SYM - Earnings call 1 2024

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Operator

Thank you for standing by, and welcome to Symbotic First Quarter Fiscal 2021 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.At this time, I'd like to turn the call over to Jeff Evanson, Vice President of Investor Relations. Please go ahead.

Jeffrey Evanson

Thanks, Bill. Hello, everyone. VP Relations. Symbotic's Evenson, Jeff of Investor I'm

differ Our statements risk in subject based and statements, discussion including measures providing results to the result Symbotic's the loss which for projected not include including measure financial in These forward-looking today is will cautionary to planning, actual and financial measures on quarter, EBITDA. most the measures cause to and factors our included non-GAAP and financial as website of assist that press from forward-looking We're provide factors business and resources. in of uncertainties section those GAAP in used including measures release risks could materially may of issuers.Today, financial net assumptions qualified and with file measures first these the be release, during in the SEC, comparable entirety.In guidance described EBITDA. adjusted comparable GAAP by any non-GAAP revenue is non-GAAP guidance our is the by that this reported release call are our and call, regulatory are non-GAAP other management performance, on for comparable made are available are not evaluating this certain filings allocating in Reconciliations which SEC. Investor with during in generally Relations press not most recognized to and we'll forecasting the their discuss today, under the which measures. to financial their SEC principles, that forward-looking addition, as which believe will We U.S. statements we accounting refers statements accepted measures to adjusted these

and/or to Financial measures joined Officer; today's reconciliations Symbotic's followed for be we'll Q&A.With to Officer. our required discuss by We Chief cannot stock-based provision results, Carol to certain provide first Symbotic's control, that, These compensation.On Rick 'XX reasonably are it reconciliations adjusted to items and are quarter outside is and such predicted Chief the GAAP will our turn not Cohen, Founder, as outlook financial Chairman fiscal over Hibbard, EBITDA I'll for such Executive by: call, executives because our Rick? Rick. and able be

Richard Cohen

Thank afternoon, us joining and equally results and recent to you the you, our financial an In quarter, everyone. strong Thank year Jeff. operational Good for we impressive results review ahead. results. our first discuss reported posted most

installation system XX team entire Our a completing and new an only set the build, process in deployment Symbotic for record, full commissioning months.

are speed this growing quickly, support we While we are improvements all build we deployment making, in customer the this time and further deploy can't reductions to systems reflects capacity currently deployment we focused as on enhanced as Once is established newest is that of an bot SymBot.The has by mobile powered demand. improvement version our chips is such software with well platform workhorse. the NVIDIA intelligence. automation our artificial SymBot now

the for can generation BreakPack. non-ambient even per SymBot and transactions ability more our system the as food.Turning extend hour improved markets capability will deploy quickly and While has higher into our over SymBot efficiently our improve of such also helps bot, sets perform SymBot to new more to our entry and with ROI. also customer to stage systems reliability previous

advanced BreakPack over past than of this quarter prototype has faster development Our progressed stage. expected and the beyond

our receiving is full now are products, to availability ready joint always GreenBox venture, a for interest. is BreakPack our all customers.Turning range of our of inbound lot potential we While general refining to

GreenBox to first share it. be GreenBox customer, XXXX. GreenBox from right recognizing customers revenue like is will but to in being they work road choosing we So in our map when their first about selective announce more fiscal the Symbotic, their expect

So unchanged. is summary, in our story

way.Now and innovate, to customers drive will Carol our our grow for discuss scale Carol? and a we as capital-efficient outlook. deliver continue to results financial in execute and will increased We profitability

Carol Hibbard

you, Thank at here an days enjoyed exciting XX Symbotic. first Rick. I've

entire of to that scale capability scope the for Symbotic team and the enhanced we time, have During the future.

quarter last year, from in we year-on-year For revenue was example, and number pace XX% the and $XXX scaling primarily up growth. Sarbanes-Oxley grew we to last successfully from helps reflects everything company, quarter's to nearly growth to This of same an with systems quarter accelerated driven compliance.Our increasing scale by SAP software first have implemented million, the of the across deployment. XX% which compared

system as projects new add additional X we During to quarter, deployments existing and continue customers and we the first initiated both X new for completed customers.

