Symbotic, the SoftBank-backed warehouse automation software provider, witnessed its shares plummet by more than a third on Wednesday amidst revelations of accounting errors and a downward revision of revenue forecasts.
The Massachusetts-based company, which made its public debut via a SPAC in 2022, disclosed errors in revenue recognition for the first nine months of 2024. The severity of these discrepancies has forced the company to delay filing its annual report whilst it conducts a thorough assessment of the financial implications.
The timing of this disclosure is particularly problematic, coming mere fortnight after Symbotic announced corrections to previous accounting mistakes, which necessitated the restatement of quarterly figures due to incorrect revenue recognition protocols.
The artificial intelligence-powered robotics developer, which boasts an impressive client roster including retail giants Walmart, Target, Albertsons, and Canadian discount chain Giant Tiger, has seen its market capitalisation shrink by £7.3 billion, settling at £14.6 billion following Wednesday’s trading.
Current ownership structure reveals SoftBank-related entities maintaining an 8.5 per cent stake through Class-A common stock, whilst Walmart holds a more substantial 13.3 per cent interest via a combination of Class-A and Class-V shares.
The company has revised its quarterly revenue projections downward to between £480 million and £500 million, a notable reduction from the previous £495 million to £515 million range. Similarly, adjusted EBITDA expectations have been significantly reduced to £12 million-£16 million, falling well short of the earlier projected range of £27 million-£31 million.
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