Symbotic Inc. (NASDAQ:SYM) Q4 2022 Earnings Call Transcript

Derek Soderberg: Got it. That’s helpful. Then as my follow-up, was there any systems revenue associated with the five new deployments this quarter? Just wondering if you could maybe give us some detail on how long it takes from initiating a new deployment to you guys seeing the first revenue from those projects? Thanks.

Richard Cohen: When we initiated the deployment, revenue starts as the work starts. So typically it’s small, but yeah, our revenue is generated as work has progressed across system deployments from the start of the early build phase through that end of the test and validation phase. Strong majority of revenue comes in the bulk of the — that installation commission test and validation of the product though.

Derek Soderberg: Great. Thanks.

Richard Cohen: Thank you, Derek.

Operator: Thank you. And our last question comes from the line of Rob Mason from Baird. Your line is open.

Rob Mason: Yes, good evening. My question was actually around the new customer announcement. You had mentioned that you signed to deploy in five new distribution centers, but I recall currently you deployed sometimes multiple systems in it, the distribution center, is that going to be the case with UNFI as well?

Richard Cohen: So we don’t — we didn’t disclose how many phases the customer does, you’re right, Rob, that it’s often common for us that customer will take a multi-phased deployment in a distribution center, but our announcement with UNFI was that, we will do five distribution centers of theirs with an option to do more.

Rob Mason: Any color, Tom, that you can provide just on how — they mentioned — you mentioned in the press release, they currently have automation in a number of their DCs just where you are deploying these? What the current system of operation looks like in the distribution center? You — this is a manual warehouse converting automation or they converting existing automation to yours?

Tom Ernst: Their manual warehouses with some limited automation.

Richard Cohen: There is some common typical conveyance-based mechanization.

Rob Mason: I see. Okay. Very good. Thank you.

Richard Cohen: Thank you, Rob.

Operator: Thank you. Now I’d now like to turn the conference back to Jeff for any closing remarks.

Jeff Evanson: Thank you, Victor. Thank you everyone for joining our call tonight. We appreciate your interest in Symbotic. And we look forward to seeing you at conferences or on our facility tours or virtually over the next quarter. Goodbye.

Operator: And this concludes today’s conference call. Thank you for participating. You may now disconnect. Everyone have a great day.