01—Abstract
Summary
Summary of the 10-K filed December 11, 2023. Cited figures are marked; the original filing is the authoritative source.
Symbotic Inc. (Nasdaq: SYM) reported fiscal year 2023 results for the year ended September 30, 2023, with total revenue of $1,176,891 thousanda ($1.18 billion), up from $593,312 thousand in fiscal 2022, and a net loss of $207,894 thousand.
Systems revenue was $1,138,059 thousandb. Gross profit rose to $189,739 thousand, and operating loss was $223,230 thousand. Stock-based compensation was $154,227 thousand for the year, and adjusted EBITDA was a loss of $17,581 thousand as reported under the company's non-GAAP definition.
Net cash provided by operating activities was $230.8 millionc, driven largely by customer payments in advance of performance, and cash and cash equivalents plus short-term marketable securities totaled $258.8 million and $286.7 million, respectively. The company stated that its current cash, marketable securities, working capital and forecasted operating cash flows are sufficient to meet foreseeable cash needs for at least the next 12 months. Backlog stood at approximately $23.3 billion as of September 30, 2023, of which approximately 8% is expected to be recognized as revenue in fiscal 2024.
The backlog is driven largely by the Walmart Master Automation Agreement, which covers all 42 of Walmart's regional distribution centers and accounted for approximately 88% of total revenue in fiscal 2023. The GreenBox joint venture with SoftBank entities, formed in July 2023, added approximately $11.5 billiond to backlog under a commitment of at least $7.5 billion over six years, with Symbotic holding a 35% stake. Investors should weigh several structural factors: the company remains loss-making, has an accumulated deficit of $1,310.4 million, and its founder-led dual-class structure gives Richard B.
Cohen and related parties 89.8% of the voting power. The company also has a Tax Receivable Agreement obligating it to pay 85% of certain realized tax savings, with estimated payments of $350.3 million over 41 years. Management concluded that internal control over financial reporting was effective as of September 30, 2023.
02—Key points
Key Highlights
- Total revenue of $1,176,891 thousand for fiscal 2023, compared with $593,312 thousand in fiscal 2022; Systems revenue was $1,138,059 thousand.
- Net loss of $207,894 thousand, including stock-based compensation of $154,227 thousand; gross profit was $189,739 thousand and operating loss was $223,230 thousand.
- Backlog of approximately $23.3 billion as of September 30, 2023, with approximately 8% expected to be recognized as revenue in fiscal 2024.
- Walmart accounted for approximately 88% of total revenue in fiscal 2023 and is the largest customer under the Walmart Master Automation Agreement covering all 42 regional distribution centers.
- GreenBox joint venture formed with SoftBank entities in July 2023 added approximately $11.5 billion to backlog, with a commitment of at least $7.5 billion over six years; Symbotic owns 35%.
- Cash and cash equivalents of $258.8 million and short-term marketable securities of $286.7 million at September 30, 2023; net cash provided by operating activities was $230.8 million.
- Dual-class structure gives Chairman and CEO Richard B. Cohen and related parties 89.8% of voting power, and the Tax Receivable Agreement projects $350.3 million in payments to TRA holders over 41 years.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2023, Symbotic lost $0.02.
- Revenue$1.18B100.0%
- Cost of revenue−$987.2M83.9%
- Gross profit$189.7M16.1%
- Operating costs−$413.0M35.1%
- Operating income−$223.2M19.0%
- Interest, other & tax$199.4M16.9%
- Net income−$23.9M2.0%
04—Financials
Financial Highlights
Figures from 10-KFY2023filed December 11, 2023Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $1.18B$593.31M | +98.4% |
| Cost of Revenue | $987.15M$493.67M | +100.0% |
| Gross Profit | $189.74M$99.65M | +90.4% |
| R&D Expenses | $195.04M$124.14M | +57.1% |
| SG&A Expenses | $217.93M$115.88M | +88.1% |
| Operating Expenses | $412.97M$240.02M | +72.1% |
| Operating Income | -$223.23M-$140.38M | −59.0% |
| Net Income | -$23.87M-$6.86M | −247.7% |
| EPS (Basic) | $-0.37$-0.13 | −184.6% |
| EPS (Diluted) | $-0.37$-0.13 | −184.6% |
| Shares Outstanding (Basic) | 64.34M54.09M | +19.0% |
| Shares Outstanding (Diluted) | 64.34M54.09M | +19.0% |
05—Questions
Frequently Asked Questions
How did Symbotic's revenue and losses change in fiscal 2023?
Total revenue rose to $1,176,891 thousand from $593,312 thousand in fiscal 2022, driven by Systems revenue of $1,138,059 thousand, which the company attributed to 35 system deployments in progress at September 30, 2023 versus 17 a year earlier. The net loss widened to $207,894 thousand from $139,089 thousand, with research and development expenses of $195,042 thousand and selling, general and administrative expenses of $217,927 thousand.
How concentrated is Symbotic's customer base?
Walmart accounted for approximately 88% of total revenue in fiscal 2023. Albertsons, AFS, C&S Wholesale Grocers (an affiliate), Giant Tiger, GreenBox, Target and UNFI together accounted for approximately 12% of total revenue. The filing states that the loss or cancellation of Walmart business could materially and adversely affect the company.
What does the company's backlog consist of and when is it expected to convert to revenue?
Backlog was approximately $23.3 billion as of September 30, 2023, to deliver systems from 2023 through 2029. About 8% is expected to be recognized as revenue in fiscal 2024 and approximately 60% within five years. The backlog is largely structured on a cost-plus fixed profit basis, and the company's significant contracts do not contain termination for convenience clauses.
Is Symbotic's liquidity sufficient for the near term?
Management stated that its current cash and cash equivalents, unrestricted marketable securities, working capital and forecasted cash flows from operations are expected to be sufficient to meet foreseeable cash needs for at least the next 12 months. Cash and cash equivalents were $258.8 million and marketable securities were $286.7 million at September 30, 2023. The company also recorded $26.7 million of tax payments related to net share settlement of stock-based compensation awards during the year.
What governance and ownership considerations should investors note?
The Class V-3 common stock carries three votes per share, and Richard B. Cohen together with certain family members and affiliated entities and trusts hold Class V-3 common stock and 89.8% of the voting power, allowing them to control matters submitted to stockholders. The company is also subject to a Tax Receivable Agreement requiring payments of 85% of certain realized tax savings to TRA holders, and the filing discloses that certain executives are shared with C&S Wholesale Grocers.
06—Continue