01—Abstract
Summary
Summary of the 8-K filed July 29, 2024. Cited figures are marked; the original filing is the authoritative source.
Symbotic Inc. (Nasdaq: SYM) reported results for its third fiscal quarter of 2024, ended June 29, 2024, in a press release furnished as Exhibit 99.1.
Revenue was $492 milliona, compared with $312 million in the same quarter of fiscal 2023. The company posted a net loss of $14 million (versus $39 million a year earlier) and adjusted EBITDA of $15 million, compared with an adjusted EBITDA loss of $3 million in the prior-year quarter. Cash, cash equivalents and marketable securities decreased by $81 million from the prior quarter to $870 million.
Management said system gross margin fell below expectations due to elongated construction schedules and implementation costs, and that it is focusing on planning, implementation speed and project management. During the quarter the company started five system deployments and completed three operational systems, and it had 39 systems in deployment. The CFO said improving the deployment process may temporarily slow revenue growth, but the company expects system costs to decline and gross margin to return to historical levels in the fourth fiscal quarter.
For the fourth quarter of fiscal 2024, Symbotic expects revenue of $455 million to $475 millionb and adjusted EBITDA of $28 million to $32 million. The company notes it is not providing guidance for net loss, the most comparable GAAP measure, and the filing references risks related to the GreenBox joint venture and pending legislation.
02—Key points
Key Highlights
- Third-quarter revenue of $492 million, up from $312 million in the year-earlier quarter; systems revenue was $472.1 million.
- Net loss narrowed to $14 million from $39 million a year earlier; net loss attributable to common stockholders was $2.5 million.
- Adjusted EBITDA of $15 million, versus an adjusted EBITDA loss of $3 million in the prior-year quarter.
- System gross margin fell below expectations due to elongated construction schedules and implementation costs; GAAP gross profit margin was 13.7%, versus 17.0% a year earlier.
- Cash, cash equivalents and marketable securities totaled $870 million, down $81 million from the prior quarter.
- Fourth-quarter fiscal 2024 outlook: revenue of $455 million to $475 million and adjusted EBITDA of $28 million to $32 million.
- Management expects system costs to decline and gross margin to return to historical levels in the fourth fiscal quarter, though deployment improvements may temporarily slow revenue growth.
03—Questions
Frequently Asked Questions
How did Symbotic perform in the third quarter of fiscal 2024?
Revenue was $492 million, a net loss was $14 million, and adjusted EBITDA was $15 million. In the same quarter of fiscal 2023, revenue was $312 million, the net loss was $39 million, and adjusted EBITDA was a loss of $3 million.
Why did system gross margin fall short of expectations?
According to management, system gross margin fell below expectations due to elongated construction schedules and implementation costs. The company says it is focused on improving planning, speed of implementation and project management.
What is Symbotic's outlook for the fourth quarter of fiscal 2024?
Symbotic expects fourth-quarter revenue of $455 million to $475 million and adjusted EBITDA of $28 million to $32 million. It is not providing net loss guidance because the required reconciling items cannot be reasonably predicted.
How much cash does Symbotic have, and how did it change?
Cash, cash equivalents and marketable securities on hand were $870 million at the end of the third quarter, a decrease of $81 million from the prior quarter.
What operational progress did Symbotic report?
The company had 39 systems in deployment, started five system deployments and completed three operational systems during the quarter. It also reported extending SymBot's capabilities with an enhanced sensor array and advancing development of a new minibot for BreakPack.
04—Continue