Symbotic (SYM) 6 May 242024 Q2 Earnings call transcript

Company Profile

Participants

Jeffrey Evanson	executive
Richard Cohen	executive
Carol Hibbard	executive
Andrew Kaplowitz	analyst
Matt Summerville	analyst
Mark Delaney	analyst
Nicole DeBlase	analyst
Kenneth Newman	analyst
Greg Palm	analyst
Mike Latimore	analyst
Robert Mason	analyst
Joseph Giordano	analyst
Derek Soderberg	analyst

Call transcript

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Operator

Good day, and thank you for standing by. Welcome to Symbotic Second Quarter 2024 Financial Results Conference Call. [Operator Instructions] Please be advised that, today's conference is being recorded.I would now like to turn the call over to your speaker for today Jeff Evanson, Vice President of Investor Relations. Please go ahead.

Jeffrey Evanson

Thank you, Lisa.

of operations that be and some regarding make considered reminder, business our financial a the we statements today forward-looking. As performance may that number are subject statements based current and Such on to risks of assumptions a and uncertainties. expectations are to materially.Please including factors. could XX-K risk Forms refer results and our Actual differ XX-Q, the update obligation We statements. undertake to no forward-looking any

today's at is In this call, GAAP and and by: A Carol measures. financial Rick? non-GAAP the results, outlook, addition, followed our Chairman Hibbard, we Founder, call, second to executives ir.symbotic.com.On and Financial GAAP public which and and our during Chief Investor located reconciliation our is measures earnings available today's 'XX These to in Officer. Relations we're Rick included Cohen, fiscal non-GAAP Q&A. distributed Symbotic's Officer; will present release, by will joined of Chief Executive discuss through both Symbotic's website quarter

Richard Cohen

Jeff. most us thank Good you Thank and joining results. recent for afternoon you, our review to

progress. second the the reflects Our quarter significantly quarter. At solid of the innovation pace we during accelerated time, same financial

at some innovations our recent Day Investor will discuss May We on of our X.

important sign include improvements artificial can experience, our this of innovations our technologies up software quarter. quarter, and accelerating and safety IR enhancing quickly webcast improving for some website.Key made the to You on and system automation, highlight intelligence page customer and core performance advancing the the like deployment.I'd this

and side, way. we recently the an continue capital-efficient is and their for a the a e-commerce of CNS channels system capability for I'm that with the the the retail technology, outsourcing we as to outsourcing the AI future us algorithms. for GreenBox of compute a capacity.Second, entire more wrapped our We're SymBot and allowed capacity.GreenBox it we the efficient autonomous architecture of solution manufacturing system to for wholesale, signed supply Symbotic up so routing issued warehouse all begin system.This to revenue handling First, of throughput warehouse and boost QX. as service evaluating helps with the for GreenBox CNS of quarter, reservation potential first Symbotic which of in integrated excited U.S. currently on customer to addition than microservices team on This second transitioned recognizing this of allows have about we in initial SymBot. knowing excited density, logistics modularization. installation coding, also more increase locations the this double chip, related we an across GreenBox operate the base accelerate improved these value that of increased power GreenBox.GreenBox intelligence time we enables customer. support.Finally, computational our has become both order all will evolve new to chain that to transition and This case bot standardized restructuring will This more transfer our solution higher each capacity code team a application space key wholesale services our benefits summer, and saw its and a evolution an and important brownfield unlocking sites. across with growth.Partnering with is omni-channel Symbotic CNS within to with automate hardware the artificial This the begin deployments. of fiscal the part BreakPack operations power the quarter, and will to a undisclosed an increased

a GreenBox started. management members GreenBox, Finally, been hiring while SoftBank operational team has performing much the initial of in have the work team for

grow discuss deliver our their Carol this financial announce and for continue drive and will wrap the to as profitability. innovate, several work we will up, to We hires to execute want for we quarter.Now, team to next able thank entire our in our to increased and be scale results Carol? excellent expect first our I months.To customers outlook.

