BGRY - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by and welcome to the Berkshire Grey First Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised for today's conference is being recorded.

further press any X. require you assistance, star please If conference to your I like a over would now had to speaker today. Ms. Sara Investor Relations. President Buda, Vice Thank you. Please ahead. go

Sara Buda

Chief joining release XXXX Good Grey's press today, release you. morning financial and on a you discussion Thank Wagner. results. our Investor our The Relations Mark Financial everybody, Officer, Founder we Tom Steve & issued First with our Grey's are us available Conference Fidler, website at Earnings for Quarter announcing Officer, our is ir.berkshiregrey.com. here also Chief Berkshire Leading Call. and Johnson, is Earlier thank today's President, today. Berkshire Executive

Following management's to call prepared the remarks, will up open questions. we

like any Private and financial Before Act. statements on and due constitute may that implied inform is those performance expressed forward-looking you made from filings or contained Securities Future the operating the in Information call of in we we factors. risk certain of various meaning Litigation provided forward-looking and may get to within would Reform FCC. these the our to business during concerning started, differ risk statements the results uncertainties factors statements call this conference conference risks, materially with this uncertainties,

are call to update the these to current view this We commit not date made. in do on represent as these statements. included the statements information currently available of based and Forward-looking us company's statements are

performance financial SEC during any will call measures accordance available today's substitute superior measure CEO. to I prepared Tom GAAP release to derived can furnished over detailed on As a and should alternative the accordance considered A as be now and measures for press measures our and reminder, we With performance turn These to IR are GAAP. call. that, in website. now to will of addition be today, earnings financial will be of is Wagner, be non-GAAP not our non-GAAP not non-GAAP in in with in an with or found GAAP financial the referring to reconciliation which and measures some

Tom Wagner

and and opportunity, Thank growth weeks First portfolio our $XXX products product how good and our few our industry-leading launched I'm a addressed critical product Earnings with to that million topics needs our secured underscore you rapidly everyone. built retailer, unique for successes six these market new few Today last been on a activities we our going automation time Johnson, realized in and will go-to-market to we discussing President, Call. a logo talk pipeline also a Today, call. morning, focus to more Along broaden since customer in we to Welcome ago. Mark on items about the launched quarter, traction. only robotic XXXX spend I that Sarah in position our have which unique market, new Quarter months the a joining more our and we an that the detail. continue XXXX. some those lines call the we first Steve new build in It's

our of as door. mission at way their make that make and they AI-enabled and systems get industry-leading, here your robotic orders let you packages e-commerce e-commerce started, Grey. we retail remind handle to Berkshire As me We fill

and a the places automate intelligent Our customers to right and right difficult robotic right to mission goods We with labor-intensive help the right is times. the tasks that the succeed automation at gets quantities and picking, lead organizing. every packing, to logistics core within moving, $XXX in operation fulfillment market These that sorting, including for our are addressable billion found are products. operations, functions almost and

secured one our Fortune repeat are anchor proven pipeline new well. XXX orders from customers. Our in every production growing as tangible business customers driving for technology is our in of We ROI and

to today technology, right the in place tremendous market on capitalize We have strategy, before right the the the and us. opportunity team right

me of million the advancements. technology are ahead delivered $XXX million $X.X In let end as first the a have the the of million quarter, of quarter, and revenue talk we of we date our orders Now, approximately $XXX to backlog and pipeline analyst our about expectations. Total QX.

we're approximately costs our improvements, margin becoming gross and to plan and margin. discussed, Most achieving will importantly, long-term XX% to for model we Mark reducing remain in us target confident position of As future to continue our company billion-dollar product adjusted a XX% invest we gross drive growth. operating and of in EBITDA our margin technology long-term

Moving customers. onto

of is robust. pipeline customers. our actively Our remain We multiple all anchor with levels at engaged

are in deployment. proven is strategy. automation we part Our of And believe important we and an technology their long-term

Regarding brand yet and new in with This late retail we a few from in major order months, landed the past secured a order is another and we in a XXXX. order customer initial and customers, rapid order means indicator. new follow-on succession follow-on an positive

provide some more Our identify that customers. on perspective current hundreds unique pipeline includes color will opportunities of Steve shortly. as

next-generation about some our product which our broadens and solution, product week, the to Last talk like of mobile our we FLEX. I'd BG Now recent of opportunities. announced our expands portfolio news, growth

