Berkshire Grey Reports Fourth-Quarter and Full-Year 2022 Results
March 29 2023 - 6:30AM
Berkshire Grey Inc. (Nasdaq: BGRY) (the “Company”), a leader in
AI-enabled robotic solutions that automate supply chain processes,
today announced results for its fourth quarter and year ended
December 31, 2022. The Company:
- Executed 71 installations of Berkshire
Grey’s advanced robotics solutions during 2022.
- Entered 2023 with backlog of
approximately $100 million.
- Increased total orders since inception
to $265 million.
- Achieved positive gross margin in the
fourth quarter of 2022.
“We had another strong quarter in terms of execution, and we
continue to make significant progress improving our financial
performance,” said Tom Wagner, Chief Executive Officer of the
Company. “Our customers are impressed with the ability of our
AI-enabled robotics solutions to increase efficiency and drive out
costs across their logistics operations.”
Full Year 2022 Financial Highlights
- Total orders received in 2022 of over
$65.0 million.
- Revenue of $65.9 million, an increase
of 29% compared to 2021. Revenue includes $3.6 million for the
provision for common stock warrants, which is recorded as a
reduction in revenue.
- Net loss of $102.8 million, or ($0.44)
per share.
- Adjusted EBITDA of ($105.4)
million.
About Berkshire Grey Berkshire Grey (Nasdaq:
BGRY) helps customers radically change the essential way they do
business by delivering game-changing technology that combines AI
and robotics to automate fulfillment, supply chain, and logistics
operations. Berkshire Grey solutions are a fundamental engine of
change that transform pick, pack, move, store, organize, and sort
operations to deliver competitive advantage for enterprises serving
today’s connected consumers. Berkshire Grey customers include
Global 100 retailers and logistics service providers. More
information is available at www.berkshiregrey.com.
Non-GAAP Financial Measures In addition to our
financial results determined in accordance with U.S. generally
accepted accounting principles (“GAAP”), we believe that Adjusted
EBITDA, a non-GAAP financial measure, is useful in evaluating the
performance of our business. We define Adjusted EBITDA as net loss
less other income or expense, income taxes, depreciation, and
amortization expense, change in fair value of warrant liabilities,
FedEx warrant provision, and stock-based compensation expense. This
non-GAAP measure has limitations as an analytical tool. We do not,
nor do we suggest that investors should, consider such non-GAAP
financial measures in isolation from, or as a substitute for,
financial information prepared in accordance with GAAP. Investors
should also note that the non-GAAP financial measures we use may
not be the same non-GAAP financial measures, and may not be
calculated in the same manner, as that of other companies. We
recommend that investors review the reconciliation of this non-GAAP
measure to the most directly comparable GAAP financial measure
provided in the financial statement tables included below in this
press release, and not rely on any single financial measure to
evaluate our business.
Cautionary Note Regarding Forward-Looking
StatementsThis communication contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements other
than statements of historical facts contained in this
communication, including statements regarding Berkshire Grey’s
beliefs regarding future operating performance and demand for
Berkshire Grey’s solutions in general, are forward-looking
statements. In some cases, you can identify forward-looking
statements by terms such as “may,” “will,” “should,” “expect,”
“plan,” “anticipate,” “could,” “intend,” “target,” “project,”
“contemplate,” “believe,” “estimate,” “predict,” “potential” or
“continue” or the negative of these terms or other similar
expressions. The forward-looking statements in this communication
are only predictions. Berkshire Grey has based these
