01—Abstract
Summary
Summary of the 10-Q filed May 7, 2024. Cited figures are marked; the original filing is the authoritative source.
Symbotic Inc. (SYM) reported net loss of $40.952 milliona for the three months ended March 30, 2024, compared with a net loss of $55.416 million in the prior-year quarter, and a net loss of $53.919 million for the six months ended March 30, 2024 versus $123.402 million a year earlier.
Total revenue rose to $424.301 millionb for the quarter from $266.854 million and to $792.751 million for the six months from $473.166 million. Systems revenue drove the increase, and the filing attributes it to 37 system deployments in progress versus 28 a year earlier, largely tied to the Master Automation Agreement with Walmart covering all 42 of its regional distribution centers. Gross profit was $44.162 million for the quarter, down from $42.847 million in the prior year on a higher gross profit base, and the filing notes a restructuring charge of $34.206 million in the quarter related to outsourcing bot assembly and component inventory management.
Adjusted EBITDA was $22.450 millionc for the quarter, compared with negative $11.233 million a year earlier. Liquidity improved substantially. Cash and cash equivalents rose to $901.382 million at March 30, 2024 from $258.770 million at September 30, 2023.
The company received $158.7 milliond from the gross exercise of Walmart's vested warrants in December 2023 and $258.0 million from a Class A common stock issuance in March 2024. Net cash used in operating activities was $9.078 million for the six months, compared with net cash provided of $132.364 million a year earlier. Remaining performance obligations totaled $22.8 billion, and the company stated that current cash, marketable securities, and forecasted operating cash flows are sufficient for at least the next 12 months.
The filing also discloses that Customer A accounted for 84.2% of three-month revenue, and that the company expects to cease to be an emerging growth company at the end of fiscal year 2024. Deferred revenue and contract liabilities were $856.922 million, and the company reported a full valuation allowance against domestic deferred tax assets.
02—Key points
Key Highlights
- Total revenue of $424.3 million for the quarter, up from $266.9 million, with Systems revenue at $401.7 million, reflecting 37 system deployments in progress versus 28 a year earlier.
- Net loss attributable to common stockholders narrowed to $6.6 million for the quarter from $6.1 million... (see note) and Net loss for the quarter improved to $41.0 million from $55.4 million.
- Adjusted EBITDA of $22.5 million for the quarter versus negative $11.2 million a year earlier.
- Restructuring charges of $34.2 million in the quarter tied to outsourcing bot assembly and component inventory management, with Systems gross profit down $2.0 million year over year.
- Cash and cash equivalents increased to $901.4 million from $258.8 million at September 30, 2023, supported by the $158.7 million Walmart warrant exercise and $258.0 million from a March 2024 Class A stock issuance.
- Remaining performance obligations of $22.8 billion, with about 9% expected to be recognized as revenue in the next 12 months, and Customer A representing 84.2% of quarterly revenue.
- Net cash used in operating activities of $9.1 million for the six months, compared with $132.4 million provided in the prior-year period.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2024, Symbotic lost $0.02.
- Revenue$393.3M100.0%
- Cost of revenue−$363.1M92.3%
- Gross profit$30.2M7.7%
- Operating costs−$95.1M24.2%
- Operating income−$64.9M16.5%
- Interest, other & tax$56.1M14.3%
- Net income−$8.8M2.2%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2024filed May 7, 2024Financial Statements
Q2 FY2024 against Q2 FY2023
| Line item | Q2 FY2024Q2 FY2023 | Change |
|---|---|---|
| Revenue | $393.33M$266.85M | +47.4% |
| Cost of Revenue | $363.11M$224.01M | +62.1% |
| Gross Profit | $30.22M$42.85M | −29.5% |
| R&D Expenses | $46.46M$49.67M | −6.5% |
| SG&A Expenses | $48.65M$50.90M | −4.4% |
| Operating Expenses | $95.11M$100.56M | −5.4% |
| Operating Income | -$64.89M-$57.72M | −12.4% |
| Net Income | -$8.81M-$6.12M | −44.0% |
| EPS (Basic) | $-0.09$-0.10 | +10.0% |
| EPS (Diluted) | $-0.09$-0.10 | +10.0% |
| Shares Outstanding (Basic) | 93.04M60.50M | +53.8% |
| Shares Outstanding (Diluted) | 93.04M60.50M | +53.8% |
05—Questions
Frequently Asked Questions
How did Symbotic's revenue and losses change in the quarter ended March 30, 2024?
Total revenue rose to $424.3 million from $266.9 million in the prior-year quarter, driven mainly by Systems revenue, which grew to $401.7 million from $257.6 million. Net loss narrowed to $41.0 million from $55.4 million, and Adjusted EBITDA improved to $22.5 million from negative $11.2 million.
What drove the increase in Systems revenue?
The filing attributes the increase to 37 system deployments in progress in the quarter, compared with 28 in the same quarter of fiscal 2023. The filing states this is primarily due to the ongoing Master Automation Agreement with Walmart, which covers installation within all 42 of its regional distribution centers and is expected to produce Systems revenue through fiscal year 2028.
Why did gross profit margin decline in the quarter?
Gross profit was $44.2 million, or a gross profit margin of 10.4% per the non-GAAP reconciliation, compared with 16.1% a year earlier. The filing notes a $34.2 million restructuring charge recognized in the second quarter of fiscal 2024 related to outsourcing bot assembly and component inventory management, which contributed to the decrease in Systems gross profit.
How did Symbotic strengthen its liquidity during the six months ended March 30, 2024?
Cash and cash equivalents increased to $901.4 million from $258.8 million at September 30, 2023. Key sources were $158.7 million from Walmart's gross exercise of vested warrants in December 2023, $258.0 million from a Class A common stock equity financing in March 2024, and $290.0 million from maturities of U.S. Treasury securities, partially offset by $48.7 million of new Treasury purchases.
Does management believe current resources are sufficient?
Yes. The filing states that management expects current cash and cash equivalents, unrestricted marketable securities, working capital, and forecasted cash flows from operations to be sufficient to meet foreseeable cash needs for at least the next 12 months.
06—Continue