Symbotic Inc. (Nasdaq: SYM), a leader in A.I.-enabled robotics
technology for the supply chain, announced financial results for
its first fiscal quarter of 2024 ending December 30, 2023. Symbotic
posted revenue of $369 million, a net loss of $13 million and
adjusted EBITDA1 of $14 million for the first quarter of fiscal
2024. In the same quarter of fiscal 2023, Symbotic had revenue of
$206 million, a net loss of $68 million and an adjusted EBITDA
loss1 of $16 million. Cash, cash equivalents, restricted cash and
marketable securities on hand increased by $129 million from the
prior quarter to $677 million at the end of the first quarter.
“Fiscal year 2024 is off to a solid start with strong financial
and operational results. I am pleased with the trajectory and goals
we have planned for the rest of the year,” said Rick Cohen,
Chairman and Chief Executive Officer of Symbotic. “We will continue
to innovate and build deployment capacity to support growth and
increased profitability for our stakeholders.”
“First quarter 2024 revenue grew nearly 80% compared to the same
period a year ago and we posted our second quarter of positive
adjusted EBITDA1,” said Symbotic Chief Financial Officer Carol
Hibbard. “We initiated five system deployments and completed three
systems during the first quarter as we delivered for our customers
with a focus on excellence and speed of deployment.”
OUTLOOK
For the second quarter of fiscal 2024, Symbotic expects revenue
of $400 million to $420 million, and adjusted EBITDA2 of $12
million to $15 million.
WEBCAST INFORMATION
Symbotic will host a webcast today at 5:00 pm ET to discuss its
first quarter fiscal 2024 results. The webcast link is:
https://edge.media-server.com/mmc/go/Symbotic-Q1-2024.
ABOUT SYMBOTIC
Symbotic is an automation technology leader reimagining the
supply chain with its end-to-end, A.I.-powered robotic and software
platform. Symbotic reinvents the warehouse as a strategic asset for
the world’s largest retail, wholesale, and food & beverage
companies. Applying next-generation technology, high-density
storage and machine learning to solve today's complex distribution
challenges, Symbotic enables companies to move goods with unmatched
speed, agility, accuracy and efficiency. As the backbone of
commerce, Symbotic transforms the flow of goods and the economics
of the supply chain for its customers. For more information, visit
www.symbotic.com.
USE OF NON-GAAP FINANCIAL INFORMATION
Symbotic reports its financial results in accordance with
Generally Accepted Accounting Principles in the United States
(“U.S. GAAP”). This press release contains financial measures that
are not recognized under U.S. GAAP (“non-GAAP financial measures”),
including adjusted EBITDA, adjusted gross profit and adjusted gross
profit margin. These non-GAAP financial measures have limitations
as an analytical tool as they do not have a standardized meaning
prescribed by U.S. GAAP. The non-GAAP financial measures Symbotic
uses may not be the same non-GAAP financial measures, and may not
be calculated in the same manner, as that of other companies and,
therefore, are unlikely to be comparable to similar measures
presented by other companies. Rather, these non-GAAP financial
measures are provided as a supplement to corresponding U.S. GAAP
measures to provide additional information regarding the results of
operations from management’s perspective. Accordingly, non-GAAP
financial measures should not be considered a substitute for, in
isolation from, or superior to, the financial information prepared
and presented in accordance with U.S. GAAP. All non-GAAP financial
measures presented in this press release are reconciled to their
closest reported U.S. GAAP financial measures. Symbotic recommends
that investors review the reconciliation of these non-GAAP
financial measures to the most directly comparable GAAP financial
measures provided in the financial statement tables included below
in this press release, and not rely on any single financial measure
to evaluate its business.
Symbotic defines adjusted EBITDA, a non-GAAP financial measure,
as GAAP net loss excluding the following items: interest income;
income taxes; depreciation and amortization; stock-based
compensation; CEO transition charges; joint venture formation fees;
and other non-recurring items that may arise from time to time.
