Symbotic (SYM) 29 Jul 242024 Q3 Earnings call transcript

Company Profile

Participants

Jeffrey Evanson	executive
Richard Cohen	executive
Carol Hibbard	executive
Andrew Kaplowitz	analyst
Damian Karas	analyst
Matt Summerville	analyst
Ross Sparenblek	analyst
Greg Palm	analyst
James Ricchiuti	analyst
Nicole DeBlase	analyst
Mark Delaney	analyst
Robert Mason	analyst
Kenneth Newman	analyst
Derek Soderberg	analyst
Joseph Giordano	analyst

Call transcript

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Operator

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

Jeffrey Evanson

Thank you, Victor. Third Financial Symbotic's Webcast. to welcome Quarter Results XXXX Hello, Investor Symbotic's I Evanson, of Relations. am Jeff VP

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

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

Richard Cohen

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

Our and recurring strong careful reflects third margin, quarter record revenue management expenses. gross revenue growth, of operating

and associated with costs construction last implementation system pace our schedules However, rapid of margin reflects innovation. elongated gross quarter's

Symbots array sites. to decided customer the all to of at we in capabilities new field performance majority quarter, the retrofit during example, enhance with the For our sensor our

to for behind scaling see we now our growth coming focus deployments continue on much some could customers. quarters While of the we believe cost we as is the impacts high-quality in us,

pace. back of portion help construction reabsorb bringing this put deployments, reduce years learnings ago, will revenue rapid implementation changes. systems. sharper of we strategy embarked scale our on in-house the our manufacturing plan you these This a reduce installation and which to We short to our a outsource we term, and recall, at these over quarter, starting a enabled a the approach processing multiple much Based to key of will may the us As costs. as us on the X make slow process believe further. In costs on management functions some of growth focus we

for Our that but we strong backlog on to always deployments very will growth. prioritize our demonstrates be of ahead continues demand existing chasing execution systems,

work. advanced progress our a the system nonambient innovation will development made important our that minibot On front, new installation BreakPack on we and populate second

Symbotic deployment We the first also began for system of GreenBox.

a that GreenBox contribute growth. Thank return to not are revenue Symbotic you efforts and all in did schedule. this your While higher the margin and support. significant we I'm on is and confident choices right to the the partners, to investors amount employees, gross making for of faster quickly system deployment quarter,

Now results Carol will and outlook. Carol? discuss our financial

Carol Hibbard

Thank Rick. you,

revenue XX grew to progress same deployment. the XX% quarter systems year. compared quarter steady strong in process to Third The growth across by up revenue last is driven our $XXX of million, the

us quarter. systems, XX third system X the We X system deployments in planned, As started and up systems. reaccelerated operational completed bringing starts new fully to

We quarter. expect fourth starts the to in quarterly system increase

pricing of backlog contracted revenue $XX.X on remained Our last consistent recognized offset billion as quarter, the already orders during committed by with backlog of finalized was the quarter. in contracts the

fell higher labor schedule growth below during margin due gross quarter. the and system mentioned, expectations costs Rick As to

speed management implementation, the our We are business. enhance project focused to on performance improving of of planning, and

focus operating on our leverage management. with improve continued prudent expense We to

This to we was to in first During and by $XX investment began GreenBox in $XXX from part cash cash million total, in declined they sequentially as $XX million. operations. the operating driven quarter, a generated In our activities. million, equivalents

to $XXX revenue adjusted levels growth margin million of fiscal to our quarter and EBITDA million, fourth temporarily $XX during million between the gross For million quarter. we returning system $XX fourth slowed of and $XXX and XXXX, historical revenue representing expect

now Finally, questions. your please we reaccelerating believe Operator, the begin our first Q&A. quarter growth. We year-over-year XXXX should of welcome fiscal reflect revenue

Operator

Our Kaplowitz from will Andy Citigroup. question come Instructions] [Operator from first

Andrew Kaplowitz

Rick a rebound or color your again QX? what's what QX convince to happened to expected Carol, why is some and take basically margin happened cases, gross your you visibility give outsourcing in-house, construction management maybe is in and Are little the can that system more it And for you working into into what margin will with in deployments? you saying improvement? not

