Symbotic (SYM) 18 Nov 242024 Q4 Earnings call transcript

Company Profile

Participants

Richard Cohen	executive
Carol Hibbard	executive
James Ricchiuti	analyst
Ross Sparenblek	analyst
Mark Delaney	analyst
Kenneth Newman	analyst
Damian Karas	analyst
Matt Summerville	analyst
Derek Soderberg	analyst
Robert Mason	analyst
Greg Palm	analyst
Mike Latimore	analyst

Call transcript

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Operator

Thank you for standing by, and welcome to Symbotic's Fourth Quarter and Fiscal 2024 Financial Results Conference Call. [Operator Instructions].

I would now like to hand the call over to Charlie Anderson, VP, Investor Relations. Please go ahead.

Unknown Executive

Thank you. Hello. Quarter Results Fourth Symbotic to XXXX Webcast. Financial Welcome of Charlie Anderson, Relations. VP Symbotic's I'm Investor

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

Relations In GAAP press addition, measures A GAAP present distributed through during this website earnings call, Investor to non-GAAP which release, we reconciliation located and will both available at is to today's public and measures. ir.symbotic.com. non-GAAP in is included financial the of our

we quarter joined Chairman our results year Symbotic's Chief and Cohen, Symbotic's call, Executive and will today's executives and by outlook fourth These followed Rick are discuss Carol Founder, Officer; by our full Financial Hibbard, Q&A. Chief and XXXX On fiscal Officer.

With to begin. over Rick? to Rick that, it I'll turn

Richard Cohen

to high commitment Thank quickly and the growth reaccelerated record a for review and by System record to reflecting year, quarter, margin deployments was us finish results. thank on in a most you, recent fourth also delivering our afternoon, joining our We to completing to you This level. return number had highlighted historical gross levels. Good Carol. a strong the system execution. of solid starts to project

our our grew than convert backlog our of in more sites the to revenue doubled scale. more number the reflecting revenue operation full XX% and For year, than we double software and ability

of stabilize expand gross to our quarter. margin our continuing growth will the expect while revenue maintain year-over-year Importantly, Carol a in in first high this guidance. on rate we to

announced out our the ] all in recently vectors Investor customer, officially May, laid namely a geography, into new are and front, new that By new at Walmex expansion, geographies. we growth on X [ On geographies now the of verticals, believe customers transportation Walmex customer Walmex. penetration palletizing expanding the we now a customer can executing new Day addressable point in Working geographies products deliver home savings the our these of drives of in expands see solution We with market. further and and labor savings. value customers significant ROI new for new our

number The that of for what to short term for the opportunities technology see the shareholders. long both bottom means our is line portfolio and we that and I'm excited in expand, continues fellow my by

Green site building report to customer out pipeline progress team, -- This continues box GreenBox. make to its and Turning network.

This quarter, state we Georgia. on began the second this a installation, of in deployment GreenBox time

perform front, added sites. we customer last control ops to remote vision our Among quarter bot to customers GreenBox tele gives the the highlighted On ability other enables capabilities which at enhanced for that productivity. vision features, innovation we

We successfully as view and multiple differentiate. have now demonstrated it sites a this at capability key

commitment on expanding our targeted are we to Last, summary, to growth this gross our quickly delivered we growth. in and the and making top quarter, products In geographies to people new starts. and system in given opportunities both products line reaccelerate augment on return higher system both margin, new investments

their another focus so, we investing are objectives doing innovation forward By year high-quality and all XXXX Our strong customers. for on our in maintaining while growth of for our for engine key systems customers a process in look scaling to delivering investors profitability. a their entire our our completed and for sites trust their deployment thank improves our want I for growth, team line efforts, support. our and rise significant as top for expanding to

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

Carol Hibbard

Rick. you, Thank

financial to restatements release. the I results, earnings want statements address I quarterly press the included Before to financial discuss our our in

