Walmart-Backed Symbotic Stock Plunges on Accounting Errors | Global News Avenue

Token Stock (SYM) On Wednesday, the artificial intelligence (AI)-powered warehousing technology company announced it was delaying its annual report and modify the current quarter’s prospect Found “certain material weakness“In its financial report for the fiscal year ended September 28, 2024.

Walmart (WMT)-backed supply chain tech firm reports it will delay its report Form 10-K Because it “requires additional time to complete an assessment of the financial impact of correcting the error related to system revenue recognition and the impact of the error on system revenue recognition.” internal control About financial reporting. “

Symbotic said it initially identified instances where “goods and services primarily related to the achievement of specific milestones were expended before the corresponding milestone was achieved.” This “resulted in an acceleration in the recognition of cost of revenue,” it noted.

Symbotic found a “Revenue Recognition Error”

Symbotic said it also found that “its Revenue recognition Related to unbillable cost overruns in certain deployments, which further impacted system revenue recognized in the second, third and fourth quarters. ”

It is said that this error affected gross profitIncome (loss) before income taxes, Net income (loss)and adjusted Earnings before interest, taxes, depreciation and amortization (EBITDA). Additionally, Symbotic warned that its fourth-quarter and full-year 2024 results “should no longer be relied upon” and will be updated.

Based on these findings, Symbotic said it now expects first-quarter fiscal Revenue in 2025 is US$480 million to US$500 million, and adjusted EBITDA is US$12 million to US$16 million. On November 18, the company announced its fourth quarter results for fiscal year 2024. The company’s revenue for the next quarter is expected to be between US$495 million and US$515 million, and adjusted EBITDA is expected to be US$27 million to US$31 million.

A year ago, the company report Record revenue sent its stock price soaring.

Symbotic shares have fallen nearly 40% in recent trading, and the day’s losses have pushed the stock down more than 55% for the year.