Carol Hibbard

Yes.

things chime going the we're I'll some terms putting in can to of and So, gross place then in of improve margin start Rick forward.

we So, on to over reason outsourcing, was scale. a primary go and ahead year we about the outsourcing ago talked our as why outsourcing, chose

we of areas piece And chain across own we did back to supply the element, that that. continue could so piece so at also multiple which we a redundancy. We're so, of that. And have in-house X Construction is the Engineering that our Procurement of bringing just looking EPC,

us. So, actually, supply cost of some our of everything a item multiple terms not that focus for that. What a finding the system, that's and the of why and focused comes schedule focus together. making partners extremely mile doing it's of then cost, on significant is when had deploy sure in we a Symbotic to sites installation we're that's final on item significant We're overall continued that off of point terms you're at chain critical on that in finding

that we're that that's in-house that over bring one to control we so integration. elements going back overall the of more have So,

In that in we've the things inefficiencies. creating performance of other drove Rick mentioned delays our really quarter, gross construction margin terms in had this

so, for which already talk those had construction is this you taking delay a around, phase, example, complex about And deployed delays after our we've in projects longer. when more And each to inefficient. And we've the is projects, of of extremely are permits. resources some our sites,

There now because of of I called those that deployment where we last longer. And seeing XX-month think not think them to is they're margin to deployment ahead implementation had some of go higher to decision is referred make some see costs. And where talk I in system deploy creates systems cases about we're projects complex and go that taking to system I ahead which contributor now, we're might stragglers. drive I the we and are cost. to improvements. gross that and quarter where Longer just several the going what did retrofit then we're other going always flow

that? you some to Rick, So, of of in color want terms forward, things on any going focused the we're add to other do

Richard Cohen

Yes.

the think been Keep want, I company, in so mind, but anticipated. the most our we that profits not down, is We're we're so more done is retail than XX margin we've projects thing not discounting. but important the gross we getting have costing about projects far. a we're

lot ahead of people have our for, enhanced hundreds us. that have the now We of for We been last team. looking onboard. chain these We've year supply we've a

We have a lot of talent.

we we didn't it partners resources, so, better targets. hit of our that wanted because just do we think some And we to have the sales can than the needed use simply and we to

hitting pushing critical. sales me, sales is that is targets, something For our

For used XX a been running X% X.X% profit. I've a years, to margin gross a on and business

happy make sales. keep costs getting our concerns I customers brightly and continue So, our ] under that to out want I What have roll is we we to sure control. these that about [ no

we of keep said, these the could let's some the things, choices. some think So, just I pay We with but happy. customer customers have who we fought made over

rolling. the keep Let's sales

we'll these absorb of things Some now.

everybody the things future, further. where be fully to getting to these to back. our of just back I some to would goal a enhance is And near place margin and well in expenses And not margin be But will be expected in come good expect our the term. the us

Andrew Kaplowitz

No, Because normalized it like current just And you're that's talking back about Rick. though, margins that's in should in think this QX? we and fair, basically. about QX" in in comes it quarter, why as "onetime

Richard Cohen

Yes.

have orders I like think And and speak, that future. that's I'll around in XXX to things don't time, site, acceptable. placed the weren't Carol just but people happen not because standing let we expect the on delays, you things

of X in we'll that not we're quarter. go the go stuff seeing to away and from hired should immediately, we've like but people fourth most this it's the So, what

Carol Hibbard

implies, guide that similar more Andy, historical. margins we're to going return to our our And to gross

we've talked got we've as future of plans which that margin, said, gross Now, about. Rick improving

might those we're not still we to the the going be levels quarter, at margins while gross fourth And that there in on so, pressure some were be this quarter.

