Symbotic Inc 10-Q for FY2023 Q2

Symbotic Inc. (SYM)

10-Q 2023-05-05 For: 2023-03-25

Added on April 11, 2026

About this 10-Q

Symbotic Inc filed this 10-Q on May 5, 2023, covering the quarter ended March 25, 2023 (FY2023 Q2).

Headline figures

Quarter ended March 25, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $266.85M; up 177.2% from $96.28M a year earlier
Net loss: $6.12M; compared with a net loss of $29.9M a year earlier
Diluted EPS: -$0.10

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	TABLE OF CONTENTS
		Page
	Part I - Financial Information
Item 1.	Financial Statements	1
	Unaudited Condensed Consolidated Financial Statements	1
	Unaudited Condensed Consolidated Balance Sheets as of March 25, 2023 and September 24, 2022	1
	Unaudited Condensed Consolidated Statements of Operations for the T hree and S ix Months Ended March 25, 2023 and March 26, 2022	3
	Unaudited Condensed Consolidated Statements of Comprehensive Loss for the Three and Six Months Ended March 25, 2023 and March 26, 2022	4
	Unaudited Condensed Consolidated Statements of Changes in Redeemable Preferred and Common Units and Equity (Deficit) for the Three and Six Months Ended March 25, 2023 and March 26, 2022	5
	Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended March 25, 2 023 and March 26, 2022	8
	Notes to Unaudited Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	34
	Part II - Other Information
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 3.	Defaults Upon Senior Securities	35
Item 4.	Mine Safety Disclosures	35
Item 5.	Other Information	35
Item 6.	Exhibits	36
	Signatures	37


	March 25, 2023		September 24, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	256,954	$	353,457
Marketable securities	205,495		—
Accounts receivable	124,525		3,412
Unbilled accounts receivable	63,502		101,816
Inventories	140,441		91,900
Deferred expenses	36,878		29,150
Prepaid expenses and other current assets	38,605		25,663
Total current assets	866,400		605,398
Property and equipment, at cost	62,439		48,722
Less: Accumulated depreciation	(26,900)		(23,844)
Property and equipment, net	35,539		24,878
Intangible assets, net	427		650
Other long-term assets	7,163		337
Total assets	$	909,529	$	631,263
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	88,139	$	68,448
Accrued expenses and other current liabilities	70,527		47,312
Sales tax payable	25,720		12,953
Deferred revenue, current	665,440		394,244
Total current liabilities	849,826		522,957
Deferred revenue, long-term	23,734		31,465
Other long-term liabilities	14,528		7,901
Total liabilities	888,088		562,323

Commitments and contingencies (Note 12)	—		—

Equity:
Class A Common Stock, 3,000,000,000 shares authorized, 61,283,689 and 57,718,836 shares issued and outstanding at March 25, 2023 and September 24, 2022, respectively	6		6


Class V-1 Common Stock, 1,000,000,000 shares authorized, 77,080,090 and 79,237,388 shares issued and outstanding at March 25, 2023 and September 24, 2022, respectively	8		8
Class V-3 Common Stock, 450,000,000 shares authorized, 416,933,025 shares issued and outstanding at March 25, 2023 and September 24, 2022	42		42
Additional paid-in capital - warrants	58,126		58,126
Additional paid-in capital	1,246,152		1,237,865
Accumulated deficit	(1,299,880)		(1,286,569)
Accumulated other comprehensive loss	(2,086)		(2,294)
Total stockholders’ equity	2,368		7,184
Noncontrolling interest	19,073		61,756
Total equity	21,441		68,940
Total liabilities and equity	$	909,529	$	631,263