systems operational at systems starts. increase last pace have XX in XX systems the deployments fully and quarter the in deployments the in QX, temporarily of deployment. operational progress year.We end operational deployment had is systems quarter; of in X and XX and we the process and last of This an XX system So of XX first from stabilized progress

revenue really future is ability scale growth Our deployments our driven to and progress. by

by leaves our base in demonstrated are months recently of X our system XX scale, progress to system demand. deployed well customer the customer Continued support is in positioned us becoming reductions with The more that diverse. in It we just deployments time we as as X to is important customers. deployment note XX

To standardize end, of outsourcing well. continue executing to is and We further to identify streamline platform our system our processes. partners opportunities that our deployment network

as in the at to our opportunities to reflects efficiencies continue became partners build to who over now backlog customer a to billion network.Our and addition $XX.X capacity outsourcing of Southern We add continue and Glazers remains see we November. gain to time, significant stable

revenue grew in a the increase streams the half back completed XX% systems X% systems, quarter. because year below sequential growth, year-on-year. sequential were completed the Our XX-week and of still recurring but our in nearly revenue these sequentially recurring XXXX, XX% streams Adjusting XX% for reflect in

into basis increased points margin. we So recurring system expect revenue improvement as in XX margin quarter.Gross primarily gross we XX%, head accelerating growth sequentially by to driven our by second

into year future. While do each quarter, improve every gross expect to well we our not it expect do improve to margin we

XXX first from quarter. system Our non-GAAP margin gross increased quarter last basis points

again on associated percentage these results costs with that demonstrates This revenue gross profitable gross we costs can can our profit reported in innovation costs deployment. such small also significant reminder, profit. rapidly being business with associated burden that the for and while like sites to operations.Our pass-through As much showing be projects still leverage revenue lower dollars number margin high reflect with positive recurring recurring our streams margin weigh still systems the a our model, scaling the gross BreakPack, of contributed active of with but in protect invested larger number of a

as gross X.X% compared adjusted improved recurring over This revenue continue driven is X.X% to with We rate as EBITDA achieved that time, gross last along over by again trend can operating we a expansion, expect a rate growth sequentially to margin scale to stable we margins rapid expenses. XX%.Operating and that quarter. our leverage

$XXX cash sequentially, and including securities restricted Our equivalents, marketable to million. $XXX grew and million cash

its per million the Walmart $XX During adding last warrants our at exercised to balance. cash remaining share, quarter, $XXX

warrant expansion XXXX. in to the proceeds, the quarter.As in Excluding to in of a $XXX half the capital the the this decline return reflecting million total second before we benefits of been have cash million, slightly XXXX capital working of $XX use cash expect working we again quarter back reset, would temporarily

revenue and both the million For to EBITDA million improved Operator, a the $XXX points, growth we welcome over fiscal margin million basis now second of $XX revenue quarter adjusted basis.We of and and please EBITDA of of between adjusted XXX which over your $XXX XXXX, $XX begin XX% expect questions. on represents million, Q&A. year-on-year

Operator

Instructions] first question. moment for [Operator One our

Our first Avasthy. question comes from the line of Piyush

Piyush Avasthy

margins when from this margins? meaningful what in modestly And more expect below the give year but guidance, taking a implied full EBITDA the I for you you you on second quarter XQ. is in margin think a improvement I is guidance, color back, Maybe know sequential impacting step some do in what did don't quarter?

Carol Hibbard

Thanks for Piyush. your question,

guide deployment as have as we as we're to resources customer as continue rests system reflects the of to to ensure possible. quarter Our high-quality we necessary quality needed going deployment Ultimately, disruption schedules to Symbotic; we ramp, with ensure if to spending meet the our that we a so, increased as satisfaction for and accelerate deploy little schedule. need and on second accommodate that flexibility

So on the continue our longer profitability, And going continued to that's improve, improvement you're start and the seeing term in terms and of the what in be that profitability. second to we quarter. half in improve trajectory for second see we're to year-over-year, a to of the year

Piyush Avasthy

conversations Got it. now, BreakPack product Helpful. talked about been? you like maybe target initial Rick, customers I And the a as how think the being have stand-alone about there? And talk available

Richard Cohen

Yes.

you obviously operation the So supercenter. stores supercenters we customers drug is, BreakPack are what -- which the original BreakPack and within Walmart be in drugstore business, designed market. think you if there's that of see customers a typically, for the there's -- for really was Walmart big like that a a it, target in that And X,XXX BreakPack is would XX

logically that also with So these system might customers in BreakPack, ] be interested would would in a opposed like this, and look [ be interested smaller to shipping customers smaller tail store eaches be long would as formats, slowmovers people that at some of of the a cases.

prototype. we're think selling we've big the So a It's base. very no a it's right actively now, finished BreakPack longer we -- prototype. that but customer not We're

more begin market product. our And will to add-on with more product as so, we and comfortable we get it as basic an it, to

Piyush Avasthy

Got it. Very helpful.

