Berkshire Grey Inc. (Nasdaq: BGRY), a leader in AI-enabled robotic
solutions that automate supply chain processes, today announced
results for its second quarter ended June 30, 2022.
Second Quarter Financial
Highlights
- Revenue of $23.4 million, an increase of $18.9 million or 421%
as compared to the second quarter of 2021.
- $20 million in new orders in the second quarter of 2022 and
through July 31, 2022.
- Backlog of $100 million, which includes orders through
July 31, 2022.
- Net loss of $29.0 million or $(0.12) per diluted share.
- Adjusted EBITDA of $(30.3) million.
- $108 million of cash and cash equivalents with no debt as of
June 30, 2022.
Second Quarter and Recent Business
Highlights
- Berkshire Grey expanded its strategic relationship with FedEx,
an existing customer. Please see the Current Report on
Form 8-K filed with the SEC on August 2, 2022, for further
details of the FedEx agreements which include:
- An order for Berkshire Grey to develop a new AI robotic
automation solution aimed at helping improve the safety and
efficiency of FedEx package handling operations globally. Berkshire
Grey will offer the systems to FedEx and other Berkshire Grey
customers.
- A master system purchase agreement to be executed in 2022,
which will streamline and expedite the procurement process for any
Berkshire Grey solutions across all FedEx operating companies.
- A warrant to purchase common stock which vests incrementally,
subject to certain terms including the ordering of and payment for
Berkshire Grey AI-enabled robotic automation goods and services at
any time prior to December 31, 2025, with full vesting of all 25
million shares subject to the warrant upon the ordering of or
payment for at least $200 million of such goods and services.
- Expanded its Berkshire Grey Partner Alliance (BGPA)
program, which now includes 14 partners, including the recently
announced technology partnerships with ABB. The BGPA program
includes a select group of market-leading consultants, integrators,
technology providers and material handling leaders, broadening the
Company’s global reach, and extending its go-to-market
strategy.
- Secured the number one spot in the inaugural SupplyTech
Breakthrough Awards in the Overall SupplyTech Innovation of the
Year category. Berkshire Grey was recognized as the winner based on
the Company’s focus on innovation as well as the performance,
functionality, ease of use, value, and impact of its AI-enabled
robotic solutions.
“We continue to execute against our large and
growing market opportunity by expanding our relationships with our
strategic customers and securing new accounts,” said Tom Wagner,
CEO of Berkshire Grey. “Our ongoing momentum reflects the value of
our AI-enabled robotic solutions for the world’s most prestigious
retailers, package handling companies, eCommerce providers and
logistics companies.”
Outlook for Full Year 2022: The
Company expects revenue of approximately $70-80 million for 2022.
The updated estimate for 2022 revenue reflects the Company’s
expectation that one of its projects with a large customer will be
delayed. Berkshire Grey and this customer are discussing changes in
the project schedule and an expanded scope for the project which
has the potential to increase Berkshire Grey’s overall opportunity
with this customer in 2023 and beyond. Berkshire Grey’s statements
about expected revenue and the potential to increase this
particular project scope is forward-looking and based on current
expectations. Actual results could differ materially depending on
market conditions and the factors set forth under “Cautionary
Information Regarding Forward-Looking Statements” below.
Conference Call and Webcast
Information Berkshire Grey will hold a conference call and
webcast today at 10:00 am ET to discuss its second quarter 2022
results. The telephonic version of the call can be accessed by
dialing: Dial-in: 1-833-630-1956 or 1-412-317-1837 Conference ID:
Berkshire Grey Q2 2022 earnings call
A live webcast (listen only) can be accessed on
the events page of the investor relations section of the Berkshire
Grey website https://ir.berkshiregrey.com/news-events.
The replay of the call will be accessible on the
Company’s website at https://ir.berkshiregrey.com/
approximately two hours after conclusion of the live event and
accessible for twelve months.
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 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, and stock-based compensation
expense. 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.