Our and picking we stations, that mobile the increased installations density real-time which flow sort, order our buffer increasingly density the demand and picking operation BG of These With stations, the have centers for store solution in for unprecedented the work robots, a distribution software, orders footprint. our important new we consists consumer decreased and centers. store operator today. large our manages our replenishment, store of move combine applicability This in as of buy on items back online, of and goods through pickup e-commerce robotic large with orchestration FLEX, mobile sequence, and to curbside such as customers address near autonomous and and mobile and robots standalone rely high to micro fulfillment, fulfillment Expanding to lead automation features beyond is solution delivery. system.

to allows which the instance, into recently technology today's features recyclable bags, new and can Berkshire shipping our economy. us. our be our important product programs, increase is the slow, competitive pick similar prone robots pack while our Grey fulfillment to BG labor-intensive, important also and require new robotic automation to advantage. RPPI for retailers e-commerce in At items approaches, standard for of and Current having existing auto to labor another example built our customers into and solution support touchless mobile or with automation on modules, e-commerce, sustainable place throughput processes Our deliver mailers. technology FLEX build This using sustainability pack Along to to human to error. adds we is on-demand solution. to need system which and ability provides both announced RPPI lines, our for yet bagging. customers core is This our is is on our identification picking compete

competitive choose why as named they well-positioned technology transforming robotic affirmation orders partnerships, technology. automation. economy. like us of recently XXXX Other Swisslog anchor Berkshire we In of Repeat are their a who for That's like is experts and technology leader & strategic are our deployments providers, our digital our our customers, orders. new our include and compete some Frost Grey, has of why logistics e-commerce rapidly for affirmations to with retailers, Sullivan, advantage strong with intelligent growth. enabling and in us summary, continued every partnership largest companies with the For customers world's their one expanded other

from and customers. Our our repeat by team evidenced industry-leading, technology orders are

driving a strong further costs app-based tailwinds a and customers have pipeline changes scarcity will that example, well as material behaviors, long-term to There our moment. labor in as are shopping discuss their Johnson We escalating Steve in like are consumer operations. automate macro that for ordering, labor

with XXX We have products differentiated proven customers. Fortune and operation and unique that in are

We we today we front company. now even have conviction build more the growth profitable as about a have billion-dollar opportunity of in us

about commercial growth. to momentum and turn Steve to Now it our for our let talk me over pipeline

Steve Johnson

sales that's rapid background. and our morning growing, everyone exactly I X. doing, Tom, me to call XXXX X. win for labor that due put was with systems our what and positioned approach: XXX pressure for clear retailers, Thanks, and Expansion intense selling customers, to this orders Macro and customers, help been tailwinds is Grey of the provide BG, provides substantial this the strategy. technology on we into teams, When done. us The initial the expand late success sales implemented e-commerce first million which land in verticals that go-to-market a clear To strategy, date. I this joined and one. To business. to challenges orders and pressure. knew Since scale. we've It we're on consumer effect add by company, three-pronged this received build grab, Grey Partnering to e-commerce joined then, for to partnerships establish in today, Berkshire that significant volume to we've and for we even forces anchor is to in execute us on we've there of is the pace have in doing. partners. and me go-to-market Berkshire XPLs. integrator with environment, also more a which adding evidenced let growth. anchor of a strategy providers, as expectations good for and to our my X. the Changes new is market Amazon leading Direct customers, we earnings uniquely our brief strong

some of on detail Let me each provide more these.

customers. on First, I'll our anchor touch

Fortune anchor Target, our XXX another know, you As FedEx, customers Walmart, include and retailer.