Operator

please. One moment,

the from of Our Blair. line comes Sparenblek next question Ross of William

Ross Sparenblek

suppliers. I [ I know, start begin provide that? that noted we allow guys we inventory network. any supplier the to timing you sourcing adding of thought some lead those on you down to were kind that you and times. of around the dual challenges update just through think still as bringing the Can that ] you're would then of Maybe alleviating

Richard Cohen

done our time sites. the And inventory, see it it our I've actually above is why products past higher as we as with customer fastest to opposed we more on better Yes, yet. systems to turned And of do time their a suppliers, suppliers which result, the lot mentioned we've a we're quality is expectations we're which for spent pushing was lot What means testing faster, quarter. when the this coming suppliers. seeing in from that on, completed for factories was a that implementation This you'll quality.

So seeing lot we're in willing interest now understand from what quality. They're real price working more There's competitive, we a from now of invest are. the to suppliers and is we're how what at more they're suppliers. suppliers

struggles think find we're now, we the past think we're a it's -- with be to to behind good more we're now. competitive.So good -- think, suppliers suppliers quality working and And suppliers. more are higher with in I good I place So I

Carol Hibbard

Yes.

So Ross, that. to add I'll just

If really partners. getting focused those you about on it think XXXX, was

so, is there of growth in number. terms And substantial a the probably more

to need more tweaking as scale. lot in with coming are we now greater interested. And we're we suppliers do Now to indicated, because are a and continue Rick scale

with focused to also And XXXX, so we're as and efficiencies, focus those suppliers we're we're in see on start going that. we the ensuring our to that, on gaining of benefit

Ross Sparenblek

as help of And Got also, Can of thinking year. the to additions, customers then just have of maybe understand And better outside Okay. it. would us what kind customer just steel we then what X new mix was? the you move been maybe about Walmart?

Carol Hibbard

Yes.

of our out So, customers. new

indicated, new this one we those in Glazers. as systems X Southern quarter, we So, was had of

November, had announced in we So addition the Glazers. we of Southern

customer of our X, the new mix existing customers. for out So work were other statements of additional that X of that's

first you Can I had mix.Ross, you? customer another that. to think, was question You your on go? new that the part can

Ross Sparenblek

Yes.

what I it's been here. understanding was. Just pretty steel variable know quarter-to-quarter the impact

Carol Hibbard

Yes.

the of our through steel. So, have in fluctuation for that we steel benefit help clauses fluctuation year. us saw pass contracts, in We early actually that the see

we we're that into and as have emphasize, of XXXX to of at monitor I our seeing getting pass structure it. to we those that out fluctuate. will and as some continue Now, costs But us ensure But we're that allows headwinds head through. looking contract ahead

Ross Sparenblek

Got it.

quick, real half if margin points maybe just expansion, sequential about think XX that? was the maybe So of steel basis we of

Carol Hibbard

been have that expansion. a that to contribute not of Yes. would big steel No, margin

Operator

moment, please. One

of next Our from line question of Davidson. comes Summerville Matt the D.A.

Matt Summerville

transactions of the -- next remarks back some you of SymBot. prior with couple the questions. could will, review just to of an Can closest your to -- you maybe take get prior KPIs, more second, prepared versus SymBot understanding us if a Trying wondering around you hour. for I A maybe regarding mentioned was an if generation? some you

legacy you around SymBot kind some your put of robots. is versus If can numbers differentiated gen how

