Achieved Record Revenue and Operating Margin
Cash, Cash Equivalents, Restricted Cash and Marketable Securities Reach
GreenBox Joint Venture Doubles Addressable Market & Increases Order Backlog To
“We are pleased to report another quarter of strong revenue growth and record operating margin, as we initiated six new system deployments and completed commissioning of one system,” said
“Our GreenBox joint venture advances our strategic vision by adding over
OUTLOOK
For the fourth quarter of fiscal 2023,
WEBCAST INFORMATION
ABOUT
USE OF NON-GAAP FINANCIAL INFORMATION
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
- 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;
- backlog;
- expectations regarding revenues, expenses, adjusted EBITDA loss and anticipated cash needs;
- expectations regarding cash flow, liquidity and sources of funding;
- expectations regarding capital expenditures;
- the effects of pending and future legislation;
- business disruption, including business disruption following the
GreenBox transaction; - the occurrence of any event, change or other circumstance that could give rise to the termination of the agreements entered into in connection with the
GreenBox transaction; - the effect of the announcement of the
GreenBox transaction on the Company’s business relationships, performance, and business generally; - the amount of the costs, fees, expenses and other charges related to the
GreenBox transaction; - risks related to the impact of the COVID-19 pandemic on the financial condition and results of operations of
Symbotic ; - 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
In addition to factors previously disclosed in Symbotic’s Annual Report on Form 10-K filed with the
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,
Annualized, pro forma, 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
INVESTOR RELATIONS CONTACT
Vice President, Investor Relations & Corporate Development
ir@symbotic.com
MEDIA INQUIRIES
Director, Marketing
mediainquiry@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 measures.
2
Unaudited Condensed Consolidated Statements of Operations | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(in thousands, except share and per share information) | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||
Revenue: | ||||||||||||||||
Systems | $ | 302,350 | $ | 257,603 | $ | 169,503 | $ | 757,854 | $ | 330,297 | ||||||
Software maintenance and support | 1,768 | 1,461 | 862 | 4,466 | 2,802 | |||||||||||
Operation services | 7,719 | 7,790 | 5,187 | 22,683 | 15,801 | |||||||||||
Total revenue | 311,837 | 266,854 | 175,552 | 785,003 | 348,900 | |||||||||||
Cost of revenue: | ||||||||||||||||
Systems | 244,660 | 213,060 | 136,015 | 618,651 | 264,475 | |||||||||||
Software maintenance and support | 3,603 | 2,106 | 1,269 | 7,380 | 3,224 | |||||||||||
Operation services | 10,665 | 8,841 | 6,724 | 28,022 | 18,283 | |||||||||||
Total cost of revenue | 258,928 | 224,007 | 144,008 | 654,053 | 285,982 | |||||||||||
Gross profit | 52,909 | 42,847 | 31,544 | 130,950 | 62,918 | |||||||||||
Operating expenses: | ||||||||||||||||
Research and development expenses | 48,845 | 49,666 | 35,140 | 149,251 | 80,679 | |||||||||||
Selling, general, and administrative expenses | 46,073 | 50,898 | 29,435 | 150,994 | 68,306 | |||||||||||
Total operating expenses | 94,918 | 100,564 | 64,575 | 300,245 | 148,985 | |||||||||||
Operating loss | (42,009 | ) | (57,717 | ) | (33,031 | ) | (169,295 | ) | (86,067 | ) | ||||||
Other income, net | 2,937 | 2,284 | 156 | 7,055 | 236 | |||||||||||
Loss before income tax | (39,072 | ) | (55,433 | ) | (32,875 | ) | (162,240 | ) | (85,831 | ) | ||||||
Income tax benefit (expense) | (5 | ) | 17 | — | (239 | ) | — | |||||||||
Net loss | (39,077 | ) | (55,416 | ) | (32,875 | ) | (162,479 | ) | (85,831 | ) | ||||||
Net loss attributable to | — | — | (19,178 | ) | — | (72,134 | ) | |||||||||
Net loss attributable to noncontrolling interests | (34,730 | ) | (49,298 | ) | (12,383 | ) | (144,821 | ) | (12,383 | ) | ||||||
Net loss attributable to common stockholders | $ | (4,347 | ) | $ | (6,118 | ) | $ | (1,314 | ) | $ | (17,658 | ) | $ | (1,314 | ) | |
Loss per share of Class A Common Stock: | ||||||||||||||||