XXXX essentially year and to financial statements, business expensed Symbotic were we year services time were our the related and primarily preparing processes prior As during identified fiscal our goods full that where milestone reviewing the result fourth occurrences were results to we achievements milestones on net differences since properly time corresponding quarter. in expense impact between The full were quarters recorded the within and achieved. appropriate our the the year is has fiscal no XXXX

press in to detail, an included posted presentation release which X-K earnings also filed Investor the the a we and Our have describes supplemental is restatements also the with website in variances today. we as greater Relations exhibit

will press Form result to reflect of release. for the the fiscal financial XX-Qs reported year -- be a quarters, of restatement the meter in amended the the for we earnings As previously results XXXX filing included

XX-K our timely file We plan also next week. to

our With proviso me strong the deployment. XX revenue solid revenue with progress driven by growth Fourth financial grew our quarter results. in systems to turn that, let $XXX million, across

Our exceptionally $X.X a contribute of vendor collaboration reflect alignment and help Symbotic's quarter revenue. favorable of and billion year strong results customer fourth full to

income This net of quarter, recorded we also a first as quarter our public company.

system also increase X deployments and of a We completed began operational new delivered to commitment up us systems We XX systems. sequentially. our on bringing X total system to starts

Turning to backlog.

and Our committed of quarter was contracts backlog contracted billion the next after on in lane. the that already the recognized be partially with will the consistent revenue as to final largely signed quarter last note $XX.X quarter. pricing I backlog during quarter of was will Walmex orders the remained offset additive end by

XX% typical on margins software Gross margin rebounded is and returning as quarter, operational. strongly, the softness As go industry systems mentioned up historical more support trending system levels. for earlier, maintenance to towards

expect year. driven we from upon fiscal of of at modest operation profitability negative first margin we declined services equivalents resources $XXX quarter. large we to new where in as million year since We in operation in receipts the This the a October. cash and $XXX week the which finished cash adding third sequentially did primarily through timing experience with added we performance the move the In gross million we projects by have improve to of that was We and this return are slight as have certain and sites services, capabilities. do

of first million $XXX the expect $XX and adjusted For fiscal to million $XXX between we $XX EBITDA million. quarter million of and revenue XXXX,

We gross share. in investments uptick growth with margins stable alluded strong continued and OpEx year-over-year to an due

quarter making scale. improvements the begin and to now outlined margin this strong EBITDA are we as the realize please We Operator, short, Q&A. In questions. welcome we your expand expect

Operator

Instructions]. [Operator

Our of Andy Citibank. line Andy? first of question from Kaplowitz comes the

Unknown Analyst

Back This Andy behalf on Citigroup. is Kaplowitz from Natalie of

First you quarter, the margin question stable fiscal highlighted. question the I'd for the than could be margin the quarter? to margin sequentially year? lower. the like that over quarter growth Can you margins to the you that the in pressuring And the were could ask is you the course margin calling year, think like say -- ask what's margins and with XQ lowest would better us the for And help sequentially for I'd about in as -- first you're the margin EBITDA first is the remainder bridge quarter inflect of of

Carol Hibbard

question. All right. thanks And the for

historical was this back So hit to levels. XX.X%, which quarter a rebound margin our gross

we margins. those historical quickly So returned to gross

schedules If that occurrence implementation had you several XQ margin place. we put remember, we improvements long-dated was And see in our and depressed XQ. in the the same to of construction due that

across continuation through systems. higher really focus think achieving of we reflects a margins transition in gross our larger period significant we a on some XQ as milestones guide, several to 'XX it our of As

year. improve going then schedule gross still quality costs prioritize margins be expand throughout trajectory deployments. continue those to a on to and to we're And We to and continue improve

Unknown Analyst

more And ask Okay. I just then Helpful. if question. one could

lower or increasing relatively region? spoken you you've any sales Would think you on Walmart? have announced Can cost Mexico. relationship in could be in of Symbotic briefly updates I was GreenBox's in that then customers that this say penetration opportunity potentially a touch Europe. either more with agreement your quarter about or Walmex that with given onetime you And it an geographies