Andrew Kaplowitz

your commentary and it. are the then, how interpret from Obviously, improving that deployment to Got may in the revenue going growth? that slow process competing. have revenue X with temporarily 'XX, then the do QX, accelerating deployments you're accelerate in QX we And Carol, those you commentary had your will X

we you do forward? how move as interpret So, that

Carol Hibbard

Yes.

one system So, we X last I'll that our starts as of interpret lows. quarter, which was had

you that to quarter to should as out fourth the X in revenue we X the impacting that that's backlog. this quarter and quarter. up grow ramped to so, quarter, see our continue We over incrementally finish And expect

Operator

Damian Karas UBS. Our next question from come will from

Damian Karas

you your color in give was track JV. on commentary GreenBox all that bit there. I some back on think a and wondering additional maybe what seeing us the peel could you I onion just if you're GreenBox, for on everything's little noted

Richard Cohen

Yes.

site have we in a So, install our California. first in

So, we're ramping that first install. up. That's our

about a have and we're we're the management lot talking sites to landlords We space, building time leasing team. spending out now several of where interviewing,

geographies, to system, we the are a systems, what in with are the customers pretty the focusing sizing we the we're real we're then operate numerous couple out having customers of the building now, sales anchor be site. team discussions in rolling force. specing right where finding estate, building and started the to the right critical and for is So, sites out And of excited management then GreenBox. terms have on that it about But potential doing

I'm pace. but it going we're the we're faster, excited on the potential happy for pace. So, pretty go with And thoughtful. about wants it's sure the to everybody business. think good We're I a

Damian Karas

able you're to elaborate to And expense you made mean did if prudent Was what expense prudent glad executing spoke wondering all or had Great, you that. Was that controls? the this tied also might be insourcing you to, that by some comment hear. on to a you management. that Carol,

Carol Hibbard

there Yes. margin. system this you insourcing. it quarter, gross is look It's on profit our The not story at the gross tied around commentary entirely if to miss a is

we So, those expenses when to R&D, you look at our and grow. we SG&A as continue manage

did this So, not the We in see expenses our with in around EBITDA, we managing impact one-time appropriately restructuring. quarters we we're any of associated like as might've we quarter. have not seen that adjusted But any other quarter grow. did

Operator

will Matt D.A. from Summerville Davidson. question next from Our come

Matt Summerville

questions. A couple of

be in challenges last of about and Analyst I quarter As growing commentary some thought the late blindsided of the I coming a with pains, associated the the from the this really concurrent something in it was messaging Because that, that impression pains if that the the point by? capability, deployment the think quarter to was out developed increasing a that proof quarter, you felt growing call you under this want rearview. was was Day, your I stuff that going that of lot to

Richard Cohen

Yes.

up construction at a costs of think right lot and with I it delays, the shows end.

stuff don't we came I This -- with at at acting very of And so, at about it But not taking to it. the but a right ourselves. the over management end, the end. the And we We're not Day. of we're why did this just we're after not well had lot this. happy after the deal know, anticipate That's Investor yes, some Day, quickly. Investor not And certainly is end of acceptable.

Carol Hibbard

surprise? our you against. And finding one the of things putting program integration across but when associated it's think final and of we're in place I'll a Matt, about, add, install put elements that the skillset Not schedule with one resources critical is of those the was on we're scale, talk a that surprise, as And more is, to need thing putting a projects flow all things and a together. focus overall management I is it the then we we is other

who receiving for that And the why delay. to have we ones critical a reasons which element As visibility you better of that implementation, will might weren't need. back critical, site, the they're of why role to is potential so completion EPC in we get terms one getting on the the need equipment visibility ones when want be perhaps to we final in of view the first our we is that because of Rick program impacting, around us That all house. predict a said, is the management that's bring a they're delays those

Matt Summerville

has the individual as what an eyes do So, of my what's that role you is the one, as anything on described, that in going follow-up, impacted you role, point, performance the have systems here in happened we there's And so my the speak that's just customer? of on. organizational head to of that accountability the

Richard Cohen

what against. protected we No, really that's

working minutes in to We the plays. analogy think couple our and mind fourth X blew is the that had comes great. a quarter the offense defense I is left

at the And I that's think so, way it. we look

We last have been that in in place. And chain X are the EPC they actually and in space we months, people over they're this saying supply hiring should the do ones the got finally ourselves. the

that the came with work bills the business. they defense, to Our they extra just part we We in got partners but picked it we play we got manage, what And make to supply then but sure not end. and at chains, we on up. of the drives business it's have the it's have shore to a done,

no, ready saying, when to no, you site That's have standing the And these my weeks. it problem. that's answer. project, hundreds parts for And okay, And here. around of the so aren't yes, no, up. you're you and they're a gear we're finish And people saying,

are the just well, we tolerate And not running longer to online systems took So, they going that. and than thought. we're bring to

