Rick Cohen: Yes. No, I think it’s fine where it is today. It’s not optimal. I think at some point €“ the reason I said it’s fine where it is today because we are just ramping. As we think to respond €“ to reflect to what Tom said, if we are going to grow at multiple times our sales and do multiple applications, we probably are going to want more shares out there. And so we don’t have to do that. We are generating €“ we are in a very strong cash position, and our contracts are structured to do that. But it is something that I think about. So, I am not hung up on owning between me and SoftBank and Walmart having just three people on such a large percentage of the shares. We would like, when the time is right, to have large investors own more of the shares, and we think we will have very good uses with that liquidity.
Tom Ernst: One thing that we have seen a little bit of a benefit from, Joe, recently that you may have seen is we have seen lockup triggers be released. So, we now have 22% of the 555 million shares are now unlocked. To Rick’s point, a significant portion of that is held by affiliated partners of ours, SoftBank and Walmart, but we are beginning to see the benefit of increased employee shares and all those shares being unlocked as well that might begin to alleviate a relatively less liquid stock out there.
Joe Giordano: Yes. Very helpful. Thanks guys.
Tom Ernst: Thank you.
Operator: Thank you. One moment please. Our next question comes from the line of Derek Soderberg of Cantor. Your line is open.
Derek Soderberg: Yes. Hi guys. Thanks for taking my questions. I wanted to start with software revenue. Tom, I guess I would have expected that software license revenue would have been a bit higher. Can you just help me understand how many of the eight live production modules are generating software license revenue today? And is that software fee sort of in the mid-single digits percentage annually? Is that correct?
Tom Ernst: Yes. Thank you for the question, Derek. So, we have eight systems that are up and running and in fully-functional production mode, and all of those are receiving software and operations revenue. Now, don’t forget that six of those were pre €“ or generally available launch of new product. So, those six generational technologies were sold effectively as prototypes, proof of concepts and carry generally not only less software revenue than our go-forward business model, but much less profitable software revenue. The other thing to remember, too, is that these two systems that have come live since, one of them was late in the last quarter, the other one was late in the quarter prior to that, so those waterfall streams are just starting to trickle in.
You should expect to see it build from here, but it will build slowly. And I think importantly as well, while we are growing our systems revenue rapidly, continue to be €“ continue to represent a small portion of our overall revenue, so, operations revenue and software revenue taken together for those systems in our backlog, the $12 billion backlog, represent a mid-single digit percentage of revenue, not individually each component, but taken together.
Derek Soderberg: Got it. That’s very helpful. And then my follow-up is on the backlog. Curious if part of the backlog growth with existing customers included BreakPack. I am just curious if that’s the case. And then within the $12 billion backlog, are there any agreements in there for non-ambient food or cold storage applications, or is it all ambient food and generalized merchandise?
Tom Ernst: Yes. Thanks Derek. So, no, you should read the backlog increase besides the two new systems, the UNFI system and the C&S system I referred to. That’s €“ the bulk of that is associated with cost-adjusted pricing across the existing backlog rather than a change in the mix of the systems.
Derek Soderberg: Got it. And then within the backlog, are there applications in that cold storage in there?
Tom Ernst: We haven’t addressed that, and that’s something that might be hard to address as we look forward. Our customers’ strategies are often something they want to keep to themselves. So, no, we haven’t addressed the mix of the specific technologies in our backlog.
Derek Soderberg: Great. Thanks guys.
Tom Ernst: Thank you.
Operator: Thank you. I’m showing no further questions at this time. I would like to turn the call back over to Jeff Evanson for any closing remarks.
Jeff Evanson: Thank you, Valerie. And thank you everyone for joining our call tonight. We appreciate your interest in Symbotic, and we look forward to seeing you at conferences, on our warehouse tours or virtually when we talk over the next quarter. Have a great night. Bye-bye.
Operator: Thank you. Ladies and gentlemen, this does conclude today’s conference. Thank you all for participating. You may now disconnect. Have a great day.