Basic and Diluted | $ | (0.07 | ) | $ | (0.10 | ) | $ | (0.03 | ) | (0.29 | ) | $ | (0.03 | ) | ||
Weighted-average shares of Class A Common Stock outstanding: | ||||||||||||||||
Basic and Diluted | 61,782,886 | 60,503,119 | 50,664,146 | 60,160,039 | 50,664,146 | |||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||
The following table reconciles GAAP net loss to Adjusted EBITDA: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(in thousands) | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||
Net loss | $ | (39,077 | ) | $ | (55,416 | ) | $ | (32,875 | ) | $ | (162,479 | ) | $ | (85,831 | ) | |
Interest income | (2,974 | ) | (2,392 | ) | (178 | ) | (7,199 | ) | (204 | ) | ||||||
Income tax (benefit) expense | 5 | (17 | ) | — | 239 | — | ||||||||||
Depreciation and amortization | 1,621 | 1,680 | 1,426 | 4,996 | 4,200 | |||||||||||
Stock-based compensation | 37,068 | 36,539 | 8,967 | 123,147 | 10,130 | |||||||||||
Business Combination transaction expenses | — | — | 869 | — | 2,400 | |||||||||||
CEO transition charges | — | — | — | 2,026 | — | |||||||||||
Restructuring charges | — | 8,373 | — | 8,373 | — | |||||||||||
Adjusted EBITDA | $ | (3,357 | ) | $ | (11,233 | ) | $ | (21,791 | ) | $ | (30,897 | ) | $ | (69,305 | ) | |
The following table reconciles GAAP gross profit to Adjusted gross profit: | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
(in thousands) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||
Gross profit | $ | 52,909 | $ | 42,847 | $ | 31,544 | $ | 130,950 | $ | 62,918 | |
Depreciation | 178 | 189 | 89 | 553 | 243 | ||||||
Stock-based compensation | 4,124 | 459 | — | 4,895 | — | ||||||
Restructuring charges | — | 5,240 | — | 5,240 | — | ||||||
Adjusted gross profit | $ | 57,211 | $ | 48,735 | $ | 31,633 | $ | 141,638 | $ | 63,161 | |
The following table shows GAAP Gross profit margin and Adjusted gross profit margin: | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||
Gross profit margin | 17.0 | % | 16.1 | % | 18.0 | % | 16.7 | % | 18.0 | % | |
Adjusted gross profit margin | 18.3 | % | 18.3 | % | 18.0 | % | 18.0 | % | 18.1 | % | |
Supplemental Common Share Information | ||
Total Common Shares issued and outstanding: | ||
Class A Common Shares issued and outstanding | 62,441,709 | 57,718,836 |
Class V-1 Common Shares issued and outstanding | 76,086,745 | 79,237,388 |
Class V-3 Common Shares issued and outstanding | 416,933,025 | 416,933,025 |
555,461,479 | 553,889,249 | |
Unaudited Condensed Consolidated Balance Sheets | ||||||
(in thousands, except share data) | ||||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 255,490 | $ | 353,457 | ||
Marketable securities | 255,413 | — | ||||
Accounts receivable | 73,696 | 3,412 | ||||
Unbilled accounts receivable | 91,696 | 101,816 | ||||
Inventories | 166,877 | 91,900 | ||||
Deferred expenses | 42,286 | 29,150 | ||||
Prepaid expenses and other current assets | 36,204 | 25,663 | ||||
Total current assets | 921,662 | 605,398 | ||||
Property and equipment, at cost | 69,496 | 48,722 | ||||
Less: Accumulated depreciation | (28,583 | ) | (23,844 | ) | ||
Property and equipment, net | 40,913 | 24,878 | ||||
Intangible assets, net | 335 | 650 | ||||
Other long-term assets | 6,830 | 337 | ||||
Total assets | $ | 969,740 | $ | 631,263 | ||
LIABILITIES AND EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 74,377 | $ | 68,448 | ||
Accrued expenses and other current liabilities | 60,702 | 47,312 | ||||
Sales tax payable | 20,685 | 12,953 | ||||
Deferred revenue, current | 742,241 | 394,244 | ||||
Total current liabilities | 898,005 | 522,957 | ||||
Deferred revenue, long-term | 32,842 | 31,465 | ||||
Other long-term liabilities | 17,262 | 7,901 | ||||
Total liabilities | 948,109 | 562,323 | ||||
Commitments and contingencies | — | — | ||||
Equity: | ||||||
Class A Common Stock, 3,000,000,000 shares authorized, 62,441,709 and 57,718,836 shares issued and outstanding at | 6 | 6 | ||||
Class V-1 Common Stock, 1,000,000,000 shares authorized, 76,086,745 and 79,237,388 shares issued and outstanding at | 8 | 8 | ||||
Class V-3 Common Stock, 450,000,000 shares authorized, 416,933,025 shares issued and outstanding at | 42 | 42 | ||||
Additional paid-in capital - warrants | 58,126 | 58,126 | ||||