Operator

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

Ross Sparenblek

this Investor know on to down, you on, bring also the margin try your on you've it Just can your to the And help those sticking targets? some May get on on longer-term impressive has, I impacted, reduce sense is down. you hours? maybe gap ability gross provided your a as those just commissioning walk if frame maybe how hours insourcing, what provide commissioning that Day in at does closing bringing then

Carol Hibbard

done say is different the by commissioning group than EPC. the a of people I'd

talk so, Walt And that a Day, bit quite you our Investor on track. that that about heard walk at remains

about some of impact cost portion resources throughout schedule directing and installation so, about the talking And that as the the the that seen think of final we've We're commissioning, that of And that's the process. mile. around growth bill. where

Richard Cohen

building bots, with our partners bots, which have of actual problem building before, us was big the The situation. Yes. on for a we a competitive very very happy actually and

of that Some actual better, be the actual construction but It's is good maybe the we the a at bots critical. part the big setting that. assembly the is up of of little be to suppliers really part -- bots some boringly to business, do could of the got the to structure, the going

the things comes thing the on at the robotic that, we be palletizing yes, so, be there's we've couple And standing pretty And There's most think in doing critical cells. so this building would a It's building process, differently. end. many I learned we've should just the timing around of been bots sites, with. those and happy together, when the it people all but

Ross Sparenblek

looked it. expansion you more have just maybe guys European any got those you with to Rick, on little are bit like commentary customer right, where any a force provide the what All sales conversations could something region? on optimistic, and updates on you're the provide willing early in And

Richard Cohen

Yes.

bunch competitors very the had we've with couple hired some of in the some whether Systems, Europeans or consulting look good to of on. space now Europe, actually to that with. But times. some work. sales in of also We've from do continue a conversations a hired conversations sales our been And We've we've engaged people more All firms. GreenBox we've we couple that with hiring Europe. especially to with. operators, of a Europe delighted big We've recruit folks. at food had suspects, lot port it's a been I've So some and in Symbotic of the helpful of sales conversations we're hired we're

Ross Sparenblek

quick as to So, engineering well? Are there. exposure delivering of supply to going to you is hiring going in the these the once to layer need do the nature another be Europe on follow underappreciated on orders I dual in there really chain. the Just Maybe of come start deployments?

Richard Cohen

in people people basically much these figuring pretty we construction No, actually the are amount of our our just we're package, the money systems we that's there's And expense easier actually and doing of we're so out continue simpler to and have less cutters; what work. things doing that designed. how increasing is cookie But amount install R&D. within

Operator

Our next Greg question Craig-Hallum. comes from Palm from

Greg Palm

I still profit bridge a confused of guess just revenue quarter. terms the bit in little I'm the and in

X, You margin to the guide. actually relative systems, you pretty revenue started by wide X you outperformed completed a

And the fact about recognize so a the to implies I'm delays delays implementation revenue. statements that able that construction trying revenue to deployment were tie you outperformed quite which obviously the and to actually bit,

that into So, more? maybe little can a just you dig bit

Carol Hibbard

Yes.

strong of that start had is a you if revenue, of many higher XX based deployment, current on with we in the SOW the systems which So, revenue signature. progress

we of about Right 'XX, SOWs X 'XX, we the timeframe. signed into that had think you now, XQ in are implementation. and of heavy XQ back If X

So, coming that a from is the we bulk of signed our ago. projects year revenue about

couple driving guide are driving a so, our strong the And performance. There lower. revenue XQ that's things

we last The is starts quarter. first one had fewer system

So, we had X starts.

