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Symbotic Reports Second Quarter Fiscal Year 2024 Results

Bay Street

WILMINGTON, Mass., May 06, 2024 (GLOBE NEWSWIRE) — Symbotic Inc. (Nasdaq: SYM), a leader in A.I.-enabled robotics technology for the supply chain, announced financial results for its second fiscal quarter of 2024 ended March 30, 2024. Symbotic posted revenue of $424 million, a net loss of $41 million and adjusted EBITDA¹ of $22 million for the second quarter of fiscal 2024. In the same quarter of fiscal 2023, Symbotic had revenue of $267 million, a net loss of $55 million and an adjusted EBITDA loss¹ of $11 million. Cash, cash equivalents and marketable securities on hand increased by $276 million from the prior quarter to $951 million at the end of the second quarter.

“This past quarter we executed well for our customers, made significant progress on our innovation roadmap and delivered solid financial results,” said Rick Cohen, Chairman and Chief Executive Officer of Symbotic. “We made significant advances in both software and hardware this quarter that will benefit customers, accelerate deployment times and increase our deployment capacity.”

“These advancements helped us to accelerate deployment progress during the quarter,” said Symbotic Chief Financial Officer Carol Hibbard. “We started three system deployments and completed three operational systems, while achieving faster revenue growth, higher margins and stronger cash generation than planned for the quarter.”

OUTLOOK

For the third quarter of fiscal 2024, Symbotic expects revenue of $450 million to $470 million, and adjusted EBITDA² of $27 million to $29 million.

WEBCAST INFORMATION

Symbotic will host a webcast today at 5:00 pm ET to discuss its second quarter fiscal 2024 results. The webcast link is: https://edge.media-server.com/mmc/go/Symbotic-Q2-2024.

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; restructuring charges; equity financing transaction costs; 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; stock-based compensation; and restructuring charges. 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:

Forward-looking statements also include, but are not limited to, statements with respect to:

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, and Symbotic’s Quarterly Report on Form 10-Q filed with the SEC on February 8, 2024. 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 Symbotic’s Quarterly Report on Form 10-Q filed with the SEC on February 8, 2024, 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
Vice President, Investor Relations & Corporate Development
ir@symbotic.com

MEDIA INQUIRIES

Kimberly Zminkowski
Director, Marketing
mediainquiry@symbotic.com

 
Symbotic Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations
               
    Three Months Ended   Six Months Ended
(in thousands, except share and per share information)   March 30,
2024		 December 30,
2023		 March 25,
2023		   March 30,
2024		 March 25,
2023
Revenue:              
Systems   $ 401,662   $ 356,212   $ 257,603     $ 757,874   $ 455,504  
Software maintenance and support     2,566     2,169     1,461       4,735     2,698  
Operation services     20,073     10,069     7,790       30,142     14,964  
Total revenue     424,301     368,450     266,854       792,751     473,166  
Cost of revenue:              
Systems     359,151     286,403     213,060       645,555     373,991  
Software maintenance and support     1,936     1,726     2,106       3,662     3,777  
Operation services     19,052     10,214     8,841       29,266     17,357  
Total cost of revenue     380,139     298,343     224,007       678,483     395,125  
Gross profit     44,162     70,107     42,847       114,268     78,041  
Operating expenses:              
Research and development expenses     46,462     42,144     49,666       88,606     100,406  
Selling, general, and administrative expenses     48,652     47,012     50,898       95,663     104,921  
Total operating expenses     95,114     89,156     100,564       184,269     205,327  
Operating loss     (50,952 )   (19,049 )   (57,717 )     (70,001 )   (127,286 )
Other income, net     9,812     6,199     2,284       16,011     4,118  
Loss before income tax     (41,140 )   (12,850 )   (55,433 )     (53,990 )   (123,168 )
Income tax benefit (expense)     188     (117 )   17       71     (234 )
Net loss     (40,952 )   (12,967 )   (55,416 )     (53,919 )   (123,402 )
Net loss attributable to noncontrolling interests     (34,372 )   (11,039 )   (49,298 )     (45,411 )   (110,091 )
Net loss attributable to common stockholders   $ (6,580 ) $ (1,928 ) $ (6,118 )   $ (8,508 ) $ (13,311 )
               