Richard Cohen

Yes.

new on nothing have we report So Europe. to

new have they're geographies, with but different. geographies. speaks Certainly, other have and fact other the Mexico, the discussions, there nothing chains but happy we with I other opportunities creation to. Walmart of new it relationship where that value And report that Walmart to understanding than is are there. appreciating On us. markets different. value U.S. in the things we're to Transportation we're just Wage that with continue think highly on rates in are these some supply are different, we of working creating We that add the new

one-off. So South But think customer, are have is a our right think excited. I I one-offs. now, first America don't and America we Mexico and don't we're very

Operator

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

James Ricchiuti

and I down of history in the many coming where the if is, to go that we back on above follow-up we've guidance. just company, a obviously sequentially talk with a revenue was but could have revenues. wondering instances and don't recall that could seen don't about lot we the drove what the you little bit Maybe quarter

baked into QX just drove could So the revenue what QX performance? what's us help maybe understand And you guidance? if the

Carol Hibbard

Yes.

a in several our was operation revenue. driven strong really $XXX factors. by quarter 'XX million of So XQ the resulted performance This

made are completed and XX record our So we and systems completed for was We we progress we talked being about on X also that record, Symbotic. a in started systems, which -- X a which was systems, deployment. significant

milestones quarter delays us scheduled complete than had delays, which we elongated the in we And talked allowed that planned, additional we that this those construction third they to had the faster quarter. about corrected

year, quarter, tends at very so strong be through our similar in to quarter to We as -- a And come our we we be pull strong fourth last in quarter the think to level. strong. tends year-end, fourth

strong growth. continued guiding XX% into we the We're year-over-year XQ head still to Our reflects first guide as quarter.

James Ricchiuti

made brings it. you're general, technology if acquisition about potentially I type you you. a it you acquisitions. could environment, adding. technology little M&A wonder to of viewing we the to And additional you the if that Rick, see Got Robotics, just you're Veo what bit in And talk how vision alluded technology could

Richard Cohen

Yes.

has robots a is some because very very valuable company is important which move on So very Veo access that our IP and unique quickly. safety really

we're on and technology safety employing used to are a jumped we mobile And great Veo companies company. allows that are away quarter, the good And I good be we for in applications being a we right so lot working that robotics. inbound. focused even we're acquirer The now, other very used find, vision a on in more here whole with things building and unique, and bunch They these the We're relationships that the it was aren't going opportunity people. typically to have of last think at acquiring. in hired really

and for of inbound to lots technologies. there's get opportunities, think we new we So continue

Operator

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

Ross Sparenblek

customer? it [ CNS is wholesale? is in it. Maybe Georgia. missed GreenBox with new The Or that I Was a ]

Richard Cohen

to No. our The in GreenBox now is and building, GreenBox there. first -- developing customers market get we're we're our is facility that

about before and come actually we're or customers, so So anchor we're now, take an X we're actively building but the and XX customer right really GreenBox a opportunity. And building of it very before without think recruiting focused this on both from inbounds years will lot e-commerce very other we offers multi-tenant which and a a solution, and number large is where small companies. we've had months of companies CPG

we're take And a before that next hopefully for actually closing on now excited some we building have it year a But or will building, very won't deployment. some so. that be so customers the is ready in deals while the we

Ross Sparenblek

year? Yes, about you I we this in CapEx has ask. the just ability mean, started double And CapEx look that? financing to guys with capacity -- to of all I more is the That's a late deliver decision or a you this little think Is should of mean, it as is imagine. to can helpful. a I your how and GreenBox? up SoftBank? kind Or to it expansion tick OpEx bit. Is

Richard Cohen

I R&D will also we're new and the there here that getting be the infrastructure spent be invest will facility SoftBank. on Atlanta mean CapEx it's in continuing and Yes, to at ready, both. the

Operator

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

Mark Delaney

sales kind you on targeting go-to-market fiscal as these to vertical X think for when question, geographies, and think For that of for expand in about 'XX. to to that, margin well? my the have of per force just been do you your first right new X year. expanding some need And guys it new customers fiscal framework 'XX, Is your or about you