Carol Hibbard

Thank you, Rick.

Second same last significant revenue driven systems X strong of X compared progress The the operational quarter across and our quarter to deployments million, growth us up deployments.During second was $XXX quarter, to year. the up bringing revenue fully system XX% XX XX new the systems, we in systems. initiated process by grew completed to

implementing indicated the in mentioned accelerate during enhanced for the our deployments.We of the phase Rick as just the team focused on stabilized call, system second starts and system innovations starts quarterly last rest As standardization quarter, the year. to that expect system on

numbers quarter, system our our orders recognized in during deployment as ability to in capacity backlog growth to progress. create of of customer deployments contracted accelerate by significant declined can revenue just revenue that important, future reductions time quarter. reflect revenue committed the this For support billion be due demand.Our to driven $XX.X And the

gross in solid gross second increase were systems.Overall, stable Our of at remained better grew from down year-on-year, margin revenue completed quarter, sequentially by execution.System upon we effective was combined gross margin largely the expected. and XX% project offset margin, recurring last with the but XXX% and in still quarter. cost the non-GAAP than streams slightly innovations number adjusted system during weighed deployed reflecting The last generally XX% quarter but line management and

reported lower-margin gross innovation costs and system on that reflects also margin. margin usual, a of weigh As pass-through gross our projects burden

combined a in can adjusted revenue Our to showing sites streams gross our we being but generating model, in demonstrates last expect to number recurring recurring that contributed number our of larger margin gross future. each with year invested expect while the leverage well profitable business profit. improve active do positive revenue, quarter, margin gross said improve be we for small I every high This into to deployment.As the do still we quarter, not much systems of also

operating compared quarter. adjusted a over go-forward We that platform. recurring margin stable XX%.Operating we restructuring a time, to gross rate, with standardizing sequentially revenue scale and rate to indicated, completed achieved our by can as margins to component EBITDA over again including growth expense.As last bot management, expect driven leverage was related inventory SymBot gross outsourcing combined we trend we as Rick assembly X.X% rapid expansion, improved along as X.X% and This

better systems $XXX which As expected areas, of million the the in $X $XX grew of from in million, flexibility pace raised the restructuring million quarter.In a securities we to a offering, was result, to variety equivalents, addition, from and gives of million innovation than our $XX $XXX million. cash February million and sequentially our follow-on operating $XXX charge aggressive of maintain million including during cash $XX expenditures defined marketable quarter.Our the non-GAAP development. including non-ambient flow us activities we recognized of as cash less capital Free flow,

due As was stock-based that expected, elevated compensation the occurs each January year. vesting to

the and $XX with the year.For third and questions. $XX This adjusted EBITDA be the comp quarter usually between increase.We will QX over million the million. fact, adjusted to highest Q&A. margin fiscal EBITDA revenue XXXX, of $XXX $XXX now every your welcome an of quarter stock-based million revenue begin million XX% we In Operator, represents expect of and growth please

Operator

of first from question Andy that Kaplowitz Citi. Instructions] [Operator have is we coming The

Andrew Kaplowitz

said of you our know in terms I made road in advances you map. innovation that significant release the Rick,

say on call the more little mentioned new I'm color of So give chip. software, the you better you want much already I a into this sure AI that the for could for like It to revenue know means? you bit you, elaborate what further Day, but than come quarter. expected. time? could what BreakPack a more instance, can did in faster did accelerate little the on seems Investor Maybe deployment you you

Richard Cohen

Andy. Sure,

chips X is. for this -- So may boxes with NVIDIA vision we've still about putting and us been that working years product bots allows but on the on to be we're that deformed, the using what our now. that combined recognize recognize But

on makes puts pick And irregular bots we're lot know, of of knowledge. only to trays. able much one And the That them a more box cases. only on as expertise our the shelves. and We that our put so, requires you don't a of lot people, maybe one directly that

about for on we've are bots this of vision-enabled. journey in our our a been while.And now, XX% so, And network

