01—Abstract
Summary
Summary of the 10-Q filed July 31, 2024. Cited figures are marked; the original filing is the authoritative source.
Symbotic Inc. (SYM) reported results for the three and nine months ended June 29, 2024 in its Form 10-Q filed July 31, 2024.
Total revenue for the quarter was $491.9 milliona, up from $311.8 million, and for the nine months was $1.28 billion, up from $785.0 million. Systems revenue drove the growth, with 39 Deployments in the quarter versus 33 a year earlier, primarily tied to the Master Automation Agreement with Walmart covering its 42 regional distribution centers. Gross profit for the quarter was $67.4 million, and the company posted a net loss of $14.2 million for the quarter and $68.1 million for the nine months.
Net loss attributable to common stockholders was $2.5 millionb for the quarter and $11.0 million for the nine months, as most of the loss was attributable to noncontrolling interests. Cash and cash equivalents rose to $870.5 million at June 29, 2024, from $258.8 million at September 30, 2023, supported by $257.99 million from a Class A common stock offering and $158.7 million from Walmart's gross exercise of vested warrants. Operating cash flow was positive at $41.3 million for the nine months.
Remaining performance obligations totaled $22.8 billionc, of which the filing states about 9% is expected to be recognized as revenue in the next 12 months. Customer A accounted for 91.3% of revenue in the quarter. The company also reported a deferred revenue balance of $714.6 million current and $81.6 million non-current, a GreenBox joint venture with SoftBank in which Symbotic holds a variable interest, and a $470.2 million estimated future Tax Receivable Agreement obligation.
The company stated it expects current cash, working capital and forecasted operating cash flows to be sufficient for at least the next 12 months. The filing also discloses an announced Asset Purchase Agreement with Veo Robotics, Inc. on July 19, 2024 for a total purchase price of $8.7 milliond, and that the company will cease to be an emerging growth company as of the end of fiscal year 2024.
02—Key points
Key Highlights
- Total revenue rose to $491.9 million for the quarter ended June 29, 2024, from $311.8 million, and to $1.28 billion for the nine months, from $785.0 million, driven by Systems revenue.
- Deployments increased to 39 in the quarter from 33 a year earlier, primarily due to the Walmart Master Automation Agreement covering 42 regional distribution centers.
- Net loss narrowed to $14.2 million for the quarter from $39.1 million, and to $68.1 million for the nine months from $162.5 million; net loss attributable to common stockholders was $2.5 million for the quarter.
- Cash and cash equivalents increased to $870.5 million at June 29, 2024, aided by $258.0 million from a Class A common stock equity offering and $158.7 million from Walmart's warrant exercise.
- Net cash provided by operating activities was $41.3 million for the nine months, compared with $186.3 million a year earlier.
- Remaining performance obligations were $22.8 billion, with about 9% expected to be recognized as revenue in the next 12 months.
- Customer A accounted for 91.3% of total revenue in the quarter, and the filing notes a concentration risk from dependence on a single major customer.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q3 FY2024, Symbotic lost $0.01.
- Revenue$470.3M100.0%
- Cost of revenue−$415.4M88.3%
- Gross profit$55.0M11.7%
- Operating costs−$92.6M19.7%
- Operating income−$37.6M8.0%
- Interest, other & tax$32.9M7.0%
- Net income−$4.7M1.0%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed July 31, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $470.34M$311.84M | +50.8% |
| Cost of Revenue | $415.37M$258.93M | +60.4% |
| Gross Profit | $54.97M$52.91M | +3.9% |
| R&D Expenses | $44.72M$48.84M | −8.4% |
| SG&A Expenses | $47.87M$46.07M | +3.9% |
| Operating Expenses | $92.59M$94.92M | −2.4% |
| Operating Income | -$37.62M-$42.01M | +10.4% |
| Net Income | -$4.68M-$4.35M | −7.7% |
| EPS (Basic) | $-0.05$-0.07 | +28.6% |
| EPS (Diluted) | $-0.05$-0.07 | +28.6% |
| Shares Outstanding (Basic) | 102.41M61.78M | +65.8% |
| Shares Outstanding (Diluted) | 102.41M61.78M | +65.8% |
05—Questions
Frequently Asked Questions
How did Symbotic's revenue and profitability change in the quarter ended June 29, 2024?
Total revenue increased to $491.9 million from $311.8 million a year earlier. Gross profit was $67.4 million, compared with $52.9 million, and operating loss narrowed to $25.2 million from $42.0 million. Net loss was $14.2 million, compared with $39.1 million.
What drove the increase in Systems revenue?
The filing attributes the increase to 39 Deployments in the quarter versus 33 in the same quarter of fiscal 2023, primarily due to the Master Automation Agreement with Walmart, which covers all of Walmart's 42 regional distribution centers. The company expects this agreement to generate Systems revenue through fiscal year 2028.
How much cash does Symbotic have and what funded the increase?
Cash and cash equivalents were $870.5 million at June 29, 2024, up from $258.8 million at September 30, 2023. The increase was supported by $258.0 million from issuance of Class A common stock in an equity financing completed in March 2024 and $158.7 million from Walmart's gross exercise of vested warrants in December 2023. Marketable securities of $286.7 million at September 30, 2023 had been fully matured by June 29, 2024.
What concentration risks does the filing disclose?
Customer A accounted for 91.3% of total revenue for the quarter and 86.5% for the nine months. Four customers accounted for over 10% of accounts receivable at June 29, 2024. The filing states that a total or partial loss of these relationships could materially affect results.
What is the status of the GreenBox joint venture and related obligations?
GreenBox was formed with SoftBank, with Symbotic Holdings owning 35% and Sunlight owning 65%. Symbotic accounts for it as an unconsolidated VIE under the equity method, with a carrying value of $65.6 million and future funding commitments of $1,656.6 million. The filing also discloses a GreenBox Warrant for up to 11,434,360 Class A shares, none of which had vested as of June 29, 2024.
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