Richard Cohen

tapered that we SymBot with be and it is most our the can original things, -- do actually box this may not could So the can of thing that. important a one handle and actually it first did bot

that us So one a the that was long-term of flexibility at to things SymBot. forced first of relook

products that gave do it else. didn't much bigger universe So our but could handle. faster, actually might or us of we go that competitors us part help of a something trays Most

it can SymBot over and size have what and second to boards. and graphic in NVIDIA more flexibility lot we [ vision, vision. so that it that we we packages interface Botx chips we And what on thing handle.The call shape put of to order graphic needed ] has we a and So did was vision their in interfaces, upgrade

that so, and is, always couldn't actually to thing X packages some that us we inbound, did.And pick were to able cases at on that the the the we thing up other place than pick we actually can that we see.Third XX the of And this allows past, deliver things time. a can bundle now or X bot, on then boxes last we we -- see those seconds original bot, so in are is, could with faster and

handle the first at time. bot than a on for more can we X Now outbound, time

lot So stuff -- say still motorcycle this an would some sense you I because is you would for SUV. the of numbers proprietary. upgrade I get won't from to bot a a this But of bot be a the give is

Matt Summerville

you see -- of you about 'XX? helpful not of fiscal talking to remarks? GreenBox. BreakPack your per the as kind the same ask to And it question in my really of yet. to to one other do I'll along And available, contribute selling Symbotic then, expect you when the generally actively lines Super revenue starting Do non-ambient there. then attack start follow-up, prepared BreakPack market

Richard Cohen

Yes.

right of year. end the at BreakPack -- have the XXXX may impact in it So

So in we of be as And Ambient, quarter, of -- warehouse the so just cycle selling. that perishable testing piloting actually one. it if because a does, the perishable speak. would last we're some in

meat, to from could that say, probably will think would I just XX perishables would would But we -- XX like be the from after I say, dairy, and around stuff then minus now, XX. months but be cycle. produce So for the which offer able be go not first I after that a year, then develop degrees. And would But it this we and frozen. be would around is that, system

Carol Hibbard

revenue over And just to our year. is already add of contributing then, to this BreakPack, concept been and past proof I'll Matt, the year that. has

And prototype so, our revenue have contributor. already in flow a we is that

end it, that expand that see as Now add that we of in as of terms what continue XX. to to offer grow we're able to we you'll at the

Matt Summerville

was I I clarifying. of have differently. that. should aware a for Understood. little But thanks stated Yes.

Operator

One moment, please.

Our the next question Mark of comes from line Delaney Sachs. of Goldman

Mark Delaney

correctly, mentioned number starts starts. heard heard stabilizing increase more have I I was would if company of thought the understand Carol, managing had adding how that about hoping system you the company and there I'm thinking process the thought number And and you're the some of better especially with outsourcing operationally, partners, I to the correctly, If temporarily to potential been the manufacturing doing? company

Carol Hibbard

And Yes. question, see -- for the that thanks Mark. you'll

the we introduced last stabilizing, by so X quarter. quarter, new You'll see that systems into

continue couple to what have. on with the of you're that seeing that you the in we but grow number This X. to to our have stabilizing, the to see currently years.When us single quarter, already will By next comment X start expect related over every don't to we systems delivering we stabilizing other that think X backlog, backlog is grow X improved we're to seeing about quarter, systems our going to of indicated as you're we

into to that new systems operational either new continue X we really to number additional And we we've there's customers to quarter. change in I that.And we we're then expect every from indicated to 'XX, a and X no as the really when ramp turn into 'XX so, seeing customer, expand number the the going that's then to think And of add start continue the every as you'll GreenBox past, year, ramp. that

Mark Delaney

very about That's then, EBITDA helpful Understood. the context. in question first And the guidance.

to customers. support You assuming the deploy resources guidance mentioned and flexibility to the ability

customers just is with make You're what you. you support of Thank been recent to difficult, the more understand the Just that or in And you to to by them necessary? some the are event wanting to? there more more newer you capability that's have better and sure that? supporting projects meant alluding some is something

Carol Hibbard

the thanks Yes, up. for follow

So stage as ability wanting deploy schedule, in about talk in our we XX the where to we terms projects of the different we now when on guide, are have deployment. in

So that's up a XX year from ago.

is we're schedule so to to And right and now. that scaling we we we are sure, we that to do that quality. high make what able deliver adhere And want

longer So X to some call if and next what of few or lumpiness around going in I'll that's see deliver, the margin. that a quarter our additional taking the means ahead or you're what week in revenue go providing to and a in resources both

Mark Delaney

Okay.

Carol Hibbard

want to don't that few long points We save will help margin on a us the sighted short do to in anything term.

Mark Delaney

Understood.