X,XXX shape, before catch we just for vision, recognize a can that. pictures saying, that's now didn't actually up there's with And it AI recognizing using I and a And work because with box bunch oh, so, were product. we XY's of But of sensors. the to recognize different the single

have started also around that's we one it. we see do to of that can vision-enabled we they it also will happens that on us thing.The route the like stuck bit, perishable And do the we've a now we able innovative.The better. to can And case bots. did that thing but something little our thing then is actually front now that is more a other we or be be for So, reliable, a gets much changed on is we done other And they're if routing broken so in always testing. something algorithms bot a work bot could that so

And to do there's so, what we we when happens a new a have go perishables, think that's fairly to runs well, to bot yogurt. going lot on want of test we things not but over because

the thing that in after testing So, things next like that. And be bots a then, environment. will frozen

a we've are doing. couple those been of So, things

Carol Hibbard

was accelerated I tackle then, deployment And to the say, I'll -- going Andy time.

our last we we in quarter, So, first had deployment achieved highlighted that months. XX

had out a of quarter, also this we time. that we deployed, deployment X several that systems achieved So, the XX-month

might own and the increased we instructions all complete for collaboration the of deployment, because and then, of each little of deployment last additional straggler a XX that I'll this months. some the test but quite procedures. got months, learning our we some enabling as number on as we are the as seeing that our We're And size faster customer. benefit bit to that chain, call deployment multiple longer definitely folks. benefit build we've got less in have going we're We've some time still our not is target supply the seeing a deployments, -- year them, take than driving we're from complexity, our well the we'll on the we're the a that.So, ourselves build about that than deployments that So, of proof continuous or forward, quality same to future opportunities of points.And have second bit quarter of over a see that and XX do things standardization half across reminder, talked

Andrew Kaplowitz

update on And then pretty another side. GreenBox the big

mean, expecting think, I you've that. talk can year, QX. been you I your maybe in this customer, first but about starting So,

get on see this from that does do here? focus acceleration So, forward? moving you how you work like, Do there an you customer --

Richard Cohen

Yes.

we'll going GreenBox is them. So, build to our deployment. facility for have first a C&S to use

we'll then believes And It's additional did then to that are we've everything you GreenBox higher C&S get -- saying. people now to will a allows GreenBox make the reach people efficient. it's conventional thing been or out country they'll say, decision? to customer out other satisfaction and reach using to to have It when us, across warehouse think using the sites. C&S And reach I why out sites that up into at put system.And automation quicker. it allows than right we looking capital

with So, aligned it, we're feeling they'll come, we that. if SoftBank's that and bullish build very

So, we're excited that. about

Operator

question next of our Summerville And coming from D.A. Davidson. will be Matt

Matt Summerville

I you way single ask see on on guys? if location C&S to GreenBox? if of an if point C&S. I'm their here bigger to thinking to that that's is -- you warehouse, going planning guess, proof that a kind this GreenBox could understand I Or so, is and of, a follow-up a is more to this get maybe evolve supporting? this their for the to on they wanted more I'm trying C&S that this this where And standardizing Is I and guess, of picture to is how want C&S? actually for will, much strategy on proceed? trying idea of want they is support

Carol Hibbard

Matt, So, I'll start.

potentially This GreenBox additional proof it multiple multiple first acceleration for chose -- I'll C&S. And for can customers, point, customers potential related to for rollout. its is automation as opportunities we additional say, C&S. and across continue ways looking C&S inbound was So, to we vet see accelerate to the as GreenBox,

Matt Summerville

the of be should start maybe we what Okay. some are And when the green-lighted, of terms milestones in you that of many talk are about, looking we to side these the perishable be however actually out? then where X, about for and to to things, that waiting rolling it hear or X, key this makes selling gets that should sense with respect what perishable soon

Richard Cohen

Yes.