potential have for have placed strategic opportunities them. agreements them and multiyear we orders of with All follow-on

and longer their we is over opportunities even current stay, greater. pipeline with customers totals $X.X the As anchor billion

strategy. So an and be of anchor our growth our to continue been important will customers have part

we with Second, we've another the orders our first Recently, logo installed teams customer. that had customer and have new new been follow-on systems securing customers. even a in successful secured before with

our providers market. have manual traction introduction start of our mostly a unique potential our billion all helps process Since brings hadn't XXX RPW. order a pipeline. our anchor prospect pipeline identified new customer million we've months ago. over products to in billion. for a combined few of accounts, new about One solutions business, customers representing dozens or new we've of that total pipeline had solutions, robotic automate customer opportunities are Across just with with active in positive RPW, solution $XXX example orders in is put-wall about that All e-commerce our includes is we is our announced XXX several today. product expansion opportunities discussions, of a with representing and X.X This fulfillment, our gaining a the the This

and now XX working partners, The Swisslog, integrator we of in found of partnerships. sales our is soon already last piece formidable have provide QX a based competitive we We're Partnerships us several joint else. third on these product advantage which solutions announced and announced solutions prospects with strategy have We week. partners we UK in [Indiscernible], a that cannot gives including customer -- about be together wins. some shared news to as anywhere hope to have more and work shared that

Of experience course, having the customers their prospects advocate impact. with for other share and BG highest has

value We technology. are our fortunate our customers that

been As our very be source In result, will of existing customer go-to-market strong base a position perspective. has and our summary, from continue greatest a we're a in validation. to

you. to over Mark Now

Mark Fidler

I'd is $X.X were discussing slightly new amount XX% higher quarter, expected. customers. for period and updates orders Thanks first was we regarding like the that quarter orders We the which first of quarter, of I the some million, provide in good results the $X.X from than off key initiatives same Steve, secured for the non-anchor million start then some consensus our morning, and higher the in in everyone. XXXX. All by Revenue new XXXX. will first to and our of about

QX, As and million installed. contracts yet $XXX end of had systems we backlog as be to we which of with define delivered or the signed

we execute continue importantly, our to deliveries customers. on More with

the majority half. very backlog XX% our and of up occurred similar expected growth. half ramp recent in revenues expect year. we so revenue A and in continue than be positioned this in to more to where orders Both started increase well in our have revenue activities of XXXX, With second large the significantly QX. the are our to to we substantially for weeks, and strong increase Our to compared of order-flow second pipeline, pattern

some have that with XXXX. for call, our On XXXX. progress path Now our margins a achieving talked in to I'd we've to about like we positive we bit operational last initiatives discuss gross made

strategy thing, technology Let our been the on resources we've success Since some customers started context. of company, we performance engineering and right today. one we already and me now spent it low-hanging It's all build cost we is to realize that This and with where our we can us had fruit our our to With allowed robust the additional our of focus has focusing to mature there provide go-to-market improvement more developing has the capabilities have the margins. in generating place, and strategy positive to us lot products technology a are of believe pipeline. note on important more here. a proven our is allowing

our However, design products lowering and completed implemented year, this room changes, this for newer that will others one we've with costs significant improvement which already product's specific of by be XX%. in result has will engineering

We product raised this have also prices as for well.

place long with in overall clear programs in gross positive which operating our approximately a remain for in of rate achieve have Most the all and beyond. metrics to our provides We we reduction products, achieve us in run gross cost to margins confident path margin XXXX importantly, our ability term. of XX%

stock compensation. certain P&L Due quarter awards, on to total was quarter, mark-to-market $XX.X basis negative the stock-based for $XX.X billion relating expense stock-based million comp our adjustments and in Moving the operating benefit. for to resulting a excluding to was total GAAP expenses, first OpEx

total our stock quarter growth expected, quarter, of total release. defined A comp believe the excluding have warrants, was excluding fair was in year, compensation, expenses, -$XX.X our flat will the to be in stock the business, fairly operating a compared loss of for to EBITDA, the Adjusted for for this the the of adjusted in from expense, we is FYXX, reconciliation for same changes is FYXX. consistent million as and base stock-based for for million quarter. prior of period expect to adjusted we which press included operations net and million value expenses, comp operating compared first We -$XX.X As support -$XX the quarter-to-quarter. remainder FYXX, our depreciation, EBITDA good roughly of and quarter to organizational loss fourth primarily

debt. sheet, position the and solid in $XXX On balance with ended over no we the a cash million quarter

a year. visibility million mentioned, As for in revenue quarter with for good the we $XXX providing ended backlog, this