Operator

One moment, please.

from comes the Deutsche of DeBlase Bank. question next Our line Nicole of

Nicole DeBlase

Yes. on And why Maybe the quarters? few just is R&D. for with a I what starting bit R&D quarters. of a that? for path past expense several then the outlook the is been next guess, over declining It's

Carol Hibbard

Nicole. Thanks,

what on week seeing when is talked R&D, compare additional think So you're that from fourth that I quarter to you first about. we quarter

a quarter XX-week So we in quarter. a fourth quarter the XX-week versus year, last had

contributing So to R&D. we extra an had week

is we to the year. quarter little continue of fluctuation the So that's multiple expect projects. quarter.I bit fourth ramp to would course at innovation throughout to But we're the do sure from make our want to looking a first modestly do R&D what of we

innovation if that the come back ability year. expand we the half and to so, of we to want to want And light, at to R&D maintain the projects our ramp those

but cost the on operational at as would as projects we looking efficiency projects that that that well the improved improve also are growth. efficiency for our structure, moderate expect that end drive we not customer innovation, at the systems drive help deploy. I'd looking So we're But only

Nicole DeBlase

it. Got

the That's length be zone, what Okay. you about when the to process. about would you in deployment, the really I long the whole spoke And getting deployment then of guess, feel helpful. of goal good X XX-month term once

Carol Hibbard

of start, in over down terms to XX-month and or talked that chime term So lower. months get we past, expect I'll long Rick XX term the as the long then cycle in, can vision, to in we've about

we able So we've that to to things the about place be put do in talked to go need that.

other is questions the that the of through down months. a one that's can do term think XX months, months really to make long be enable to so from that XX enabled looking going So might one that sure of think perspective.I how things we at, to that we're XX then what and you

achievement So a that over hitting quarter. deployments. of us have One couple now things was continuous we learning this enabled multiple

multiple outsourcing increased So deployments collaboration each under and they've now belt entire improving also from one.We've they're our on team. our partners, got deployment got their

customer. So standardization our increase as seen resources, over we've our And that what of team one the and deployment is past quarter. call the our I'll well really the Symbotic collaboration includes then, last And as an suppliers, build. quality in the

test deployment, to more and instructions, and that's more our from build deployment our partners. the So procedures, that from we're standardizing our really improvement enabling

Operator

One moment, please.

the Our UBS. of of Snyder Chris next comes question from line

Christopher Snyder

up facilitate I process in wanted of been communication has generally drive and And over the sideways investment number has growth on or around quarters, gone up OpEx to XX%. look to when to accelerating at OpEx we and the help their the earlier picking revenue follow up accelerated last X growth. projects the or

already is something much that's now guess, growth the OpEx pick so causing up QX? So to into there seen that's needing we've that. happening without Because I

is, now? question I of, why kind guess So the

Carol Hibbard

Yes.

that. is that improvements better to level We our But going nearly going same not revenue to on we're where it's the you're we're of grow improvement as OpEx but getting I continue see because OpEx, the our we'll to spending because continue getting think to do modulate grow on we that our at on spend. also

Okay. follow food Fair on opportunity. to talk enough. about about non-ambient And then I up wanted the or

then existing company revenue does size when also those the customers? the to Specifically, for you from the food And to include that that food? any think systems the non-ambient there frame about existing non-ambient the customers opportunity any if backlog, has, see we Walmart of way is related with

Richard Cohen

does backlog are that systems Walmart The include not any non-ambient.

building one, or So we're this obviously the in there's market other selling It's number so of us of focusing able which -- may density we warehouse, -- different also, We're help we the future, customers, market market, and no it's to But working can't a the really we're you slightly But be big whether on because but think space a give is a -- a -- of our and on and non-ambient. can the across we system, on obviously C&S market. big that's it's for focused none where ambient, expensive. in pallets. a just we'll is actually UNFI, our a a But areas. perishable market. increasing number build I it's weren't

Operator

One moment please.

of of Needham Our next question Ricchiuti comes & line from Jim the Company.