milestones those I be is it's is our year probably are guess, think the think achieve, to out value our my a but of I system pretty to going for incredible and easy reliability. customers

perishable there's $XXX but an perishable be that actually we building very algebra tested think is have the because XX now. talked scenarios, facility you not sure scenarios, so there's use do say, look a what and actually basically, site, a always we're that customer be create bots store our make people a a disaster for So, world doing would but in the as have all test running for I probably we and the perishable sometime We're to make temperature. can, sure in -- lot testing XX within our the a that's world, structure and want that will the I talking we've why as you a not frozen a yet, foot, work special I and doing product have that, been frozen team It's but before year, project, expect that's them we fact $XXX, sell running about bots just we've cases. is $XXX, really you big we humidity, announce but we forward-looking, edge and a because we're you think $XXX.So, Symbotic, is And in for but system perishable of and can't And in to a be probably a ambient fine. degree and will can densely I -- too a testing.So, we're interested edge is mean, we whole but next we applications between somewhere. about. might the we that different we in I perishable, think site to, it's will XX,

So the about us. answer should now, look long a for from you something your answer, to is, question year from short

Operator

question Sachs. will Delaney And our of Mark next be from coming Goldman

Mark Delaney

even we this a installation. initiatives system up I'm opportunities systems compared amount was a of First there of went times. to one installation to about hoping sustain as underway? the to number better last of mentioned quarter. understand build how the per and given should revenue that made some accelerating all ratio Carol, revenue level fair understand trying have, of in to you've And progress you have better the or think is the going And, It forward? company off the you to you relative

Carol Hibbard

Yes.

the that #X terms think what lifecycle. I So, on at driving where is thing in seeing ratio that of deployment we're you're

from curve middle of systems being So, our the that if you about in think -- most revenue about coming are we've talked the revenue those install.

a varying every And single quarter. so of we'll have that degree

same predict specific the thing because complexity. driving And or that's each other the ratio, system so to it's is hard the that size is not same the

to any than will it ratio continue to in move more continue contributes in to And growth see system what you'll so that revenue, our curve a terms will vary.But so that as continue time. in and revenue of deployment have forward, grow, that that -- those will to XX we at from see continue given

Mark Delaney

only may about in better many of in it systems what restructuring also it might question. relative mean, for how to one-time to an It systems could financial at my model to have not working your what XX on could terms outsourced could some of the you the margins, the but be capacity have company the next in mean implications, any it of relative installation? number the that currently place ties you shift profit your terms in talk like Would in into understand completing of

Carol Hibbard

Yes.

and completing platform. it So focusing quarter, to complete this that last we was and SymBot we the our to outsourcing restructure began the focused on on move year, focused

but we the any we really SymBot. restructure along And to our inventory standardized be necessarily going bots. necessarily what the how obsolete that terms in have now scaling associated SymBot, don't to able drives so additional that than of to did deploy We're shut of other with innovations down continue costs see to I connection a all

Operator

Deutsche Our Bank. next coming is question from of DeBlase Nicole

Nicole DeBlase

I the financials. wanted to a ask on couple

So margin low the digits. to first the system's fell gross is double

you innovation by half? teens all step of I think gross high second the quickly to in was level? that innovation headwinds expect that margin or these driven in a you on. better guys can that working up Is talked will remarks I you're Or the guess, that something this continue? how about how opening

Carol Hibbard

than expected But you quarter-over-quarter. indicated, on did gross stable We margin. as better were we

items weigh And so our that of gross couple on a margin.

that future. gross I'll then on things weighing talk the now the see what about those are and So for margins we

couple of pass-through the we projects costs, those to have the So flow.We we contracts a for have that deployments stable a lower that through weighing that of so have half the on some quarter gross of we're our in things we have what's completing start this our last margin our talked are we about We innovations it the why quality is able focusing in lastly, resources on would many work. to benefit remains sizable ensure pass on with expect then those on And see gross have profit flow. year. projects in that margin second that I in margin.And to weighs several additional of

