Symbotic (SYM) 5 Feb 252025 Q1 Earnings call transcript

Company Profile

Participants

Charlie Anderson	executive
Richard Cohen	executive
Carol Hibbard	executive
Nicole DeBlase	analyst
Andrew Kaplowitz	analyst
Damian Karas	analyst
Joseph Giordano	analyst
Ross Sparenblek	analyst
Colin Rusch	analyst
Mike Latimore	analyst
Derek Soderberg	analyst
Greg Palm	analyst
Robert Mason	analyst
Kenneth Newman	analyst
Guy Hardwick	analyst
Robert Jamieson	analyst

Call transcript

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Operator

Hello, and welcome to Symbotic First Quarter 2020 Financial Results Conference Call. [Operator Instructions] I would now like to turn the conference over to Charlie Anderson, Vice President of Investor Relations.

You may begin.

Charlie Anderson

Thank you. Hello. Quarter Results First Symbotic to XXXX Webcast. Financial Welcome President Relations. Charlie Anderson, Investor Vice Symbotic I'm of

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

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 by outlook results Symbotic Rick Chief followed Cohen, Symbotic call, it over Executive and will today's to executives fiscal that, Q&A. first These to begin. With Rick are discuss Carol Rick? Founder, Officer; by our XXXX Financial Hibbard, I'll Chief turn and our On and Officer.

Richard Cohen

forward systems look fiscal our would customers. profitability. growth scaling innovation by line another and high-quality so, thank position. Charlie. highlighted our growth for quarter, for deliver afternoon, delivering key growth strong year top we to for we and our the our you results. the to I you, Thank expanding review were engine And XXXX continued joining us investing first year enhancing in while our high Last most while recent quarter, and our doing of Good technology to that In to objectives that

to the deployments. growth good scaling front, the we On and made we have support progress out building team believe

deployment critical we we in-house. progress our functions for the the bringing year are is change seeing more and of execution Deployment made last from company,

continue project addition, In to execution focus on schedule. and we

notably several relevant a James experience leadership brings robotics and recently new a in with of board we the software more in and add was James new team that our during initiatives by Toyota Omni allow assets which ran intended terms simulation to us to Google. In of and us capability working wealth of our This Labs tools new investing acquisition and features tools accelerate a exciting allowed on bolstered software experience innovation, to the efforts simulation deploy at CTO, company-wide. James. quarter, rapidly. are

related position is our technology strong level Walmart acquisition and the systems store automate APDs. to delivery a of or pickup Advanced accelerated Having the of centers core commercial at robotics business Walmart's agreement and and

when property we automation. collection a I talent supply as we ago deal, products, and weeks the acquisition announced for see arguably As the noted chain strongest few this Symbotic intellectual giving of industry's

the and Our consultant. week this to goal to closed from the and manufacturing automate begun way integration We help is store the the already have eventually customers to last acquisition transformative our plant all efforts.

multiyear provided we building phase. to in in Walmart be extension reminder, include $X future this a phase, first criteria period, This our and a development a deploying key we will As is logical a representing during XXX stores of of will prototypes. of performance technology over meet billion committed technology is our over backlog, core which the

capabilities. a a in believe last to which our strong apart Further, X we us automate selection sets this the us acquisitions closed back, their months, acknowledgment of as space. is of Stepping X we in Walmart's leader APDs

we our focused Our grow, remain on profitability. continues and talent to technical expanding

customers work and investors close I team continued my for for quarter, company. support their our trust want their for our our their this thanking to of by remarks hard our

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

Carol Hibbard

Rick. Thanks,

includes growth from solid software our with deployment and by the plus with growth services. revenue, XX% process year-over-year driven XX% along XX systems grew revenue of which revenue quarter million, First operation year-over-year $XXX in progress across our to recurring