Symbotic defines adjusted gross profit, a non-GAAP financial
measure, as GAAP gross profit excluding the following items:
depreciation and stock-based compensation. Symbotic defines
adjusted gross profit margin, a non-GAAP financial measure, as
adjusted gross profit divided by revenue. In addition to Symbotic’s
financial results determined in accordance with U.S. GAAP, Symbotic
believes that adjusted EBITDA, adjusted gross profit and adjusted
gross profit margin, non-GAAP financial measures, are useful in
evaluating the performance of Symbotic’s business because they
highlight trends in its core business.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
including, but not limited to, Symbotic’s expectations or
predictions of future financial or business performance or
conditions. Forward-looking statements are inherently subject to
risks, uncertainties and assumptions. Generally, statements that
are not historical facts, including statements concerning our
possible or assumed future actions, business strategies, events,
backlog or results of operations, are forward-looking statements.
These statements may be preceded by, followed by or include the
words “believes,” “estimates,” “expects,” “projects,” “forecasts,”
“may,” “will,” “should,” “seeks,” “plans,” “scheduled,”
“anticipates” or “intends” or similar expressions.
Forward-looking statements include, but are not limited to,
statements about the ability of or expectations regarding Symbotic
to:
- meet the technical requirements of
existing or future supply agreements with its customers, including
with respect to existing backlog;
- expand its target customer base and
maintain its existing customer base;
- realize the benefits expected from the
GreenBox joint venture;
- anticipate industry trends;
- maintain and enhance its platform;
- maintain the listing of the Symbotic
Class A Common Stock on Nasdaq;
- execute its growth strategy;
- develop, design and sell systems that
are differentiated from those of competitors;
- execute its research and development
strategy;
- acquire, maintain, protect and enforce
intellectual property;
- attract, train and retain effective
officers, key employees or directors;
- comply with laws and regulations
applicable to its business;
- stay abreast of modified or new laws
and regulations applying to its business;
- successfully defend litigation;
- issue equity securities in connection
with future transactions;
- meet future liquidity requirements and,
if applicable, comply with restrictive covenants related to
long-term indebtedness;
- timely and effectively remediate any
material weaknesses in our internal control over financial
reporting;
- anticipate rapid technological changes;
and
- effectively respond to general economic
and business conditions.
Forward-looking statements also include, but are not limited to,
statements with respect to:
- the future performance of our business
and operations;
- expectations regarding revenues,
expenses, adjusted EBITDA and anticipated cash needs;
- expectations regarding cash flow,
liquidity and sources of funding;
- expectations regarding capital
expenditures;
- the anticipated benefits of Symbotic’s
leadership structure;
- the effects of pending and future
legislation;
- business disruption; disruption to the
business due to the Symbotic’s dependency on certain
customers;
- increasing competition in the warehouse
automation industry;
- any delays in the design, production or
launch of our systems and products;
- the failure to meet customers’
requirements under existing or future contracts or customer’s
expectations as to price or pricing structure;
- any defects in new products or
enhancements to existing products;
- the fluctuation of operating results
from period to period due to a number of factors, including the
pace of customer adoption of our new products and services and any
changes in our product mix that shift too far into lower gross
margin products; and
- any consequences associated with joint
ventures and legislative and regulatory actions and reforms.
Such forward-looking statements involve risks and uncertainties
that may cause actual events, results or performance to differ
materially from those indicated by such statements. Certain of
these risks are identified and discussed in Symbotic’s Annual
Report on Form 10-K filed with the U.S. Securities and Exchange
Commission (the “SEC”) on December 11, 2023. These risk factors
will be important to consider in determining future results and
should be reviewed in their entirety. These forward-looking
statements are expressed in good faith, and Symbotic believes there
is a reasonable basis for them. However, there can be no assurance
that the events, results or trends identified in these
forward-looking statements will occur or be achieved.
Forward-looking statements are provided for the purposes of
assisting the reader in understanding our financial performance,
financial position and cash flows as of and for periods ended on
certain dates and to present information about management’s current
expectations and plans relating to the future, and the reader is
cautioned not to place undue reliance on these forward-looking
statements because of their inherent uncertainty and to appreciate
the limited purposes for which they are being used by management.
