Symbotic Inc FY2024 Revenue $1.79B Up 52.1% YoY, Net Loss $67.5M

Executive Summary

Symbotic Inc, listed on NASDAQ under the ticker SYM, reported its fiscal year 2024 financials with significant growth in revenue alongside increased net losses. Revenue for FY2024 reached approximately $1.79 billion, representing a 52.1% increase compared to the prior year. Despite strong top-line growth, net loss widened to $67.5 million, reflecting ongoing investments and operational costs. The company’s balance sheet shows substantial growth in assets, particularly cash and receivables, indicating increased operational scale. Cash flows remained positive from investing activities due to maturities of securities, but operating cash flow was negative, highlighting ongoing investment and expansion efforts. Key ratios suggest improving gross margins but continued pressure on net margins. The outlook remains cautiously optimistic, emphasizing growth opportunities balanced against operational risks and market competition.

Key Metrics

Management Discussion and Analysis

During FY2024, Symbotic achieved robust revenue growth driven by expanded deployment of automation systems across major retail clients. The increase in revenue reflects successful scaling of operations and market penetration. However, increased investments in R&D, supply chain expansion, and infrastructure contributed to higher operating expenses, resulting in a widened net loss. The company’s focus on technological innovation and strategic partnerships aims to capitalize on long-term supply chain automation growth, but short-term profitability remains challenged. Cash position strengthened due to maturities of marketable securities, providing liquidity for ongoing expansion. The company anticipates continued revenue growth, balanced by operational costs, and aims to improve margins through process efficiencies and product differentiation.

Income Statement Analysis

Revenue for FY2024 totaled approximately $1.79 billion, a year-over-year increase of 52.1%. Gross profit was about $245.7 million, with a gross margin of 13.7%, slightly lower than 16.1% in FY2023, due to higher input costs and product mix shifts. Operating expenses rose to $362.4 million, mainly from R&D and SG&A investments, leading to an operating loss of $116.7 million, compared to a loss of $223.2 million in FY2023. Net loss widened to $67.5 million from a net loss of $207.9 million last year, primarily due to increased operating costs and investment in growth initiatives. Earnings per share (EPS) of basic and diluted for FY2024 were approximately -$0.14, reflecting the net loss attributable to common shareholders.

Balance Sheet Analysis

As of September 28, 2024, total assets increased to approximately $1.58 billion, up 50.5% from $1.05 billion in FY2023. Cash and cash equivalents stood at $727.3 million, significantly higher than $258.8 million last year, supported by maturities of marketable securities. Accounts receivable increased to $201.5 million, indicating higher sales activity, while inventories decreased to $106.1 million, reflecting inventory restructuring and supply chain adjustments. Total liabilities grew marginally to $1.19 billion, with a strong equity base of $390.1 million. Liquidity remains solid, although leverage ratios indicate ongoing investments in growth assets and infrastructure.

Cash Flow Analysis

Operating cash flow was negative at $58.1 million, primarily due to net loss and working capital changes. Investing activities generated $156.5 million, mainly from maturities of U.S. Treasury securities, supporting liquidity. Financing activities provided $371.0 million, largely from equity issuances and warrant exercises, bolstering cash reserves. Capex was approximately $42.2 million, invested in property and equipment to support operational scaling. The company’s cash position at year-end was $730.4 million, providing ample liquidity for strategic initiatives and capital deployment.

Ratios & DuPont Analysis

Key ratios indicate improved efficiency and profitability prospects: net margin at -3.8%, ROA at -4.3%, and ROE at -17.3%. Asset turnover remains moderate at 1.13, reflecting revenue generation relative to assets. The equity multiplier is approximately 4.05, showing leverage utilization. The gross margin decline suggests pressure on core profitability, but operating expense management and revenue growth support a positive long-term outlook.

Risk Factors

Potential risks include market competition from other automation providers, supply chain disruptions, regulatory challenges, and macroeconomic uncertainties affecting retail demand and capital markets. Technological developments may render current solutions obsolete, requiring continuous innovation. Regulatory compliance and data security are critical, with non-compliance potentially incurring penalties. The company’s substantial investments in growth may pressure cash flows and margins in the near term.

Notes & Additional Commentary

FY2024 results include increased R&D and infrastructure costs, impacting profitability. The company completed significant inventory restructuring and supply chain investments. Unusual items include inventory restructuring charges of approximately $33.4 million and supply chain expansion costs. The company’s strategic focus on automation and supply chain efficiency positions it for long-term growth, but near-term profitability pressures persist due to aggressive expansion and R&D spending.

Investment Implications

Symbotic presents a high-growth opportunity in supply chain automation with strong revenue expansion. The current net loss is driven by strategic investments and should improve as scale benefits materialize. Short-term risks include margin pressures and market competition; however, the company’s technological leadership and liquidity position support a positive long-term outlook. Investors should monitor margin recovery, operational efficiencies, and competitive dynamics moving forward.