In X XX in up to system the completed a systems, us and deployments bringing operations. total of quarter, we began new X

are noticeable go software. more systems more we As contribution seeing operational, a from

margins Our for XX% first software and revenue quarter. the in time in the a first software we than doubled quarter over more year-over-year, delivered

its committed backlog, In on software last to continue the as Gross consistent pricing orders of contract Walmex maintenance of of with our contracted improved on margin recognized terms and we backlog sequentially, $XX.X remained gross during revenue plus offset of typical was addition System support as software margin the gain improved billion scale. final margins industry our as a continuing execution. contract basis on trend improve toward also the quarter quarter. we by sequential

a Services, the sites we long-term change expect impact our success. any by benefits exceed far in resources increase forward we our investing to long-term this to see and associated moderate additional that on no with will in certain profit of We model believe continue as customer as these beneficial to a enabling gross focus We to would as we of of negative short-term use customers posted efforts. see and operation Operations In contributor resources margins. to going overall for support our services expense reliability ease ensure

which Operating in the quarter margins fourth $XX we was software, of million expenses Overall, quarter, operations million. improving the to the and the forecast. cash driven support of $XXX were adjusted growth. of systems million in from with investments received. due our Thanks EBITDA net the up making increased sequentially of by cash equivalents on $XX to quarter our gross quarter in primarily finished quarter, as expected $XXX are million, from which was in million in loss came We due timing to and above $XXX the to our the cash

to outlook. turning our Now

acquisition million at a sequential we $XXX accommodating million, overall the quarter sequential from EBITDA the the Advanced increase while the $XX revenue revenue second and operating early adjusted fact Robotics million given of $XX program. of gross is growth in year-over-year expect contribution and of XXXX, between million fiscal margins, that We and days increase of note another the a XX% it Systems with associated Walmart to reflecting a that the quarter For in quarter $XXX least of expenses only and reflects our development partial and guidance modest acquisitions. recent our business,

a not should for may the of we our expect up to deployment and development Walmart's a track the As end payments, revenue period. front-loaded revenue store portion to you deferring our program reminder,

summary, welcome look the forward of In please with margins. the begin continued we to questions. another that, our quarter now in Operator, Q&A. high recovery we growth With your

Operator

Nicole Our [Operator DeBlase comes you. line Instructions] Deutsche Thank from with first the Nicole. Bank. of question

Nicole DeBlase

in maybe starting with So just XQ. the

you another of maybe run about increase point and OpEx split R&D? you You that it to rate see bit Q-on-Q mentioned between increase. magnitude should expected? get of can kind you OpEx, the that at a what do little we talk Can SG&A And

Carol Hibbard

would we term making second Yes, increase quarter acquisitions. business what million well in by saw the Nicole. so long from to to OpEx primarily as million. And $XX OpEx we the Thanks, about investments step-up this quarter, in $X our driven for this as the we're a expect and seeing is the you're

we're So quarter you X SG&A. up quarter in step a that the this saw posting, step-up for

of Some of acquisitions overall for that program. scaling was our infrastructure, our ready and getting our

second that should SG&A, you're forward, to between So in levels quarter. as the to R&D similar OpEx we moderate to going the going and see expect you moderate

Nicole DeBlase

in the little it. operation loss Got quarter if a the dig just And could more. into then services bit maybe we

you growth. positive think return had I guys maybe expected to to that

gross And how then you for about for what year? should more about the that talk happened? of the little a can profit think So we bit business rest

Carol Hibbard

Yes.

So think when operations services what and I includes. about that

and from well. quarter-over-quarter -- little the in as So terms you see of bit lumpiness a of revenue

this to on as what we're sites and I continue there based our several term, likely would the are different perspective. our and but intensities resource same systems which as quarter, depends not on is resources to, focused and of bring training we're online. on long need you alluded on the the large at term, in And customers see our the of deploy systems saw they live. for different go near expect focus what support we're customers so for you'll reliability what level. and that some they our as we at that And a from providing needs supporting And this

Operator

Please stand question. by for our next

Our next line from Kaplowitz Group. of comes question Citi with the Andrew

Andrew Kaplowitz

update as noise about in-sourcing good that like forecasting starting where you could again increase are to on you the you're seems deployed think you're in from the us feel I the Rick limited more of process here? But and systems. on track, maybe or it on you call cost number adjusted of so it, down and margin -- you get margin Carol, you said to EBITDA is higher your curve move whether more, again insourcing let's