Loss per share of Class A Common Stock:              
Basic and Diluted   $ (0.07 ) $ (0.02 ) $ (0.10 )   $ (0.10 ) $ (0.22 )
Weighted-average shares of Class A Common Stock outstanding:              
Basic and Diluted     93,043,769     83,320,943     60,503,119       88,155,791     59,352,634  
Symbotic Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
               
The following table reconciles GAAP net loss to adjusted EBITDA:
               
    Three Months Ended   Six Months Ended
(in thousands)   March 30,
2024		 December 30,
2023		 March 25,
2023		   March 30,
2024		 March 25,
2023
Net loss   $ (40,952 ) $ (12,967 ) $ (55,416 )   $ (53,919 ) $ (123,402 )
Interest income     (9,795 )   (6,149 )   (2,392 )     (15,944 )   (4,225 )
Income tax (benefit) expense     (188 )   117     (17 )     (71 )   234  
Depreciation and amortization     2,468     2,565     1,680       5,033     3,375  
Stock-based compensation     34,726     29,462     36,539       64,188     86,079  
Joint venture formation fees     —     1,089     —       1,089     —  
CEO transition charges     —     —     —       —     2,026  
Restructuring charges     34,206     —     8,373       34,206     8,373  
Equity financing transaction costs     1,985     —     —       1,985     —  
Adjusted EBITDA   $ 22,450   $ 14,117   $ (11,233 )   $ 36,567   $ (27,540 )
               
The following table reconciles GAAP gross profit to adjusted gross profit:
               
    Three Months Ended   Six Months Ended
(in thousands)   March 30,
2024		 December 30,
2023		 March 25,
2023		   March 30,
2024		 March 25,
2023
Gross profit   $ 44,162   $ 70,107   $ 42,847     $ 114,268   $ 78,041  
Depreciation     88     93     189       181     375  
Stock-based compensation     5,156     3,431     459       8,587     771  
Restructuring charges     34,206     —     5,240       34,206     5,240  
Adjusted gross profit   $ 83,612   $ 73,631   $ 48,735     $ 157,242   $ 84,427  
               
               
Gross profit margin     10.4 %   19.0 %   16.1 %     14.4 %   16.5 %
Adjusted gross profit margin     19.7 %   20.0 %   18.3 %     19.8 %   17.8 %
Symbotic Inc. and Subsidiaries
Supplemental Common Share Information
             
Total Common Shares issued and outstandng at the end of each of the periods presented:
             
    March 30,
2024
   September 30,
2023
Class A Common Shares issued and outstanding   101,195,288     82,112,881  
Class V-1 Common Shares issued and outstanding   78,432,388     66,931,097  
Class V-3 Common Shares issued and outstanding   404,334,196     407,528,941  
    583,961,872     556,572,919  
Symbotic Inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
 
(in thousands, except share data)   March 30,
2024		   September 30,
2023
ASSETS
Current assets:      
Cash and cash equivalents   $ 901,382     $ 258,770  
Marketable securities     49,978       286,736  
Accounts receivable     127,677       69,206  
Unbilled accounts receivable     173,995       121,149  
Inventories     119,772       136,121  
Deferred expenses     1,170       34,577  
Prepaid expenses and other current assets     109,937       85,236  
Total current assets     1,483,911       991,795  
Property and equipment, net     75,038       34,507  
Intangible assets, net     —       217  
Other long-term assets     29,068       24,191  
Total assets   $ 1,588,017     $ 1,050,710  
LIABILITIES AND EQUITY
Current liabilities:      
Accounts payable   $ 149,829     $ 109,918  
Accrued expenses and other current liabilities     120,781       99,992  
Sales tax payable     8,216       28,322  
Deferred revenue     812,227       787,227  
Total current liabilities     1,091,053       1,025,459  
Deferred revenue     44,695       —  
Other long-term liabilities     38,643       27,967  
Total liabilities     1,174,391       1,053,426  
Commitments and contingencies     —       —  
       
