Symbotic Inc (NASDAQ:SYM) stock surges 36.62% (As on November 21, 11:20:52 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY 23. Symbotic currently has 12 fully operational systems and 35 systems in progress, a significant increase from the previous year. The company’s backlog stands at $23.3 billion, including the GreenBox joint venture, expected to contribute over $500 million of recurring revenue annually. The company highlighted its ninth-generation automated bot, SymBot, which has improved vehicle dynamics, navigation, and case handling, allowing for more transactions per hour. The company is making progress with its BreakPack each handling technology. Symbotic’s cash and equivalents grew $35 million sequentially, ending the year with $548 million on hand. The company is continuing its investment in research and development, and has redundant spend in its SG&A line. The company is working on efficiency improvements and cost reductions to improve gross margins in the systems segment. The company plans to continue adding one to two customers per year in the near term, with GreenBox expected to bring in many more customers in the future.

SYM in the fourth quarter of FY 23 has reported the adjusted earnings per share of $-0.080, missing the analysts’ estimates for the adjusted earnings per share of $-0.003. The company had reported the adjusted revenue growth of $391.9 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $306.36 million.

The adjusted gross margin increased by 80 basis points to 19.1%, up from 18.3% last quarter, driven primarily by recurring revenue streams turning to profitability, along with a slight improvement in system gross margin These results still reflect significant costs associated with lower margin innovation projects, the burden of pass-through costs to protect gross profit dollars, but that can weigh on a reported gross margin percentage and costs associated with rapidly scaling our operations. Operating leverage improved again sequentially as the company achieved a 3.4% adjusted EBITDA rate compared to a 1% loss rate last quarter. The cash and equivalents, including marketable securities and restricted cash grew $35 million sequentially. So the company ended the year with $548 million on hand.

Symbotic expects Q1 2024 revenue to be in the range of $350 M-$370 M versus the analyst consensus of $346 M. The adjusted EBITDA is expected to be between $11 million and $14 million.