Carol Hibbard

what to to talk our can need potentially you to do Rick, force. sales then, we and start I'll expand

customers. will of think customers for ago. of X the I to will ago, Southern And like sure $XX per of Glazers, think our if still X customers first and seems year, about look going XX our be our ] we that announced sure of accomplished I new X we anything? billion our have to in to identify few It on that as want quarter the we [ that you systems X build-out the a customers. always as that to our weeks XXXX Rick, deploying we're set in make customer Walmex we're forward trajectory we and forward executing our to capacity new we're year. as do to prioritizing forever additional new So XXXX, first year. with customers we to have create backlog in customer per existing bring XXXX, backlog make the so We

Richard Cohen

And year like be what will our in we big this that expanding also and our look decision be expanding how of force, sales we're designing the force. would it we force process sales we the made will and be. will sales But that

Mark Delaney

to Or closer is you adds those on the the pricing just how of Glazers? much sites somewhere I Pardon And backlog? have to preferential given said follow-up, the is there? believe the Walmart, Okay. with Southern or X systems. And for pricing but me then deal, side, it new my if that missed relationship this Walmex I it, similar to on the do

Carol Hibbard

Mexico Walmart in million to we'll do $XXX about quarter. the will first And again, So backlog. add that

X for that's So sites.

X we much So in sites. and also so Mexico that far, sites are greenfield they're larger the have deployed what what have and first seen we've we than

Symbotic terms a side, line that it greenfield. large, to contributing so when they are actually revenue is have time different frame. a shows for it little in brown But the because bit greenfield you be of are that capability we do will but And time sites the excited the not only a also we're see

contract Walmart of Mexico geometry. is not the part existing

forward. it's We started the we're Walmart but X. that than opportunity us excited on a clear And to has get X, ambitions believe new deploy so for further customer why going a and that's the to new first

Operator

of the next question Capital Our of Markets. is from line Ken Newman KeyBanc

Kenneth Newman

the the Carol, a the I initiatives just Just but versus if start sizing bit to XQ? in just of relative give OpEx maybe quarter. color last I'm on you more little increases innovations on side. highlighted the tech Maybe to can it OpEx sorry in-sourcing some missed EPC you

done? Just are into to settled? in-sourcing that's the before far clarify, all we just how Or is it

Carol Hibbard

Yes.

So I'll start on the EPC.

you're to sold. cost to -- So see going flows not OpEx not EPC of our our actually goods in is going that through increases

So our our that system. part of is in by that is EPC, of contractual build-out bringing the

terms So of that's what not you're in seeing the OpEx. going

pull thread to Just on bit. little that a

As a for we transition have reminder, base the will in-house. bringing a EPC back

over. taking several begun the over out phase and sites. prior we and we taking hiring so resourcing that And our Symbotic to continue with is sites We've incrementally the associated are

So is will work we identify going and cost that well. bringing continue to in-house. that schedule And both improvements associated with

in is From seeing then the a up Q R&D as ] And around in seeing to of OpEx perspective, SG&A you're scale. continue to XQ. on 'XX Rick primarily focus couple tick-up tick bringing we things we're and highlighted in what going innovation, in our continue -- really and [ additional script overall to related just the you're what that's OpEx to in

Kenneth Newman

for have of XQ that that to rebound XQ. since highlighting I Okay. That's we've know of just then situation. prices September. margin helpful. the some thinking and been end be that And to steel a here go Obviously, expectations I cost, just you're line. gross tariff maybe just your think how about on portion could given much debate seen there's the Obviously, higher the larger stable,

margins what Just have early from in curious, a tariffs? costs any embedding from how they thoughts you gross higher impacted -- And could on nominal you steel be from XQ? could impact what margin are be

Carol Hibbard

contracts So pass-through the have majority on of our clauses. steel

so contracts making issues. on going what return that contract any so once focused shorter have and turning don't we're we're that on our identifying we've is steel pricing a And we sure on

contracts, in pricing taking we've that of got that continue. So fact clauses the that will our power. pass-through advantage we're and maximizing And

around us the there to prices that give will steel are tariffs So about. worry and in higher that event protection need go

Kenneth Newman

protected, to right gross correct? margins to there. I are Is nominally, mean, could that that about Just the be clarify profit impacted. But think way dollars it?