forward-looking statements on current information and management’s
current expectations and beliefs. These forward-looking statements
are subject to a number of significant risks and uncertainties,
including, without limitation (a) risks and uncertainties related
to Berkshire Grey’s proposed merger with a wholly-owned subsidiary
of SoftBank Group Corp. (the “Proposed Merger”) such as (i) the
occurrence of any event, change or other circumstance that could
give rise to the termination of the merger agreement; (ii) the
failure to obtain stockholder approval of the Proposed Merger;
(iii) the failure to obtain certain required regulatory approvals
to the completion of the Proposed Merger or the failure to satisfy
any of the other conditions to the completion of the Proposed
Merger; (iv) the effect of the announcement of the Proposed Merger
on the ability of the Company to retain and hire key personnel and
maintain relationships with its key business partners and
customers, and others with whom it does business, or on its
operating results and businesses generally; (v) the response of the
Company’s competitors to the Proposed Merger; (vi) risks associated
with the disruption of management’s attention from ongoing business
operations due to the Proposed Merger; (vii) the ability to meet
expectations regarding the timing and completion of the Proposed
Merger; (viii) significant costs associated with the Proposed
Merger, including the timing, receipt and terms and conditions of
any required governmental and regulatory approvals of the Proposed
Merger; (ix) potential litigation relating to the Proposed
Merger; (x) restrictions during the pendency of the Proposed Merger
that may impact the Company’s ability to pursue certain business
opportunities; (xi) the outcome of any legal proceedings that
may be instituted against the parties and others following
announcement of the merger agreement; and (xii) the completion of
the convertible note financing that was agreed to with the merger
agreement; (b) current and future conditions in the global economy,
including as a result of the impact of the COVID-19 pandemic,
inflation and rising interest rates; (c) the loss of any customers,
or the termination of existing contracts by any customers; (d) the
inability to penetrate new markets and generate revenues from the
pipeline; (e) demand for Berkshire Grey products and services from
FedEx and other customers that does not grow as expected; (f)
dependence on a limited number of third-party contract
manufacturers; (g) the failure to manage any growth in the company
or its business; (h) increased competition; (i) the difficulty of
predicting order flow and revenue generated from Berkshire Grey’s
small number of customers with generally large order sizes and many
variables that can impact project schedules and the completion of
sales; (j) risks associated with Berkshire Grey’s plans to develop
and commercialize its product candidates to meet constantly
evolving customer demands; (k) Berkshire Grey’s ability to maintain
and establish collaborations or obtain additional funding; (l)
other risks associated with companies, such as Berkshire Grey, that
are engaged in the intelligent automation industry; and (m) other
risks and uncertainties described under “Risk Factors” and
elsewhere in the Company’s most recent Annual Report on Form 10-K
filed with the SEC, and such other reports as Berkshire Grey has
filed or may file with the SEC from time to time. Although such
forward-looking statements have been made in good faith and are
based on assumptions that Berkshire Grey believes to be reasonable,
there is no assurance that the expected results will be achieved,
and Berkshire Grey’s actual results may differ materially from the
results discussed in forward-looking statements. Readers are
cautioned not to place undue reliance upon any forward-looking
statements. These forward-looking statements are made only as of
the date hereof, and Berkshire Grey does not undertake any