While we believe that the assumptions and expectations reflected in
the forward-looking statements are reasonable based on information
currently available to management, there is no assurance that such
assumptions and expectations will prove to have been correct.
Forward-looking statements speak only as of the date they are made
and are based on the beliefs, estimates, expectations and opinions
of management on that date. Symbotic is not under any obligation,
and expressly disclaims any obligation to update, alter or
otherwise revise any forward-looking statement, whether as a result
of new information, future events or otherwise, except as required
by law. Readers should carefully review the statements set forth in
the reports that Symbotic has filed or will file from time to time
with the SEC.
In addition to factors previously disclosed in Symbotic’s Annual
Report on Form 10-K filed with the SEC on December 11, 2023, and
those identified elsewhere in this press release, the following
factors, among others, could cause actual results to differ
materially from forward-looking statements or historical
performance: failure to realize the benefits expected from adding
to our base of outsourcing partners; risks related to the GreenBox
joint venture and the effects of pending and future
legislation.
Any financial projections in this press release or discussed in
the webcast are forward-looking statements that are based on
assumptions that are inherently subject to significant
uncertainties and contingencies, many of which are beyond
Symbotic’s control. While all projections are necessarily
speculative, Symbotic believes that the preparation of prospective
financial information involves increasingly higher levels of
uncertainty the further out the projection extends from the date of
preparation. The assumptions and estimates underlying the projected
results are inherently uncertain and are subject to a wide variety
of significant business, economic and competitive risks and
uncertainties that could cause actual results to differ materially
from those contained in the projections. The inclusion of
projections in this communication should not be regarded as an
indication that Symbotic, or its representatives, considered or
considers the projections to be a reliable prediction of future
events.
Annualized, projected and estimated numbers are not forecasts
and may not reflect actual results.
This communication is not intended to be all-inclusive or to
contain all the information that a person may desire in considering
an investment in Symbotic and is not intended to form the basis of
an investment decision in Symbotic. The forward-looking statements
contained in this press release and other reports we file with, or
furnish to, the SEC and other regulatory agencies and made by our
directors, officers, other employees and other persons authorized
to speak on our behalf are expressly qualified in their entirety by
these cautionary statements.
INVESTOR RELATIONS CONTACT
Jeff Evanson Symbotic - Vice President, Investor Relations &
Corporate Development ir@symbotic.com
MEDIA INQUIRIES
Kimberly ZminkowskiSymbotic - Director,
Marketingmediainquiry@symbotic.com
_____________________________
1 Adjusted EBITDA (earnings before interest, taxes,
depreciation, and amortization) is a non-GAAP financial measure as
defined below under “Use of Non-GAAP Financial Information.” See
the tables below for reconciliations to net loss, the most
comparable GAAP measure.2 Symbotic is not providing guidance for
net loss, which is the most comparable GAAP financial measure to
adjusted EBITDA, because information reconciling forward-looking
adjusted EBITDA to net loss is unavailable to it without
unreasonable effort. Symbotic is not able to provide
reconciliations of adjusted EBITDA to GAAP financial measures
because certain items required for such reconciliations are outside
of Symbotic’s control and/or cannot be reasonably predicted, such
as the provision for stock-based compensation.
