Impressive Revenue Growth
In its fiscal fourth quarter (ended Sept. 30), Symbotic achieved record revenue that witnessed a staggering 61% year-over-year increase, amounting to $392 million. This remarkable figure well surpassed both the high end of management’s guidance and analysts’ consensus estimates, which stood at $310 million and $299.7 million, respectively. Furthermore, Symbotic’s revenue for the full fiscal year reached $1.18 billion, representing an exceptional 98% rise.
Improved Bottom Line
Investors also celebrated Symbotic’s improved bottom line. The company generated $13 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), a significant turnaround from the $20 million loss reported in the prior-year quarter. Notably, analysts had predicted a loss of $0.01. Moreover, Symbotic generated $44.5 million in operating cash flow, indicating its path towards sustained profitability based on generally accepted accounting principles (GAAP).
GreenBox: The AI Advantage
Symbotic’s partnership with SoftBank, known as GreenBox, played a crucial role in driving these exceptional results. Launched just last quarter, GreenBox utilizes artificial intelligence (AI) to enhance automated warehouse services in the supply chain. This technology has further boosted Symbotic’s performance and is expected to contribute to its sustained growth. Management remains confident in the company’s future prospects, with fiscal first-quarter revenue projected to reach $360 million. Achieving this would represent a remarkable 75% year-over-year growth. Given the excitement surrounding AI and its impact on the market, Symbotic’s stock has surged by more than 300% year-to-date (as of this writing). Surprisingly, however, the current valuation of Symbotic stock remains relatively reasonable, with a forward sales multiple of less than 2 times. Considering the increasing demand for warehouse automation systems by retailers seeking competitive advantages, the outlook for Symbotic appears promising.