Symbotic Inc 10-Q for FY2023 Q3

Symbotic Inc. (SYM)

10-Q 2023-08-02 For: 2023-06-24

Added on April 11, 2026

About this 10-Q

Symbotic Inc filed this 10-Q on August 2, 2023, covering the quarter ended June 24, 2023 (FY2023 Q3).

Headline figures

Quarter ended June 24, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $311.84M; up 77.6% from $175.55M a year earlier
Net loss: $4.35M; compared with a net loss of $1.31M a year earlier
Diluted EPS: -$0.07; compared with -$0.03 a year earlier

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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 June 24 , 2023 and September 24, 2022	1
	Unaudited Condensed Consolidated Statements of Operations for the Three and Nine Months Ended June 24 , 2023 and June 25 , 2022	3
	Unaudited Condensed Consolidated Statements of Comprehensive Loss for the Three and Nine Months Ended June 24 , 2023 and June 25 , 2022	4
	Unaudited Condensed Consolidated Statements of Changes in Redeemable Preferred and Common Units and Equity (Deficit) for the Three and Nine Months Ended June 24 , 2023 and June 25 , 2022	5
	Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended June 24 , 2023 and June 25 , 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	35
Item 4.	Controls and Procedures	35
	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	36
Item 3.	Defaults Upon Senior Securities	36
Item 4.	Mine Safety Disclosures	36
Item 5.	Other Information	36
Item 6.	Exhibits	37
	Signatures	38


	June 24, 2023		September 24, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	255,490	$	353,457
Marketable securities	255,413		—
Accounts receivable	73,696		3,412
Unbilled accounts receivable	91,696		101,816
Inventories	166,877		91,900
Deferred expenses	42,286		29,150
Prepaid expenses and other current assets	36,204		25,663
Total current assets	921,662		605,398
Property and equipment, at cost	69,496		48,722
Less: Accumulated depreciation	(28,583)		(23,844)
Property and equipment, net	40,913		24,878
Intangible assets, net	335		650
Other long-term assets	6,830		337
Total assets	$	969,740	$	631,263
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	74,377	$	68,448
Accrued expenses and other current liabilities	60,702		47,312
Sales tax payable	20,685		12,953
Deferred revenue, current	742,241		394,244
Total current liabilities	898,005		522,957
Deferred revenue, long-term	32,842		31,465
Other long-term liabilities	17,262		7,901
Total liabilities	948,109		562,323

Commitments and contingencies (Note 12)	—		—

Equity:
Class A Common Stock, 3,000,000,000 shares authorized, 62,441,709 and 57,718,836 shares issued and outstanding at June 24, 2023 and September 24, 2022, respectively	6		6


Class V-1 Common Stock, 1,000,000,000 shares authorized, 76,086,745 and 79,237,388 shares issued and outstanding at June 24, 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 June 24, 2023 and September 24, 2022	42		42
Additional paid-in capital - warrants	58,126		58,126
Additional paid-in capital	1,250,355		1,237,865
Accumulated deficit	(1,304,227)		(1,286,569)
Accumulated other comprehensive loss	(1,834)		(2,294)
Total stockholders’ equity	2,476		7,184
Noncontrolling interest	19,155		61,756
Total equity	21,631		68,940
Total liabilities and equity	$	969,740	$	631,263