Carol Hibbard

way. correct. about Yes, it that Think

Operator

Karas Damian line from the comes Our next UBS. question of of

Your Damian. question, please,

Damian Karas

everyone. Good evening,

uncertainties obviously, time market the for said U.S. there of uncertainty guys economy thinking obviously, a out the and ago of election. And X.X of we're been of forward the since amount or you changed in investors cutting around. last cycle. rate kind about it reported So some the months some has There's like removal the this around kind some seems and so, moving just fair

opportunities that's advance thinking changed expansion customers of the curious helped about steady or of really and customers. with if Just slow it's conversations newer of any and not with your all on or some just at yet kind still

Carol Hibbard

Yes.

one of resources several revolve returns benefits the advantages making I customer of in the always system that the going reduction. for advantages labor, and around the at a fall of commitment, around think in CapEx and on we or return macroeconomic trends, around I inventory returns look terms our availability the -- the and the of of the back ahead

we of go uncertainty All that will the in as continue into macro any environment.

Kenneth Newman

Understood. follow-up Walmex. Okay. a on And then question

So further spoke think the over potentially X those that sites good Walmex opportunities potential to about beyond X timing to, way time? winning with how out the what's of a DCs plays you that beyond and

Carol Hibbard

So front thousand Mexico Walmex, deployments we're on stores is how several we X we're to excited are an to opportunity. focus start across for There customer, we're There the about with thinking us. going Walmart. that of in have that and

have have just do believe to is going our what's there. that's and that So opportunities there on we for, sites we to be But the existing contracted expanding and first both. perform foremost, we

Operator

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

Matt Summerville

the example, mean, XX to over the from your jump they those record as X KPIs, XX how about should course I an of those if How XX X started. you prepared record a systems we remarks, deployments. the completed, ongoing metrics, think mentioned in will, move you 'XX. Carol, a ongoing,

equal jumping course just larger a And or biggest jump, the those point. I evolving should the year? of KPIs to follow-up. I off biggest understand how off have then about think I the obviously, X that's me help the jump of over But think a

Carol Hibbard

Yes. Matt. Thanks,

going jump one we a think So is XX between start. to not starting considerations seen, to from collaboration that that ready new be a our before well We've that we're I biggest our fact level which be as of a as this by quarter, quarter. ready every around X The for talked to XX a about have we've got they to And driven are certainly, started project in we've and and the to record us. projects. single start is is deployment ourselves to the X customers. see

think I the X quarter is what saw we this completes.

So and the quarter per number we've highest to ticking that's We've X now up X. quarter also seen. been hit we per X from

you're think making of continue I we're more got in And see schedule. X. we've going sure then focus to we of neighborhood that the lot And on hearing progress. that the a

I consistent the that think going you're year. see to throughout

number of an as a the we to We us is lot new don't to customer were be ready well starts, start of the as we've from I pulled unusual confidence amount able which things talked for together guide on about X. our X for before, start. A think quarter. to

So but you'll certainly had I going not from we additional be about quarter. in think to it's XXXX, perspective, starts annual from you see if XXXX think every an what

Matt Summerville

Rick, right metric system help then that me or color can on Can hour, at you And capability bot a you're whatever you then with that. as also appreciate more part the is? drives remote And on, development? ambient understand transactions non of your more efficiency how I prepared you where it. remarks. your mentioned maybe the comment Got little just per

Richard Cohen

Yes.

