WILMINGTON, Mass. - Symbotic Inc. (NASDAQ:SYM), a company specializing in A.I.-enabled robotics for supply chain operations, has acquired the assets of Veo Robotics, a developer of intelligent robot safeguarding systems. This $8.7 million acquisition, which closed on July 19, 2024, includes the FreeMove® 3D depth-sensing computer vision system and its related intellectual property.
Rick Cohen, Chairman and CEO of Symbotic, highlighted the significance of the acquisition by stating that the integration of FreeMove will not only improve productivity through enhanced human-machine collaboration but also ensure the highest levels of safety in environments where both coexist.
The FreeMove system utilizes patented sensors and software to monitor collaborative robot workcells, dynamically predicting the future positions of humans and objects to autonomously control robot motion. This technology is designed to maintain safety without compromising efficiency and is the sole system of its kind to meet stringent EU safety standards, including ISO 13849 certification for PLd, Category 3 by TUV Rheinland.
Symbotic's acquisition of Veo Robotics' assets is expected to bolster the company's automation capabilities within the warehouse environment, allowing for more dynamic and flexible operations. The former Veo Robotics team will join Symbotic, bringing their expertise and technology to further develop the company's robotic warehouse automation systems.
As an automation technology leader, Symbotic aims to transform the supply chain with its A.I.-powered robotic and software platform, offering solutions that promise to improve the speed, agility, accuracy, and efficiency of goods distribution for its customers in retail, wholesale, and food & beverage industries.
In other recent news, Symbotic Inc. reported a 58% increase in revenue for the third fiscal quarter of 2024, reaching $492 million. Despite this robust growth, the company's adjusted EBITDA fell short due to prolonged construction schedules and rising costs. Analyst firms Craig-Hallum, Needham, and TD Cowen have all adjusted their price targets for Symbotic, with new targets set at $45.00, $40.00, and $43.00 respectively, while maintaining a Buy rating on the stock.
In response to the margin pressures, Symbotic is taking steps to internalize certain operations for better control and efficiency. The company's management anticipates a recovery in gross margins by the fourth quarter and expects further expansion as the deployment of systems picks up pace. Symbotic's financial outlook for the fourth quarter estimates revenue between $455 million and $475 million, with adjusted EBITDA of $28 million to $32 million.
InvestingPro Insights
Following Symbotic Inc.'s (NASDAQ:SYM) strategic acquisition of Veo Robotics, the company's financial health and market performance offer additional insights into its growth trajectory. According to InvestingPro data, Symbotic holds a market capitalization of $12.74 billion, reflecting its substantial presence in the automation industry. Despite a negative P/E ratio of -111.65, indicative of investor expectations for future earnings growth, the company has shown impressive revenue growth over the last twelve months as of Q3 2024, with an increase of 62.86%. This growth is a testament to Symbotic’s expanding influence in the supply chain automation sector and could signal the potential for increased market share following the integration of Veo Robotics' technology.
InvestingPro Tips highlight that Symbotic's net income is expected to grow this year, aligning with the company's forward-looking strategies such as the recent acquisition. Additionally, analysts anticipate sales growth in the current year, further supporting the company's expansion efforts. These projections could be a sign of investor confidence in Symbotic's ability to capitalize on the increasing demand for automation solutions in supply chain operations.
For those seeking a deeper analysis, InvestingPro offers additional tips on Symbotic Inc., which can be found at: https://www.investing.com/pro/SYM. Currently, there are 15 more InvestingPro Tips available, providing a comprehensive view of the company's financial health and market prospects.
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