	For the Three Months Ended				For the Nine Months Ended
	June 24, 2023		June 25, 2022		June 24, 2023		June 25, 2022
Revenue:
Systems	$	302,350	$	169,503	$	757,854	$	330,297
Software maintenance and support	1,768		862		4,466		2,802
Operation services	7,719		5,187		22,683		15,801
Total revenue	311,837		175,552		785,003		348,900
Cost of revenue:
Systems	244,660		136,015		618,651		264,475
Software maintenance and support	3,603		1,269		7,380		3,224
Operation services	10,665		6,724		28,022		18,283
Total cost of revenue	258,928		144,008		654,053		285,982
Gross profit	52,909		31,544		130,950		62,918
Operating expenses:
Research and development expenses	48,845		35,140		149,251		80,679
Selling, general, and administrative expenses	46,073		29,435		150,994		68,306
Total operating expenses	94,918		64,575		300,245		148,985
Operating loss	(42,009)		(33,031)		(169,295)		(86,067)
Other income, net	2,937		156		7,055		236
Loss before income tax	(39,072)		(32,875)		(162,240)		(85,831)
Income tax expense	(5)		—		(239)		—
Net loss	(39,077)		(32,875)		(162,479)		(85,831)
Net loss attributable to Legacy Warehouse unitholders prior to the Business Combination	—		(19,178)		—		(72,134)
Net loss attributable to noncontrolling interests	(34,730)		(12,383)		(144,821)		(12,383)
Net loss attributable to common stockholders	$	(4,347)	$	(1,314)	$	(17,658)	$	(1,314)

Loss per share of Class A Common Stock:
Basic and Diluted	$	(0.07)	$	(0.03)	$	(0.29)	$	(0.03)
Weighted-average shares of Class A Common Stock outstanding:
Basic and Diluted	61,782,886		50,664,146		60,160,039		50,664,146


☒			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 June 24, 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 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
Net loss	—	—		—	—		—	—		—		—		—		(4,347)		(34,730)		(39,077)
Issuance of common stock under stock plans	164,675	—		—	—		—	—		—		6		—		—		(6)		—
Exchange of Class V-1 common stock	993,345	—		(993,345)	—		—	—		—		38		—		—		(38)		—
Stock-based compensation	—	—		—	—		—	—		—		4,159		—		—		32,840		36,999
Other comprehensive loss	—	—		—	—		—	—		—		—		252		—		2,016		2,268
Balance at June 24, 2023	62,441,709	$	6	76,086,745	$	8	416,933,025	$	42	$	58,126	$	1,250,355	$	(1,834)	$	(1,304,227)	$	19,155	$	21,631


	Nine Months Ended June 24, 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	—	—		—	—		—	—		—		—		—		(17,658)		(144,821)		(162,479)
Issuance of common stock under stock plans, net of shares withheld for employee taxes	1,841,753	—		—	—		—	—		—		(1,157)		—		—		(10,560)		(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	2,782,949	—		(2,782,949)	—		—	—		—		238		—		—		(238)		—
Cancellation of Class V-1 common stock	—	—		(367,694)	—		—	—		—		—		—		—		—		—
Stock-based compensation	—	—		—	—		—	—		—		13,290		—		—		108,472		121,762
Other comprehensive loss	—	—		—	—		—	—		—		—		460		—		3,678		4,138
Balance at June 24, 2023	62,441,709	$	6	76,086,745	$	8	416,933,025	$	42	$	58,126	$	1,250,355	$	(1,834)	$	(1,304,227)	$	19,155	$	21,631


