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Berkshire Grey Reports First Quarter 2022 Results

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Berkshire Grey, Inc.
Berkshire Grey, Inc.

Exceeds Q1 Revenue Expectations and Reiterates Full Year 2022 Guidance of Approximately $90 Million

BEDFORD, Mass., May 12, 2022 (GLOBE NEWSWIRE) -- Berkshire Grey Inc. (Nasdaq: BGRY), a leader in AI-enabled robotic solutions that automate supply chain processes, today announced results for the quarter ended March 31, 2022.

First Quarter Financial Highlights

  • Revenue of $5.5 million.

  • Total orders since inception of $203 million.

  • Backlog of $103 million as of quarter-end.

  • Net loss of $23.6 million or $(0.10) per diluted share.

  • Adjusted EBITDA of $(31.8) million.

  • Ended the quarter with $140 million of cash and no debt.

First Quarter and Recent Business Highlights

  • Named the 2022 Enabling Technology Leader for Intelligent Robotic Automation by Frost & Sullivan. Frost & Sullivan recognized Berkshire Grey for its leadership in delivering AI-enabled robotic solutions that help customers solve labor challenges, improve operational capacity, and achieve measurable ROI.

  • Introduced its new Robotic Pick and Pack with Identification (BG RPPi) system for touchless eCommerce autobagging. Using Berkshire Grey’s advanced AI-enabled robotic technology, this system combines automated picking with advanced auto-identification and item manipulation technology for packing eCommerce items directly into autobagging equipment, thereby increasing throughput capacity without adding additional labor.

  • Attended Modex 2022, the world’s largest trade show for manufacturing and supply chain where the Company hosted more than 100 one-on-one meetings with prospective and existing customers and partners and demonstrated its systems to thousands of attendees.

  • Advanced its Berkshire Grey Partner Alliance (BGPA) program which now includes 13 partners, including the recently announced partnerships with Logistex and Swisslog. 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.

  • Announced a new Reverse Logistics solution which includes Berkshire Grey’s Robotic Product Sortation with Identification (RPSi) and Robotic Shuttle Put Wall (RSPW) systems specifically configured to help retailers efficiently process returns, accelerate the resale of returned goods, and improve labor utilization.

“We begin the year with strong momentum. Our AI-enabled robotic systems have become an important part of our customers’ automation transformation and we have significant opportunities for further expansion. Our teams are securing new opportunities across the eCommerce and retail sectors, and we have an established, growing partner program with well-respected system integrators and technology providers. This positions us well for ongoing growth as we continue to capture the tremendous market opportunity ahead of us,” said Tom Wagner, CEO of Berkshire Grey.

Outlook for Full Year 2022:
Berkshire Grey reiterated its expectations for 2022 revenue of approximately $90 million, representing growth of approximately 80% year-over-year. Berkshire Grey’s statement about expected revenue 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 first quarter 2022 results. The telephonic version of the call can be accessed by dialing:
Toll-free dial-in number: (855) 639-2214
International dial-in number: (409) 216-0598
Conference ID: 1697205

The live webcast 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, an archived webcast of the conference call will be accessible from the Investor Relations section of the Company’s website 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
This press release contains non-GAAP financial measures, including Adjusted EBITDA. 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 Information 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,” “outlook,” “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, risks associated with Berkshire Grey’s plans to develop and commercialize its product candidates, Berkshire Grey’s ability to continue to develop new innovations to meet constantly evolving customer demands, Berkshire Grey’s ability to maintain and establish collaborations or obtain additional funding, Berkshire Grey’s ability to forecast performance due to its limited operating history, and the 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.

Sara Buda
VP, Investor Relations, Berkshire Grey
ir@berkshiregrey.com


BERKSHIRE GREY, INC.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
(in thousands, except for share data)

For the Three Months Ended March 31,

2022

2021

Revenue

$

5,492

$

3,965

Cost of revenue

6,696

4,698

Gross loss

(1,204

)

(733

)

Operating expenses:

General and administrative expense

7,662

4,143

Sales and marketing expense

1,489

27,483

Research and development expense

20,343

12,310

Total operating expenses

29,494

43,936

Loss from operations

(30,698

)

(44,669

)

Other income (expense):

Interest income, net

7

11

Change in fair value of warrant liabilities

7,183

Other (expense), net

(48

)

(20

)

Net loss before income taxes

(23,556

)

(44,678

)