obligations to update or revise the forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
Contacts:Investors: Ian Rhoades Sharon Merrill
Associates, Inc.BGRY@investorrelations.com
Media: Method Communications for Berkshire
Greyberkshiregrey@methodcommunications.com
BERKSHIRE GREY,
INC.Consolidated Statements of Operations and
Comprehensive Loss(Unaudited)(in
thousands, except for share data)
|
|
Years Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
Revenue |
|
$ |
65,850 |
|
|
$ |
50,852 |
|
Cost of revenue |
|
|
71,118 |
|
|
|
59,099 |
|
Gross loss |
|
|
(5,268 |
) |
|
|
(8,247 |
) |
Operating expenses: |
|
|
|
|
|
|
General and administrative
expense |
|
|
22,491 |
|
|
|
40,313 |
|
Sales and marketing expense |
|
|
13,503 |
|
|
|
51,960 |
|
Research and development
expense |
|
|
72,580 |
|
|
|
63,819 |
|
Total operating expenses |
|
|
108,574 |
|
|
|
156,092 |
|
Loss from operations |
|
|
(113,842 |
) |
|
|
(164,339 |
) |
Other income (expense) |
|
|
|
|
|
|
Interest income |
|
|
163 |
|
|
|
32 |
|
Change in fair value of warrant
liabilities |
|
|
12,391 |
|
|
|
11,061 |
|
Other (expense) |
|
|
(1,398 |
) |
|
|
(76 |
) |
Net loss before income taxes |
|
|
(102,686 |
) |
|
|
(153,322 |
) |
Income tax |
|
108 |
|
|
|
58 |
|
Net loss |
|
$ |
(102,794 |
) |
|
$ |
(153,380 |
) |
Other comprehensive (loss): |
|
|
|
|
|
|
Net foreign currency translation
adjustments |
|
|
(23 |
) |
|
|
(17 |
) |
Total comprehensive loss |
|
$ |
(102,817 |
) |
|
$ |
(153,397 |
) |
Net loss per common share (Class
A and C) – basic and diluted |
|
$ |
(0.44 |
) |
|
$ |
(1.33 |
) |
Weighted average shares
outstanding – basic and diluted |
|
|
234,675,258 |
|
|
|
115,301,526 |
|
|
|
|
|
|
|
|
|
|
BERKSHIRE GREY,
INC.Consolidated Balance
Sheets(Unaudited)(in thousands,
except for share data)
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
64,322 |
|
|
$ |
171,089 |
|
Accounts receivable |
|
|
5,006 |
|
|
|
13,291 |
|
Inventories – net |
|
|
8,090 |
|
|
|
2,641 |
|
Deferred fulfillment costs |
|
|
3,971 |
|
|
|
7,689 |
|
Prepaid expenses |
|
|
4,293 |
|
|
|
5,138 |
|
Contract assets |
|
|
7,333 |
|
|
|
4,257 |
|
Other current assets |
|
|
1,254 |
|
|
|
821 |
|
Total current assets |
|
|
94,269 |
|
|
|
204,926 |
|
Property and equipment – net |
|
|
10,810 |
|
|
|
10,874 |
|
Operating lease right-of-use
assets |
|
|
7,485 |
|
|
|
— |
|
Restricted cash |
|
|
1,254 |
|
|
|
862 |
|
Other non-current assets |
|
|
23 |
|
|
|
22 |
|
Total assets |
|
$ |
113,841 |
|
|
$ |
216,684 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
5,290 |
|
|
$ |
6,766 |
|
Accrued expenses |
|
|
10,698 |
|
|
|
15,659 |
|
Contract liabilities |
|
|
15,923 |
|
|
|
19,216 |
|
Other current liabilities |
|
|
1,039 |
|
|
|
146 |
|
Total current liabilities |
|
|
32,950 |
|
|
|
41,787 |
|
Share-based compensation
liability |
|
|
1,089 |
|
|
|
15,435 |
|
Warrant liability |
|
|
885 |
|
|
|
13,277 |
|
Operating lease liabilities,
noncurrent |
|
|
8,590 |
|
|
|
— |
|
Other non-current
liabilities |
|
|
— |
|
|
|
1,954 |
|
Total liabilities |
|
|
43,514 |
|
|
|
72,453 |
|
Stockholders’ equity: |
|
|
|
|
|
|
Common stock – Class A shares,
$0.0001 par value; 385,000,000 shares authorized, 234,844,952 and
225,428,187 shares issued and outstanding as of December 31, 2022
and December 31, 2021, respectively; Class C shares, par value
$0.0001, 5,750,000 issued and outstanding as of December 31, 2022
and December 30, 2021 |
|
|
25 |
|
|
|
24 |
|
Additional paid-in capital |
|
|
478,219 |
|
|
|
449,307 |
|
Accumulated deficit |
|
|
(407,878 |
) |
|
|
(305,084 |
) |
Accumulated other comprehensive
(loss) |
|
|
(39 |
) |
|
|
(16 |
) |
Total stockholders’ equity |
|
|
70,327 |
|
|
|
144,231 |
|
Total liabilities and stockholders’ equity |
|
$ |
113,841 |
|
|
$ |
216,684 |
|
|
|
|
|
|
|
|
|
|
BERKSHIRE GREY,
INC.Consolidated Statements of Cash
Flows(Unaudited) (in thousands,
except for share data)
|
|
Years Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
