Symbotic (SYM -1.40%), a leader in artificial intelligence (AI)-driven warehouse automation, announced its fiscal 2024 second-quarter earnings on May 6, showcasing robust revenue growth and continued investment in technological innovation despite reporting a per-share loss.
The company's $424 million quarterly revenue not only beat analysts' $411.2 million forecast but also marks a significant increase from the previous year's $267 million. This performance underscores Symbotic's expanding market presence, even as it faces operational and cost challenges evident in its $0.07 loss per share, missing the $0.02 estimate.
| Metrics | Q2 FY2024 | Estimates | Q2 FY2023 | Change (YOY) |
|---|---|---|---|---|
| Revenue (in millions) | $424 | $411.2 | $267 | 58.8% |
| Earnings per share | -$0.07 | $0.02 | -$0.10 | N/A |
| Net loss (in millions) | $41 | N/A | $55 | N/A |
| Gross profit (in millions) | $44.1 | N/A | $42.8 | 3% |
Data sources: Company results from company. Analyst estimates from FactSet.
Symbotic at a glance
Symbotic has revolutionized the supply chain industry with its cutting-edge AI and robotics technology, automating warehouse operations to enhance efficiency, accuracy, and throughput. Holding over 575 patents, the company and its innovative solutions have attracted major retailers and wholesalers, securing a $23.3 billion order backlog.
Symbotic aims to provide systems that can deploy and scale rapidly, tailoring its software and hardware to various customer needs. In this way, the company hopes to maintain its technological leadership and strengthen its market position.
Quarterly performance highlights
This quarter saw Symbotic post remarkable 58.8% year-over-year revenue growth. However, at the bottom line, the company reported a per-share loss as operational expenses outstripped the revenue increase. This illustrates the challenge of balancing growth and costs.
With competition heating up, the company has looked to upgrade its products, achieving notable improvement in its automation software and hardware. This not only boosts performance for existing customers but also attracts new business. Additionally, Symbotic's strategic investments in R&D, totaling $46.4 million this past quarter, underscore its commitment to maintaining a competitive edge through innovation.
The company has also been strategic in its financial management, with a keen eye on improving margins and moving toward profitability. Despite challenges, its efforts have started to yield positive results, as evidenced by a smaller year-over-year net loss.
Looking forward
Looking ahead, Symbotic's management forecasts revenue of $450 million to $470 million for the next quarter, indicating confidence that the company can sustain its momentum. Symbotic has also adjusted its EBITDA expectations to between $27 million and $29 million, further signaling its optimistim.
With a robust pipeline of products and a proven ability to scale effectively, the company looks well-positioned to capitalize on the burgeoning demand for warehouse automation solutions.