James Ricchiuti

Rick, a question just on BreakPack.

alluded to business. that? You get drugstore is to for outside a customer BreakPack of like How in market case use it a you your the to large important

Richard Cohen

find to tremendous bring market delivering the things didn't we is It we this been -- one who spend lot would the we great. time that pretty figuring -- to we of responses, use who customers I focused even we're the the is times been that go what best have site out marketing one a the the larger doing. we're see the a mean, of know of amount are haven't of very new place.But that's on because their things customer we've when was customers and on be I a for things of in one doing busy, we are many a for And cases, we're possible. do that so I

I've And on happy very expand market. never And to and makes rest people customers. get we'll seen very, easy happy that with we're then us for I a to we're time, year. on instant delivering customer braggingly it very us this that credibility for the of we this our gives braggingly have going the and said, as think expectation, why then stuff on better, doing, the that's delivering So focused before, focus we're

James Ricchiuti

just The Okay. XX-month going up to question, achieved. deployment that back follow is that you

partners, As as progress going this this see it like you around. though just not bit. and move that me darts going [ we're sounds ] more you to consistent fits outsourcing we're partners, It on be could It's to there see and front. partners, going some be seems as on to on tell if a bring going around to new it's bounce bring

Richard Cohen

to No, we that's think don't happen. going

we We been I say, are now build-to-print when last year our this, the is the is think outsourcing started a process, to change to for so then they -- show we've there's the team us. was you to don't our expression is smart way what we're do people design. if doing enough now better use asking What

call If improvement working may very goes the they PLC into our programmable which our year now, design, happen hard a which you an talk we're from simplifies machines. logic, code really that The that about up to want standardize programming. the to but speeds implementation,

at highest So the do the ability on. replicate to is what what focused level very we we're

a we and I you're that of last openly. no, will I again about to had think in So, lot see. we learning going future. you mean, the don't think, think I see year, I talked that I don't think

Operator

One moment, please.

Market. the comes question next line Capital Newman of from of Our Ken KeyBanc

Kenneth Newman

engineers? think that, just deployments? base? about bottleneck the into higher that to to growth the could the any biggest to us is service, those when just Carol, kind in-house you comment Is there second Is the color spending it increased in the of down curious help headwind? service quarter. bucket I Just that about dig the supplier third-party you there mean if

Carol Hibbard

that of the outsourced the And to on I of operators, the that Yes, site referred ensure hitting for on It's engineering it's deployment -- putting stage part we're includes some our are final we're and goes that focused business as our you But engineering mostly say of it's commissioning our into the it and because R&D a mix a Ken. and Thanks, it's mix. to of of wouldn't the less suppliers. folks COGS. folks it's reliability.

So their would that as well. be spend

Kenneth Newman

bit Okay. get And more then, I course, to wanted little of just a color.

I this maybe working half ramp just on cap mentioned the of prepaid are and getting better expenses a the free what the think, expansion saw quarter. the cash Obviously, top second color we capital or this from expansion back working year? But Southern accounts big second just in about you'd and that's into confident any I'm to receivable drives you guessing Glazier. half. how cash in half

Carol Hibbard

Yes.

So of you the cash tend to as most front-loaded. over deployment, our know, very of be course inflows our

And of that we as favorable depending outflow. higher so quarter, that's any maturity particular see the driven cash flow in we've ramped. then might particular on deployment, But a our cash

I'd in be So excluding expect the the as to to we're different second outflow higher to we're as now our expecting see XX the quarter. year, quarter, into ramping deployments warrant exercise, cash heading quarter for in cash to we're flat. flow having this first going similar we're the What

Operator

One moment, please.

line TD comes Joe of Our from Cowen. question of next Giordano the

Joseph Giordano

me? there. up phone Can a second you break hear My seems to

Carol Hibbard

Yes, we you, can hear Joe.

Joseph Giordano

Okay. Great.

revenue easily end. high a be problem, considerably fair, end, But preface the high class and you the saying I time delivered by you you to this first gone pretty of haven't of what basically, at it's So the guys would. high it's said ahead you

it volatility have kind the variable just of you bit precision I more I been inherent want and -- was haven't there? under Now -- tough conservative like by was of is more back you have guess, it's fewer around more projects Carol. that now be you and just nature, to deployment -- in then guide? because need to you a but quarters, were those you there with little limit a had more projects there -- to for a a prior I guiding question, know

Carol Hibbard

Yes, right, you're Joe. exactly

contribution more much variance So going systems as on have progress, an we and as to that revenue. project, see more have a scale single to and quarter's we're not individual in we the

we complete well, the fewer revenue.And had really you project drive ability as that us deployed of a tighten a or remarks week was the I up there, the either variation driving late range. projects, place in SAP standardize So or help had should it as and the in one early before opening and indicated we've if we're to here month controls putting our a even month complete just and some in prediction