|
Symbotic
Inc. and Subsidiaries |
Unaudited
Condensed Consolidated Statements of Operations |
|
|
|
|
|
Three Months Ended |
(in
thousands, except share and per share information) |
December 30, 2023 |
September 30, 2023 |
December 24, 2022 |
Revenue: |
|
|
|
Systems |
$ |
356,212 |
|
$ |
380,205 |
|
$ |
197,901 |
|
Software maintenance and support |
|
2,169 |
|
|
2,135 |
|
|
1,237 |
|
Operation services |
|
10,069 |
|
|
9,548 |
|
|
7,174 |
|
Total revenue |
|
368,450 |
|
|
391,888 |
|
|
206,312 |
|
Cost of
revenue: |
|
|
|
Systems |
|
286,403 |
|
|
321,425 |
|
|
160,931 |
|
Software maintenance and support |
|
1,726 |
|
|
1,842 |
|
|
1,671 |
|
Operation services |
|
10,214 |
|
|
9,832 |
|
|
8,516 |
|
Total cost of revenue |
|
298,343 |
|
|
333,099 |
|
|
171,118 |
|
Gross profit |
|
70,107 |
|
|
58,789 |
|
|
35,194 |
|
Operating
expenses: |
|
|
|
Research and development expenses |
|
42,144 |
|
|
45,791 |
|
|
50,740 |
|
Selling, general, and administrative expenses |
|
47,012 |
|
|
66,933 |
|
|
54,023 |
|
Total operating expenses |
|
89,156 |
|
|
112,724 |
|
|
104,763 |
|
Operating loss |
|
(19,049 |
) |
|
(53,935 |
) |
|
(69,569 |
) |
Other
income, net |
|
6,199 |
|
|
3,661 |
|
|
1,834 |
|
Loss before income tax |
|
(12,850 |
) |
|
(50,274 |
) |
|
(67,735 |
) |
Income tax
benefit (expense) |
|
(117 |
) |
|
4,859 |
|
|
(251 |
) |
Net loss |
|
(12,967 |
) |
|
(45,415 |
) |
|
(67,986 |
) |
Net loss
attributable to noncontrolling interests |
|
(11,039 |
) |
|
(39,207 |
) |
|
(60,793 |
) |
Net loss attributable to common stockholders |
$ |
(1,928 |
) |
$ |
(6,208 |
) |
$ |
(7,193 |
) |
|
|
|
|
Loss per
share of Class A Common Stock: |
|
|
|
Basic and Diluted |
$ |
(0.02 |
) |
$ |
(0.08 |
) |
$ |
(0.12 |
) |
Weighted-average shares of Class A Common Stock outstanding: |
|
|
|
Basic and Diluted |
|
83,320,943 |
|
|
76,021,439 |
|
|
58,235,506 |
|
|
|
|
|
|
Symbotic
Inc. and Subsidiaries |
Reconciliation of Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
The following table reconciles GAAP net loss to adjusted
EBITDA: |
|
|
|
|
|
|
Three Months Ended |
(in
thousands) |
December 30, 2023 |
September 30, 2023 |
December 24, 2022 |
Net loss |
$ |
(12,967 |
) |
$ |
(45,415 |
) |
$ |
(67,986 |
) |
Interest income |
|
(6,149 |
) |
|
(4,192 |
) |
|
(1,833 |
) |
Income tax (benefit) expense |
|
117 |
|
|
(4,858 |
) |
|
251 |
|
Depreciation and amortization |
|
2,565 |
|
|
4,479 |
|
|
1,695 |
|
Stock-based compensation |
|
29,462 |
|
|
33,876 |
|
|
49,540 |
|
Joint venture formation fees |
|
1,089 |
|
|
14,900 |
|
|
— |
|
CEO transition charges |
|
— |
|
|
— |
|
|
2,026 |
|
Restructuring charges |
|
— |
|
|
14,526 |
|
|
— |
|
Adjusted
EBITDA |
$ |
14,117 |
|
$ |
13,316 |
|
$ |
(16,307 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles GAAP gross profit to adjusted gross
profit: |
|
|
|
|
|
|
Three Months Ended |
(in
thousands) |
December 30, 2023 |
September 30, 2023 |
December 24, 2022 |
Gross
profit |
$ |
70,107 |
|
$ |
58,789 |
|
$ |
35,194 |
|
Depreciation |
|
93 |
|
|
86 |
|
|
186 |
|
Stock-based compensation |
|
3,431 |
|
|
1,317 |
|
|
312 |
|
Restructuring charges |
|
— |
|
|
14,526 |
|
|
— |
|
Adjusted
gross profit |
$ |