Carol Hibbard

question, the Andy. for Thanks

to -- So good our and in multi-quarter terms making transition. and going be we're engineering, about, so construction this contract, procurement progress as we a talked of is

in-sourced that work of brought all have that several Over in-house in the contractors. of the had have that the ahead They course brought and from we their completed sourcing months, we the last of work schedule. we

all now And Symbotic. so that in of work the hands is of

We quarter next Symbotic will scale, or our so. first EPC in the couple performing of and where continue was systems have behind to work we us the

elements. managing our X is certainly of of contributors to margin. how schedule. have that's continue we're in as overall So We to Schedule of gross we those the overall And improve we work of do X systems terms terms on well. focused costs then know in

Andrew Kaplowitz

sort more expecting as new Like balancing about be you last system about? quarters starts And starts in-sourcing you quarter. next know X related, Or overall? just have sort X then you maybe going new over and I Is you still though, about to of of think We said few what rate think run the as bit you. a lumpy. the still talking that's as helpful. you've how talked do you it's Okay, you you quarter. had are this had higher, stabilize while execution

Carol Hibbard

Yes.

new the quarter we fact the quarter X off were the X. last not was So coming that of this unexpected starts at given

continue $XX lower, out going we We'll we've lumpy. talked build it's that expect year to higher, to some billion every the throughout some backlog. quarter's And be so are as are also that to but should increase our we number quarters about have

Operator

our stand Please next for question. by

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

Damian Karas

of back pool there taking about last wondering backdrop kind a Maybe there could I you sense tempered thinking Are they're us if a of this where in was Yes, or any usual? as and from or more on any or a just discussions from CapEx changes potential just those business from deployments. kind year could maybe possibly budget was the give out current year. seeing target how customers of discussions your maybe indications step you

Richard Cohen

Yes.

is this So Rick.

it's year. interesting So -- been been it's an

operationally I think to better in and these and as the investments come have fruition. running we're sites making better

would end are people where 'XX. of money starting more So to we've I had say, increase about a in of in last categories across XXXX, the think end multiple spending lot the last year,

Walmart, incoming from So also, manufacturers as we've orders are but had -- bunch we've more much had a suppliers as more different we've obviously, well inquiries. had more and international

concerned I happening they are than situation -- labor before. think is what's I that people about So the were more think

that I waiting have handling were think of capital the capital things. our the and how in are maybe customers people see watching to versus deploying interested bigger some now the

encouraged So coming new by new we're customers the and see pretty in. with what inquiries we the

Damian Karas

That's of of world investor Great. been tariffs subject really the has matter the quite color. And helpful late. obviously, topical in

So sense, China, exposures I I X what be us and thinking just much you've past, countries, too a think Canada you think there? but might don't in maybe said and China, these your you on -- the could depend about Mexico don't give

Carol Hibbard

Yes, Rick can in. and I start, then chime

immaterial have we -- our for impact China. So

with closely rather We chain you work volatile indicated, continue supply because to the it's moment. at our as team

customer are these contracts well types as pass-throughs costs and varied Our us. for typically, but by are project, by of

final going in we'll jurisdictions, -- Mexico, looking included And other add at on. well being bot to up -- what's of end so value eye terms and you as are that's But what keep we're as volatile. the assembly do as we so the pretty the from in remains our have said, tariffs

Richard Cohen

actually And most in some of assembly products the There's our in that made Mexico. are do U.S. we

accelerated, are the but accelerate. things of think -- if slowed to as would on and demand is are though focusing more people to a tariffs continue I interesting result I down immigration products tariffs for our expect deportations the

Damian Karas

on Yes, footprint? in just that you tacked about any of your gets a And making you chain the a where towards would have makes price tariff lean hypothetically, though, there some own sense. or thinking is Just thoughts kind supply adjustments shift on leaned. Mexico that

Richard Cohen

taxes Yes. We've contemplated, all it's necessarily along. but I force and know to government allow don't contracts of pass Contractually, tariffs. contemplated that us we not and regulations majeure, our

Operator

next Please by stand our for question.

