's second-quarter 2022 GAAP operating loss was $63.9 million, compared with a GAAP operating loss of $3.0 million in the second quarter of 2021. iRobot's second-quarter 2022 non-GAAP operating loss was $53.3 million, compared with non-GAAP operating income of $9.0 million in the same period one year ago. The company's GAAP operating loss for the first six months of 2022 was $87.2 million, compared with GAAP operating income of $3.3 million in the first half of 2021. iRobot's first-half 2022 non-GAAP operating loss was...