- Shares of Symbotic rose more than 40% on Tuesday after the Walmart-backed supply chain technology company reported record revenue as it improved margins and implemented new systems.
- The AI-powered robotics company said its revenue increased 98% in fiscal 2023 over 2022.
- Walmart is both a major customer and investor in the company with a stake of more than 62%.
Shares of Walmart (WMT) and Softbank-backed warehouse automation systems maker Symbotic (SYM) rose more than 40% on Tuesday after reporting record revenue as the company improved its margins and implemented new systems.
Symbotic, which creates robotic technology platforms powered by artificial intelligence (AI) to provide end-to-end supply chain solutions, reported fiscal fourth-quarter revenue of $392 million, up from $244 million a year ago. year, and a net loss of $45 million in comparison. to a loss of $53 million in 2022. Its loss of 8 cents per share narrowed from a loss of 10 cents per share a year earlier. Symbotic’s annual revenue of $1.77 billion increased 98% from 2022.
“We are pleased to report another quarter of strong revenue and margin growth as we initiated four new system implementations and completed the commissioning of two systems. We also accelerated the pace of system deployments,” Symbotic CFO Tom Ernst said in a statement.
Symbotic’s technology is in warehouses across the country, and its customers include major retailers like Walmart and Target (TGT). Walmart executive vice president of supply chain operations Joe Metzger called the Symbotic system “the first technology of its kind,” which uses a complex algorithm “to store boxes like puzzle pieces using high-speed mobile robots.” , operating with a precision that speeds up the intake process and increases the accuracy of cargo being stored for future orders.”
Not only is Walmart a Symbotic customer, it also owns a more than 62% stake in the company, according to filings with the U.S. Securities and Exchange Commission (SEC). SoftBank also owns a large number of shares in the company, revealing a stake of more than 33% in Symbotic.
With Tuesday’s gains, Symbotic stock has more than quadrupled in value so far this year.