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Note 2: Baseball is here and wouldn’t it be nice if you bought some outfield bleacher tickets to the local farm team and donated them to your church and/or a local orphanage. That would be swell!
Symbotic Inc (SYM)
SYM is involved in robotic warehouse automation primarily for Retailers and Wholesalers:
Current Price: $36.10
Sitting Just Below its 52 Wk High.
Market Cap: $19.7B
5 Day Momentum: 24%
1 Month Momentum: 18.37%
YTD Momentum: 199.3%. ( Yes you read that right)
SYM Goes Public:
Debuted at $10 per share in early March 2021.
Here is what the company says about itself:
“Symbotic is an automation technology leader reimagining the supply chain with its end-to-end, A.I.-Powered robotic and software platform. Symbotic reinvents the warehouse as a strategic asset for the world’s largest retail, wholesale, and food & beverage companies. Applying next-generation technology, high-density storage and machine learning to solve today’s complex distribution challenges, Symbotic enables companies to move goods with unmatched speed, agility, accuracy and efficiency. As the backbone of commerce Symbotic transforms the flow of goods and the economics of supply chain for its customers.”
So… How They Doing:
The company reported Q2 2023 on May 1st:
Revenue Growth Accelerated to 177% Year-Over-Year
Symbotic posted revenue of $266.9 million, a net loss of $55.4 million and an adjusted EBITDA loss1 of $11.2 million for the second quarter of fiscal 2023. In the same quarter of fiscal 2022, Symbotic had revenue of $96.3 million, a net loss of $29.9 million and an adjusted EBITDA loss1 of $26.2 million.
For the third quarter of fiscal 2023, Symbotic expects revenue of $245 million to $265 million. The company also expects an adjusted EBITDA1 loss2 of $11 million to $8 million, compared to a $21.8 million adjusted EBITDA1 loss in the third quarter of fiscal 2022.
Conference Call Notes:
We have nine systems in full operation at multiple customer sites. We are currently deploying 28 additional systems and reporting over $0.25 billion of revenue in the quarter.
So, in two years, we have grown from a company with a sub $100 million revenue run rate to one with a $1 billion-plus revenue run rate. In addition to our significant revenue growth, our quarterly results also reflect improving adjusted gross margin, improving operating margin, and additional liquidity.
Recurring revenue continued to grow sequentially as deployments moved to production.
Our second quarter adjusted gross margin increased 100-basis points sequentially.
Finally, operating leverage improved as we achieved a 4% adjusted EBITDA loss rate compared to 8% last quarter and 27% last year. This was driven by our revenue growth and expanding gross margin.
Interesting story and the company is strongly backed by Walmart.
All the Best,