Additional paid-in capital | 1,250,355 | 1,237,865 | ||||
Accumulated deficit | (1,304,227 | ) | (1,286,569 | ) | ||
Accumulated other comprehensive loss | (1,834 | ) | (2,294 | ) | ||
Total stockholders' equity | 2,476 | 7,184 | ||||
Noncontrolling interest | 19,155 | 61,756 | ||||
Total equity | 21,631 | 68,940 | ||||
Total liabilities and equity | $ | 969,740 | $ | 631,263 | ||
Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(in thousands) | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net loss | $ | (39,077 | ) | $ | (55,416 | ) | $ | (32,875 | ) | $ | (162,479 | ) | $ | (85,831 | ) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||||||
Depreciation and amortization | 2,460 | 2,069 | 1,426 | 6,606 | 4,200 | |||||||||||
Foreign currency (gains) / losses | 72 | (16) | 23 | 66 | (22 | ) | ||||||||||
Loss on abandonment of assets | — | — | — | — | 4,098 | |||||||||||
Loss on impairment of assets | — | 123 | — | 123 | — | |||||||||||
Stock-based compensation | 36,999 | 35,223 | — | 121,762 | 50 | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | 50,837 | (72,178 | ) | 25,950 | (70,300 | ) | 344 | |||||||||
Inventories | (25,928 | ) | (29,597 | ) | (55,400 | ) | (74,621 | ) | (93,944 | ) | ||||||
Prepaid expenses and other current assets | (25,793 | ) | 24,123 | (22,120 | ) | (421 | ) | (43,069 | ) | |||||||
Deferred expenses | (5,399 | ) | (1,766 | ) | (541 | ) | (13,128 | ) | (61 | ) | ||||||
Other long-term assets | (461 | ) | 624 | 29 | (5,944 | ) | 10 | |||||||||
Accounts payable | (13,862 | ) | 27,232 | 42,295 | 5,856 | 69,091 | ||||||||||
Accrued expenses and other current liabilities | (13,558 | ) | 450 | 21,505 | 21,025 | 12,741 | ||||||||||
Deferred revenue | 85,896 | 99,374 | (15,680 | ) | 349,360 | 33,674 | ||||||||||
Other long-term liabilities | 2,697 | 1,067 | 1,561 | 9,342 | 1,990 | |||||||||||
Net cash provided by (used in) operating activities | 54,883 | 31,312 | (33,827 | ) | 187,247 | (96,729 | ) | |||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchases of property and equipment | (8,337 | ) | (6,017 | ) | (2,209 | ) | (21,344 | ) | (10,769 | ) | ||||||
Proceeds from maturity of marketable securities | 50,000 | — | — | 50,000 | — | |||||||||||
Purchases of marketable securities | (97,957 | ) | (106,327 | ) | — | (301,097 | ) | — | ||||||||
Net cash used in investing activities | (56,294 | ) | (112,344 | ) | (2,209 | ) | (272,441 | ) | (10,769 | ) | ||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from issuance of Class A Common Units | — | — | (173,796 | ) | — | — | ||||||||||
Payment for taxes related to net share settlement of stock-based compensation awards | — | (11,713 | ) | — | (11,713 | ) | — | |||||||||
Net proceeds from issuance of common stock under employee stock purchase plan | — | 987 | — | 987 | — | |||||||||||
Net proceeds from equity infusion from the Business Combination | — | — | 384,672 | — | 384,672 | |||||||||||
Purchase of interest from non-controlling interest | — | — | (300,000 | ) | — | (300,000 | ) | |||||||||
Proceeds from exercise of warrants | — | — | 277,776 | — | 277,776 | |||||||||||
Net cash provided by (used in) financing activities | — | (10,726 | ) | 188,652 | (10,726 | ) | 362,448 | |||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (45 | ) | 120 | 2 | 93 | 78 | ||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | (1,456 | ) | (91,638 | ) | 152,618 | (95,827 | ) | 255,028 | ||||||||
Cash, cash equivalents, and restricted cash - beginning of period | 259,086 | 350,724 | 259,044 | 353,457 | 156,634 | |||||||||||
Cash, cash equivalents, and restricted cash - end of period | $ | 257,630 | $ | 259,086 | $ | 411,662 | $ | 257,630 | $ | 411,662 | ||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(in thousands) | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||
Reconciliation of cash, cash equivalents, and restricted cash: | ||||||||||||||||
Cash and cash equivalents | $ | 255,490 | $ | 256,954 | $ | 411,662 | $ | 255,490 | $ | 411,662 | ||||||
Restricted cash | 2,140 | 2,132 | — | 2,140 | — | |||||||||||
Cash, cash equivalents, and restricted cash | $ | 257,630 | $ | 259,086 | $ | 411,662 | $ | 257,630 | $ | 411,662 | ||||||
Source:
2023 GlobeNewswire, Inc., source