And gross XQ stable margins. reflects our guide so

we've to terms coming as rolling of each big system. and will time that see margin one year-over-year.And of on second said, up gross one margin, every but to as it the the deploy up being that So steps several the in takes I the for milestones in year the earlier, I the direction expect improve single the just gross biggest unlock step And significant out. mentioned we're quarter, right we years in won't we got of our with continue projects. that And improvement these coming in some half

Nicole DeBlase

new level I a Services change, guess I revenue we is big of sustainable? that? what Services Operations this quarter. revenue this then And in like really there almost sequentially guess doubled step business, on the saw And Operations drove

Carol Hibbard

is XX operational. were systems last that year step-up, a just when you you ago, the now we compare at that at quarter. single We have the X. when were at XX And biggest driver we look So to went

going significant and the separate continue with the I'll a because So software up.You're to operations, I And I'll step operations grow. that of separate it. you started piece to see think

We bring grow systems to expect we revenue as continue online. to operations

saw that our but likely will in area. You contributed were one-time to profit level quarter. see that quarter you this not -- that the the had to operations not same only revenue, the We in several gross events

you that So you but should of grow. will those not expect few continue see a revenue to repeat, to

Operator

KeyBanc Capital Ken will question of be Newman next Our coming Markets. from

Kenneth Newman

Sure.

did just curious, about So I'm there or you half? back you're Is X about half. fair this to way here kind size first here. it -- you quarter. accelerate initiations how the it into kind think X half X back Is projects return into in XXXX? any deployments that, question assume or You of you've types accelerating of talking the past and back to the that obviously, acceleration call to to of

Carol Hibbard

Yes.

X. So, we where we starts, don't start guide on I'll with were this at system quarter but

last innovations really would team we So, the we standardization stabilization allowed on all system quarter to indicated of for that deployments. that implement system those that talked see Rick about and focus phased starts our the

you effort team SOA. So, a to go to make ahead a is decision a or that's saw project new what new it quarter.And this implement a and

between our a that's customers. decision and ourselves, complex So, suppliers, our

legacy site. their including our need all our So, installation through the also to decommissioning customers of operations manage systems, preparing activities,

starts to up combined when initiate. year. backlog effort second the see it's our half billion, So, to in at of you're But going decide step system $XX given we a the go contracted the

Kenneth Newman

cash think quarter. being year? question, free the my second for appreciate some expecting positive would positive year spending be are anything this you might the of from Or And you you $XX prevent guys cash million that. relates there other that rest as actions free over that had flow of for I for just it Is flow I restructuring the any considering? of to you the full of this innovation then

Carol Hibbard

cash we of back of but to As the the expect as in quarter, in working we could of I'll level end half curve expecting to we revenue don't deployment, be the look I described the curve, year. we're -- just maturity because on we capital on Each should head also mirrors to that, the the cash say depending lumpiness, there have see either, the that. what as year, some positive guide you systems

terms reminder, projects. really a final And could so, we terms some in installation a in on heavy cash.As quarters the we're very have we where that driver are of front-loaded of might sign be we when

trajectory could a but see some you on positive forward. capital working still lumpiness, are we going So, for

Operator

coming Palm Our from Greg is next of question Craig-Hallum.

Greg Palm

as been just you're paid happy really I'm curious, and outsourcing been get versus time. time know of might folks your I'm the a timelines that. not ensuring at you home you of down other some the meaning that many hands for of partners? the in that I maybe any expense your you successful driving that of talking margins, some at the expense better costs customers doing overtime of at how we've related don't lines you've continue that or get that about to have at amount to much that need, you curious, period, reducing And of shorter is And system do are think a and

Carol Hibbard

I'll terms our of effort. is first part all the in and start is in our partners. versus hands joint much a of how It with

there for upfront. is responsible helping we're management Symbotic project, the the the of to planning So ensure also

just a readiness. the a out.So partners too, to across and and sure up. And deliver ensuring lay got make in planning point system fair right effort then schedules our that to certainly we've place So combined start we in the in play ourselves lines you've all the material terms have time all that, achieved. so the customers got it's of to A of the then shows our you've that need

we that site we our you deploying every see So are we and towards curve, single do and have to project.I'd project, through moving at our we going a deploy make as make putting we're us -- can resources as sure very a suppliers. talked installation the time wanting high-quality about our on so to certain learning sure on continue say, learn

line without to needing resources that we'll schedule. that see to going ensure the to time continue additional improve You're