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

Joseph Giordano

guides to the you're on changing it of year-end your confidence planning. update future of that's if kind control procedures implemented giving wondering how part an you kind in guys us was the and can as planning, issues relates informing give I of like Carol, you related seeing and and the how to audit found what

Carol Hibbard

Yes.

controls. all So -- of our deficiency remediation

those nonbillable cost over good do enhancements as included -- So compensating for adding ERP recording controls provided provided we compensating receipt revenue to training our how how we've over controls well growth. adding as system. we're We've

those of of our no testing the progress. We've remediate, before, that results of been take encouraging. that as but And were it all had quarters encouraged the part of testing. I are will So deficiencies we've But believe as that to by noted we testing have deployed. several sequential noted are

Joseph Giordano

completed, that that sneak could And just One then, the in generally then do? started. I for I And there X But long just did then the that time you systems those expected I'm take you to X if if could for line I X Rick. what's follow-up compare Great. if does more how Rick, to And and can on the M&A how you side. -- the ask just like curious,

some but of you're the that dial stage it. to at more that complexity done it things organization are and there, early of of taking of trying versus opportunistic you of widens get out the kind like deals in like advantage these interesting of efficient scope here. balancing are right. You've some these How where an

Carol Hibbard

material our in so after of our we So the weaknesses. immediately identification remediation terms time line, of our started process

course we of So quarter. put the tested over and place, we in this them controls

Richard Cohen

acquisition the they've acquisitions the have more been been -- On side, small.

we of the some knew doing so people X companies, was companies for us. of and the the And there X actually consulting

X the the systems And Walmart so of when XX-person companies. typically first are robotics we've done the acquisition, these outside were

folks. of some so of we some with and of increases new with technology And our new some have not very replaced people actually significant the the

cost So changes. no significant

evaluating piece. and from robotics the It's There's building the everything. like XX Walmart talent it's -- On But and minutes still a some don't I or week just, there, been figure that systems integration. is X. We're we'll know, here.

work So we smoothly. will integration think the very

Operator

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

Ross Sparenblek

on And in-sourcing, driving in the just the through we we Carol, on quarter? year? look lead the you can us the move update expectations should times that for the given think like how as internal what about work progress

Carol Hibbard

COVID. quarter shortened over post XXXX, majority tightened we've course our the the lead the our For chain, over times course had X. we our have lead times, and of supply the of from say, -- up last I'll not is or when we changes significant of

to what We on once that material as site. well shorten lead as can do upstream can the continue on arrives time our deployment we focus we so simplify that

Ross Sparenblek

XX, of is to on Okay. -- next something. closing with I mean are the mean, XX Or that XX months? we kind of to path a getting the there months XX. I that close really is framework kind for is the

Carol Hibbard

XX over couple it, of but There or how we're that improvement, months they've we're forward still call Rob, path right in time. So a still deployments, see been and large them. complex of have going streamline some averaging that's I'll we that to been now, systems take the we deploying a

Ross Sparenblek

some just And language then us sense Okay. in Can I that fixed want the cost filing is know the plus? are and the updates if cost touching noticed the just any tariffs how the there's those you recent that on mix recent there? backlog maybe there's of versus give in pass-through. negotiated contracts changed -- a to

Carol Hibbard

projects we for that obviously, about our best that way say to even contract we steel. project new -- are that, Yes, contract for sign that the elements have type, negotiate in about pass-throughs in that and hit go margin varies costs that we things items changes Rick that's customers' and forward. those if backlog things like by that going will ability as escalation is control, There's and around expectations and are tariffs updates talked the we've of as think to that we I'd and are that or ahead go we And those past probably gross for the pass identified, it we throughs. the the the that. is at don't and project we a such to to perform best there to other things in our and ahead and typically as fully look take on But investments, scheduled perform way they're those that whether material

Ross Sparenblek

going hit Okay. But fixed start sense shift if to And rapid pushback a you you're we at inflationary don't schedule? a you're more environment, get the cost try customers juncture. seeing this seeing more to more to