systems, And those revenue in occur the starting fourth of would of we're up to so, start quarter. see ramp

so first And why starts driver XQ of is system down. is the lower the

we performance when down. And on that delays talk the delays our started quarter, quarter, of recognition next and And over that construction the systems about to is talked things in revenue that then last that's we're the slowed implementation as driver going improving construction is second to, another technology is impacted The significant in one, delay last how down. for revenue those this Rick the terms quarter. milestones that's some why

and slow or would milestones to quarter So, recognition that's we going quarter, have a to received out that's revenue also that going so. next shift on

outlook big temporary. the the down. That those see So, drivers is are you dip of why

getting we what and on look we beauty as able backlog our long as got revenue we've we we're the for to of at predicting that So, have being remain having schedule. in the at -- better as plan deployment, look and

Greg Palm

Okay.

a of a little So bit lag. maybe

hear did that well that Was already? associated some as bots there right? sense. the makes field an I it was expected? that was as And upgrading So, impact I or retrofitting that in well Was that with were or a the cost unforeseen of guess

Richard Cohen

That was unforeseen.

Some is AI use cables vision to enable of the one the the connect those our we on which lot, enhancement in vision late. came of boards cables of bots, ways that number a the use to that and

field, the made expensive. shipped supposed the we then they could they to bots to we of which cables in do the still were what So, so to And do. the retrofit was decision XX% the customer

Carol Hibbard

at line call ahead decision already retrofit, on the in producer, now and to [indiscernible] it, what's conscious in our the we but made go bot field.

Greg Palm

And Yes, if a similar I back few slowed issue. quarter up a you deployments, at your really it okay. point, then lastly, I guess QX, think ended but reasons, just fiscal quarters differing was least for being, at to that one that but

impact You're So, in your Do that fiscal would then what and talking maybe visibility timing? visibility? unforeseen have now suggests QX. that is pretty else happen strong that what about between could you reacceleration

Carol Hibbard

lockstep about visibility do before talked So, it's around terms and in why to joint system a ready we be and our deployment particular of a X-month customers in with ahead and site, at get try the we've with a be may starts, with and our and we our and customers a we XX-month stay decision backlog, try because our new we out customer. start steam outlook, full map

another one look we that that project. with of XX phase start so delay construction cause and that? And phase delays of in out. What Our can months out map may issues

to that And unforeseen got the remain on so in that you schedule can that we've things, continue approach. talk the piece you so when that's deployment about phased those

Richard Cohen

most we're about, quarter, just permits visibility. issued, we confident in pretty that talking the first good think, Once of. And pretty we're have it the I of But flows. things are the

Operator

the from next Needham. from Our Jim Ricchiuti come line of question will

James Ricchiuti

cost start margins that the anticipate in recovery margins? should we the to seeing potentially QX revenue accelerating growth revenue, could impact beyond issues when in near QX, QX? a fiscal term margins. historical to I'm about do back in talk we have just in So wondering, some as then acceleration already going levels in some You're a you pickup be suggesting though, there's an we recovery,

Carol Hibbard

revenue you're to be acceleration, So, XQ going of in will growth. see lowest year-over-year revenue terms our

So, refer that. point is you XQ when XQ, going back to lowest to we be getting our look at when to

should if systems. of where to of as expend terms are about your question, we're impact, accelerating In not we that margin to schedule. dumping schedule gross incrementally to we're margin expect better not talking see sure I'm of complete ahead but was gross deploy nature resources get the the accelerations you

So, thing The our the we longer lower margin projects lower longer the have now. other impacting margin to take they in those projects is us. margins with right stay deploy, gross flow

into to higher-margin deployed we so higher we've So, of concentration moving our start a business. get that got can that

James Ricchiuti

just you're doing And a question EPC. follow-up on with what in-house

sounds like scale-up Maybe term. significant EPC begin going going to start wondering about of accelerate, in about right? if require the mid-to-longer to Am I to ramp, over you're As as resources you're to you acceleration in thinking the but it not you in-house more doing really this deployments deployment as it require talking I'm immediately, in-house. and And that's starts as resources a more well.

Richard Cohen

Yes.