73,631 |
|
$ |
74,718 |
|
$ |
35,692 |
|
|
|
|
|
|
|
|
|
Gross profit
margin |
|
19.0 |
% |
|
15.0 |
% |
|
17.1 |
% |
Adjusted
gross profit margin |
|
20.0 |
% |
|
19.1 |
% |
|
17.3 |
% |
|
|
|
|
|
Symbotic
Inc. and Subsidiaries |
Supplemental
Common Share Information |
|
|
|
|
|
Total Common
Shares issued and outstanding: |
|
|
|
|
|
|
|
|
|
|
December 30, 2023 |
September 30, 2023 |
Class A
Common Shares issued and outstanding |
85,106,588 |
|
82,112,881 |
|
Class V-1
Common Shares issued and outstanding |
81,489,643 |
|
66,931,097 |
|
Class V-3
Common Shares issued and outstanding |
406,512,941 |
|
407,528,941 |
|
|
573,109,172 |
|
556,572,919 |
|
|
|
|
|
|
|
|
|
Symbotic
Inc. and Subsidiaries |
Unaudited
Condensed Consolidated Balance Sheets |
|
|
|
|
|
(in
thousands, except share data) |
December 30, 2023 |
September 30, 2023 |
ASSETS |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
$ |
485,952 |
|
$ |
258,770 |
|
Marketable securities |
189,011 |
|
286,736 |
|
Accounts receivable |
153,058 |
|
69,206 |
|
Unbilled accounts receivable |
147,956 |
|
121,149 |
|
Inventories |
137,666 |
|
136,121 |
|
Deferred expenses |
41,736 |
|
34,577 |
|
Prepaid expenses and other current assets |
104,324 |
|
85,236 |
|
Total current assets |
1,259,703 |
|
991,795 |
|
Property and
equipment, net |
34,990 |
|
34,507 |
|
Intangible
assets, net |
— |
|
217 |
|
Other
long-term assets |
29,611 |
|
24,191 |
|
Total assets |
$ |
1,324,304 |
|
$ |
1,050,710 |
|
LIABILITIES AND EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
$ |
106,088 |
|
$ |
109,918 |
|
Accrued expenses and other current liabilities |
114,771 |
|
99,992 |
|
Sales tax payable |
37,571 |
|
28,322 |
|
Deferred revenue |
840,028 |
|
787,227 |
|
Total current liabilities |
1,098,458 |
|
1,025,459 |
|
Deferred
revenue |
17,169 |
|
— |
|
Other
long-term liabilities |
36,803 |
|
27,967 |
|
Total liabilities |
1,152,430 |
|
1,053,426 |
|
Commitments
and contingencies |
— |
|
— |
|
|
|
|
|
|
Equity: |
|
|
|
|
Class A Common Stock, 3,000,000,000 shares authorized, 85,106,588
and 82,112,881 shares issued and outstanding at December 30, 2023
and September 30, 2023, respectively |
10 |
|
8 |
|
Class V-1 Common Stock, 1,000,000,000 shares authorized, 81,489,643
and 66,931,097 shares issued and outstanding at December 30, 2023
and September 30, 2023, respectively |
8 |
|
7 |
|
Class V-3 Common Stock, 450,000,000 shares authorized, 406,512,941
and 407,528,941 shares issued and outstanding at December 30, 2023
and September 30, 2023, respectively |
41 |
|
41 |
|
Additional paid-in capital - warrants |
— |
|
58,126 |
|
Additional paid-in capital |
1,474,681 |
|
1,254,022 |
|
Accumulated deficit |
(1,312,364 |
) |
(1,310,435 |
) |
Accumulated other comprehensive loss |
(1,770 |
) |
(1,687 |
) |
Total stockholders' equity |
160,606 |
|
82 |
|
Noncontrolling interest |
11,268 |
|
(2,798 |
) |
Total equity |
171,874 |
|
(2,716 |
) |
Total
liabilities and equity |
$ |
1,324,304 |
|
$ |
1,050,710 |
|
|
|
|
|
|
|
Symbotic
Inc. and Subsidiaries |
Unaudited
Condensed Consolidated Statements of Cash Flows |
|
|
|
|
|
Three Months Ended |
(in
thousands) |
December 30, 2023 |
September 30, 2023 |