Carol Hibbard

that. seeing not we're No,

backlog. agreements good As you're our a of place portion got for aware, we've long-term in

for And those. and changing customer, place, backlog our so and you if in contracts at customer GreenBox looking are think Walmart those not our our about both we're

Operator

Next question line comes from Colin Oppenheimer. Rusch with the of

Colin Rusch

the as How you labor should about inflation and potential part for managing be COGS? are guys we how price risk thinking that of

Carol Hibbard

our portion significant based. of a is So buildup supply

to and to to cost we're things across so the And with buffer we'll monitor. EPC, be and the our that. work some work And looking the And with we'll for we base put labor to is of for in long-term the place of Symbotic offset certainly that. that to for continue then our them continue one rest ensure us that of it's portion able of is always suppliers agreements opportunities

Colin Rusch

or system? drive or talk what general you that the bit the either terms incremental costs little that physical that's across going And the certainly whole about And gone pretty then of in around in into to about AI, being with assume lower, some excited we can just be there's there's a that's and amount performance side. of attention fair to component guys the a innovation on you're hardware you're of investing some innovation seeing happening kind components that money of improve in robotics. Could brought meaningful

Richard Cohen

Yes.

we've of the been think for I bleeding couple of a years now. on So that edge

chips X of ago, years. we us of X expenses in so probably with and years now. envisioned the that over started interfaces. And that's the behind started or Most couple of graphic X last investing investing and the NVIDIA is that we've We that incurred been

cars. So the else this getting stationary. the nobody doing. are it in place, in industry, physical we're architecture journey our auto People do a what but because on are is doing doing for bots bots the was They

because a was when so the industry picking you vibration. there's bunch that things. a unique have And lot up There's in of moving that's other boxes,

us behind now. That's

is Teletiops the So to really being call bot. we're what now focusing what we able on

essentially that's to and It's been the can we've physically journey so the bot And for happening a that And all expense drone last we've arms. -- and the had reliability. to then been can move X lot so in that's now. becoming support, been happening site of been on now quarter. So what the months. the move But part us is terms step and of part a the that bot, last we customer -- bots the for And we increase next of that's of what translates learn. a that on people of the the translates into

is what the if I bot now up stuck. bot can't case the says, So a open lid block is gets up and case, happens goes maybe pops the to pick a pick

feedback. operator doing and mimic the tele-op it and the will we'll AI, teach you is us they it, can you bots a ever happening want. learn could call what's actually But it then and call Now you is that the bot give skills it the

is a structure how interventions getting in that the to separates the much journey our of have our closer manual terms and part to We're still we many system. on much, warehouse really within that so what And of have. journey

seeing is faster. So we're the the power is what compute AI,

now -- we're of advantage more going So stuff to we all before, take -- and cloud start actually -- transactions, do this with site, Proficysecurity with to have and can to going to servers used start on of advantage to to use we're we AI. the get faster simulations take

where AI help us will So faster. ours is learn application an

Operator

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

Mike Latimore

Do facility update expect Maybe Maybe an on you're this demand a on Can great. revenue Great. more about year? GreenBox. sites right. seeing bit you this out talk be there? year? of you just Atlanta the expect color Do your little some you that All would

Richard Cohen

is Atlanta still on Yes. build-out.

last months situation. announce for -- look It inquiries I lot starting a rollout. team it the That we or year. have will and there has as in later team that big will of GreenBox -- last applications. out into we similar But the California, on to X So with run revenue so this small at have year. next not has have manufacturers and hires the looking good are what we interesting when very at But in people into had quarter the selling where developing the or we the we some technology at next whole yet, probably announce management different some can't GreenBox. experience but X out to build and the is spent

been the that's which So or in us, a announce and we've had big we'll focus breakthroughs of couple so. next a on quarter

Carol Hibbard

both Layoff And just back terms be of do I'll Their heavy implementation go will this period year. then Atlanta. in and later X

that's probably back so financials, up start those of towards the ramp taking up. but you that the seeing But year. ramp half this our when And for heavy both we're seeing in revenue revenue you're of now really

Richard Cohen

Yes.

revenue, next year. get but got motion the than rather So

Mike Latimore

Okay.

year, clear, the we flow cash then you this operations, from Absolutely. EBITDA? The year. be below should really quarter, produce above to on about you view will revenue the just or rest in Symbotic $XXX So later flow of operations seeing strong as being from the -- be million. think cash And whatever

Carol Hibbard

Yes.