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
Statements This 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, including Berkshire
Grey’s outlook and guidance for the full year 2022, 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
speak only as of the date of this communication and are subject to
a number of significant risks and uncertainties, including, without
limitation (a) 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; (b) the loss of any
customers, or the termination of existing contracts by any
customers; (c) the inability to penetrate new markets and generate
revenues from the pipeline; (d) demand for Berkshire Grey products
and services from FedEx and other customers that does not grow as
expected, including the potentially increased customer opportunity
mentioned in the Outlook for Full Year 2022 above; (e) dependence
on a limited number of third-party contract manufacturers; (f) the
failure to manage any growth in the company or its business;
(g) increased competition; (h) 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; (i)
risks associated with Berkshire Grey’s plans to develop and
commercialize its product candidates to meet constantly evolving
customer demands; (j) Berkshire Grey’s ability to maintain and
establish collaborations or obtain additional funding;
(k) other risks associated with companies, such as Berkshire
Grey, that are engaged in the intelligent automation industry; and
(l) 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 believe 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.
BERKSHIRE GREY, INC.
Condensed Consolidated Statements of Operations and
Comprehensive Loss (Unaudited)
(in thousands, except for share data)
|
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenue |
|
$ |
23,448 |
|
|
$ |
4,503 |
|
|
$ |
28,940 |
|
|
$ |
8,468 |
|
Cost of revenue |
|
|
26,411 |
|
|
|
5,240 |
|
|
|
33,107 |
|
|
|
9,938 |
|
Gross loss |
|
|
(2,963 |
) |
|
|
(737 |
) |
|
|
(4,167 |
) |
|
|
(1,470 |
) |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expense |
|
|
7,004 |
|
|
|
4,710 |
|
|
|
14,666 |
|
|
|
8,853 |
|
Sales and marketing expense |
|
|
2,565 |
|
|
|
10,540 |
|
|
|
4,054 |
|
|
|
38,023 |
|
Research and development expense |
|
|
18,927 |
|
|
|
15,741 |
|
|
|
39,270 |
|
|
|
28,051 |
|
Total operating expenses |
|
|
28,496 |
|
|
|
30,991 |
|
|
|
57,990 |
|
|
|
74,927 |
|
Loss from operations |
|
|
(31,459 |
) |
|
|
(31,728 |
) |
|
|
(62,157 |
) |
|
|
(76,397 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
|
6 |
|
|
3 |
|
|
|
13 |
|
|
|
14 |
|
Change in fair value of warrant liabilities |
|
|
2,555 |
|
|
|
— |
|
|
|
9,738 |
|
|
|
— |
|
Other (expense), net |
|
|
(50 |
) |
|
|
(22 |
) |
|
|
(98 |
) |
|
|
(42 |
) |
Net loss before income taxes |
|
|
(28,948 |
) |
|
|
(31,747 |
) |
|
|
(52,504 |
) |
|
|
(76,425 |
) |
Income tax |
|
|
36 |
|
|
|
7 |
|
|
|
46 |
|
|
|
12 |
|
Net loss |
|
$ |
(28,984 |
) |
|
$ |
(31,754 |
) |
|
$ |
(52,550 |
) |
|
$ |
(76,437 |
) |
Other comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
|
Net foreign currency translation adjustments |
|
|
(17 |
) |
|
|
— |
|
|
|
(40 |
) |
|
|
(6 |
) |
Total comprehensive loss |
|
$ |
(29,001 |
) |
|
$ |
(31,754 |
) |
|
$ |
(52,590 |
) |
|
$ |
(76,443 |
) |
Net loss per common share (Class A and C) – basic and diluted |
|
$ |
(0.12 |
) |
|
$ |
(1.40 |
) |
|
$ |
(0.23 |
) |
|
$ |
(3.44 |
) |
Weighted average shares outstanding – basic and diluted |
|
|
233,094,040 |
|
|
|
22,731,043 |
|
|
|
232,545,566 |
|
|
|
22,220,455 |
|
BERKSHIRE GREY, INC.
