01—Abstract
Summary
Summary of the 10-Q/A filed December 4, 2024. Cited figures are marked; the original filing is the authoritative source.
Symbotic Inc. (SYM) filed Amendment No. 1 on Form 10-Q/A to restate its unaudited financial statements for the quarter ended December 30, 2023, originally filed February 8, 2024.
The Audit Committee determined on November 18, 2024 that the original statements should no longer be relied upon. The restatement stems from goods and services, primarily tied to specific milestone achievements, being expensed before the milestones were achieved. That accelerated cost of revenue and, because revenue is recognized on a percentage-of-completion basis, also accelerated revenue.
A classification error within equity was also corrected. Management identified a material weakness in internal control over financial reporting, and disclosure controls were concluded to be not effective as of December 30, 2023. As restated, total revenue for the quarter was $359.9 milliona, versus $368.5 million as originally reported, and gross profit was $64.1 million, down from $70.1 million.
Net loss was $19.1 millionb, compared with $13.0 million as originally reported. Net loss attributable to common stockholders was $2.8 million, versus $1.9 million originally. Adjusted EBITDA was $8.1 million as restated, down from $14.1 million.
Cash and cash equivalents were $486.0 millionc and marketable securities were $189.0 million at quarter end. Operating cash flow was negative $30.2 million, and the company received $158.7 million from Walmart's gross exercise of vested warrants in December 2023. The filing states the transaction price allocated to remaining performance obligations was $23.2 billion.
The restatement changed the equity presentation significantly. Total stockholders' equity moved from $160.6 milliond as originally reported to a deficit of $57.1 million, and noncontrolling interest rose to $222.9 million from $11.3 million. Total equity was $165.8 million as restated.
02—Key points
Key Highlights
- Restated total revenue for the quarter ended December 30, 2023 was $359.9 million, down from $368.5 million as originally reported, reflecting the acceleration of revenue recognition tied to milestone-related costs.
- Restated gross profit was $64.1 million versus $70.1 million as originally reported, and restated net loss was $19.1 million versus $13.0 million as originally reported.
- Restated Adjusted EBITDA was $8.1 million, compared with $14.1 million as originally reported.
- Total stockholders' equity was restated to a deficit of $57.1 million, compared with $160.6 million as originally reported, primarily due to correcting a classification error within equity.
- Management concluded that disclosure controls and procedures were not effective as of December 30, 2023 because of a material weakness in controls over the timing of cost of revenue recognition.
- Cash and cash equivalents were $486.0 million and marketable securities were $189.0 million at December 30, 2023, after $158.7 million was received from Walmart's gross exercise of vested warrants.
- Customer A accounted for 82.0% of total revenue for the quarter, and the transaction price allocated to remaining performance obligations was $23.2 billion.
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-Q/AQ1 FY2024filed December 4, 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 restate its quarterly financial statements?
The Audit Committee determined on November 18, 2024 that the unaudited financial statements in the original Form 10-Q should no longer be relied upon. The company identified goods and services, primarily tied to specific milestone achievements, that were expensed before the corresponding milestones were achieved. This accelerated cost of revenue and, because revenue is recognized on a percentage-of-completion basis, also accelerated revenue. A classification error within equity was corrected as part of the restatement.
How did the restatement change the reported results for the quarter ended December 30, 2023?
Total revenue was restated to $359.9 million from $368.5 million, and gross profit to $64.1 million from $70.1 million. Operating loss was restated to $25.1 million from $19.0 million. Net loss was restated to $19.1 million from $13.0 million, and net loss attributable to common stockholders to $2.8 million from $1.9 million. Adjusted EBITDA was restated to $8.1 million from $14.1 million.
What did the restatement do to the balance sheet and equity?
Unbilled accounts receivable was reduced by $8.5 million, and total assets were restated to $1.32 billion from $1.32 billion less $8.5 million, or $1.316 billion. Additional paid-in capital was reduced by $216.8 million, and total stockholders' equity moved from $160.6 million to a deficit of $57.1 million. Noncontrolling interest increased to $222.9 million from $11.3 million, and total equity was restated to $165.8 million from $171.9 million.
What material weakness did management identify?
Management determined that the company did not effectively design procedures and controls over the timing of cost of revenue recognition, which resulted in the acceleration of cost of revenue and revenue. Management concluded that internal control over financial reporting was not effective as of December 30, 2023. The remediation plan includes augmented compensating controls over receipt of goods and services, ERP system enhancements, and employee training and organizational restructuring, and management cannot assure when the weakness will be remediated.
What was the source of the cash inflow from financing activities this quarter?
Walmart elected to gross exercise its vested warrants in December 2023, and the company received $158.7 million. That amount is the only significant financing activity reported for the quarter, and it brought net cash provided by financing activities to $158.6 million. Operating activities used $30.2 million of cash in the quarter.
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