So we flow. free for guide cash year for don't full

had we the XQ benefited large significantly we that by was waiting quarter last of about on timing were balance. the a AR we So receipts -- talked

highly is year. the our throughout to benefited continue from see to but should position cash you that, XQ expect rise So

Operator

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

Derek Soderberg

was on I down ask support. subscriptions and the to That Yes. software quarter-over-quarter. wanted

And especially to last downside, few Just X on lag curious what you systems. production. think on there you leads to I added a the variability brought quarter, the

then the mix And to that to actual what curious in sequentially? the that? got in leads And decline between follow-up. software what's Just support mix a I've and then of then subscriptions that

Carol Hibbard

we revenue the So of the software revenue some onetime a went software to XQ, we live. number item we XX for live so line from sites our quarter-over-quarter, benefit sites, XX in we sites added. features grow that did had

you benefit that fourth actually we onetime that see quarter, sequential continue software in you to and revenue for in normalize to if the a our increase expect overall yes, So grow. for

our So of we're the operations overall services up in shows services the operation the site from line. performing

software our software is line So license and subscription related.

Derek Soderberg

Got adjacent really Rick. it. evolving a see other question How you with What do Walmex, growth markets growth international you've That's helpful. domestic has just else already solution. And cold against your executed then expanding high-level can maybe and for business got today? of strategy, in-store do in The you're that in team chain, now that an envision doing not automating smaller Symbotic here packages. from you opportunities, returns, do the terms then

Richard Cohen

Yes.

doing frozen perish. that pickup APDs accelerated and Walmart from the be we'll the So ability,

the more doing out testing that side, XX perishable still we store. chain problem perishable and as do. is for already some lead on back us. have experimenting We've is done well developing Frozen us we're still warehouses -- to degrees So eventually the just to at full a not will as

been too right at. get very Returns at So just now. on something is to it be We've we that's map. road still actually good think our busy we could

Operator

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

Greg Palm

we levels away just of especially fiscal get some overruns surfaced update, the saw see quarters you sort of I'm quarter. 'XX. sort cost the completely, from those going of of when and if broader a at that kind to curious on last given some kind back could we least what in moderating of of just visibility Going

Carol Hibbard

Yes.

margin. slight So we systems improvement gross this a saw in our quarter,

slight cost. systems do very you're margin, sure lower see So we adhering benefited And year. XQ, up. several half on going adhering we to is we're schedule, go will the tick the our as XQ, also we see But complex back forward XQ, of of live. to in in continued to a focus go have making

see And back the higher so of of head going as we're a mix to gross the benefit the margin to you half year.

cost the focus we're will and improve. deploying benefit see of projects, on those systems all opportunities of So those live focus mix and going but on control go starting to to our for also

Greg Palm

math, very, It the Okay, moderated been by revenue, at had from customers, understood. very quarter. for Like plus really revenue of obviously, And growth. slight last the Walmart the well? think should growing pretty our least that as but year how just which revenue we just then non-Walmart profile about Was timing? just the this the fast non-Walmart customers was business, the also

Carol Hibbard

Yes.

half seeing team clearly, going of perspective, see fielding that from Walmart management we contributed percent that's by the get talked backlog start the that about contribution as the we have from and significant at So the And you're to year. Rick forward. Walmart, GreenBox a place, grow the from back in going to there, once a we're inbound you're going

we on to we're continue to turn inbound I'll in Rick discussions the focus are over maybe customers or to in-house. can other what highlight some We And of some that bring it having.

