In a vast warehouse, robots zip and whirl. They sort and move boxes with speed and precision.
This isn't the future. It's today.
Driven by a company listed as SYM on NASDAQ.
Symbotic Inc. is transforming the supply chain industry with its AI-powered robotics and automation technology.
Founded in 2007 as CasePick Systems and rebranded in 2012, the company is based in Wilmington, Massachusetts.
Symbotic's core innovation is its end-to-end robotic warehouse automation system.
This system includes autonomous mobile robots, called SymBots, which travel up to 25 miles per hour.
These robots, guided by vision systems and AI, handle various product sizes and weights, optimizing storage and retrieval in large warehouses and distribution centers.
Symbotic's clients include major retailers like Walmart, Target, Albertsons, and C&S Wholesale Grocers.
The company's technology is used in over 1,400 stores across grocery, retail, and wholesale sectors.
They aim to automate all 42 regional distribution centers. This shows the scalability and effectiveness of their solutions.
Financially, Symbotic is growing fast. As of July 17th 2024, the company has a market cap of 23.47 billion USD.
In Q2 FY2024, Symbotic reported:
- Revenue: $424 million (up 59% year-over-year from $267 million)
- Net loss: $41 million (improved from $55 million loss year-over-year)
- Adjusted EBITDA: $22 million (improved from $11 million loss year-over-year)
- Cash, cash equivalents, and marketable securities: $951 million (up $276 million from the previous quarter)
For Q3 FY2024, Symbotic expects:
- Revenue: $450 million to $470 million
- Adjusted EBITDA: $27 million to $29 million
In Q1 FY2024, Symbotic reported:
- Revenue: $369 million (up 79% year-over-year from $206 million)
- Net loss: $13 million (improved from $68 million loss year-over-year)
- Adjusted EBITDA: $14 million (improved from $16 million loss year-over-year)
- Cash, cash equivalents, restricted cash, and marketable securities: $677 million (up $129 million from the previous quarter)
The company has high growth expectations with a price-to-sales ratio of 14.58 and a contracted backlog of $12.5 billion as of July 2023.
Products and Technology
Symbotic's main offering is an AI-powered robotic warehouse automation system.
Key features include:
- Autonomous mobile robots (SymBots) capable of speeds up to 25 mph
- Advanced vision systems and AI for autonomous operation
- High-density storage structure
- Robotic arms with proprietary end-of-arm tools
- AI-powered software for orchestration and optimization
The system is modular for scalability, maximizes space utilization, handles a wide range of product sizes and weights, and allows for fast deployment (3-9 months for initial installation, 1 week to 6 months for extensions).
Market Position and Partnerships
Symbotic's major customers include Walmart, Target, Albertsons, and C&S Wholesale Grocers.
Walmart accounted for 87.3% of revenue in the first nine months of fiscal 2023.
Symbotic has a Master Automation Agreement with Walmart. They will automate 42 regional distribution centers by 2034.
Symbotic also has a joint venture with SoftBank called GreenBox. This venture includes a $7.5 billion contract for six years, starting in fiscal 2024.
Competitive Landscape
Symbotic's main competitors include:
- Amazon Robotics
- Ocado
- AutoStore
- 6 River Systems
- Locus Robotics
- Fetch Robotics
Symbotic's cubic storage system has an estimated 11% market share of the installed base, compared to 72% for shuttle systems, 11% for AMR systems, and 6% for mini-load systems.
Challenges and Risks
Symbotic faces several challenges. It relies heavily on Walmart for revenue, leading to high customer concentration.
As an early-stage company, it has limited operating history and historical profitability.
The market is competitive, with established players and innovative startups. Rapid growth and large-scale deployments pose execution risks.
Despite these challenges, Symbotic Inc. is a high-growth player in warehouse automation.
It has innovative technology, strong partnerships, and improving financial performance.
Symbotic Inc. is suitable for a portfolio.
However, it is not ideal for heavy investment because of execution risks and the need for a more diversified customer base.
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