So, me I so second. a think back just in perspective, step let

basically of So, in company X this we years. the sales doubled

like highest a we This wouldn't bump. so, speed EBITDA actually And we it's pretty it's hope ever. But our minor. quarter is hit

on going pretty expenses. do do to to control job at some scale So, yes, We'll have down but is And don't resources. we up below-the-line controlling continue any other to resources. we're need also construction the now site. scale I a to it's going costs We're good adjustments, minor. what our on the

quarter to people on a was the delighting the learning been good we're we the painful. us. for was So, had sales, talking bit today. have little gross would It a based this If good been

and So, it we took done. hits, we our cleaned up, we're

Operator

comes DeBlase Deutsche question Nicole next from Our from Bank.

Nicole DeBlase

expecting to margins XXXX your following to ramp back and hold to EBITDA mean margins should quarter that that for level Does costs this this above revenue year? that talking that reaccelerate fair that and track get you're on in of the ability the then it's about that, constant. assume move the mid-single-digit quarter, fourth view in thinking together, this XXXX, of all putting maybe Just about first

Carol Hibbard

should to to going above to than You're to where that quarter. improve we EBITDA be margin EBITDA trajectory then and higher on return We see this continue and digits margin definitely forward. are a mid-single a going gross

Nicole DeBlase

Got gross additional very think help you move on we margins into quarters? or then future helpful. been is some they've coming Okay. yet, it. that's That's in as reflected for costs, time. down an Do And steel just that your

Carol Hibbard

I'd say reflected. it's

So, what the of project either is lot better pricing or individual we've an and customers. or When with at gotten lag ahead time individual a the in steel locking at our our impact there's we we pricing a go same steel steel get contract an the get of sign we pricing. is when benefit

at gotten commitments chain is in on we've a focused what with our partners visibility in that able So, out. terms stronger in of -- better lock and been our we've in backlog, is with to steel supply locking what's commitment, our further team

Richard Cohen

projects we're almost these when in now, of higher. steel we lot doing A prices locked XX ago was months

the to would come So, we're that in that reflected expect doing it steel steel we locked we do, future. and going can't actually But lower, in XX months ago. what down to predict but be is sites the I now,

spot on buying if from buying are delivery or months we're XX a we for market, So, spot at it's now. price not on the market, the

Operator

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

Mark Delaney

customer BreakPack its with the solution said begin it the a company Last quarter, of summer. second to installation this expects

BreakPack think but and more how can you a you broadly progress mentioned the I with comment second expect is today on going? deploy the BreakPack you minibot, to when

Richard Cohen

Yes.

our expectations. the so, it's meeting We're -- hitting customers' going is well. answer we're So,

the I will or lot I think us. The of to a customers' XXXX think gets the rolled for start in construction it in We've growth in in-house. a redesigned new next going system year, Second excited. our opportunity fiscal be minibot. we've and it's thereabouts. put technology But bot. actually We've really out it taken

Mark Delaney

My please from system? other revenue installation, question comes recognition top was commissioning us what the of hoping can remind percent to and line, of procurement, you better understand and the

Carol Hibbard

deployment about because -- of more think I from curve is near install. is you're a -- part coming this XX revenue our going, months revenue system into significant our is So, where Mark much the

of EPC is driven a think I though, That overall cost. So, that what how by if driving. not is question, percent in of of much to your is the bringing in-house, that revenue it's we're terms back contributor significant revenue the

the what overall each back. why we're is so, which And curve percentage critical a but cost element, system small individual such that bringing a it very there it's focus for of is, is

Operator

Mason Our from Baird. from question Rob will come

Robert Mason

us Rick, if could timeline? if going and could your how maybe nonambient update have one I large early, to you that on -- update on effort referencing, see you on it's And ongoing you was see that just us progress you of but the commentary space in their your or vendor maybe guess, been but around implementation unfolding the nonambient XXXX, on least I some made effort, quarter a in at how the see customers of, since with either they've with opportunity working customers. that you new existing

Richard Cohen

Yes.

that's any designed we're money have R&D now we The we're of selling relevant busy in right a cut that's do learning to very to ambient be have the we're that that know showstoppers. potential a so big sites well to do Massachusetts, that. business. but So, we that spend perishable perishables, in experiment continuing lot going we're work bots, and so We're on of that but to for. we We pretty for It's think in don't lot deployments, of see customers any for interested and we should we Everybody a deployments, some don't But are system is reflected in perishables friendly here. systems, haven't lot. development that, the so have we back able with C&S go couple our numbers. in just any perishable, well. of a ambient we're continues and on what continuing to A