Richard Cohen

for we use mixing manufacturers so they centers. now systems have Yes. I mean, number inbound, looking our could at how a of

So their customer of look and terms a only store back we've first own system systems a lot of of pickup the couple rapid back sales. the are start figuring of to our companies this that Walmart a that other could which also week a opening you're the of out that this in they I incomings are as besides us the cheaper for about need had from at this a CPG smaller think to up retailers to already the need beginning to for interest warehouse see in they company going really store. they get than way is customers some you do as because of considerably

then -- And also what that's doing and some that, like verticals, we've so different we're in on. started so work we -- And supplies, medical been we've seeing working basically things seen that.

So I there. interest think see we'll

Operator

Next with Baird. of Rob comes line the question from Mason

Robert Mason

I projects. maybe going. the and you of some just complexity causing we new the to of about, an last but could talk us are quarter, nature that provide mentioned new was of familiar break is you are there relatedly features or see not. of that's to wanted that's complexity? the maybe features installation deployed, understand, on some the you been in maybe curious, I I I'm second X update that lower-margin haven't put deployment systems -- just is how going with the guess, even or Carol, being how just the the When if of that pack that related

Richard Cohen

Yes.

a being that So we have pack will shortly, announced coming break we have after and we be bunch our that second deployed, haven't yet. of -- our which others

we've bot, so the we've but actually -- redesigned little and still it are new us. increases original mini makes which really price a margin about, actually lowers customers happy the smaller, functions, a some design for very it And made the

of would for X going a while well. I and another product say So that's just been that's in development

Carol Hibbard

then we're that change. forward. with my and the in as we on have were for And that go long out It's been on there terms projects, to that new less just a And as going projects those mix started of we mix margin. see off, the burn that were those changing us as comment time about features lower

of particular developments. it features So those was about less

it Some of deployment systems while, that deployment. in have and bigger system for moved be good those to a into been are them get would off

Operator

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

Kenneth Newman

break is the I improving XQ optimistic? the some margins well you of midpoint kind as the half, the just too expectations about think a still mix bit the assume margin guide as that Carol, XQ. systems expand -- into context of can first your in of XX% When gross Or that that to does second here for that comments gross half? into of from the in mentioned about

Carol Hibbard

in optimistic. Yes. meaning us first the XX I behind breaking first XQ would say half, is half is -- already.

So year. would I if the not of in about that XQ think XX expect half first to Eclipse I see the

Kenneth Newman

step-up potential breaking Is clear, a earlier that And step that to to you be mentioned in would that that pathway? of the call. kind mix

Carol Hibbard

about. we're Yes. And to is too to in we going have I quarter growth think what the in which see second going talked OpEx, you're

It guide. seeing systems you're as in gross reflects margin. an well as increase so And also in EBITDA a what improvement slight our that's OpEx in

as see drag Software to margin XXs. for expect will the the term. levels term, a going talked in rebound. near But gross long to we that continue margin, in the about, we're ops to we be And

Kenneth Newman

think wanted here, that technology, -- then back cheaper try catalyst for as do an I other as first train to to lot been think know yourself? these system competitive for potentially you kind comment of AI. you've just on might models How that ways follow-up a I about here as we've Yes. that AI you but around I to movers Rick, view of potentially cheaper And earlier of it know offerings? is -- new circle consider within you the to cheaper threats when when my seen be technology. a about models Or do as that the you that trained, utilize competitors relates headlines

Richard Cohen

That's really question. good Yes. a

hit say architecture X of is that think we're far you we have we've the So combined without reason a models now with and software. else. year, data. we and I train the the And can't transactions the these billion Nobody that data very, has amount very everybody of ahead

So we'll we continue from product. distance ourselves just think to the

Operator

Sachs. comes of Our question line Bryant Will from Goldman with next the

Unknown Analyst

Delaney Mark on for I'm today.

kick So couple margins X to at supposed little free that you be bit in APD can acquisition. please? quarters, a quickly give going impact a just this year, accretive the to to flow, just but is I know financials least given it's of revenue not on to -- and more more for really the revenue supposed cash

Carol Hibbard

Yes.

revenue modest quarter second our with associated a So of amount our acquisitions. does have

