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Shares of SoftBank-backed warehouse automation software provider Symbotic Inc. plunged by more than a third on Wednesday after lowering its earnings forecast and disclosing an accounting error.
The group, which went public in New York through a SPAC in 2022, said it had identified errors related to revenue recognition in accounting covering the first nine months of 2024. As a result, Symbotik said it was unable to make a declaration. Submit annual reports on time.
“Additional time is required to complete an evaluation of the financial impact of correcting errors related to system revenue recognition,” the Massachusetts-based company said in a statement.
The approval comes less than two weeks after Symbotic announced it had released full-year numbers and revised previous quarterly numbers that had incorrectly recognized revenue.
Symbotic, which is also backed by Walmart, added that it was taking steps to correct the missteps.
The company, which develops artificial intelligence-powered robotics for the supply chain, counts major retailers such as Target, Albertsons, C&S Wholesale Grocers and Canadian discount chain Giant Tiger among its customers.
According to LSEG data, multiple SoftBank affiliates own a total of 45% of Symbotik’s shares. Walmart is the company’s third-largest investor with a 14% stake, followed by Baillie Gifford with about 13.5%, according to the data.
Symbotic stock was down 41.5% as of midday in New York, having lost more than half its value since the start of the year. Wednesday’s selloff wiped out about $8.4 billion in market capitalization, reducing its market cap to $13.5 billion.
In addition to the accounting error, Symbotic lowered its revenue guidance for the current quarter to $480 million to $500 million, from the previous range of $495 million to $515 million.
The company also lowered its adjusted EBITDA forecast for the quarter to $12 million to $16 million, below its previous range of $27 million to $31 million.