	For the Three Months Ended				For the Six Months Ended
	March 25, 2023		March 26, 2022		March 25, 2023		March 26, 2022
Revenue:
Systems	$	257,603	$	89,572	$	455,504	$	160,794
Software maintenance and support	1,461		965		2,698		1,940
Operation services	7,790		5,747		14,964		10,614
Total revenue	266,854		96,284		473,166		173,348
Cost of revenue:
Systems	213,060		71,975		373,991		128,460
Software maintenance and support	2,106		1,145		3,777		1,955
Operation services	8,841		6,258		17,357		11,559
Total cost of revenue	224,007		79,378		395,125		141,974
Gross profit	42,847		16,906		78,041		31,374
Operating expenses:
Research and development expenses	49,666		23,355		100,406		45,539
Selling, general, and administrative expenses	50,898		23,512		104,921		38,871
Total operating expenses	100,564		46,867		205,327		84,410
Operating loss	(57,717)		(29,961)		(127,286)		(53,036)
Other income, net	2,284		58		4,118		80
Loss before income tax	(55,433)		(29,903)		(123,168)		(52,956)
Income tax benefit (expense)	17		—		(234)		—
Net loss	(55,416)		(29,903)		(123,402)		(52,956)
Net loss attributable to Legacy Warehouse unitholders prior to the Business Combination	—		(29,903)		—		(52,956)
Net loss attributable to noncontrolling interests	(49,298)		—		(110,091)		—
Net loss attributable to common stockholders	$	(6,118)	$	—	$	(13,311)	$	—

Loss per share of Class A Common Stock: (1)
Basic and Diluted	$	(0.10)	N/M		$	(0.22)	N/M
Weighted-average shares of Class A Common Stock outstanding:
Basic and Diluted	60,503,119		N/M		59,352,634		N/M


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three Months Ended March 25, 2023
	Class A Common Stock			Class V-1 Common Stock			Class V-3 Common Stock			Additional Paid-in Capital - Warrants		Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Noncontrolling Interest		Total Equity (Deficit)
	Shares	Amount		Shares	Amount		Shares	Amount
Balance at December 24, 2022	58,584,690	$	6	78,389,034	$	8	416,933,025	$	42	$	58,126	$	1,243,217	$	(2,314)	$	(1,293,762)	$	44,979	$	50,302
Net loss	—	—		—	—		—	—		—		—		—		(6,118)		(49,298)		(55,416)
Issuance of common stock under stock plans, net of shares withheld for employee taxes	1,659,578	—		—	—		—	—		—		(1,163)		—		—		(10,554)		(11,717)
Issuance of common stock under employee stock purchase plan, net of shares withheld for employee taxes	98,171	—		—	—		—	—		—		119		—		—		868		987
Exchange of Class V-1 common stock	941,250	—		(941,250)	—		—	—		—		90		—		—		(90)		—
Cancellation of Class V-1 common stock	—	—		(367,694)	—		—	—		—		—		—		—		—		—
Stock-based compensation	—	—		—	—		—	—		—		3,889		—		—		31,334		35,223
Other comprehensive loss	—	—		—	—		—	—		—		—		228		—		1,834		2,062
Balance at March 25, 2023	61,283,689	$	6	77,080,090	$	8	416,933,025	$	42	$	58,126	$	1,246,152	$	(2,086)	$	(1,299,880)	$	19,073	$	21,441


	Six Months Ended March 25, 2023
	Class A Common Stock			Class V-1 Common Stock			Class V-3 Common Stock			Additional Paid-in Capital - Warrants		Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Noncontrolling Interest		Total Equity (Deficit)
	Shares	Amount		Shares	Amount		Shares	Amount
Balance at September 24, 2022	57,718,836	$	6	79,237,388	$	8	416,933,025	$	42	58,126		$	1,237,865	(2,294)		$	(1,286,569)	61,756		$	68,940
Net loss	—	—		—	—		—	—		—		—		—		(13,311)		(110,091)		(123,402)
Issuance of common stock under stock plans, net of shares withheld for employee taxes	1,677,078	—		—	—		—	—		—		(1,163)		—		—		(10,554)		(11,717)
Issuance of common stock under employee stock purchase plan, net of shares withheld for employee taxes	98,171	—		—	—		—	—		—		119		—		—		868		987
Exchange of Class V-1 common stock	1,789,604	—		(1,789,604)	—		—	—		—		200		—		—		(200)		—
Cancellation of Class V-1 common stock	—	—		(367,694)	—		—	—		—		—		—		—		—		—
Stock-based compensation	—	—		—	—		—	—		—		9,131		—		—		75,632		84,763
Other comprehensive loss	—	—		—	—		—	—		—		—		208		—		1,662		1,870
Balance at March 25, 2023	61,283,689	$	6	77,080,090	$	8	416,933,025	$	42	$	58,126	$	1,246,152	$	(2,086)	$	(1,299,880)	$	19,073	$	21,441


