01—Abstract
Summary
Summary of the 10-Q filed February 8, 2024. Cited figures are marked; the original filing is the authoritative source.
Symbotic Inc. (SYM) reported revenue of $368.5 milliona for the three months ended December 30, 2023, up from $206.3 million in the prior-year quarter, with systems revenue of $356.2 million.
Gross profit rose to $70.1 millionb from $35.2 million, and operating loss narrowed to $19.0 million from $69.6 million. Net loss attributable to common stockholders was $1.9 million, or $(0.02) per Class A share, compared with $7.2 million, or $(0.12), a year earlier. Adjusted EBITDA was $14.1 million, compared with $(16.3) million in the prior-year quarter.
The filing attributes systems revenue growth primarily to 37 system deployments in progress versus 22 a year earlier, driven by the ongoing Master Automation Agreement with Walmart, which covers all 42 of Walmart's regional distribution centers. Liquidity improved significantly during the quarter. Walmart gross exercised its vested warrant for $158.7 millionc in December 2023, and cash and cash equivalents rose to $486.0 million from $258.8 million at September 30, 2023.
Marketable securities were $189.0 milliond. Operating cash flow was negative at $(30.2) million, compared with $101.1 million provided in the prior-year quarter, reflected in a $83.8 million increase in accounts receivable and a $70.0 million increase in deferred revenue. Remaining performance obligations totaled $23.2 billion, and the company expects to recognize approximately 9% of them as revenue in the next 12 months.
The filing also discloses a $382.0 million future Tax Receivable Agreement obligation, with no TRA liability recorded given the full valuation allowance on domestic deferred tax assets. Customer A accounted for 82.5% of total revenue. The company disclosed an ongoing implementation of a new SAP S/4HANA ERP system, which it identifies as a factor in its internal control environment, and it concluded that disclosure controls were effective at the reasonable assurance level.
02—Key points
Key Highlights
- Total revenue of $368.5 million, up from $206.3 million, with systems revenue of $356.2 million and 37 system deployments in progress versus 22 a year earlier.
- Gross profit of $70.1 million (19.0% gross margin) versus $35.2 million (17.1%) in the prior-year quarter; Adjusted gross profit margin of 20.0% versus 17.3%.
- Operating loss narrowed to $(19.0) million from $(69.6) million; R&D expenses fell to $42.1 million from $50.7 million and SG&A fell to $47.0 million from $54.0 million.
- Net loss attributable to common stockholders of $(1.9) million, or $(0.02) per Class A share, versus $(7.2) million, or $(0.12), a year earlier; Adjusted EBITDA was $14.1 million versus $(16.3) million.
- Cash and cash equivalents of $486.0 million, plus $189.0 million in marketable securities, after Walmart's December 2023 gross warrant exercise for $158.7 million.
- Operating cash flow was $(30.2) million versus $101.1 million a year earlier, driven by a $83.8 million increase in accounts receivable.
- Remaining performance obligations of $23.2 billion, with Customer A representing 82.5% of total revenue and a $382.0 million future TRA payment obligation.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2024, Symbotic lost $0.01.
- Revenue$359.9M100.0%
- Cost of revenue−$295.9M82.2%
- Gross profit$64.1M17.8%
- Operating costs−$89.2M24.8%
- Operating income−$25.1M7.0%
- Interest, other & tax$22.3M6.2%
- Net income−$2.8M0.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed February 8, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $359.94M$206.31M | +74.5% |
| Cost of Revenue | $295.89M$171.12M | +72.9% |
| Gross Profit | $64.06M$35.19M | +82.0% |
| R&D Expenses | $42.14M$50.74M | −16.9% |
| SG&A Expenses | $47.01M$54.02M | −13.0% |
| Operating Expenses | $89.16M$104.76M | −14.9% |
| Operating Income | -$25.10M-$69.57M | +63.9% |
| Net Income | -$2.84M-$7.19M | +60.6% |
| EPS (Basic) | $-0.03$-0.12 | +75.0% |
| EPS (Diluted) | $-0.03$-0.12 | +75.0% |
| Shares Outstanding (Basic) | 83.32M58.24M | +43.1% |
| Shares Outstanding (Diluted) | 83.32M58.24M | +43.1% |
05—Questions
Frequently Asked Questions
Why did Symbotic's revenue increase so significantly this quarter?
Total revenue rose to $368.5 million from $206.3 million, primarily because systems revenue increased with 37 system deployments in progress versus 22 in the prior-year quarter. The filing attributes this mainly to the ongoing Master Automation Agreement with Walmart, which covers all 42 of Walmart's regional distribution centers.
How did Symbotic's cash position change during the quarter?
Cash and cash equivalents increased to $486.0 million from $258.8 million at September 30, 2023. The main source was $158.7 million from Walmart's gross exercise of vested warrants in December 2023, and $150.0 million in proceeds from maturing U.S. Treasury securities, partly offset by $(30.2) million in operating cash outflow.
Why was operating cash flow negative this quarter after a positive result last year?
Net cash used in operating activities was $(30.2) million, compared with $101.1 million provided a year earlier. The filing cites a net loss of $13.0 million, adjusted for $32.8 million of non-cash items, and $49.9 million of cash used in operating assets and liabilities, primarily from working capital timing for vendor payments and customer receipts.
What is the company's exposure to customer concentration?
Customer A accounted for 82.5% of total revenue this quarter and 85.0% of accounts receivable at December 30, 2023. The filing states that a total or partial loss of this business relationship could have a material impact on results, though the company is not aware of any specific event that would currently cause such an impact.
Does Symbotic have any significant future obligations investors should note?
The filing discloses $382.0 million in expected future payments under the Tax Receivable Agreement, payable only when cash tax savings are realized. No TRA liability is recorded because of the full valuation allowance against domestic deferred tax assets. Vendor commitments total $1.24 billion, with $1.22 billion due within one year.
06—Continue