which we to support We continue to revenue. consistent expect our our is the and $XX call, approximately revenue with expect of backlog guidance for in we million on build and last XXXX, to gave future [Indiscernible]

be Finally, to driving continued be business we execute position reiterate need about, our automation to some to key as for the talked to strong points prevalent plan. ever. continue we've Tailwinds in as

on and large our driven us for technology our combined anchor received, product-cost our more. our tangible greater strong follow-on reduction long-term the And backlog growth now, from turn love orders customers even Our by prospects. We're about want Q&A. and customers, initiatives, we've they particularly with our making provides Operator rapid, with conviction will progress over pipeline it

Operator

roster. Instructions]. compile [Operator Q&A we Please standby the while

Our Greg at first the of question comes from Capital. Palm Craig-Hallum line

now Your line is open.

Greg Palm

Good morning, the congrats continued the everyone. and progress. Thanks for on questions, taking

Mark Fidler

Greg. Thanks,

Greg Palm

to I of reiteration So start full-year wanted the with the guide.

anything pushed, challenges? concern now there? but or your of months out curious seeing several projects like versus what because not that visibility Any of some are Just is you worry could get ago. supply broader you're these just doing, What

Mark Fidler

Yes, ago. the weeks view it our six pretty is was same much as

now, best this deployment today schedules that's The Obviously, which the on that out But backlog deployment based We year. estimate issues. sit about are our right are is schedules, supply have chain for that where chain that our time have global right we the last estimate based extent impacts risks our the right now or even schedule we we schedules, talked that still have that are issues, there. now. we it customers for million there we revenue risk now in that supply $XXX the and still to on have, best the our

Greg Palm

year? it growth? Is order should potential consistent Good. of growth growth should I thinking but for don't for Is you for be the in guide activity half. higher? this second think how about more it the orders, we ballpark the something about with And Is Okay. order What we revenue talked in meaningful it know you about? lower?

Mark Fidler

significant as to we'll half, our see we and like numbers, what we we don't new to activity we year, experienced think see I from don't anchor of order our well. expect customers customers guide from the last a prospects mentioned, order both from and as in but all is, in what second increase really

Greg Palm

progress think one, is looking report it opportunity engaged last might many just of customers something doing at Are or then official any update customers I but today, how to your no all in this? be And like point? large-scale commercial news you know there's arrangements? two Okay. on of one or anchor this this do at

Tom Wagner

mention continues we're still Hey, Greg. would long Currently, call our and we'll anchors great orders as I Yeah. that did you with validation. to share that's Thank arrangements I we for our able. work suggest updates asking. in of have all term in follow-on the process, be last

Greg Palm

Okay. in good Thanks luck. Fair enough. and queue. hop back Alright, I'll the

Tom Wagner

Thank Greg. you,

Mark Fidler

Greg. Thanks

Operator

next Walsh of comes with Credit question John from Our the line Suisse.

now Your line open. is

John Walsh

morning the for the good Hi, year. good to start taking and thanks and questions a

Tom Wagner

Thanks, John.

John Walsh

obviously, first And little this Maybe bit. a very earnings online heard about question. large just scaling season, a we a talk retailer back

Some more you Obviously, other being the are be might touch see a suppliers about you saying not verticals watch leverage of to and -- a the talking do customers larger kind some warehouse other your automated from kind that what that little item. of deployment? of deployments that

Tom Wagner

just please? can words more John, to a question, you few add your

John Walsh

Yeah.

for one So is might reported within automated penetration some verticals and not customers -- there maybe expectations tempering as way. you different verticals, I for automated where curious rate. right, item. some of to warehouse after just even those your as so seeing have across the than customers you're product broader talk individual or just of your high what warehouse Obviously, automated be just Amazon were watch names say it Intelligrated, I'll use I'll a But they warehousing think another spend, had Honeywell, their

guys of of have water given Just little folks a cold thrown hear have a to bit couple there. trying saying, are that what you

Tom Wagner

of door, and energy the in to automate for it of to continuing high need and tempo the No, see as all, tempo as high trend. the was, customers forth so we continue that conversations and

pull any seen haven't We back.

