Financial Data and Key Metrics Changes - Revenue increased by 26% year over year to $592 million, driven by solid progress across 46 systems in deployment and expansion of operational systems [11][12] - Net loss for the third quarter was $32 million compared to a loss of $27 million in the previous year [11] - Adjusted EBITDA was $45 million, significantly up from $3 million in the previous year [11] - Backlog remained strong at $22.4 billion, slightly down from $22.7 billion last quarter due to revenue recognized [11] Business Line Data and Key Metrics Changes - Software revenue more than doubled year over year to $8.1 million, while operational services revenue grew 54% year over year to $24.9 million [13] - System gross margin showed significant year-over-year improvement due to strong cost control and project execution [13] Market Data and Key Metrics Changes - The company processed over 6.5 million cases in a single day, indicating strong operational throughput [5] - Customer response to the next generation storage structure has been very positive, with projects signed in the fiscal third quarter [9] Company Strategy and Development Direction - The company is focused on driving innovation across its technology stack, including the introduction of a next generation storage structure that increases storage density and reduces on-site assembly parts by over 90% [8][9] - The new structure is expected to enhance scalability and accelerate deployment across various supply chain aspects [8] - The company aims to unlock higher margins and long-term value creation through the new storage structure [9] Management's Comments on Operating Environment and Future Outlook - Management anticipates an adjustment in the timing of several previously planned deployments to support the transition to the next generation storage structure, which may moderate growth in the near term [19] - For fiscal year 2025, the company expects revenue between $590 million and $610 million and adjusted EBITDA between $45 million and $49 million [20] Other Important Information - The company has a healthy balance sheet with cash and equivalents of $778 million, down from $955 million in the previous quarter [14] - The transition to the new storage structure is expected to allow for faster scaling over time [19] Q&A Session Summary Question: Can you quantify the next generation storage technology in terms of installation times and retrofit opportunities? - Management does not expect Walmart to perform retrofits but believes the new system can run alongside the old structure, allowing for more efficient use of space [25][26] Question: What is the expected growth trajectory for new starts? - New starts are expected to step up again now that the design is commercially available, with a historical average of mid to high single-digit new starts [86] Question: What are the implications of the new storage system on customer acquisition? - The new structure is expected to accelerate new customer acquisition, with the highest level of customer dialogue ever [92] Question: How will the new storage structure impact backlog and installation timelines? - All new starts this quarter are associated with the next generation structure, and installation is expected to begin mid fiscal year 2026 [50][51] Question: What is the outlook for the ASR portion of the business? - Development revenues for ASR were up sequentially, and this level is expected to be maintained for the next couple of quarters [100][101]