01—Abstract
Summary
Summary of the 10-K filed December 9, 2022. Cited figures are marked; the original filing is the authoritative source.
Symbotic Inc. (formerly SVF Investment Corp. 3, which completed a business combination with Legacy Warehouse on June 7, 2022) reported its annual results for the fiscal year ended September 24, 2022.
Revenue rose to $593.3 milliona from $251.9 million in fiscal 2021, driven mainly by systems revenue of $568.0 million. Gross profit was $99.6 million, compared with $10.4 million a year earlier, and the operating loss narrowed to $140.4 million from $122.4 million despite higher research and development ($124.1 million) and selling, general and administrative ($115.9 million) expenses. Net loss was $139.1 million, and Adjusted EBITDA, a non-GAAP measure, was $(89.8) million.
Cash and cash equivalents were $353.5 millionb at year end, and net cash used in operating activities was $148.2 million. The company's contracted backlog stood at $11.1 billion as of September 24, 2022, of which a substantial majority relates to the Walmart Master Automation Agreement, which was amended on May 20, 2022 to add $6.1 billion of backlog. Walmart accounted for approximately 94% of total revenue in fiscal 2022.
The filing states that the company is an early-stage company with a history of losses and an accumulated deficit of $1,286.6 millionc. It also discloses a dual-class structure in which Chairman and CEO Richard B. Cohen and affiliated holders control 91.5% of voting power, and a Tax Receivable Agreement under which 85% of certain tax savings will be paid to TRA Holders, with an estimated liability of $112.1 million from the Business Combination purchases.
The filing states that management excluded its report on internal control over financial reporting for fiscal 2022 because of the Business Combination, and the company describes itself as an emerging growth company. Its Class A Common Stock trades on NASDAQ under the symbol SYM, and the company has never paid cash dividends.
02—Key points
Key Highlights
- Total revenue was $593.3 million for fiscal 2022, up from $251.9 million in fiscal 2021, with systems revenue of $568.0 million.
- Gross profit improved to $99.6 million from $10.4 million, while net loss was $139.1 million compared with $122.3 million in fiscal 2021.
- Contracted backlog was $11.1 billion as of September 24, 2022, with about 8% expected to be recognized as revenue in the following twelve months.
- Walmart accounted for approximately 94% of total revenue in fiscal 2022, and the May 20, 2022 amendment of the Walmart MAA added $6.1 billion to backlog.
- Cash and cash equivalents were $353.5 million at year end, following net proceeds of $384.7 million from the Business Combination and $277.8 million from warrant exercises by Walmart.
- Net cash used in operating activities was $148.2 million, compared with net cash provided of $109.6 million in fiscal 2021.
- Richard B. Cohen and affiliated holders control 91.5% of voting power through the dual-class structure, and the company will not be subject to Section 203 of the DGCL.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2022, Symbotic lost $0.01.
- Revenue$593.3M100.0%
- Cost of revenue−$493.7M83.2%
- Gross profit$99.6M16.8%
- Operating costs−$240.0M40.5%
- Operating income−$140.4M23.7%
- Interest, other & tax$133.5M22.5%
- Net income−$6.9M1.2%
04—Financials
Financial Highlights
Figures from 10-KFY2022filed December 9, 2022Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $593.31M$251.91M | +135.5% |
| Cost of Revenue | $493.67M$241.47M | +104.4% |
| Gross Profit | $99.65M$10.45M | +853.8% |
| R&D Expenses | $124.14M$73.39M | +69.2% |
| SG&A Expenses | $115.88M$59.44M | +94.9% |
| Operating Expenses | $240.02M$132.83M | +80.7% |
| Operating Income | -$140.38M-$122.38M | −14.7% |
| Net Income | -$6.86M-$122.31M | +94.4% |
| EPS (Basic) | $-0.13— | — |
| EPS (Diluted) | $-0.13— | — |
| Shares Outstanding (Basic) | 54.09M— | — |
| Shares Outstanding (Diluted) | 54.09M— | — |
05—Questions
Frequently Asked Questions
How much revenue did Symbotic generate and how did it change?
Total revenue was $593.3 million for the year ended September 24, 2022, compared with $251.9 million for the year ended September 25, 2021. The filing attributes the increase mainly to systems revenue, which reached $568.0 million, reflecting seventeen system deployments in progress at year end versus five a year earlier.
How large is the company's backlog and how concentrated is it?
Contracted backlog was $11.1 billion as of September 24, 2022, to be delivered from 2022 through 2028. A substantial majority of the backlog relates to the Walmart Master Automation Agreement, and Walmart accounted for approximately 94% of total revenue in fiscal 2022.
Is the company profitable, and what is its cash position?
No. Net loss was $139.1 million for fiscal 2022 and the company reports an accumulated deficit of $1,286.6 million. Cash and cash equivalents were $353.5 million at year end, and the filing states that management expects current cash and forecasted operating cash flows to be sufficient to meet cash needs for at least the next 12 months.
What do investors need to know about the ownership and governance structure?
The company has a dual-class structure. Class V-3 shares carry three votes per share, and Chairman and CEO Richard B. Cohen together with affiliated family members and entities hold 91.5% of the voting power. The filing states this concentrated control will limit or preclude other stockholders' ability to influence corporate matters for the foreseeable future.
What obligations arise from the Tax Receivable Agreement?
The company must pay the TRA Holders 85% of certain tax savings it realizes. The filing estimates that the reduction in tax payments tied to the company's purchase of Symbotic Holdings Common Units since closing would aggregate to approximately $131.9 million over 41 years, implying $112.1 million of payments to TRA Holders. No TRA liability was recorded as of September 24, 2022 based on current projections.
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