Symbotic Inc.

Good day, and thank you for standing by. Welcome to the symbolic third quarter fiscal 2024 financial results. 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 a session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speakers today. Jeff Evanson, Vice President of Investor Relations. Please go ahead.

Thank you, Victor. Hello. Welcome to Symbiotics Third Quarter 2024 Financial Results Webcast. I am Jeff Evanson, Symbiotics VP of Investor Relations. Some of the statements that we make today regarding our business operations and financial performance may be considered forward-looking. Such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties. Actual results could differ materially. Please refer to our forms 10-K and 10-Q, including the risk factors. We undertake no obligation to update any forward-looking statements. In addition, during this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in today's earnings press release, which is distributed and available to the public through our investor relations website located at ir.symbotic.com. On today's call, we're joined by Rick Cohen, Symbiotics founder, chairman, and chief executive officer, and Carol Hibbert, Symbiotics chief financial officer. These executives will discuss our third quarter fiscal 2024 results and our outlook, followed by Q&A. Rick, I will now turn the call over to you. Thank you, Jeff.

Good afternoon, and thank you for joining us to review our most recent results. Our third quarter reflects record revenue growth, strong recurring revenue gross margin, and careful management of operating expenses. However, our system gross margin reflects elongated construction schedules and implementation costs associated with last quarter's rapid pace of innovation. For example, during the quarter we decided to retrofit all Symbots in the field with our new sensor array to enhance performance capabilities at the majority of our customer sites. While we believe much of the cost growth is now behind us, we could continue to see some impacts in the coming quarters as we focus on scaling high quality deployments for our customers. As you recall, Two years ago, we embarked on a strategy to outsource much of the manufacturing and installation of our systems. This approach enabled us to scale at a rapid pace. Based on our key learnings over multiple deployments, we plan to reabsorb a portion of the construction management processing starting this quarter, which will reduce costs. We believe bringing some of these functions back in-house will help us put a sharper focus on the implementation process and reduce costs further. In the short term, our revenue growth may slow as we make these changes. Our backlog demonstrates that demand continues to be very strong for our systems, but we will always prioritize execution on existing deployments ahead of chasing growth. On the innovation front, made important progress on a new minibot that will populate our second breakback installation and advance our non-ambient system development work. We also began deployment of the first symbolic system for Greenbox. While this did not contribute a significant amount of revenue in the quarter, the Greenbox deployment is on schedule. I am confident that we are making the right choices to quickly return to higher system gross margin and faster growth. Thank you to all Symbiotic employees, partners, and investors for your efforts and support. Now, Carol will discuss our financial results outlook. Carol?