CASH FLOWS FROM OPERATING
ACTIVITIES |
|
|
|
|
|
|
Net loss |
|
$ |
(102,794 |
) |
|
$ |
(153,380 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities |
|
|
|
|
|
|
Depreciation and amortization |
|
|
3,385 |
|
|
|
2,745 |
|
Loss on disposal of fixed assets |
|
|
29 |
|
|
|
18 |
|
Gain on change in fair value of warrants |
|
|
(12,391 |
) |
|
|
(11,061 |
) |
Gain on foreign currency transactions |
|
|
79 |
|
|
|
73 |
|
Stock-based compensation |
|
|
1,434 |
|
|
|
49,843 |
|
FedEx warrant provision |
|
|
3,574 |
|
|
|
— |
|
Other expense related to equity purchase agreement |
|
|
1,262 |
|
|
|
— |
|
Change in operating assets and liabilities |
|
|
|
|
|
|
Accounts receivable |
|
|
8,285 |
|
|
|
3,461 |
|
Inventories |
|
|
(5,449 |
) |
|
|
(1,883 |
) |
Deferred fulfillment costs |
|
|
3,718 |
|
|
|
(4,228 |
) |
Contract assets |
|
|
(3,076 |
) |
|
|
(4,257 |
) |
Prepaid expenses and other assets |
|
|
1,082 |
|
|
|
(4,944 |
) |
Accounts payable |
|
|
(1,560 |
) |
|
|
4,952 |
|
Accrued expenses |
|
|
(5,208 |
) |
|
|
7,856 |
|
Contract liabilities |
|
|
(3,293 |
) |
|
|
(3,115 |
) |
Other liabilities |
|
|
(3 |
) |
|
|
(138 |
) |
Net cash used in operating
activities |
|
|
(110,926 |
) |
|
|
(114,058 |
) |
CASH FLOWS FROM INVESTING
ACTIVITIES |
|
|
|
|
|
|
Capital expenditures |
|
|
(3,132 |
) |
|
|
(4,069 |
) |
Net cash used in investing
activities |
|
|
(3,132 |
) |
|
|
(4,069 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES |
|
|
|
|
|
|
Proceeds from exercise of stock options |
|
|
3,511 |
|
|
|
3,103 |
|
Proceeds from issuance of common stock pursuant to equity purchase
agreement |
|
|
4,223 |
|
|
|
— |
|
Proceeds from issuance of common stock upon Merger, net of issuance
costs paid |
|
|
— |
|
|
|
192,088 |
|
Net cash provided by financing
activities |
|
|
7,734 |
|
|
|
195,191 |
|
Effect of exchange rate on
cash |
|
|
(51 |
) |
|
|
(91 |
) |
Net (decrease) increase in cash,
cash equivalents, and restricted cash |
|
|
(106,375 |
) |
|
|
76,973 |
|
Cash, cash equivalents, and
restricted cash at beginning of period |
|
|
171,951 |
|
|
|
94,978 |
|
Cash, cash equivalents, and
restricted cash at end of period |
|
|
65,576 |
|
|
|
171,951 |
|
NON-CASH INVESTING AND
FINANCING ACTIVITIES |
|
|
|
|
|
|
Assumption of merger warrants liability |
|
|
— |
|
|
|
24,338 |
|
Conversion of redeemable convertible preferred stock to common
stock |
|
|
— |
|
|
|
(223,442 |
) |
Right of use asset |
|
|
(7,485 |
) |
|
|
— |
|
Lease liability |
|
|
9,618 |
|
|
|
— |
|
Settlement of promissory note through repurchase of shares |
|
|
— |
|
|
|
10,238 |
|
Purchase of property and equipment included in accounts payable and
accrued expenses |
|
|
331 |
|
|
|
165 |
|
RECONCILIATION OF CASH
AND RESTRICTED CASH WITHIN THE CONSOLIDATED BALANCE SHEETS TO THE
AMOUNTS SHOWN IN THE CONSOLIDATED STATEMENTS OF CASH FLOWS
ABOVE |
|
|
|
|
|
|
Cash (inclusive of money market funds and cash equivalents of
$53,830 and $162,164 at December 31, 2022 and 2021,
respectively) |
|
|
64,322 |
|
|
|
171,089 |
|
Restricted cash |
|
|
1,254 |
|
|
|
862 |
|
Total cash, cash equivalents, and
restricted cash |
|
$ |
65,576 |
|
|
$ |
171,951 |
|
|
|
|
|
|
|
|
|
|
BERKSHIRE GREY,
INC.Reconciliations of EBITDA and Adjusted
EBITDA(Unaudited)
|
|
For the Years EndedDecember
31, |
|
(Dollars in thousands) |
|
2022 |
|
|
2021 |
|
Net loss |
|
$ |
(102,794 |
) |
|
$ |
(153,380 |
) |
Interest income, net |
|
|
(163 |
) |
|
|
(32 |
) |
Income tax expense |
|
|
108 |
|
|
|
58 |
|
Depreciation and
amortization |
|
|
3,385 |
|
|
|
2,745 |
|
EBITDA |
|
|
(99,464 |
) |
|
|
(150,609 |
) |
Stock-based compensation |
|
|
1,434 |
|
|
|
49,843 |
|
Change in fair value of warrant
liabilities |
|
|
(12,391 |
) |
|
|
(11,061 |
) |
FedEx warrant provision |
|
|
3,574 |
|
|
|
- |
|
Other (expense) |
|
|
1,398 |
|
|
|
76 |
|
Adjusted
EBITDA |
|
$ |
(105,449 |
) |
|
$ |
(111,751 |
) |
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