the of with vision really reliability So helps the robots. the us

the is one difficult leak. So what we There's with, open. we deal bottles the leads that pop is packaging of do us, reasons

our were had started And the we robots so they past, essentially in journey, blind. on centers, but this when

that problem, So happening actually the a robot now sees communicate operator. is with can where what's there's the

handle process remotely a of world. the to actually there's now we anywhere And teach we these robots run from actually learning so where And machine in robot the situations. these can how

customers that do and has giving the the more to so lot and a systems. And our ability more on bigger reliable made to it's confidence systems scale

value real the vision. of that's So

environments. the you I plan. any mean It's not they changes, is like there's vision there's fab because not products, complicated these different a And controlled us, are need leak.

the teach use the and So been long a how and to us. better important bond, do progress it's we ability the to to journey, to but is there. made very vision And very, to huge see

our as that new ] with [ continue as far discussions R&D this far that backlog We're nothing at As to continuing time. we work work, but get to on non-EMV customers. as on our report to

Operator

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

Derek Soderberg

on beyond Walmex, has question mentioned another facilities. think Walmex. those Just to X ambitions you Carol, go that you

their U.S. XX think opportunity, I that has distribution plans What centers. of Symbotic's across should as wondering they quantify opportunity sort look XX have or you Walmex out roll like? something that if for like I'm Walmex network does can Walmart distribution

Carol Hibbard

and get start Yes. We to prove excited our again, the want to of don't want we're with And customer. to we X, ahead first out. that

TAM As the the in there, at South Central never our contemplated of our America or overall we across in has terms look Mexico, opportunities SAM. that contribution been America, out

And we of to not certainly all there's that opportunity in think attribute wouldn't is that all Walmex. space Walmart billions of of certainly, so

what amount have not We the is. quantified total

right of hope distribution that that opportunity. thousands to of stores, we think and a we're I have number you're of of part centers it in they servicing about terms think

Derek Soderberg

have to of agreement SoftBank, center you talk a billion to that point you you're wondering the along wondering for Got prove that a And just that center taking of bit facility. have tracking of XXXX. Rick, or the agreement? a And still that Otherwise, it. just if that you. more agreement? of green around Georgia follow-up, That's to I'm helpful. market? box of the a GreenBox. my if pay Is that do the I framework you orders to hit with And committed well step as think generally sort they proof is profit then, then sort by I'm in about the they could $XX think as facility, back, concept

Richard Cohen

Yes.

where to Atlanta question. of the a always center. opportunity obviously, up is distribution one fill places first there's those So

that Atlanta lot It's a square million we X, site from there. first. facility. to the day customers X was go wanted potential So We good of over almost got feet. A

will be want Atlanta people to instead cases people XXX,XXX multi-tenant a through system, might week So discussions pilot. maybe having is a we're cases, whole buying facility. now a run in your what system And good say, some just and well, a with some I it's test of

very So Atlanta be and growth create lot opportunities. think we a will will successful of

And some about multiple to else of well, if already systems. we the go? have going ability Atlanta, to customers you where are like out said, good So we the feel build

second we to And nothing question, GreenBox, way changed SoftBank about Symbotic, done are. between very where between the relationship excited we're partnership your we've and has this the and with

Operator

of Our question from the Please Michael. go Cowen. TD Atanacio line next comes ahead, Michael of

Unknown Analyst

Great.

So GreenBox a deeper like announcement million foot I or bit facility. headlines the just so square said into it think wanted was little yes, about a to $XXX I X initial dive million for

from that how So sizing of the And about looking sites? thinking we perspective? compare box, customer does content for revenue like Symbotic how then be that to that pure Symbotic opportunity should -- how a at margin does just green

Carol Hibbard

with pile and you start Rick top, then one I'll like. that if So on

So warehouse facility. you're the press million, referring announcement to our was GreenBox and out I Think the there. as about believe announcement, entire the that at $XXX that Georgia release Atlanta that

associated infrastructure it. where with to our customers, with embodies similar piece system it, go GreenBox has of So in of a which other a of site, a in other a whole build and lot we

has consider flow on Symbotic now we've for our modified to similar right So average system. been our what contracts gotten Symbotic our system could you that

