Symbotic (US:SYM)2025-05-07 22:00Financial Data and Key Metrics Changes - Revenue grew by 40% year over year to $550 million, driven by solid progress across 46 systems in deployment and more than doubling the number of operational systems from a year ago [9][10] - Net loss reduced to $21 million in the second quarter from $55 million in the same quarter of fiscal 2024 [9] - Adjusted EBITDA increased to $35 million, more than tripling year over year from $9 million [9][10] - Cash and equivalents at the end of the quarter were $955 million, up from $903 million in the first quarter [13] Business Line Data and Key Metrics Changes - Software revenue grew over 160% year over year to $6.7 million, while operational services revenue increased by 47% year over year to $29.6 million [11] - The company began a record 10 new system deployments and completed 8 systems in the quarter, bringing the total to 37 operational systems [10][11] - The backlog increased to $22.7 billion from $22.4 billion last quarter, primarily due to the addition of a development contract with Walmart [12] Market Data and Key Metrics Changes - The company is well-positioned with nearly $23 billion in backlog, indicating strong future growth potential [7][8] - The gross margin on software maintenance and support exceeded 65%, trending toward typical industry software margins [12] Company Strategy and Development Direction - The company is focused on improving project execution and has made changes to streamline deployment processes, including in-sourcing construction management [6][7] - The acquisition of Walmart Advanced Systems and Robotics (ASR) expands the product portfolio to include micro-fulfillment solutions for both ambient and perishable environments [7][8] - The company is investing in talent acquisition to support growth, including hiring a new Senior Vice President of Commercial [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's advantageous position going forward, citing improved execution and expanded margins [7] - The outlook for the third quarter of fiscal 2025 anticipates revenue between $520 million to $540 million and adjusted EBITDA between $26 million and $30 million [14] Other Important Information - The company is experiencing a significant uptick in incoming demand due to labor shortages and inflation concerns among large customers [62] - Management highlighted the importance of technology integration, including advancements in LiDAR and vision capabilities for bots [70] Q&A Session Summary Question: Does Q2 foreshadow future system starts and completions? - Management indicated that system starts will continue to be lumpy but expects an improvement trajectory due to the backlog [18] Question: Is there a forecast for tariff-related impacts? - Management clarified that the forecast does not include tariff impacts, as most contracts allow for pass-through of tariffs, which could increase revenue but may drag on gross margins [20][21] Question: What is the revenue contribution from ASR? - ASR contributed a mid to high single-digit percentage of revenue for the quarter, with expectations for growth as prototypes are developed [35][84] Question: What is the status of GreenBox's sales capability? - GreenBox is in early stages, with ongoing prospecting and sales efforts, and management is optimistic about future customer engagement [80] Question: How is the company leveraging technology for system improvements? - The company is integrating advanced technologies into its systems, which is expected to enhance reliability and reduce operating costs [70] Question: What is the outlook for free cash flow? - Free cash flow is expected to remain stable as the company benefits from timing of receipts and ongoing contracts [66]