Symbotic (US:SYM)2025-05-07 22:02Financial 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 [8][9] - Net loss reduced to $21 million in Q2 from $55 million in the same quarter of the previous fiscal year [8] - Adjusted EBITDA increased to $35 million, more than tripling year over year from $9 million [8][9] - 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 [10] - The company began a record 10 new system deployments in the quarter, including one new GreenBox site [9][10] - The backlog increased to $22.7 billion from $22.4 billion in the previous quarter, primarily due to a new development contract with Walmart [11] Market Data and Key Metrics Changes - The company is well-positioned with nearly $23 billion in backlog, indicating strong future growth potential [7][8] - 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 future growth, including hiring a new Senior Vice President of Commercial [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing improved project execution and a strong backlog [7][8] - The company expects revenue for Q3 to be between $520 million and $540 million, with adjusted EBITDA between $26 million and $30 million [14] - Management acknowledged that system starts will continue to be lumpy but anticipates an upward trajectory in the coming quarters [19] Other Important Information - The company is seeing increased interest in its technology and innovation roadmap, particularly in developing solutions for perishables and frozen goods [46][47] - Management highlighted the importance of integrating new technologies, such as LiDAR and vision systems, into their operations to enhance productivity [75] Q&A Session Summary Question: Does Q2 foreshadow future system starts and completions? - Management indicated that while system starts will continue to be lumpy, they expect an improvement in the number of system starts due to the backlog [19] Question: Is there any impact from tariffs on the forecast? - Management confirmed that the forecast does not include tariff impacts, as most contracts allow for pass-through of tariff costs [22][58] 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 development progresses [39][86] Question: What is the status of GreenBox and its sales capabilities? - Management stated that GreenBox is in early stages, with ongoing efforts to build out the sales force and prospect for new customers [82] Question: How is the company leveraging technology for future growth? - Management discussed the integration of advanced technologies into their systems, which is expected to enhance reliability and reduce operating costs [75]