	Three Months Ended June 25, 2022
	Redeemable Preferred and Common Units																					Additional Paid-In Capital - Warrants		Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Noncontrolling Interest		Total Equity (Deficit)
	Common Units, Class C			Preferred Units, Class B-1			Preferred Units, Class B			Common Voting Units, Class A			Common Shares, Class A			Common Voting Shares, Class V-1			Common Voting Shares, Class V-3
	Units	Amount		Units	Amount		Units	Amount		Units	Amount		Shares	Amount		Shares	Amount		Shares	Amount
Balance at March 26, 2022	428,571	$	168,613	1	$	238,085	1	$	470,482	6,444,373	$	217,604	—	$	—	—	$	—	—	$	—	$	—	$	—	$	(2,041)	$	(1,248,771)	$	—	$	(1,033,208)
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	$	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)
Granted	560,524	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		—		—		—
Forfeited	(560,524)	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		—		—		—
Unit-based compensation	—	3		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		—		—		—
Accretion of class C Units to redemption value	—	4,844		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		(4,844)		—		(4,844)
Preferred Return	—	—		—	2,323		—	4,590		—	—		—	—		—	—		—	—		—		—		—		(6,913)		—		(6,913)
Provision for warrants	—	—		—	—		—	—		—	—		—	—		—	—		—	—		74,280		—		—		—		—		74,280
Exercise of warrants	—	—		—	—		—	—		16,379,606	120,134		—	—		—	—		—	—		(16,154)		—		—		—		—		103,980
Net loss pre business combination	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		(19,178)		—		(19,178)
Other comprehensive loss pre business combination	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		(14)		—		—		(14)
Recapitalization of Preferred Units, Class C Units, Class A Voting Units, and creation of NCI (net of transaction costs of $37,104)	(24,922,109)	(173,460)		(24,041,300)	(240,408)		(47,508,300)	(475,072)		(411,305,888)	(337,738)		—	—		60,844,573	6		416,933,025	42		—		1,191,567		—		—		(301,973)		551,904
Recapitalization of SVF equity, PIPE, and FPA (net of transaction costs of $30,315)	—	—		—	—		—	—		—	—		50,664,146	5		—	—		—	—		—		40,425		—		—		381,276		421,706
Net loss post business combination	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		(1,314)		(12,383)		(13,697)
Other comprehensive loss post business combination	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		(84)		—		(804)		(888)
Balance at June 25, 2022	—	$	—	—	$	—	—	$	—	—	$	—	50,664,146	$	5	60,844,573	$	6	416,933,025	$	42	$	58,126	$	1,231,992	$	(2,139)	$	(1,281,020)	$	66,116	$	73,128


	Nine Months Ended June 25, 2022
	Redeemable Preferred and Common Units																					Additional Paid-In Capital - Warrants		Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Noncontrolling Interest		Total Equity (Deficit)
	Common Units, Class C			Preferred Units, Class B-1			Preferred Units, Class B			Common Voting Units, Class A			Common Shares, Class A			Common Voting Shares, Class V-1			Common Voting Shares, Class V-3
	Units	Amount		Units	Amount		Units	Amount		Units	Amount		Shares	Amount		Shares	Amount		Shares	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)
Granted	1,052,952	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		—		—		—
Forfeited	(1,052,952)	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		—		—		—
Unit-based compensation	—	52		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		—		—		—
Accretion of Class C Units to redemption value	—	28,433		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		(28,433)		—		(28,433)
Preferred Return	—	—		—	8,130		—	16,065		—	—		—	—		—	—		—	—		—		—		—		(24,195)		—		(24,195)
Provision for warrants	—	—		—	—		—	—		—	—		—	—		—	—		—	—		74,280		—		—		—		—		74,280
Exercise of warrants	—	—		—	—		—	—		43,756,942	320,929		—	—		—	—		—	—		(43,153)		—		—		—		—		277,776
Net loss pre business combination	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		(72,134)		—		(72,134)
Other comprehensive loss pre business combination	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		37		—		—		37
Recapitalization of Preferred Units, Class C Units, Class A Voting Units, and creation of NCI (net of transaction costs of $37,104)	(24,922,109)	(173,460)		(24,041,300)	(240,408)		(47,508,300)	(475,072)		(411,305,888)	(337,738)		—	—		60,844,573	6		416,933,025	42		—		1,191,567		—		—		(301,973)		551,904
Recapitalization of SVF equity, PIPE, and FPA (net of transaction costs of $30,315)	—	—		—	—		—	—		—	—		50,664,146	5		—	—		—	—		—		40,425		—		—		381,276		421,706
Net loss post business combination	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		—		(1,314)		(12,383)		(13,697)
Other comprehensive loss post business combination	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—		—		(84)		—		(804)		(888)
Balance at June 25, 2022	—	$	—	—	$	—	—	$	—	—	$	—	50,664,146	$	5	60,844,573	$	6	416,933,025	$	42	$	58,126	$	1,231,992	$	(2,139)	$	(1,281,020)	$	66,116	$	73,128


	Nine Months Ended
	June 24, 2023		June 25, 2022
Cash and cash equivalents	$	255,490	$	411,662
Restricted cash classified in:
Other long-term assets	2,140		—
Cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	257,630	$	411,662


	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	61,283,689	494,013,115	555,296,804
Issuances	164,675	—	164,675
Exchanges	993,345	(993,345)	—
Cancellations	—	—	—
End of period	62,441,709	493,019,770	555,461,479	11.2	%	88.8	%	100	%


