Financial Performance Overview

Revenue Growth Driven by Warehouse Automation System Deployments

Symbotic’s revenue increased 59% to $424 million in Q2 2024, compared to $267 million in Q2 2023. This growth was primarily driven by a 56% increase in systems revenue to $402 million, reflecting ongoing deployments of Symbotic’s warehouse automation system under its agreement with Walmart.

Symbotic is currently installing its systems in Walmart’s 42 regional distribution centers, which is expected to drive systems revenue through 2028. The increase also reflects 9 additional customer sites reaching operational status this quarter compared to Q2 2023.

Improving Profitability as Business Scales

Gross profit rose to $44 million (10% margin) in Q2 2024 from $43 million (16% margin) in Q2 2023. While systems gross profit decreased due to restructuring charges, software maintenance and operations services gross profit increased on higher revenue and operating efficiency.

Operating expenses decreased 4% as Symbotic reduces its use of contractors and outsources certain functions. This resulted in lower R&D and SG&A costs compared to Q2 2023, which had significant stock-based compensation expenses.

Symbotic reported a $41 million net loss in Q2 2024 compared to a $55 million net loss in Q2 2023, reflecting improving profitability as the business scales.

Strong Cash Position to Support Growth

Symbotic held $828 million in cash, cash equivalents and marketable securities at quarter-end, providing a robust capital position to fund operations and invest in long-term growth initiatives.

Financial Results

Revenue by Offering

Offering	Q2 2024	Q2 2023	Change
Systems	$402 million	$258 million	+56%
Software Maintenance & Support	$3 million	$1 million	+76%
Operations Services	$20 million	$8 million	+158%

• Systems revenue from deploying warehouse automation drove overall growth
• Additional sites now under maintenance contracts boosted software revenue
  
• Operations services expanded from higher systems deployment activity

Revenue by Geography

Geography	Q2 2024	Mix	Q2 2023	Mix
United States	$423 million	95%	$266 million	97%
Canada	$1 million	1%	$1 million	1%

• Currently focused on domestic U.S. market
• Expect international expansion over time

Costs & Expenses

Item	Q2 2024	Q2 2023	Change
Gross Profit	$44 million	$43 million	+$1 million
Gross Margin	10%	16%	-6 pts
Operating Expenses	$95 million	$101 million	-$6 million
Operating Margin	-12%	-22%	+10 pts
Net Loss	-$41 million	-$55 million	+$14 million

• Gross margin impacted by restructuring charges
• Decreased use of contractors lowered operating expenses
• Reduced losses on higher revenue and lower costs

Cash Position

Metric	Q2 2024	Q2 2023	Change
Cash & Investments	$828 million	$563 million	+$265 million

• Strong cash position to support long-term growth strategy
• Capital raised in IPO and warrant exercise with Walmart

Business Outlook

Symbotic aims to transform the supply chain through its AI-driven warehouse automation technology. With a robust cash position and multi-year visibility from its deal with Walmart, Symbotic is positioned to invest in expanding its platform to additional customers and geographies.

Key focus areas going forward include:

• Executing Walmart partnership through 2028
• Enhancing software capabilities
• Developing next-gen electric autonomous robots
• Increasing number of systems under maintenance contracts
• Growing recurring revenue from software and services

Symbotic has demonstrated early success by landing Walmart as a major customer and deploying its innovative technology to automate warehouses. As it scales its business model and delivers on its customer promises, Symbotic has the potential to cement itself as a leader in intelligent supply chain automation.