Berkshire Grey Reports Fourth-Quarter and Full-Year 2022 Results
[March 29, 2023]
Berkshire Grey Reports Fourth-Quarter and Full-Year 2022 Results
Revenue of $66 Million for Full Year 2022 Meets Full Year Outlook
Company Achieves Positive Gross Margins in Q4
BEDFORD, Mass. , March 29, 2023 (GLOBE NEWSWIRE) -- 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 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 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.
BERKSHIRE GREY, INC. Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (in thousands, except for share data)
Years Ended December 31,
Cost of revenue
General and administrative expense
Sales and marketing expense
Research and development expense
Total operating expenses
Loss from operations
Other income (expense)
Change in fair value of warrant liabilities
Net loss before income taxes
Other comprehensive (loss):
Net foreign currency translation adjustments
Total comprehensive loss
Net loss per common share (Class A and C) – basic and diluted
Weighted average shares outstanding – basic and diluted
BERKSHIRE GREY, INC. Consolidated Balance Sheets (Unaudited) (in thousands, except for share data)
Cash and cash equivalents
Inventories – net
Deferred fulfillment costs
Other current assets
Total current assets
Property and equipment – net
Operating lease right-of-use assets
Other non-current assets
LIABILITIES AND STOCKHOLDERS’ EQUITY
Other current liabilities
Total current liabilities
Share-based compensation liability
Operating lease liabilities, noncurrent
Other non-current liabilities
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
Additional paid-in capital
Accumulated other comprehensive (loss)
Total stockholders’ equity
Total liabilities and stockholders’ equity
BERKSHIRE GREY, INC. Consolidated Statements of Cash Flows (Unaudited) (in thousands, except for share data)
Years Ended December 31,
CASH FLOWS FROM OPERATING ACTIVITIES
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization
Loss on disposal of fixed assets
Gain on change in fair value of warrants
Gain on foreign currency transactions
FedEx warrant provision
Other expense related to equity purchase agreement
Change in operating assets and liabilities
Deferred fulfillment costs
Prepaid expenses and other assets
Net cash used in operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options
Proceeds from issuance of common stock pursuant to equity purchase agreement
Proceeds from issuance of common stock upon Merger, net of issuance costs paid
Net cash provided by financing activities
Effect of exchange rate on cash
Net (decrease) increase in cash, cash equivalents, and restricted cash
Cash, cash equivalents, and restricted cash at beginning of period
Cash, cash equivalents, and restricted cash at end of period
NON-CASH INVESTING AND FINANCING ACTIVITIES
Assumption of merger warrants liability
Conversion of redeemable convertible preferred stock to common stock
Right of use asset
Settlement of promissory note through repurchase of shares
Purchase of property and equipment included in accounts payable and accrued expenses
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)
Total cash, cash equivalents, and restricted cash
BERKSHIRE GREY, INC. Reconciliations of EBITDA and Adjusted EBITDA (Unaudited)