	Three Months Ended March 26, 2022
	Redeemable Preferred and Common Units												Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Equity (Deficit)
	Common Units, Class C			Preferred Units, Class B-1			Preferred Units, Class B			Common Voting Units, Class A
	Units	Amount		Units	Amount		Units	Amount		Units	Amount
Balance at December 25, 2021	428,571	$	152,195	1	$	235,182	1	$	464,744	6,444,373	$	217,604	$	(2,386)	$	(1,193,831)	$	(978,613)
Retroactive application of recapitalization ratio (1)	24,493,538	—		24,041,299	—		47,508,299	—		388,481,909	—		—		—		—
Adjusted balance, beginning of period	24,922,109	$	152,195	24,041,300	$	235,182	47,508,300	$	464,744	394,926,282	$	217,604	$	(2,386)	$	(1,193,831)	$	(978,613)
Net loss	—	—		—	—		—	—		—	—		—		(29,903)		(29,903)
Granted	139,564	—		—	—		—	—		—	—		—		—		—
Forfeited	(139,564)	—		—	—		—	—		—	—		—		—		—
Unit-based compensation	—	22		—	—		—	—		—	—		—		—		—
Accretion of Class C Units to redemption value	—	16,396		—	—		—	—		—	—		—		(16,396)		(16,396)
Other comprehensive loss	—	—		—	—		—	—		—	—		345		—		345
Preferred Return	—	—		—	2,903		—	5,738		—	—		—		(8,641)		(8,641)
Balance at March 26, 2022	24,922,109	$	168,613	24,041,300	$	238,085	47,508,300	$	470,482	394,926,282	$	217,604	$	(2,041)	$	(1,248,771)	$	(1,033,208)


	Six Months Ended March 26, 2022
	Redeemable Preferred and Common Units												Additional Paid-In Capital - Warrants		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Equity (Deficit)
	Common Units, Class C			Preferred Units, Class B-1			Preferred Units, Class B			Common Voting Units, Class A
	Units	Amount		Units	Amount		Units	Amount		Units	Amount
Balance at September 25, 2021	428,571	$	144,975	1	$	232,278	1	$	459,007	5,997,632	$	16,809	$	26,999	$	(2,092)	$	(1,154,944)	$	(1,113,228)
Retroactive application of recapitalization ratio (1)	24,493,538	—		24,041,299	—		47,508,299	—		361,551,314	—		—		—		—		—
Adjusted balance, beginning of period	24,922,109	$	144,975	24,041,300	$	232,278	47,508,300	$	459,007	367,548,946	$	16,809	$	26,999	$	(2,092)	$	(1,154,944)	$	(1,113,228)
Net loss	—	—		—	—		—	—		—	—		—		—		(52,956)		(52,956)
Granted	492,428	—		—	—		—	—		—	—		—		—		—		—
Forfeited	(492,428)	—		—	—		—	—		—	—		—		—		—		—
Unit-based compensation	—	49		—	—		—	—		—	—		—		—		—		—
Accretion of Class C Units to redemption value	—	23,589		—	—		—	—		—	—		—		—		(23,589)		(23,589)
Exercise of warrants	—	—		—	—		—	—		27,377,336	200,795		(26,999)		—		—		173,796
Other comprehensive loss	—	—		—	—		—	—		—	—		—		51		—		51
Preferred Return	—	—		—	5,807		—	11,475		—	—		—		—		(17,282)		(17,282)
Balance at March 26, 2022	24,922,109	$	168,613	24,041,300	$	238,085	47,508,300	$	470,482	394,926,282	$	217,604	$	—	$	(2,041)	$	(1,248,771)	$	(1,033,208)


	Six Months Ended
	March 25, 2023		March 26, 2022
Cash and cash equivalents	$	256,954	$	259,044
Restricted cash classified in:
Other long-term assets	2,132		—
Cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	259,086	$	259,044