So GreenBox the saw pit. it's that That's out no that includes was that number overall warehouse. Symbotic you will where -- But than the different. there just how that more operate

opportunity, systems that our of are Symbotic margin GreenBox selling we terms system. In are into revenue GreenBox so and

that, similar of gross comes in they're like are so It's selling And to to XX% in margin other then that, portion and some revenue customers. a back our that JV we are of Symbotic. our and we partner

Operator

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

Robert Mason

margin. circle just wanted to I gross to Carol, back

ability some first sounds fourth should are the that Your level. margin expectation you for on issues similar the worked the regard. 'XX, in that lower? from to fiscal Just in we that where about thinking to that were through But pulling progression? the quarter talked that we quarter of you that scale the in terms gross Have be how last quarter of

Carol Hibbard

Yes. question, Thanks for the Rob.

than of So XQ the we've levels. several worked to issues historical depressed that our lower through margin

quarter then I'd of opportunities XXXX what we see the we'll the we rebounded level fourth So to will a head we've improve look as XXXX. the focus we on next half half at continue is back in those say year. whether as into first to into likely What are of and

We recognize be. at not we we're the margin gross want to

our So building do the cost ways look which that on we to what complete we're faster to we've The a performance we're the can in improve can schedule, can focused past. maximize as save where we continuing cost we we about we're talked from system. a perspective, at and

Robert Mason

just around would you that question is person just what bring quarter, -- initiatives. the noticed then is that extent And the you I for good. Symbotic? this you to speak with Very transformation added Rick. role, maybe a new title next can I'm to leader the this to expect during And

Richard Cohen

Yes.

So talking few about you're a think a quite is But we I R&D faster help our to we've develop a and products had what new expect champion new leader efforts. leaders. us able to for who is be

-- us R&D our the but R&D on, customers. projects necessarily valuable focus which not work, R&D So doing the would to be most actually helping

Operator

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

Greg Palm

Walmex, first. could up if on the to follow wanted I I

maybe an at does broadly the mean regions which for previously? as wage your potential guess I of of question region, for struck what in win TAM I maybe me Asia, kind was maybe you thought lower appetite first that as most sort of what deploying you think saw terms of international surprising your maybe labor in cost weren't the begs Mexico thinking opportunities increase of broader Symbotic in speaking, instance, this TAM, a

Carol Hibbard

for in ROI Greg. It geographies. one. emphasize this excited we're the particular question, why we're -- really Thanks even those does that's Yes. the Yes, about lower-cost

it of just costs, an in to emphasizes -- transportation inventory alluded the also are valuing earlier are Rick geographies overall to improvement, And quality on we the the question, so deploy. and sites able it lower what

gives So up the opens in geography. we geography. that a even do that point another low-cost really system proof provides And think the the ROA

Richard Cohen

of reassuring what U.S. it some In market some supply is labor in markets get you are of some when the in one place ways, the inefficient opportunity the world. right in hardest interesting right chains so terms time. right and not best lots to has the really to and terms all us of inventory probably other sophisticated the there's is because in very products in where getting chains for at transportation is, the labor of really But the supply in the take ways, out,

very So opportunities are continue we these in there and the learn markets. that to excited, we're about

Greg Palm

question gross it. X-parter. I other That And then makes guess Got a maybe sense. my on margin, it's

segment restructuring margin. almost a I $XXX,XXX. a quarter, alluded drag By that like charge that that in? think on think, of total XXX math, the in I my was had operation gross basis what Where was services. point -- you You was And to

you to exactly in rebounds be as QX, the go broadly a I said restructuring in as detail well. bit, there? like bit know look you speaking, was services, especially may but But the you just little quarter operation can happened in if I little don't think So in there more a what it

Carol Hibbard

Yes.

