Symbotic Inc.

Thank you for standing by and welcome to the Symbiotic Second Quarter Fiscal 2023 Financial Results Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentations, there'll be a question and answer session. To ask a question at that time, please press star 11 on your telephone. As a reminder, today's call is being recorded. I will now turn the conference over to your host, Mr. Jeff Evanson, Vice President, Investor Relations and Corporate Development. Please go ahead.

Thank you, Valerie. Good afternoon, everyone. Welcome to Symbiotic's second quarter fiscal 2023 results webcast. Our press release and discussion today will include forward-looking statements based on assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements, including as the result of the factors described in cautionary statements and risk factors in Symbiotics financial release and regulatory filings with the SEC, by which any forward-looking statements made during this call are qualified in their entirety. In addition, during this call, we will discuss certain financial measures that are not recognized under U.S. generally accepted accounting principles, which the SEC refers to as non-GAAP measures. We believe these non-GAAP measures assist management in planning, forecasting, and evaluating our business and financial performance, including allocating resources. Reconciliations of these non-GAAP measures to their most comparable reported GAAP measures are included in our financial press release, which is available in the investor relations section of our website and is on file with the SEC. These GAAP measures may not be comparable to measures used by other issuers. Today we'll provide guidance for our third quarter, including revenue and adjusted EBITDA. We're not providing guidance for net loss today, which is the most comparable GAAP financial measure to adjusted EBITDA. We're not able to provide reconciliations of adjusted EBITDA to GAAP financial measures because certain items required for such reconciliations are outside of our control and or cannot be reasonably predicted such as the provision for stock-based compensation. On today's call, we are joined by Rick Cohen, Symbiotics founder, chairman, and chief executive officer, and Tom Ernst, Symbiotics chief financial officer. These executives will discuss our second quarter 2023 results and our outlook, followed by Q&A. Now, I'll turn the call over to Rick. Thank you, Joe. Hello, everyone.

As I think about how to talk about and give perspective on our second quarter, it's interesting to look back two years to see the progress we've made since our second quarter of fiscal 2021. Back then, we were building individual prototype systems, and in that quarter posted $23 million of revenue. We had a vision back then to radically transform the supply chain. We knew we had lots of challenges to overcome. and we are successfully overcoming most of those challenges. Now, just two years later, we have nine systems in full operation at multiple customer sites. We are currently deploying 28 additional systems and reporting over a quarter billion dollars of revenue in the quarter. So in two years, we have grown from a company with a sub-hundred million dollar revenue run rate to one with a billion dollar plus revenue run rate. In addition to our significant revenue growth, our quarterly results also reflect improving adjusted gross margin, improving operating margin, and additional liquidity. Our teams are working diligently to be more efficient as they keep our many deployment projects running on budget and on schedule and executing a new outsourcing strategy. We are now aggressively diversifying training and scaling up a network of supplier and contractor partners. We feel good about the progress so far and see many ways we can improve. As I said on our call last quarter, we are committed to building a team of world-class talent to help us remain a leader in transforming the supply chain. During the quarter, we added several key team members who are already making important contributions to operations. Scaling and execution are important in driving our near-term results, but we believe that constantly innovating can sustain those results over the long term. Thank you, everyone, for your support and interest in what we are doing and for helping us as we realize our vision transforming the supply chain. It's exciting to see our plan coming together, and we have a long way to go, but we're making great progress. Thank you. Now, Tom will discuss our financial performance and outlook.