Greg Palm

Yes.

with you've we just orders share about think about facilities, makes past. more? that your I mean, your share not given up what could talked opportunity size some it would expansion date less? wallet the having is customers? or the current you sort some that sense. SAM I to expansion Okay. size customers know of sizing opportunity, to But possible? it expecting won what maybe with least TAM haven't Is type with answer, your I that around And know some necessarily of the is, or but can opportunity significantly something with be I'm non-ambient at is exact else? in that again, you Like just of that of curious an theoretically as That current customers, not you up thoughts double

Carol Hibbard

So I'll can Rick then share his thoughts. start, and

we opportunity our the terms has to in expand existing of TAM our opportunity. have current know each put And base. sizing number backlog particular But and non-ambient. of the we've our there also not we customers a indicated not out that go to from that include customer So that ahead does

And consider a forward. significant that so we for Symbotic going opportunity

Richard Cohen

Yes. I TAM more very the there think are guess, facilities right specific are now. more be I that shouldn't refrigerated facilities. probably than large. I than is ambient There

expand are maybe it building thing. a and build you economics one perishable of the and enough have if such to can't you that want a have and expand whole you to new building. that's But refrigerated XXX,XXX-square-foot So it you

that. Our system is good for very solution a

billion but our say, big large. backlog, ambient, would $XX not backlog perishables it's very a have existing we as probably I as on if So

Greg Palm

that I could services that you revenue operation think said in expect I sneak just the up off in $XX Was just one if clarification. And in more sequentially forward. Carol, revenue in put going QX? million growth you of

Carol Hibbard

to. are there one-time referred events I because some that No,

that there's So repeatable. of revenue for be operations up we this put won't quarter's a that percentage

Greg Palm

it. Got

year-over-year So a growth on basis, not sequentially?

Carol Hibbard

That's right. right. That's

Operator

from Our North will Capital next Markets. of question Latimore Mike be coming

Mike Latimore

more at or the And On you it interest Is customers? on are this kind in are current you discussions? results outlook bit little What from you logo -- opening what maybe of BreakPack, here. there? it Walmart point? a just prospects the Congrats clarify, levels more about talk backlog can seeing new and is not the

Carol Hibbard

I'll the BreakPack So is part of start. Walmart considered backlog.

elements will is I'd our remarks BreakPack that BreakPack second we indicated -- of go from that the be to say one considers opening in a BreakPack. continue Walmart deploy. So perspective, this they'll our this

customers. could we BreakPack also part of all in for customer are Outside market market sale BreakPack we've our all And GreenBox there that, I'm It I before, we is beyond our GreenBox. for large think -- are So indicated be we of part talked BreakPack there BreakPack offering also about current of for a think for of a base. coming the additional customers sure who's of customers that in. is is

Richard Cohen

Yes.

is So the in drug the companies. dollar interesting a Walmart store of for also that is application think the But It's a a big be case. any for a the not of could into Walmart application you anything as goes drugstore, Walmart stores. full that's perfect if BreakPack store, every supercenter for has pharmacy and

in better vision healing even things mini have that version and miniature a the now because lot on solution our lot the it's the the think very the in haven't that is of uses because So, small our thing, that a it we anything a same SymBot. really different this market big talked is does it -- of a bot software, is does and it than have lot of different much terms the of packages. we And about SymBot takes BreakPack we We reason market. -- a a actually very that in than the smarts does some

but think what find is but a I yet, they'll this out been big -- So think market, capability very don't we we a know about that's haven't soon. lot people of

Mike Latimore

here, step function to ability others let's on are requirements just the -- be that tackling blocking of kind other some does system will of there there outsourcing of Got continued, it. of the And then terms refinement do more Or outsourcing? or starts in and kind say, -- require efficiency?