Joseph Giordano

is know Okay. that could That's ramping debate quarter. it put suggested if production I And for kind in subject specifically bit is I here. be what now? like wanted sounds next of now? Like be, Or understand right X what not your of year, be a customers? point. the But that into to like level give have your there at will We it when It you amount that XX some exactly this to like is is to allowing theoretically you if that just possible right that commentary models sure customers to or I take, your scheduling large pretty like higher anything large that that just I figured. want -- like starts. make significantly that's

Carol Hibbard

on the by want service bot ramping we X and year, you're to additional backlog say excellent to customer that our of provide indicated is and I'd that We've satisfaction metered a ability So to customers. our X to have.

$XX ability work of not take to to don't statements to additional have. backlog and deliver want and the And billion have that so, on more we we on more customers the and continue

Joseph Giordano

like, can. of just from smaller multiple lead at as footage sort then Rick, accomplish you you equal system And whole in you'd -- going have bang I time you doing margins probably SymBot ability to the that that the this ultimately your one with and that fewer worse the be that a into get? bots? to like if like square you said, of Rick, think outbound, been you one get And buck are I'm now bots it any And as required Or scale? like there. you through somewhat be to standpoint. for on better to to is need -- allow handle at what Okay. does where, non-ambient move for going difference is the kind when able or more characteristics curious like facilities to you've the does on dynamic versus

Richard Cohen

Yes.

that be they're sell increase that, that not will We're work. -- to we we're systems be less we're everything doing expect to on, allow on only other anything will because will it able would bots with run trying journey we're margin.The because constantly able could smaller that's more I they to increase we doing do the we do margins. more But can capable, use less faster, bots more is capable. and thing is the will to And that to decrease So say them. SymBot, because that do journey us that be we our with the could system seriously, honestly a

love we point is and would lower still to, increase these So bigger low we're big having a price that's new But end, customers I of the with the sales. very I us that price than that market point, a one on. love and system right if having hit big which our allow now. focused I'm on a margins, these sell could talking smaller even about an things

Operator

Palm Greg of line the Craig-Hallum. from comes question of next Our

Greg Palm

out. cut something but name, my heard I think I

GreenBox, fiscal little maybe deployment of bit into 'XX. a deployments the in more think terms said I In I on to or you rev rec Rick, initial schedule. hoping was dig

terms coming that, over So aggressiveness, just of or the to possible. the confirm But how Box? years? if specific I'd do ramp-up thinking is on think of you about sign-ons dependent customer it Green to And how like in or you're announcements about you deployments that

Richard Cohen

-- parts. in they're the answer, we think well, I

talking large So customers we've some and opportunity. large been suppliers the about to

that And so I go and start then think slowly will what GreenBox is off fast. will very happen

GreenBox where out to it, test a I the cover need I say, build concept if country that to around and have and these going in network. proving we okay, multiple they're a vendors site national because a they and want of XX logically, there's So sites site, we

what doing to them we're set foundation for in news lot good I have think we also XXXX, And is putting of doing make So diligence all work, we're I the GreenBox we expect in think on we'll doing that -- foundation correctly. to of sure but a the GreenBox. some

Greg Palm

deployments expect to or Is you rec in this right? clear, be rev that start 'XX. fiscal to just And Okay.

Richard Cohen

Yes.

Greg Palm

to accelerating deployments continuing And -- further, kind constraints to the in maintaining whether there pace, bringing kind strategy not it's ramp-up. but of here current sit whether reduce pace last is a we partners, progress from that it's that Okay. of follow-up on today, as just on it per additional the general, a line deployment. But the lot obviously, your any of of time since question over outsourcing source

anything, to sense not get where Just trying internally kind we're on to a trying I changed you're has current levels. if sure what's clear make anything deployments of from here? further changing, accelerate want just if to all

Richard Cohen

So one. take this I'll

quarter from year is What later, we started this can a we can know deployments which lot were go go doing faster. were actually year now year in a we where ago. ago, So a we we're faster, now the a

Operator

Our next line question of Soderberg comes Derek Cantor from the of Fitzgerald.