John Walsh

then you. what bit network. just Okay. we little talk could a if Thank this partner And about

have in? XX. add think successful are seems like a of that that pretty What as I are you there? be we makes monitor planning outsiders we Because the partners? the opportunity it about looking do thinking could that you're that Now some more How you to opportunity. about things good can mean, that

Steve Johnson

is Hey, This Good Steve. question. John.

with moment. as at advisors Partners adding perspective, where be going lot, partner those will leveraging a to a from partners just have. and question? from we We've for our we're go-to-market So we're I the selectively do partners great joint as not That's your adding We'll some. help trusted got customers, well some that as fulfillment verticals. be with the have to continue It's and we're focused partners well. we're that partners Did now more together. leveraging work answer we're their

John Walsh

good. think out for relative the to just the And that's and I'll Yeah, baton. uses a last year, just But of about you updates as framework last Yeah. any maybe here, quarter. one we pass then cash the laid

update Just uses wanted for cash the of there to you. kind year. of Thank on mark-to-market get

Mark Fidler

This XX to Yeah, million million which rate, per is what XX burn month in no is experienced we update. the in still much QX. pretty

So through the consistent pretty to we the of year. that be expect rest

John Walsh

much. Great. Thank you very

Tom Wagner

Thank you, Great. John.

Mark Fidler

John. Thanks,

Operator

Our of Obin Instructions] question with is Andrew next America. [Operator from Bank

open. is line Your

Sabrina Abrams

have Obin. for you Abrams guys, Hey Sabrina Andrew on

Sara Buda

Sabrina. Hi,

Tom Wagner

Hi, Sabrina.

Sabrina Abrams

prices little projects particular and bit -- so you and it's guys you to your a you bit talked and you environment raise think that? a inflation Do can able high do price pricing reduce talk products, little about ability a ability can product costs I backlog? know Understanding about to a to for your guys bit talk you little very power being think about

Tom Wagner

Sure.

were all vendors So, backlog, to order. components and in -- what the from on we have that is, of already the are items do order our we terms

no In with order. process, already Our in our vendors, inflation it manage and risks the us, it's what's backlog there's -- locked with prices for what's were managed so closely. very respect to very in a we on

in key cycle, time with a natural in be we items so issues along some don't that can we those we're to long agreeing so to there's We well items if planning could around you our order some when of we that stock risk if the vendors inflationary components that chain we same lock know there purchase have prices also even sometimes would. our supply issues. hedge have advance pricing lead time for kinds also tend we to or with to fall can in there, customers, Because

how pricing prices much we our developed our lock pretty of and that's with So in our kind vendors.

Sabrina Abrams

especially orders able and Okay, if for follow-up upside And chain Are this were the improvement like seeing thank quarter. sort some backlog of half, they in revenue is backlog. at impact back chain constraints, any color. just It as looks work your supply potential the guide? And you there a you down to of supply does in to improve customers? the you your looking

Mark Fidler

no right what our something very There's change just that say it from the there, supply chain still to risk our so I is change guide this still manage monitor ago. that carefully no risk we with we now. from global customers, nonetheless. would six there's our but weeks very is revenue really carefully and It's view is

to chain construction we much order a have items, like in experience control. Day see not And And well. if of schedules. vendors, customers could they're our as and risks not have that -- X some really and our perspective order with impact our things if from Our experiencing could scope supply some even issues that's do sometimes part on

on -- no would So change no, there be guidance we today. we're our where sit based to

Sabrina Abrams

Six in you expecting I ago, track? guidance to question. Is the weeks where last maybe months. one And next XX still Thanks. it. that a on Got funds provided you that guess raise

Mark Fidler

still Yes. The Yes. on-track.

Sabrina Abrams

along. it pass I'll Thanks,

Tom Wagner

Thank Sabrina. Great. you,

Mark Fidler

you. Thank

Operator

And there are I'll closing presenters now back it to no over questions. further comments. for turn our

Tom Wagner

with time more to future. to today the you the spending for and we in much forward talking us look very you thank Everybody

Operator

for conference you gentlemen, and today's participating. concludes this Ladies call. Thank

You may now disconnect.

Berkshire Grey (BGRY) 12 May 222022 Q1 Earnings call transcript