Symbotic Inc (SYM) Q4 2024 Earnings Call Highlights: Record Revenue and Strategic Expansion

GuruFocus News
4 min read

In This Article:

  • Fourth Quarter Revenue: $577 million.

  • Full Year Revenue: $1.8 billion.

  • Net Income: First quarter of net income as a public company.

  • System Deployments: Nine new system deployments and four completed systems, totaling 25 operational systems.

  • Backlog: $22.4 billion in committed contracted orders.

  • Gross Margin (Software Maintenance and Support): Over 50% for the quarter.

  • Cash and Equivalents: $727 million, down from $870 million in the third quarter.

  • First Quarter Fiscal 2025 Revenue Guidance: $495 million to $515 million.

  • First Quarter Fiscal 2025 Adjusted EBITDA Guidance: $27 million to $31 million.

Release Date: November 18, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Symbotic Inc (NASDAQ:SYM) achieved a 55% revenue growth for the full year, more than doubling the number of operational sites and software revenue.

  • The company completed a record number of system deployments in the fourth quarter, reflecting strong project execution.

  • Symbotic Inc (NASDAQ:SYM) announced a new customer, Walmex, expanding into a new geography, Mexico, which enhances their addressable market.

  • The company successfully demonstrated new vision capabilities at multiple sites, which is seen as a key differentiator.

  • Symbotic Inc (NASDAQ:SYM) recorded its first quarter of net income as a public company, indicating financial progress.

Negative Points

  • The company had to restate its quarterly financial statements due to timing differences in expense recognition, which may raise concerns about financial controls.

  • Operations Services experienced a slight negative gross margin due to added resources at certain sites, impacting overall profitability.

  • Cash and equivalents declined from $870 million to $727 million, primarily due to timing of cash receipts.

  • There is uncertainty regarding the impact of steel tariffs on gross margins, despite having pass-through clauses in contracts.

  • The company is in a period of transition to higher gross margins, indicating that current margins are not yet at desired levels.

Q & A Highlights

Q: The margins in the quarter were better than expected. For the first quarter, you're calling for stable gross margins with EBITDA margin sequentially lower. Can you help us understand what's pressuring the margin in the quarter? Will 1Q be the lowest margin quarter, with margins improving sequentially over the year? A: Our gross margin this quarter rebounded to 19.6%, returning to historical levels. The 3Q margin was depressed due to long-dated construction schedules and improvements we implemented. For 1Q '25, we expect a continuation of the transition to higher gross margins as we focus on achieving significant milestones across larger systems. We prioritize quality deployments and aim to improve schedules and costs, expanding gross margins throughout the year. - Carol Hibbard, CFO

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