Condensed Consolidated Balance Sheets
(Unaudited) (in thousands, except for
share data)
|
|
June 30, |
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
108,363 |
|
|
$ |
171,089 |
|
Accounts receivable |
|
|
10,937 |
|
|
|
13,291 |
|
Inventories, net |
|
|
5,211 |
|
|
|
2,641 |
|
Deferred fulfillment costs |
|
|
16,528 |
|
|
|
7,689 |
|
Prepaid expenses |
|
|
3,161 |
|
|
|
5,138 |
|
Other current assets |
|
|
2,840 |
|
|
|
5,078 |
|
Total current assets |
|
|
147,040 |
|
|
|
204,926 |
|
Property and equipment, net |
|
|
9,857 |
|
|
|
10,874 |
|
Operating lease right-of-use assets |
|
|
7,933 |
|
|
|
— |
|
Restricted cash |
|
|
754 |
|
|
|
862 |
|
Other non-current assets |
|
|
830 |
|
|
|
22 |
|
Total assets |
|
$ |
166,414 |
|
|
$ |
216,684 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
7,833 |
|
|
$ |
6,766 |
|
Accrued expenses |
|
|
11,791 |
|
|
|
15,659 |
|
Contract liabilities |
|
|
25,707 |
|
|
|
19,216 |
|
Other current liabilities |
|
|
973 |
|
|
|
146 |
|
Total current liabilities |
|
|
46,304 |
|
|
|
41,787 |
|
Share-based compensation liability |
|
|
2,655 |
|
|
|
15,435 |
|
Warrant liabilities |
|
|
3,539 |
|
|
|
13,277 |
|
Operating lease liabilities, noncurrent |
|
|
9,130 |
|
|
|
— |
|
Other non-current liabilities |
|
|
— |
|
|
|
1,954 |
|
Total liabilities |
|
$ |
61,628 |
|
|
$ |
72,453 |
|
Stockholders’ equity: |
|
|
|
|
|
|
Common stock – Class A shares, $0.0001 par value; 385,000,000
shares authorized as of June 30, 2022 and December 31, 2021,
228,047,915 and 225,428,187 shares issued and outstanding as of
June 30, 2022 and December 31, 2021, respectively; Class C shares,
par value $0.0001, 5,750,000 shares issued and outstanding as of
June 30, 2022 and December 31, 2021 |
|
|
24 |
|
|
|
24 |
|
Additional paid-in capital |
|
|
462,436 |
|
|
|
449,307 |
|
Accumulated deficit |
|
|
(357,634 |
) |
|
|
(305,084 |
) |
Accumulated other comprehensive (loss) |
|
|
(40 |
) |
|
|
(16 |
) |
Total stockholders’ equity |
|
|
104,786 |
|
|
|
144,231 |
|
Total liabilities and stockholders’ equity |
|
$ |
166,414 |
|
|
$ |
216,684 |
|
BERKSHIRE GREY, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited) (in thousands, except for
share data)
|
|
Six Months Ended June 30, |
|
|
|
2022 |
|
|
2021 |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
Net loss |
|
$ |
(52,550 |
) |
|
$ |
(76,437 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities |
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,582 |
|
|
|
1,217 |
|
Loss on disposal of fixed assets |
|
|
13 |
|
|
|
15 |
|
Gain on change in fair value of warrants |
|
|
(9,738 |
) |
|
|
— |
|
Gain on foreign currency transactions |
|
|
40 |
|
|
|
37 |
|
Stock-based compensation |
|
|
(1,478 |
) |
|
|
29,488 |
|
Change in operating assets and liabilities |
|
|
|
|
|
|
Accounts receivable |
|
|
2,354 |
|
|
|
14,083 |
|
Inventories |
|
|
(2,570 |
) |
|
|
(1,961 |
) |
Deferred fulfillment costs |
|
|
(8,839 |
) |
|
|
(9,912 |
) |
Prepaid expenses and other assets |
|
|