Carol Hibbard

No.

Our new that. achieved We scale, we've start and on ability outsourcing. dependent to on believe outsourcing systems we is focused to not

we that that outsourced to and capability have for the expand. slowing I'd in half and change So to this to the year, going on you'll back new saw see we continue that's starts, of grow. continue are the this quarter to say number

the have. the you And of system at pick billion when starts of deploying start that, reflective to Just will look when the backlog $XX timing plan we on up. we

Operator

will coming of question Baird. next the be Mason from Robert And

is open. Your line

Robert Mason

they given question you how a their layer think How whether Just they have, to could GreenBox. it up if top schedule incremental the to ability quickly add, customers current they schedule? if think that existing trying just be around just add quickly CNS think to customers, current the about you starts you about -- of how of or ramp were on other just do

Carol Hibbard

So about we first deployment as so quarter, GreenBox the and management we talk next identifying team. our are

to the we're GreenBox up then place. the resources. ramping with So in go begin additional and picking will leaders ahead put

And believe over And will be the GreenBox of course see to team. so to in you'll quarters, continue the growing they're ramp GreenBox the of new deployments. next process ability that several we our additions to our

Richard Cohen

GreenBox about June revenue we're from just talking first in when we've And clarify, quarter. talked order, first about revenue the to this

Robert Mason

Okay.

to I not clarification system Okay. or market can customers handling have sounds question one your around correctly? case or It And already to Very necessarily a Am good. who BreakPack. that do that of just you be would required systems. not maybe current like own understanding that

Richard Cohen

box, have So take you at they they would you some people cut the the in and very -- a boxes. that you store box. dispense items are doing have And to of the the it point, most BreakPack open have still would

still something still solution necessarily boxes. that They to large when and SymBot's, a the don't They'll store don't a the need have we So storage as they'll regular BreakPack. necessarily the totes out. they some come but need of probably deployed, need palletize they they still as ones to need

of they'll it but work. system, be still a So could the smaller be basic make system part our it

Operator

is Giordano question TD next Our coming from Joe of Cowen.

Joseph Giordano

on I'll start, of innovations you're in guess, the I on standardized now the some put you SymBot Rick, it. and that there

backward Like and deployed there's are go facilities? the the most that I Just your integrate bots using curious, like current you're that what's sites not to of back technology. that vision-enabled of running, been and your XX obligation existing newest assume that the the response -- into what's kind like greatest have

Richard Cohen

Yes.

what very spurt we we So we a were long to Joe, were this the before going change there was bot. knew time growth disciplined big and period sold, about ago we where

charge are and X is the the But no There there's -- all -- there we going CNS so early SymBot's have we to everything of is basically, sites charge. decision, business. else. there X of But that of want all -- is of So is no faster that we're bots. the about side, the This bonds. other everything is the sites.One of cleaning the are couple of the a made took way early forward, There now. run it our -- warehouses legacy is pre- there restructuring are is we up to part are one go standardized going reasons

so to we And don't want bot. of always with have be versions these dealing to all different

bot. now Walmart for same the have everybody bot. X instance, of the has same all forward the the for So years systems, last And going

that standardized made now. We're very we decision. So the taken We've charge.

Joseph Giordano

is leveraging large sites, developed the And sites? CNS that you essentially like like need that still Perfect. on just capabilities the how is an purpose run I'm software handle with you're CNS site be engineering offboarding to utilize you capacity. for curious like of the on the see smoothly? -- GreenBox, single-tenant going so like GreenBox like those of there's versus balance outsourced like existing really like -- where onboarding, that multi-tenant sort the side, entire And like do then this to multi-tenant to customers feel

Richard Cohen

Yes.

necessarily this going primarily to the be in site, So not CNS-only future. but is a