	Three Months Ended				Nine Months Ended
	June 24, 2023		June 25, 2022		June 24, 2023		June 25, 2022
Customer A	89.2	%	96.0	%	87.3	%	93.0	%


	June 24, 2023
ROU assets:
Other long-term assets	$	4,363

Lease Liabilities:
Accrued expenses and other current liabilities	$	2,030
Other long-term liabilities	3,048
Total lease liabilities	$	5,078


FORM 10-Q


	June 24, 2023		September 24, 2022
Customer A	73.9	%	39.5	%
Customer B	n/a		40.7	%
Customer C	n/a		15.3	%
Customer D	20.8	%	n/a
Aggregate Percent of Total Accounts Receivable	94.7	%	95.5	%


	June 24, 2023
Remaining fiscal year 2023	$	581
Fiscal year 2024	2,348
Fiscal year 2025	2,050
Fiscal year 2026	567
Fiscal year 2027 and thereafter	—
Total future minimum payments	$	5,546
Less: Implied interest	(468)
Total lease liabilities	$	5,078


	June 24, 2023		September 24, 2022
Raw materials and components	$	164,569	$	88,999
Finished goods	2,308		2,901
Total inventories	$	166,877	$	91,900


	June 24, 2023		September 24, 2022
Computer equipment and software, furniture and fixtures, and test equipment	$	66,576	$	45,818
Leasehold improvements	2,920		2,904
Total property and equipment	69,496		48,722
Less accumulated depreciation	(28,583)		(23,844)
Property and equipment, net	$	40,913	$	24,878


	June 24, 2023
Severance liability at September 25, 2022	$	1,051
Severance charges	5,692
Cash paid and other	(5,458)
Severance liability at June 24, 2023	$	1,285


	June 24, 2023								September 24, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	181,652	$	—	$	—	$	181,652	$	333,388	$	—	$	—	$	333,388
U.S. Treasury securities	—		335,217		—		335,217		—		—		—		—
Total assets	$	181,652	$	335,217	$	—	$	516,869	$	333,388	$	—	$	—	$	333,388


	June 24, 2023			September 24, 2022
United States	$	40,003		$	23,640
Canada	910			1,238
Total property and equipment, net	$	40,913		$	24,878
Percentage of property and equipment, net held outside of the United States	2		%	5		%


	For the Three Months Ended				Change
	June 24, 2023		June 25, 2022		Amount		%
	(dollars in thousands)
Systems	$	302,350	$	169,503	$	132,847	78	%
Software maintenance and support	1,768		862		906		105	%
Operation services	7,719		5,187		2,532		49	%
Total revenue	$	311,837	$	175,552	$	136,285	78	%


	Change
	(in thousands)
Employee-related costs	$	17,730
Prototype-related costs, allocated overhead expenses, and other	(4,025)
	$	13,705


Gross profit margin	17.0	%	18.0	%	16.7	%	18.0	%
Adjusted gross profit margin	18.3	%	18.0	%	18.0	%	18.1	%


			Payments due in:
	Total		Less than 1 Year		1-3 Years		3-5 Years		More than 5 Years
	(in thousands)
Vendor commitments	$	1,166,060	$	1,052,819	$	110,919	$	2,322	$	—


*			Certain of the exhibits and schedules to this Exhibit have been omitted in accordance with Item 1.01 of Form 8-K and Item 601(a)(5) of Regulation S-K. The Registrant agrees to furnish a copy of all omitted exhibits and schedules to the SEC upon its request.
++			Certain confidential information contained in this document, marked by brackets and asterisks, has been omitted pursuant to Item 1.01 of Form 8-K and Item 601(b)(10)(iv) of Regulation S-K, because the Company customarily and actually treats such information as private or confidential and the omitted information is not material.


Symbotic Inc.

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


Date: August 2, 2023	By:	/s/ Richard B. Cohen
		Richard B. Cohen
		Chairman and Chief Executive Officer
		(Principal Executive Officer)