iRobot continues to gain in the consumer robotic vacuum market with strong growth in its fourth quarter and fiscal year.
The company reported 2017 fourth quarter revenue growth of 54% to $326.9 million, compared with $212.5 million in the fourth quarter of 2016. Revenue for the full year 2017 was $883.9 million, compared with $660.6 million for the full year 2016.
“Record fourth quarter revenue was driven by very strong sales in the U.S. and in EMEA, as the overall category continued to grow at an accelerating rate. We achieved record growth while maintaining unambiguous global product and brand leadership in the robotic vacuum cleaner category,” said Colin Angle, chairman and chief executive officer of iRobot.
Operating income in the fourth quarter of 2017 was $23.1 million, compared with $18.7 million in the fourth quarter of 2016. Operating income for the full year 2017 was $72.7 million, compared with $57.6 million for the full year 2016.
“2017 was a critical year for iRobot as the first full year focused solely on developing and delivering products for the home. We delivered outstanding financial results for the year while successfully executing the acquisition of two major distributors in key markets and extending our control over 75% of our global revenue,” Angle said. “The opportunity ahead of us is tremendous. Global household penetration of robotic vacuum cleaners remains extremely low, in the single digits. Strong economic conditions worldwide are fueling overall global growth and positive consumer sentiment.”
According to Angle, the company expects to cross the billion-dollar revenue threshold in 2018 and deliver $1.05 to $1.08 billion in revenue, which is year-over-year growth of 19% to 22% and operating income of $86 to $96 million.
“In 2018, we plan to capitalize on the incremental investments we made in 2017 with the introduction of new products in the second half of the year. We expect double-digit revenue growth in all regions as we continue to evolve and extend our proven sales and marketing initiatives in overseas markets. In the U.S., we expect continued strong sales following our 40% growth in 2017,” he said.