actually was benefit. the So restructuring a charge

quarters did and ago inventory seeing that we had you're obsolete restructuring inventory. X the around what so there is And we

that associated to and we some are of a the go with had settling of inventory, We pickup that. working sell

that was what $XXX,XXX in actually And It so was a the restructuring benefit. charge. roughly sitting that's

we run quarter in did that see on What will in at saw moving large expect to we we sites added forward. projects And to of forward resources over we We an had couple have few our we is resources drop margin we sites From this deployment. time. where provided rate We some perspective, a don't going additional have projects ensure a rate. where operation significant the negative of services improve terms are expect that. run that a

Operator

Northland comes next of of Latimore Capital Markets. Our from the question Mike line

Mike Latimore

that Should of over that course percent maybe operations, Yes, terms should year? flow in of cash a of as EBITDA? think from we how the about the

Carol Hibbard

to really capital. we of working So our have don't our any fundamentals change

cash What receipts. Our focused continue And XXXX. on we as that front head of to this rebound expect to really we loaded. for cash in inflows you quarter saw was be into timing our

Mike Latimore

-- us you're then on expect hire Got there. managers basically guess Can to you And you the it. hiring over I EPC managers year? just maybe basically project tell the of the how hired, many investments, course Great. project you've the many on how

Carol Hibbard

Yes.

taking We've So as program but X we managers the X on sites each the won't of and as people, quarter. hired of work moving go last ready the deploy. resources number in resources as to the in of well place sites, other I we're couple that to have forward we're a where got quantify first those we for for indicated

Operator

of question Hardwick the comes Markets. Guy next Capital line from of Our Freedom

Unknown Analyst

Carol, I just wanted little to a on understand your the comments backlog bit.

had you from I excellent the in of you're think stable. assume though was $XXX was you burn million said I there, even quarter revenue. revenue sequentially talking the backlog systems there over

of further, a It sounds a from like to bit revised you explain So kind happened? contracts said outputs, think some that mean borrow another about ups little what of phrase little sort industry. there's explain you I please? being something more plus you Can bit there. can

Carol Hibbard

Yes.

So you that It's got simple. it.

see [ XX.X continue going we're to quarter, as we ] systems. were last at and backlog, to we adjust backlog and ] our So deploy from [ now XX.X you're at

project, might [ And we so what project. individual pluses takes ] and reflects minuses, time XXX XXX configuration and an that quarter. there revenue of that. around then [ look every for And ]. particular final for the this are to sign our puts

what in there no specific to But as customers seeing this the course. additive to this were reduction so offset And other quarter. backlog from the you're the revenue that's

came So new all from projects the backlog. X that

Unknown Analyst

I reconcile the and And at said just I'm about completions what of starts the said your about you you your systems the year. you struggling is systems kind guidance was XX what trying you potentially to said year, the the at and in to going -- you -- what conservative of year-end just should where it are throughout forward. completions seems in about revenue quite terms starts of be given further and where like end

deployed QX is system in revenue So a whether have end big just at implies down per step that of it quite you the at system looks system guidance average year, the on the on end look should quarters. be you revenue or steps like the of of deployment that case X the reason there deployment taking average down that last in at Is why year particular the the system the average an basis?

Carol Hibbard

was highest a as we've of we quarter, quarter. of significant really milestones highest Our strong unique and and of that had starts seeing growth. what the achievement fourth seen which number the you're XQ number And this well as year-over-year reflects guide complete in quarter is

a timing by revenue in individual milestones our at quarter nature just that more of have at of is So driven the and their in in deployment of to the they're cycle. we amount where And time. systems an the life the

move guide at in we and as terms of out what's deployment, what front reflects. forward what so in and And of to in we us we've our have looked XQ, that's

Operator

would remarks. back I Charlie Anderson Sir? Thank like for conference closing now you. to to turn the

Unknown Executive

appreciate and tonight our of in and the Yes. forward quarter interest will many look the for you, your everybody Symbotic Thank we attend. joining that we conferences investor goodbye. you and you, call various during seeing to Thank at and

Operator

conference Thank you for concludes participating. This call. today's

disconnect. now may You

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