4,288 |
|
|
|
(3,729 |
) |
Accounts payable |
|
|
984 |
|
|
|
3,621 |
|
Accrued expenses |
|
|
(3,883 |
) |
|
|
2,866 |
|
Contract liabilities |
|
|
6,491 |
|
|
|
1,434 |
|
Other liabilities |
|
|
(30 |
) |
|
|
(62 |
) |
Net cash used in operating activities |
|
|
(63,336 |
) |
|
|
(39,340 |
) |
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
Capital expenditures |
|
|
(1,268 |
) |
|
|
(2,139 |
) |
Net cash used in investing activities |
|
|
(1,268 |
) |
|
|
(2,139 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
Proceeds from exercise of stock options |
|
|
1,828 |
|
|
|
495 |
|
Net cash provided by financing activities |
|
|
1,828 |
|
|
|
495 |
|
Effect of exchange rate on cash |
|
|
(58 |
) |
|
|
(43 |
) |
Net decrease in cash, cash equivalents, and restricted cash |
|
|
(62,834 |
) |
|
|
(41,027 |
) |
Cash, cash equivalents, and restricted cash at beginning of
period |
|
|
171,951 |
|
|
|
94,978 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
109,117 |
|
|
$ |
53,951 |
|
NON-CASH INVESTING AND FINANCING ACTIVITIES |
|
|
|
|
|
|
Deferred transaction costs not yet paid included in accrued
expenses |
|
|
— |
|
|
|
(1,656 |
) |
Right of use asset |
|
|
(7,933 |
) |
|
|
— |
|
Lease liability |
|
|
10,114 |
|
|
|
— |
|
Net investment in lease |
|
|
884 |
|
|
|
— |
|
Purchase of property and equipment included in accounts payable and
accrued expenses |
|
|
193 |
|
|
|
156 |
|
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
$94,177 and $51,496 at June 30, 2022 and 2021, respectively) |
|
|
108,363 |
|
|
|
52,830 |
|
Restricted cash |
|
|
754 |
|
|
|
1,121 |
|
Total cash, cash equivalents, and restricted cash |
|
$ |
109,117 |
|
|
$ |
53,951 |
|
|
|
|
|
|
|
|
BERKSHIRE GREY, INC.
Supplemental Information
(Unaudited)
|
|
For the Three Months Ended
June 30, |
|
|
For the Six Months Ended
June 30, |
|
(Dollars in thousands) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net loss |
|
$ |
(28,984 |
) |
|
$ |
(31,754 |
) |
|
$ |
(52,550 |
) |
|
$ |
(76,437 |
) |
Interest income, net |
|
|
(6 |
) |
|
|
(3 |
) |
|
|
(13 |
) |
|
|
(14 |
) |
Income tax expense |
|
|
36 |
|
|
|
7 |
|
|
|
46 |
|
|
|
12 |
|
Depreciation and amortization |
|
|
822 |
|
|
|
671 |
|
|
|
1,582 |
|
|
|
1,217 |
|
EBITDA |
|
|
(28,132 |
) |
|
|
(31,079 |
) |
|
|
(50,935 |
) |
|
|
(75,222 |
) |
Stock-based compensation |
|
|
360 |
|
|
|
5,309 |
|
|
|
(1,478 |
) |
|
|
29,488 |
|
Change in fair value of warrant liabilities |
|
|
(2,555 |
) |
|
|
— |
|
|
|
(9,738 |
) |
|
|
— |
|
Other (expense), net |
|
|
50 |
|
|
|
22 |
|
|
|
98 |
|
|
|
42 |
|
Adjusted EBITDA |
|
$ |
(30,277 |
) |
|
$ |
(25,748 |
) |
|
$ |
(62,053 |
) |
|
$ |
(45,692 |
) |
Contacts:
Investors: Sara Buda VP, Investor Relations,
Berkshire Grey ir@berkshiregrey.com
Media: Method Communications for Berkshire Grey
berkshiregrey@methodcommunications.com
Berkshire Grey (NASDAQ:BGRY)
Historical Stock Chart
From Mar 2024 to Apr 2024
Berkshire Grey (NASDAQ:BGRY)
Historical Stock Chart
From Apr 2023 to Apr 2024