Derek Soderberg

question, where deployment the lines of months around around so. or sort at, sounds with they're XX live on the just piggybacking last like time off it turning Just systems

think the year, at bring you operation think XX I'm guess XX. you systems share you maybe I on if you ago, XX ago, to can this year you X.X of years live what progress, those on have year? were think a turn number wondering can maybe in you Can this systems I you systems expectations less.

Carol Hibbard

Yes.

we throughout on don't So that call I had for continue improvement pointed system. were is a number deployment. for to as to also would pointed that you out improve year. an in quarter, that we to systems last row typically And that's out, accelerated we've average now XX-month -- said, where X deployment. see accelerate continued saw We in this of what system you guide X X what redeployed we quarter. as But throughout I'll XX-month expect that that But a deployment, we deploying to quarters quarter-over-quarter on the was and got X quarter. gone the that

the system in be months system. not of we'll will on there So the depending variability, every size XX deploy

systems some ramp the deployment, reduce have does a go of will given clearly how and continue We time that to enable deploy. quarter. ahead of to time we're we're implementing, looking those take overall, But and average, in the that significantly to that larger, and additional which be will many we deploy

Derek Soderberg

a some really these higher on should recurring recurring new as I'm live the then to percentage And we at wondering online? standpoint? trying out revenue math follow-up, systems we grow moving think similar work from think And about less should of that my fee revenue. the And how recurring about just the as more to systems online? as turning is rate or are come a

Carol Hibbard

Yes.

software. And start so the revenue stream, with I'll recurring and

up So you saw profitable where were. we bps second our XXX from quarter

profitability, recurring fourth quarter, X look in of a live So the first last as a on when you margin. the live, quarter. to not seeing terms you're month of improvement Those we From that quarter seeing revenue progressive big to software systems hit of the perspective, we're ramp. brought in

went to had going in really was we see It ramp on you're happened so much last recurring that we in to those XX XX a deployment in systems December. steeper a -- revenue. X -- And deployment, from but

we So didn't real the see benefit.

think attach really to our proof-of-concept you're revenue So are rate, your I attach the the rates significantly to we've question still X/X grow.But systems say, see that early in XX going of on where continue lower. have, of systems terms deployed that we were got I'd

seeing impact the you're So that. of

talked we're New have the about past. recurring that in improve that signing on, attach looking rate, customers we as to we're

Operator

the Mason from Our of of Baird. Rob next question comes line

Robert Mason

costs, if, just milestones maybe we this in in GreenBox any just And to milestones announcements, still to could internally looked you cash major related I year. work first call to Rick, moment. circle as it of structurally curious the GreenBox back to a customer expect guess, how to the I'm on trend major formation need happen Just quarter, formation. costs There towards that just the just at entity. in like their some that you speak through were JV small to the those

Carol Hibbard

Yes.

joint the costs that take amount trailing last I'll that did first work year. we small So additional the of with all associated question fees Rob, venture part of is that

So you That expense trailing was to continue. quarter. one-off from see not last a expect should that

part that indicated, and GreenBox, And first we second had a we're your terms for year. expect So inbound the planned I your if or Rick Rob as of our trajectory answered question, of customer of second GreenBox. got we the lot not. don't in we've as on know we've addressed part this

Robert Mason

just in place? be, -- the forward management looking you what is can other think is that again, to I'm trying are Or comes there? to we're to milestones that mean, I that, the

Richard Cohen

Yes.

right we between we the quickly over So of into can systems GreenBox. now, team the -- that recruiting, But bigger skills a sales the interviewing the sell have we're fairly and to than actually may they from Symbotic period we SoftBank we're is expand doing SoftBank or outside, management put the at management whether we to team GreenBox, it's but we're management there's in to also have, place. different but -- have next expect at build talent what time force at Symbotic,

And so that's that the process on. we're

Operator

remarks. turn to over Jeff like I'd call you. back to closing for Thank the Evanson any

Jeffrey Evanson

many you Thank you, tours you, great Symbotic. look for our call we joining conferences, seeing tonight. our quarter. We investor Val, interest or talk a in when Have at night. forward and to thank next everyone, of warehouse appreciate your We

Operator

today's conclude conference. does that you gentlemen, and Ladies you. Thank Thank participating. all for

You great may day. now disconnect. Have a

Symbotic (SYM) 5 Feb 242024 Q1 Earnings call transcript