So capacity, other bring will into customers, site. customers bring the extra we'll we GreenBox other have

have in of And we inventory One in perfect boxes we have when have accuracy.And by space X million so customers, there'll mistake special things and how, but ship X is, well a management. we makes X so perfect might or figure figured but Symbotic of out Sigma additional some pretty this that be we it's that onboarding the week, can't X we out.

will be site or CNS we room. XXX% CNS first customers other this -- so have and XX% it be could And could if

in marketplace. rest be the and would look say, building take could building. And sell the and take a by out at be building want and "I'll "Oh, go I That's understand so anchor now the the an I want for CNS in If XX% tenant could we of GreenBox. customers you'll GreenBox, what of to model I exactly the say,

anchor the some XX% and is customers be So of it be it could bigger an XXX or in customer places, customer than could no capacity.

So that's what there we're going selling out now. to begin

Joseph Giordano

that they're going expanding technology that lots moving The really bring that customers in are a theoretical as the off with population to into a often. changes imagine The all exists? site facility on no bring support fairly businesses capability of would and already it currently away, customers anchor that exists different exists I small. and -- can and or that like like

Richard Cohen

Yes.

you in a the have we and an customers different a we owning would team to But It XXX boxes have customer row, handle management have structure, boxes be perfect build could traceability. in in So to aisle. XXX XXX our with would relations. could

have perfect traceability. We

So technology that the already of it, part is there.

piece. build to management the out have We customer

Operator

question And Fitzgerald. of our next is coming Derek Cantor Soderberg from

Derek Soderberg

new hardware terms software And for any a to or new or off whether Just of cash systems last then anything or will questions of that? either optional existing upside wondering or systems? add-on be in hardware turn an customers. it and to new and out software the Just the contract operation of the -- of into not Or like those I'm innovations more of is currently piggybacking with follow-up. any And I've got payments pushed all one then innovations, the

Carol Hibbard

add can So Rick and start, I'll at end. the then

it So depends.

have and our additional that typically in at for we focus systems. looking And so to we enhancements flow, We're R&D on the several innovations things. innovating

future in do as opportunities so additional potential view additional those And the revenue for and sales. we

for how continue more from make R&D perspective also on at and focus operational we're the reliability. innovate going an We and systems to to efficient look

those of will that about talked will focused deployment are drive operations. part or innovations cost is, which to today be third, on what's system So bit enhancements a some then being the systems and our in of backlog.And system contracted quite in we've we're rolled we have out the flow out of either

And so there. in there's mix a

the some is so others of on innovation be set, but absolutely to working forward. our customer going driven would we're And growth current that

Richard Cohen

Yes.

always contemplated gets we half twice if and you as we've fast the bots, many that, income. bonds need can that as is that go thing who make other The

or And same we be recurring if work so number entitled twice would either as fast for that and can -- that much we're income have a doing. twice we we charge take of reduced as and the we bots the go stream do work, to maintenance additional for the cells palletizing

but been there not always contemplated, that's So yet. we're

Derek Soderberg

then on to front follow-up, commentary, said point? as kind talk in lower-margin of some Carol, your changing we there. some low you year? just of clarify that. And to just a as Got Can about out it. what I at step-up might projects project margins the you characterize would my of through after, guess, what's I'm there are project think these I this projects And bit gross that this of margin some some or low-margin for clarify see looking you of kind a work

Carol Hibbard

Yes.

included them projects systems, are of we've early proof fairly of were our that projects, some in flow got So in earlier concepts innovation there.

vary. line start to you'll up. time so up. should because not the to start going stepping margin into those next But they as to year specific off, step gross And you our burn expect to margin tie gross schedules I'm a see

Operator

Please And I like the to would back this today. Q&A call for to for now ahead. over does turn Jeff conclude the go session closing remarks.

Jeffrey Evanson

We joining Investor Day. Symbotic thank online for we and Goodbye. forward today. look for Lisa, your you, our appreciate interest seeing and our you, in to Thank everyone, you call

Operator

This joining. call. for Thank does conference conclude you today's

disconnect. You may all

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