	Class A Common Stock	Class V-1 and Class V-3 Common Stock	Total	Class A Common Stock		Class V-1 and Class V-3 Common Stock		Total
Beginning of period	58,584,690	495,322,059	553,906,749
Issuances	1,757,749	—	1,757,749
Exchanges	941,250	(941,250)	—
Cancellations	—	(367,694)	(367,694)
End of period	61,283,689	494,013,115	555,296,804	11.0	%	89.0	%	100	%


	Three Months Ended				Six Months Ended
	March 25, 2023		March 26, 2022		March 25, 2023		March 26, 2022
Customer A	89.7	%	91.7	%	86.1	%	90.0	%


	March 25, 2023
ROU assets:
Other long-term assets	$	4,705

Lease Liabilities:
Accrued expenses and other current liabilities	$	1,962
Other long-term liabilities	3,535
Total lease liabilities	$	5,497


FORM 10-Q


	March 25, 2023		September 24, 2022
Customer A	96.6	%	39.5	%
Customer B	n/a		40.7	%
Customer C	n/a		15.3	%
Aggregate Percent of Total Accounts Receivable	96.6	%	95.5	%


	March 25, 2023
Remaining fiscal year 2023	$	1,146
Fiscal year 2024	2,328
Fiscal year 2025	2,030
Fiscal year 2026	552
Fiscal year 2027 and thereafter	—
Total future minimum payments	$	6,056
Less: Implied interest	(559)
Total lease liabilities	$	5,497


	March 25, 2023		September 24, 2022
Raw materials and components	$	127,215	$	88,999
Finished goods	13,226		2,901
Total inventories	$	140,441	$	91,900


	March 25, 2023		September 24, 2022
Computer equipment and software, furniture and fixtures, and test equipment	$	59,543	$	45,818
Leasehold improvements	2,896		2,904
Total property and equipment	62,439		48,722
Less accumulated depreciation	(26,900)		(23,844)
Property and equipment, net	$	35,539	$	24,878


	March 25, 2023
Severance liability at September 25, 2022	$	1,051
Severance charges	5,242
Cash paid and other	(4,118)
Severance liability at March 25, 2023	$	2,175


	March 25, 2023								September 24, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	114,478	$	—	$	—	$	114,478	$	333,388	$	—	$	—	$	333,388
U.S. Treasury securities	—		284,981		—		284,981		—		—		—		—
Total assets	$	114,478	$	284,981	$	—	$	399,459	$	333,388	$	—	$	—	$	333,388


	March 25, 2023			September 24, 2022
United States	$	34,553		$	23,640
Canada	986			1,238
Total property and equipment, net	$	35,539		$	24,878
Percentage of property and equipment, net held outside of the United States	3		%	5		%


	For the Three Months Ended				Change
	March 25, 2023		March 26, 2022		Amount		%
	(dollars in thousands)
Systems	$	257,603	$	89,572	$	168,031	188	%
Software maintenance and support	1,461		965		496		51	%
Operation services	7,790		5,747		2,043		36	%
Total revenue	$	266,854	$	96,284	$	170,570	177	%


	Change
	(in thousands)
Employee-related costs	$	24,985
Prototype-related costs, allocated overhead expenses, and other	1,326
	$	26,311


Gross profit margin	16.1	%	17.6	%	16.5	%	18.1	%
Adjusted gross profit margin	18.3	%	17.6	%	17.8	%	18.2	%


			Payments due in:
	Total		Less than 1 Year		1-3 Years		3-5 Years		More than 5 Years
	(in thousands)
Vendor commitments	$	898,636	$	897,175	$	1,461	$	—	$	—



Exhibit						Description
31.1						Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/ Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended
31.2						Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/ Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended
32.1						Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2						Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.SCH						Inline XBRL Taxonomy Extension Schema Document
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document
104						Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*)


Symbotic Inc.

By:			/s/ Thomas Ernst
Name:			Thomas Ernst
Title:			Chief Financial Officer and Treasurer


Date: May 5, 2023	By:	/s/ Richard B. Cohen
		Richard B. Cohen
		Chairman and Chief Executive Officer
		(Principal Executive Officer)