Symbotic, a Walmart-Backed AI Warehouse Technology Company, Announces Record Revenue; Stocks soar 40%

Takeaways

Symbotic shares jumped more than 40% on Tuesday after the Walmart-backed supply chain technology company reported record revenue thanks to improved margins and the deployment of new systems. /li>
The AI-based robotics company said its revenue grew 98% in fiscal 2023 from 2022.
Walmart is both a customer and a major investor in the company with a stake of over 62%.

Shares of Walmart (WMT) and Softbank-backed warehouse automation systems maker Symbotic (SYM) jumped more than 40% on Tuesday after reporting record revenue as the company improved margins and rolled out new systems.

Symbotic, which creates robotic technology platforms powered by artificial intelligence (AI) to provide end-to-end supply chain solutions, reported revenue of $392 million dollars in the fourth quarter, compared to $244 million a year ago, and a net loss of $45 million compared to a loss of $53 million in 2022. Its loss of 8 cents per share came in 2022. is reduced from a loss of 10 cents per share the year before. Symbotic's annual revenue of $1.77 billion, up 98% from 2022.

“We are pleased to report another quarter of strong revenue and margin growth, as we initiated four new system deployments and completed the go-live of two systems. We have also accelerated the pace of system deployments,” Tom Ernst, Symbotic’s chief financial officer, said in a statement.

Symbotic's technology can be found in warehouses across the country, with customers including major retailers like Walmart and Target (TGT). Joe Metzger, Walmart's executive vice president of supply chain operations, called the Symbotic system “a first-of-its-kind technology” that uses a complex algorithm “to store cases like puzzle pieces at random.” using high-speed mobile robots, operating with precision that speeds up the receiving process and increases the accuracy of stored freight for future orders.

Walmart is not not only a Symbotic client, but also owns a stake of more than 62% in the company, according to filings by the United States Securities and Exchange Commission (SEC). SoftBank also owns a large number of shares in the company, revealing a stake of over 33% in Symbotic.

With Tuesday's gains, Symbotic shares have more than quadrupled in value since the start of the year.