Symbotic Inc.

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Symbiotics' third quarter 2023 financial results conference call and webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automatic message advising your hand is raised. Please note that today's conference is being recorded. I will now hand the conference over to your speaker host, Jeff Evanson, VP of Investor Relations. Please go ahead.

Good morning, everyone. Jeff here, and Olivia, thank you for the introduction. Welcome to Symbiotic's third quarter 2023 financial 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 a 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 our most comparable reporting 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 non-GAAP measures may not be comparable to measures used by other issuers. Today we will provide guidance for the fourth quarter, including revenue and adjusted EBITDA. We are not providing guidance for net loss today, for profit, which is the most comparable GAAP financial measure to adjusted EBITDA. We are not able to provide reconciliations of adjusted EBITDA to GAAP financial measures because certain items required for such reconciliations are outside of the control and cannot be reasonably predicted, such as 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 third quarter 2023 results and our outlook followed by Q&A. And now with that, I'll turn it over to Rick for some opening remarks.

Rick? Thank you, Jeff. Good morning, everyone. Thank you for joining us to review our third quarter financial results. Since we spoke last quarter, we have demonstrated our ability to successfully do at least two important things at once. First, we achieved record quarterly results. And second, we launched the Greenbox joint venture. We were able to report strong third quarter results, in part because our outsourcing strategy related to deployments. We are pleased with these partnerships, and they are beginning to bear fruit, and our supplier ecosystem continues to ramp. Tom will talk more about the quarterly details. So instead, I want to emphasize how excited we are about our green box joint venture with SoftBank. Greenbox is the realization of a vision I've had for many years to bring A1 AI-enabled automation to companies of all sizes. We're excited about Greenbox because it adds more than $500 billion per year to our total addressable market by bringing automation to all customers. Warehouse costs for these customers are typically two to three times higher than they are for large customers. This means Greenbox can offer small and medium-sized businesses a great value proposition while capturing more of the value of our technology, and we already have interest from potential customers. We capture this value three ways. One, through a large, higher-margin system contract that is backed by SoftBank. Two, by securing three times the level of recurring revenue streams that we get today, and three, we get to own 35% of a highly profitable Greenbox business. We were fortunate to have SoftBank join us as a partner in Greenbox to help us with capital, to help drive our Go Big, Go Fast strategy. In fact, in the early years of CNS, if I had had more capital, I could have grown CNS to a much larger company than even it is today. So I made the decision early on to adopt more capital from Greenbox into the Semotic network. Semotics also wanted higher pricing, more recurring revenue, and a way to capture more of the value stream from our technology. SoftBank wanted a larger stake in Semotic. As negotiations advanced, I decided we could get to consensus by agreeing to sell about 4% of my family's 78% ownership stake down to about 74%, and that we sold at about $28. And I was happy to do so because I am quite confident Greenbox will create much more value for Symbotic than what I gave up. And I was able to do it with no dilution to shareholders. The launch of the Greenbox joint venture was demand-led, so we know these services will be attractive to prospective customers. While we are anxious to bring Greenbox to market, like Symbotic, we intend to infuse the Greenbox culture with the same North Star of creating brand-new happy customers. Therefore, a customer launch will not come before the business operations are ready sometime in 2024, which is when we anticipate securing the first green box customers. We won't lose focus on our existing customers who help us get to this point, who continue to take care of all our large customers and scale up for Walmart and all the rest of our customers. I would like to thank all these customers as well as our associates, shareholders, partners, and suppliers who have made this quarter such a well-rounded success. Now Tom will discuss our financial performance and outlook. Tom? Thank you, Rick.