Symbotic Inc. has reported a financial update for the quarter ending March 30, 2024. The company’s financial statements show a decline in revenue and an increase in expenses, leading to a net loss for the quarter. The company’s cash reserves have also decreased, highlighting the need for additional funding to support operations. The financial report also mentions ongoing legal proceedings and potential risks that could impact the company’s performance.
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.
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.
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.
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% |
Geography | Q2 2024 | Mix | Q2 2023 | Mix |
---|---|---|---|---|
United States | $423 million | 95% | $266 million | 97% |
Canada | $1 million | 1% | $1 million | 1% |
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 |
Metric | Q2 2024 | Q2 2023 | Change |
---|---|---|---|
Cash & Investments | $828 million | $563 million | +$265 million |
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:
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.