Robert Mason

just Carol, then, And good. Very real quick.

into investments Holdings? Symbotic strategic funding couple for Is statement You for made the that GreenBox. larger of that around the in the quarter, or the the distributions outlays either commentary were a on How cash related? flow tie that around does

Carol Hibbard

The Holdings I'll related quarter. that is things cash not Symbotic but Yes. X the our impacted to for the GreenBox, touch on

events investment, our unusual if cash would reduction quarter, of GreenBox that the partner the So, GreenBox one from may with cash in agreement, being, $XX that recall million related is this to what terms so associated burn. this over and one and call quarter element LLC quarter, our capital that quarter of an so and quarter with X you that call systems you and this were each investment, overall the first so to happened contribute balance, first see the our you saw so was from is initial initial not there capital

and has the referenced, interest, year was become in the this tax element members a purposes. release our believe for we that to the in make press noncontrolling We our second Holdings will which to distribution distribution LLC. the relate LLC, profitable Sym Sym we you The to financials, to

you impact. That so, both And so rate actually $XX associated April cash had We and the saw impact quarter. payment that will hit not we had that with June rate. double a distribution, an continue run quarter, that one in particular million at in a the

going see run that not to forward. You're rate going

Operator

question Ken next Our KeyBanc will Capital. come Newman from from

Kenneth Newman

helping crept have not that off just costs is up would roll late how sense way, Appreciate then to in what quarter, had we been just just impacts guide. get margins into far, for moving exactly how you margin but the were the quarter. of just you this all gross color of your bridge And That curious, system XQ Carol, quantify the into better quarter. so on in those expected EBITDA all I'm the pieces a these could us large much

Carol Hibbard

we think at the from entire impact terms had to what XX.X% cost we what at So, the That quarter. is we get but if had split not that about, it's that to comes ahead forward about we overall full growth, and in margin, the construction which from what gross you last elements going the going and of trying impact X, to talked been were predicting would XQ. X we out about have about I'm XX%, back between you're and full innovation seeing delays, rolling talked is we're that impact, the

gross were those So, margin. the that driving impacts

Kenneth Newman

hard back is think but I to fair is quarter Okay. like 'XX, get roll that gross not you sounds that expecting that still just XX% of sense fourth it impact as of or margins to of a And plus a in the too there it to is the here, beginning here timing off full you're the quarter, the into hurdle? think, first about

Carol Hibbard

predicting. we're what that's No,

our is the bulk up. quick of that X the that for back impacted show margin. We about just a So, work quarter, of back then of on the summarize To reflects categories that, I'll to getting in work, labor the schedule, related. XX% costs, majority what inefficiencies, is being talked overall and do our ready we people fourth go equipment and people about vast guide but the the didn't talked

XX%. So, guide where expectation be Was be? our XQ, to is we'll to that our wanted for back we No.

quarter, year, we're into fourth that's reflects would the the heading than the but we're why we impact saying what have beginning of So, and planned still at lower guide there's our some that.

Kenneth Newman

Got cash it. just my follow-up free like looks decently this this CapEx here step quarter. just for then real at And it statement, sequentially quickly up did here, looking

expectations fair CapEx into to free quarter? where that expect cash on be in fourth free flow think you'd positive thoughts or year flow it and is to cash any the end, still Just

Carol Hibbard

into be couple cash going to positive free CapEx seeing you're expect still is flow What XQ. a on We Yes. things.

we're deferred what then seeing. and R&D, we're investing and equipment up some about that's you're into last So, ramping move additional in quarter as we from equipment out our and ahead costs talked also going PP&E, of

rate the what indicative quarter this see think run for I of is So, forward. going you'll

Operator

from Our comes next question Soderberg from Derek Fitzgerald. Cantor

Derek Soderberg

getting of large about the got regionals? a GreenBox there for or Is from you're that And ask pipeline GreenBox. interest any Is would getting growing? way level the can you I've today? then to mom-and-pop shops, you're then wanted follow-up. midsize, more it the I today? quantify size firms how And characterize you Is interest