December 24, 2022 |
Cash flows
from operating activities: |
|
|
|
Net loss |
$ |
(12,967 |
) |
$ |
(45,415 |
) |
$ |
(67,986 |
) |
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
Depreciation and amortization |
|
3,197 |
|
|
4,705 |
|
|
2,077 |
|
Foreign currency (gains) / losses |
|
22 |
|
|
(69 |
) |
|
10 |
|
Loss on disposal of assets |
|
— |
|
|
2,791 |
|
|
— |
|
Deferred taxes, net |
|
— |
|
|
(4,620 |
) |
|
— |
|
Stock-based compensation |
|
29,462 |
|
|
32,465 |
|
|
49,540 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
(83,789 |
) |
|
4,483 |
|
|
(48,959 |
) |
Inventories |
|
(1,497 |
) |
|
30,517 |
|
|
(19,096 |
) |
Prepaid expenses and other current assets |
|
(41,160 |
) |
|
(78,485 |
) |
|
1,249 |
|
Deferred expenses |
|
(7,152 |
) |
|
7,700 |
|
|
(5,963 |
) |
Other long-term assets |
|
(5,906 |
) |
|
(12,691 |
) |
|
(6,107 |
) |
Accounts payable |
|
(3,830 |
) |
|
35,559 |
|
|
(7,514 |
) |
Accrued expenses and other current liabilities |
|
14,687 |
|
|
44,699 |
|
|
34,133 |
|
Deferred revenue |
|
69,966 |
|
|
12,158 |
|
|
164,090 |
|
Other long-term liabilities |
|
8,817 |
|
|
10,731 |
|
|
5,578 |
|
Net cash provided by (used in) operating
activities |
|
(30,150 |
) |
|
44,528 |
|
|
101,052 |
|
Cash flows
from investing activities: |
|
|
|
Purchases of property and equipment and capitalization of software
development costs |
|
(2,993 |
) |
|
(963 |
) |
|
(6,990 |
) |
Proceeds from sale of assets |
|
— |
|
|
71 |
|
|
— |
|
Proceeds from maturity of marketable securities |
|
150,000 |
|
|
80,000 |
|
|
— |
|
Purchases of marketable securities |
|
(48,317 |
) |
|
(107,112 |
) |
|
(96,813 |
) |
Net cash provided by (used in) investing activities |
|
98,690 |
|
|
(28,004 |
) |
|
(103,803 |
) |
Cash flows
from financing activities: |
|
|
|
Payment for taxes related to net share settlement of stock-based
compensation awards |
|
(56 |
) |
|
(14,961 |
) |
|
— |
|
Net proceeds from issuance of common stock under employee stock
purchase plan |
|
— |
|
|
1,586 |
|
|
— |
|
Proceeds from exercise of warrants |
|
158,702 |
|
|
— |
|
|
— |
|
Net cash provided by (used in) financing activities |
|
158,646 |
|
|
(13,375 |
) |
|
— |
|
Effect of
exchange rate changes on cash, cash equivalents, and restricted
cash |
|
(2 |
) |
|
139 |
|
|
18 |
|
Net increase
(decrease) in cash, cash equivalents, and restricted cash |
|
227,184 |
|
|
3,288 |
|
|
(2,733 |
) |
Cash, cash
equivalents, and restricted cash - beginning of period |
|
260,918 |
|
|
257,630 |
|
|
353,457 |
|
Cash, cash
equivalents, and restricted cash - end of period |
$ |
488,102 |
|
$ |
260,918 |
|
$ |
350,724 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
(in
thousands) |
December 30, 2023 |
September 30, 2023 |
December 24, 2022 |
Reconciliation of cash, cash equivalents, and restricted cash: |
|
|
|
Cash and cash equivalents |
$ |
485,952 |
|
$ |
258,770 |
|
$ |
350,724 |
|
Restricted cash |
|
2,150 |
|
|
2,148 |
|
|
— |
|
Cash, cash equivalents, and restricted cash |
$ |
488,102 |
|
$ |
260,918 |
|
$ |
350,724 |
|
|
|
|
|
Symbotic (NASDAQ:SYM)
Historical Stock Chart
From Apr 2024 to May 2024
Symbotic (NASDAQ:SYM)
Historical Stock Chart
From May 2023 to May 2024