Equity:      
Class A Common Stock, 3,000,000,000 shares authorized, 101,195,288 and 82,112,881 shares issued and outstanding at March 30, 2024 and September 30, 2023, respectively     12       8  
Class V-1 Common Stock, 1,000,000,000 shares authorized, 78,432,388 and 66,931,097 shares issued and outstanding at March 30, 2024 and September 30, 2023, respectively     8       7  
Class V-3 Common Stock, 450,000,000 shares authorized, 404,334,196 and 407,528,941 shares issued and outstanding at March 30, 2024 and September 30, 2023, respectively     40       41  
Additional paid-in capital – warrants     —       58,126  
Additional paid-in capital     1,738,317       1,254,022  
Accumulated deficit     (1,318,943 )     (1,310,435 )
Accumulated other comprehensive loss     (2,373 )     (1,687 )
Total stockholders’ equity     417,061       82  
Noncontrolling interest     (3,435 )     (2,798 )
Total equity     413,626       (2,716 )
Total liabilities and equity   $ 1,588,017     $ 1,050,710  
Symbotic Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Cash Flows
               
    Three Months Ended   Six Months Ended
(in thousands)   March 30,
2024		 December 30,
2023		 March 25,
2023		   March 30,
2024		 March 25,
2023
Cash flows from operating activities:              
Net loss   $ (40,952 ) $ (12,967 ) $ (55,416 )   $ (53,919 ) $ (123,402 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:              
Depreciation and amortization     3,155     3,197     2,069       6,352     4,146  
Foreign currency (gains) / losses     (30 )   22     (16 )     (8 )   (6 )
Loss on disposal of assets     —     —     123       —     123  
(Gain) on investments     (8,745 )   —     —       (8,745 )   —  
Provision for excess and obsolete inventory     34,206     70     6,001       34,276     6,160  
Stock-based compensation     28,065     29,462     35,223       57,527     84,763  
Changes in operating assets and liabilities:              
Accounts receivable     25,328     (83,789 )   (72,178 )     (58,461 )   (121,137 )
Inventories     (16,353 )   (1,567 )   (35,598 )     (17,920 )   (54,853 )
Prepaid expenses and other current assets     (36,369 )   (41,160 )   24,123       (77,529 )   25,372  
Deferred expenses     2,106     (7,152 )   (1,766 )     (5,046 )   (7,729 )
Other long-term assets     440     (5,906 )   624       (5,466 )   (5,483 )
Accounts payable     43,740     (3,830 )   27,232       39,910     19,718  
Accrued expenses and other current liabilities     (15,100 )   14,687     450       (413 )   34,583  
Deferred revenue     (272 )   69,966     99,374       69,694     263,464  
Other long-term liabilities     1,853     8,817     1,067       10,670     6,645  
Net cash provided by (used in) operating activities     21,072     (30,150 )   31,312       (9,078 )   132,364  
Cash flows from investing activities:              
Purchases of property and equipment and capitalization of software development costs     (2,871 )   (2,993 )   (6,017 )     (5,864 )   (13,007 )
Proceeds from maturities of marketable securities     140,000     150,000     —       290,000     —  
Purchases of marketable securities     (343 )   (48,317 )   (106,327 )     (48,660 )   (203,140 )
Net cash provided by (used in) investing activities     136,786     98,690     (112,344 )     235,476     (216,147 )
Cash flows from financing activities:              
Payment for taxes related to net share settlement of stock-based compensation awards     (3,125 )   (56 )   (11,713 )     (3,181 )   (11,713 )
Net proceeds from issuance of common stock under employee stock purchase plan     3,435     —     987       3,435     987  
Proceeds from issuance of Class A Common Stock     257,985     —     —       257,985     —  
Proceeds from exercise of warrants     —     158,702     —       158,702     —  
Net cash provided by (used in) financing activities     258,295     158,646     (10,726 )     416,941     (10,726 )
Effect of exchange rate changes on cash, cash equivalents, and restricted cash     (13 )   (2 )   120       (15 )   138  
Net increase (decrease) in cash, cash equivalents, and restricted cash     416,140     227,184     (91,638 )     643,324     (94,371 )
Cash, cash equivalents, and restricted cash – beginning of period     488,102     260,918     350,724       260,918     353,457  
Cash, cash equivalents, and restricted cash – end of period   $ 904,242   $ 488,102   $ 259,086     $ 904,242   $ 259,086  
               
Reconciliation of cash, cash equivalents, and restricted cash:              
Cash and cash equivalents   $ 901,382   $ 485,952   $ 256,954     $ 901,382   $ 256,954  
Restricted cash     2,860     2,150     2,132       2,860     2,132  
Cash, cash equivalents, and restricted cash   $ 904,242   $ 488,102   $ 259,086     $ 904,242   $ 259,086  
                                   

_______________________________
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.


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