So quarter and program. that ramp have But XXXX up growth to throughout you're we partial going getting development from development. we'll that just a as started because see we're it's modest again,

that we think quarter about was, of cash you the If for from comment cash this I year. $XXX year, got revenue the for million million of $XXX drives the our first think

integration it going be we're start and quarter, revenue development. already But and do forward backloaded. in have So modest get beginning the we amount will excited the a to second

Unknown Analyst

had And plans more that X just it I salespeople. more. to Symbotic know commented add

potential with Symbotic? for new are your what customers So expectations either

Richard Cohen

Yes.

implying. -- what Surmodics the those a ramp will to was and system. some So to sales be that's transferable some will I be starting selling team We're of up GreenBox Symbotic

offering solution. be a GreenBox will Some

with we will sales the -- think building when we're in force bringing sales had and on of And leaders, we've so up teams be the we've good. the are leadership the process reception the

X We And focus have they'll verticals. additional different already. started salespeople hiring X or Symbotic at on

Operator

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

Guy Hardwick

Most delivered to and the of you backlog some of on year. gave billion give $XX.X asked Or of would XXXX the depend in progress? maybe XX% questions you guidance have a been number you that can does my about in puts feel this deployments that? already, it be And just but certain I XX-K how takes wonder the

Carol Hibbard

Yes.

obligation see posted expect you'll upped performance next So what deliver we to XX that evening, we months, is to XX-Q the XX%. that in this that the our remaining in we

I good be of indicator that back for half revenue grows So think our a XXXX. will loaded how

will XQ what looking stronger is -- XQ so currently And at. we're than

Guy Hardwick

a potential general follow-up, call. progressing, I wondering how I customers just if merchandise the earlier, was I'm missed non-grocery new it as customers just And for Great. late say, with are mean. customers, sorry on I discussions

Richard Cohen

the And to A verticals. non-grocery we're are number customers are different customers. of there talking

So I which food a and things, all mean, there's or also medical parts, in is retail of supplies, most other of and but merchandise, discussions auto there's bunch with. general we're there's still

Operator

Robert next Our comes Vertical Partners. Jamieson of from with question the line Research

Robert Jamieson

use have of hardware do directed quick for make the system? I weeks. and on that you a had requirements APD alert the been Like few you -- better these systems? think sense I innovations where or Walmart's of only Just it the by robotics majority it's Robotics more there related? or on Walmart maybe will in work or Rick, But developed repurpose acquisition. you X was anything front meet to just is can it's closed, know a be software Is a

Richard Cohen

Yes.

So what the the but the at think of and some and applicable looking I a technology be Walmart's our technology, had, what bunch our rollout already robotics accelerate excited software still good of had will at But bunch these They the. really a sites. our of Walmart Walmart hardware point, got to will solution, we're that is and there's and combination of accelerate technology their this it.

Robert Jamieson

inbounds trend during did Okay. The environment update this queries? conversations mean, is like much over sound we there's -- you would activity doesn't it or then on how Anything can But bit quarter? I maybe an in of an increase an get there? the is the time. And just Did suggest that see update getting little better. improving I international. a mean

Richard Cohen

Yes.

store. much supply management Mexico some inventory small chain are you also lower but went the of is and mean, to spent bunch and our enabled to we build I And we obviously, to and Walmart that lot and the tours than a supercenters there. there delivered chain and Mexico supply particularly it And interesting. wages they are European in further terms the of then actually, just are time in actually that flow the of -- in in understand couple are in potential had U.S., stores gave was So pallets behind to of of their a visits but because stores. a are Mexico Walmex the I specialize very way by

-- America. -- America, border way to So a Central the South of all huge down across Central the Mexico, opportunity south

Operator

queue. showing the to you. remarks. and the in no now for turn Charlie to Thank gentlemen, back call I further questions would Ladies closing like I'm

Charlie Anderson

appreciate of you at Symbotic quarter and to investor Yes. at look be you bye-bye. various forward -- conferences in our will for thank seeing everybody, call interest and many your Thank you, joining tonight. the We the during really

Operator

that Ladies for Thank your call. and concludes participation. conference you today's gentlemen,

You disconnect. may now

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