01—Abstract
Summary
Summary of the 8-K filed November 18, 2024. Cited figures are marked; the original filing is the authoritative source.
Symbotic Inc. (Nasdaq: SYM) reported fourth-quarter and fiscal 2024 results for the period ended September 28, 2024, with revenue of $577 milliona, net income of $28 million, and adjusted EBITDA of $55 million for the quarter, compared with revenue of $392 million, a net loss of $45 million, and adjusted EBITDA of $13 million in the same quarter of fiscal 2023.
For the full fiscal year 2024, revenue was $1,822 millionb, net loss was $51 million, and adjusted EBITDA was $96 million. Cash, cash equivalents and marketable securities decreased by $143 million from the prior quarter to $727 million. Management guided first-quarter fiscal 2025 revenue of $495 million to $515 million and adjusted EBITDA of $27 million to $31 million.
The most significant item for investors is the company's decision to restate its unaudited interim financial statements for the first, second and third quarters of fiscal 2024, which should no longer be relied upon. The restatement relates to goods and services, primarily tied to specific milestone achievements, that were expensed before the corresponding milestones were achieved, accelerating the recognition of cost of revenue and, because revenue is recognized on a percentage-of-completion basis, revenue as well. The company states these are timing differences between quarters with no impact on full-year fiscal 2024 results, and it will file amendments to its fiscal 2024 Form 10-Qs.
The Audit Committee discussed the matter with Grant Thornton LLP, the independent registered public accounting firm. The company plans to file its Form 10-K the following week, which will include its evaluation of internal control over financial reporting as of fiscal year-end 2024. The filing also furnishes a supplemental presentation detailing the variances between previously reported and restated fiscal 2024 quarterly amounts.
02—Key points
Key Highlights
- Q4 fiscal 2024 revenue of $577 million versus $392 million in Q4 fiscal 2023; net income of $28 million versus a net loss of $45 million a year earlier.
- Full-year fiscal 2024 revenue of $1,822 million, up from $1,177 million in fiscal 2023, with a net loss of $51 million and adjusted EBITDA of $96 million.
- Restatement of Q1, Q2 and Q3 fiscal 2024 interim financial statements, which should no longer be relied upon, due to goods and services expensed before related milestones were achieved.
- The company states the restatement reflects timing differences between quarters with no impact on full-year fiscal 2024 results.
- Cash, cash equivalents and marketable securities of $727 million at the end of Q4 fiscal 2024, a decrease of $143 million from the prior quarter.
- Q4 fiscal 2024 free cash flow was negative $121 million, compared with positive $44 million in the same quarter of fiscal 2023.
- Guidance for Q1 fiscal 2025 calls for revenue of $495 million to $515 million and adjusted EBITDA of $27 million to $31 million.
03—Questions
Frequently Asked Questions
Why is Symbotic restating its fiscal 2024 quarterly financial statements?
The company identified during fiscal 2024 that goods and services, primarily related to specific milestone achievements, were expensed before the corresponding milestones were achieved. This accelerated the recognition of cost of revenue and, because revenue is recognized on a percentage-of-completion basis, also accelerated revenue recognition. The restatement covers the first, second and third quarters of fiscal 2024.
Does the restatement change Symbotic's full-year fiscal 2024 results?
According to the filing, the restatement reflects timing differences between quarters and has no impact on full-year fiscal 2024 results. The company also recorded other individually insignificant timing-related items affecting fiscal 2024.
Which previously filed reports are affected?
The affected reports are the unaudited interim financial statements in the Form 10-Q filings made on February 8, 2024, May 7, 2024 and July 31, 2024. The company will file amendments to its fiscal 2024 Form 10-Qs, and it states it is not restating any other previously issued financial statements.
What did Symbotic's revenue and profitability look like for the fourth quarter?
Fourth-quarter fiscal 2024 revenue was $577 million, gross profit was $109 million, operating income was $23 million, and net income was $28 million. Adjusted EBITDA was $55 million. Net income attributable to common stockholders was $5 million, after noncontrolling interests.
What is the company's outlook and upcoming filing timeline?
For the first quarter of fiscal 2025, Symbotic expects revenue of $495 million to $515 million and adjusted EBITDA of $27 million to $31 million. The company plans to file its Form 10-K the following week, including its evaluation of the effectiveness of internal control over financial reporting as of the end of fiscal 2024.
04—Continue