Richard Cohen

we're regionals. more this which need getting the large medium at what point interest is a to force but we mom-and-pop sales want after we shops, to Mostly think margin, is is what tenants. And where and go we develop anchor there's do

this but So, all we've still regionals. large works, medium and what doing, how trying of had people to number a incomings are we're as understand

Derek Soderberg

customer? are And from customer? that Rick, of what What what them in feedback? they with first comes guess, that they're waiting first anchor think just you to for I that are when looking hearing watching terms for are they hop you solution live? do from onboard What

Richard Cohen

I so sites. do become us available, waiting waiting be we'll they're the they're the to to couple plan and to of that. think But just locations, announce I tour to for Symbotic first site think GreenBox which for next able site the through we people shortly,

Operator

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

Joseph Giordano

wanted I to the start just back thing. on EPC

to right. just want sure this make get I I So,

with I that companies do dealing You're guess. competency, the as core this

I do you not core hiring you'd that what it the able you're poaching significantly gives much And the be would this of improves So, what to same that people just sure the do EPCs? that what understand be working that's something people do that, you bringing you that gives those to whole to better? your I dynamic. So, want And in-house in-house? confidence you comfort that make from with, that

Richard Cohen

Yes.

by kind So the hired question, ourselves actually, probably were when we better a our this than is that then did, of the what work. defense general we are of fair doing who of some Joe, had we hired lot at people were contractors

And so, go the thing. price. we've time will -- these will so that's we're the of we're lot reduce some of then we take managing finding over actually a spending X and what contractors. And back done that contractors And that

we've The other of have the actually firms able this hire been do automation that done thing we've some large that to in-house. is people from this done

some we're some given And people And cases, in that hire the we real don't us cases, middleman. so, in better that's ourselves. comfort to off just need,

of been better that we've some ourselves. simply do suppliers the we've the is answer hired. disappointed And at it can know the for we So, we performance

Joseph Giordano

partners, same of the a of though? away? the these on Do You're ultimately plan you function part just same construction using firms? taking mix you keeping Are

Richard Cohen

Yes.

in instance, that contracts for order there's the rack, all is of our company terms one that we So, which installs largest a of labor.

so, we than them job a the And contractor and used them general contractor. those to did we turn the general worse did. managing over And

lot back. them electrical take And on the electrical. learned about just side, a we'll we've So,

yes. part. been that's so another But And

Joseph Giordano

it, you subbing can the that it capability subbing not sub, you to? well. more managing think bring out So expertise it's that's Yes. And them you it's sub, them not the managing the

Richard Cohen

thought took to just these better. we going to going in we we We're new all people over, told I happened. bring manage that were and this group hasn't subs subs. the think It the When

Joseph Giordano

need think Okay. to was to But your to you this And against clarify up customers to and this if to this. then be on that by am the know but getting Are hustle are up, somewhat your just get talking that you're having see site? their on by the my with follow-up brought it. and now? frustrated What's this. different timelines want the I you bumping I they ones having I between that reactions? customers, we're going Do now frustrated to I'm side? conversation difference right I you're here, I'm investors sure

Richard Cohen

Yes.

So, done, money, tried reasons to, short-term isolate of what this this is one and we a problem. the we've we is more we've why We is as customers. much think our can, spend as

so, some the leaning in are customers of And certainly, pay to it.

to our I we're Some have time. ready we're ahead educating to working think sure ahead the of time, some goes sites paying, of have it it with also, of customers. They clean these make customers of and And away. we're

contractors getting stuff. And their to lagging of them building that with the power some and have been

short-term But this So, we're is very a learning all I'm confident together. problem.

Operator

in further to the call questions remarks. to over any the back you. showing I'd Evanson no queue. closing Thank turn for I'm Jeff now like

Jeffrey Evanson

seeing in look various the Thank investor the appreciate of quarter forward everyone, joining many for you, will Symbotic, Good We and we we interest night. be our conferences attending. your to you at during call tonight.

Operator

you does the in This program. today's for participation Thank conclude conference. your

You now disconnect. Everyone, day. a may have great

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