Symbotic, a leading robotics and software company, announced impressive financial results for the fourth quarter and fiscal year 2023, showcasing a remarkable doubling of revenue to $392 million. This remarkable growth can be attributed to the company’s accelerated deployment efforts and successful execution. Additionally, Symbotic revealed that it has added Southern Glazer’s Wine and Spirits as a customer, marking its expansion beyond the food packaged goods vertical.
One of the key highlights from the announcement is Symbotic’s solid recurring revenue streams, which have now become profitable. As the company continues to scale, it anticipates that recurring gross margins can reach over 60%, signifying its sustained profitability in the long term.
During the call, Symbotic executives shared other significant updates on the company’s progress. Symbotic currently operates 12 fully functional systems and has 35 systems in progress, a substantial increase compared to the previous year. The company also reported an impressive backlog of $23.3 billion, including the GreenBox joint venture, which is expected to contribute over $500 million in annual recurring revenue.
Looking forward, Symbotic provided guidance for the first quarter of 2024, projecting revenue between $350 million and $370 million and adjusted EBITDA between $11 million and $14 million. The company highlighted its ongoing investment in research and development, aiming to enhance its product offerings and improve efficiency.
Symbotic’s CEO, Rick Cohen, expressed his excitement about the company’s progress, noting that systems and deployment have increased by over 100% year-on-year. Cohen emphasized that customers are increasingly interested in owning Symbotic systems, as well as renting from GreenBox to diversify their base. He added that Symbotic expects expanding cash flow from working capital in 2024.
Moreover, Symbotic executives outlined their plans to improve margins through partnerships and cost reductions. The company is actively collaborating with customers like Southern Glazer’s to provide smaller, more reliable systems that can be deployed in multiple locations. They also discussed BreakPack, an innovative storage and selection solution currently in the prototype stage.
Symbotic is also eyeing international expansion, particularly in Europe, and has hired a senior vice president to facilitate this strategic move. The company remains committed to delivering sustainable profitability, expanding gross margins, and driving further innovation through research and development initiatives.
Q: How much did Symbotic’s revenue increase?
A: Symbotic’s revenue nearly doubled to $392 million in fiscal year 2023.
Q: How many operational systems does Symbotic currently have?
A: Symbotic currently has 12 fully operational systems and 35 systems in progress.
Q: What are Symbotic’s projected revenue and adjusted EBITDA for Q1 2024?
A: Symbotic projects revenue between $350 million and $370 million and adjusted EBITDA between $11 million and $14 million for Q1 2024.
Q: What is Symbotic’s strategy for improving margins?
A: Symbotic aims to improve margins through partnerships, cost reductions, and the development of innovative solutions like BreakPack.
Q: Is Symbotic planning to expand internationally?
A: Yes, Symbotic is targeting international expansion, with a particular focus on Europe.