Symbotic Inc.

Good day and thank you for standing by. Welcome to the symbolic fourth quarter and fiscal year 2023 financial results. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during a session, you will need to press star 1-1 on your telephone. You'll then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jeff Evanson, Vice President of Investor Relations. Please go ahead.

Hello. Welcome to Symbiotics' fourth quarter 2023 financial results webcast. I'm Jeff Evanson, Symbiotics VP of Investor Relations. 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 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'll 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 also on file with the SEC. These non-GAAP measures may not be comparable to measures used by other issuers. Today, we'll provide guidance for the first quarter of fiscal 24, including revenue and adjusted EBITDA. We do not provide guidance for net loss, which is the most comparable GAAP financial measure to adjusted EBITDA. We're not able to provide reconciliations to adjusted EBITDA to GAAP financial measures because certain items required for such reconciliations are outside our control and or cannot be reasonably predicted, such as the provision for stock-based compensation. On today's call, we're joined by Rick Cohen, Symbiotics Founder, Chairman, and Chief Executive Officer, Tom Ernst, Symbiotics Chief Financial Officer, as well as Carol Hibbard, our CFO Successor Designate. These executives will discuss our fourth quarter 2023 results and our outlook, followed by Q&A. Rick, would you take it away, please? Thank you, Jeff.

Good afternoon, everyone. Thank you for joining us to review our 2023 results and to discuss the year ahead. But first, I'd like to highlight some of our most important achievements in the past year. Fiscal 2023 was a year of doubles. By doubling our sites in deployment, our revenue nearly doubled and set us up for a strong revenue growth in 2024. Our gross profit grew even faster, more than doubling as gross margins increased significantly. And the number of stores served by the symbiotic system nearly doubled as our technology now serves over 3,000 customer stores. Such growth presents a contrast to the annual revenue declines many vendors of supply chain technologies are reporting and is a testament to the strong and growing demand for the symbiotic system. Today, symbiotic systems are moving goods at a rated capacity of more than 400 million cases per year, and we are currently in the process of deploying additional capacity rated to move another 1.6 billion cases annually. This compares with the annual total U.S. addressable market of over 500 billion cases moved per year. So clearly, we see significant opportunities for continued strong revenue growth for many years to come. We recently welcomed our newest customer, Southern Glazers Wine and Spirits, to the Semotic family. Southern Glazers is the world's largest distributor of beverage alcohol. This announcement represents another win outside the food and packaged goods verticals and demonstrates the capability of the Semotic system to efficiently manage goods with a range of SKU profiles, and with complex handling and loading challenges all while operating in a regulated industry. Of course, with such high demand for our systems, our ability to scale operations is the primary governor on our revenue growth. To that end, we have continued to invest heavily in extending and strengthening our network of outsourcing partners in manufacturing, and installation so we can maintain our focus on innovation and product development. Concurrently, we have hardened our supply chain to position Symbotic for even faster deployments, continued revenue growth, and steadily improving margins. We've continued to rapidly innovate, and Symbot, our ninth generation automated bot, is now in full production, approaching 4,000 units in operation. These units are running in the field every day, and they make our supply chain even more agile, accurate, and efficient. With improved vehicle dynamics and navigation, as well as improved case handling, Symbot boosts the number of transactions per hour that a bot can handle over our previous generation bot. Furthermore, Symbot is engineered to take advantage of the average 6 terabytes of data per day generated by a typical system. We expect our artificial intelligence and software enhancements to serve as an efficiency and reliability multiplier, and Symbot is purpose-built to realize these benefits over time. The first prototype of our e-channeling technology, BreakPak, is now delivering to stores every day, and we're pouring our learnings from this system into our next BreakPak prototype while we continue to ramp and test. We've done all of this while delivering increased profitability and cash flow. Our gross margins have improved substantially, our recurring revenue streams are now profitable, and we achieved our goal of positive adjusted EBITDA, all while posting our fourth consecutive quarter of increased cash on hand. All this success has been the result of creative problem solving and the hard work of our team members. I'd like to thank the entire Symbotic team for making all this possible. And we continue to pursue additional talents to enhance and build the Symbotic team. Now turn to what we plan to achieve in 2024. Our goal will be to do more of the same. That is to scale, execute, and innovate to deliver for our customers in the new year. We'll maintain our focus on delivering great systems for customers while scaling for rapid growth as we continue to accelerate our time to deploy systems. We'll continue to invest in innovation to increase the capability of the Symantec solution, introduce new products, and drive profitability through expanding margins for both systems and recurring revenue streams. Turning to Greenbox, this will be an important year for our joint venture with SoftBank. Greenbox has been recruiting for its leadership team and that is well underway. Inbound interest in Greenbox has exceeded expectations and we continue to anticipate announcing the first Greenbox customer in 2024. Remember, Greenbox is just like any other customer for us because the sale to Greenbox is a sale same as any other sale we make. But with the added benefit that we own 35% of Greenbox, which is what we believe will be a very profitable investment that generates strong cash flow for symbiotic shareholders. Finally, we will continue to judiciously grow our team as we continue to focus on innovation and talent in the areas of software and hardware engineering and artificial and data intelligence. Tom will talk more about the quarterly financial details, but before that, I would like to introduce Carol Hibbert, the newest member of our senior management team. Carol will take over the role of chief financial officer from Tom next month as Tom begins retirement. Thank you, Tom. We have been fortunate to have overlap between these two talented executives to ensure a smooth transition, and I would like to thank Tom for his hard work. So, Carol, would you mind sharing a few words now?