Income tax

10

5

Net loss

$

(23,566

)

$

(44,683

)

Other comprehensive loss:

Net foreign currency translation adjustments

(7

)

(6

)

Total comprehensive loss

$

(23,573

)

$

(44,689

)

Net loss per common share (Class A and C) – basic and diluted

$

(0.10

)

$

(2.06

)

Weighted average shares outstanding – basic and diluted

231,990,998

21,704,185


BERKSHIRE GREY, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands, except for share data)

March 31,

December 31,

2022

2021

ASSETS

Current assets:

Cash and cash equivalents

$

139,581

$

171,089

Accounts receivable

15,253

13,291

Inventories, net

3,890

2,641

Deferred fulfillment costs

21,241

7,689

Prepaid expenses

4,641

5,138

Other current assets

5,504

5,078

Total current assets

190,110

204,926

Property and equipment, net

9,411

10,874

Operating lease right-of-use assets

8,154

Restricted cash

862

862

Other non-current assets

849

22

Total assets

$

209,386

$

216,684

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

7,184

$

6,766

Accrued expenses

15,132

15,659

Contract liabilities

35,633

19,216

Other current liabilities

838

146

Total current liabilities

58,787

41,787

Share-based compensation liability

8,482

15,435

Warrant Liabilities

6,093

13,277

Operating lease liabilities, noncurrent

9,429

Other non-current liabilities

1,954

Total liabilities

$

82,791

$

72,453

Stockholders’ equity:

Common stock – Class A shares, $0.0001 par value; 385,000,000 shares authorized as of March 31, 2022 and December 31, 2021, 226,724,602 and 225,428,187 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively; Class C shares, par value $0.0001, 5,750,000 shares issued and outstanding as of March 31, 2022 and December 31, 2021

24

24

Additional paid-in capital

455,244

449,307

Accumulated deficit

(328,650

)

(305,084

)

Accumulated other comprehensive (loss)

(23

)

(16

)

Total stockholders’ equity

126,595

144,231

Total liabilities and stockholders’ equity

$

209,386

$

216,684


BERKSHIRE GREY, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands, except for share data)

Three Months Ended March 31,

2022

2021

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss

$

(23,566

)

$

(44,683

)

Adjustments to reconcile net loss to net cash used in operating activities

Depreciation and amortization

760

546

Loss on disposal of fixed assets

12

13

Gain on change in fair value of warrants

(7,183

)

Gain on foreign currency transactions

33

8

Stock-based compensation

(1,838

)

24,179

Change in operating assets and liabilities

Accounts receivable

(1,962

)

14,176

Inventories

(1,249

)

(221

)

Deferred fulfillment costs

(13,552

)

558

Prepaid expenses and other assets

129

(2,365

)

Accounts payable

348

466

Accrued expenses

(553

)

(3,114

)

Contract liabilities

16,417

(753

)

Other liabilities

(34

)

(26

)

Net cash used in operating activities

(32,238

)

(11,216

)

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditures

(46

)

(1,194

)

Net cash used in investing activities

(46

)

(1,194

)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from exercise of stock options

822

278

Net cash provided by financing activities

822

278

Effect of exchange rate on cash

(46

)

(15

)

Net (decrease) in cash, cash equivalents, and restricted cash

(31,508

)

(12,147

)

Cash, cash equivalents, and restricted cash at beginning of period

171,951

94,978

Cash, cash equivalents, and restricted cash at end of period

$

140,443

$

82,831

NON-CASH INVESTING AND FINANCING ACTIVITIES

Right of use asset

(8,154

)

Lease liability

10,287

Net investment in lease

884

Purchase of property and equipment included in accounts payable and accrued expenses

147

260

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 $129,172 and $81,239 at March 31, 2022 and 2021, respectively)

139,581

81,710

Restricted cash

862

1,121

Total cash, cash equivalents, and restricted cash

140,443

82,831


BERKSHIRE GREY, INC.
Supplemental Information
(Unaudited)

For the Three Months
Ended March 31,

(Dollars in thousands)

2022

2021

Net loss

$

(23,566

)

$

(44,683

)

Interest income, net

(7

)

(11

)

Income tax expense

10

5

Depreciation and amortization

760

546

EBITDA

(22,803

)

(44,143

)

Stock-based compensation

(1,838

)

24,179

Change in fair value of warrant liabilities

(7,183

)

Other (expense), net

48

20

Adjusted EBITDA

$

(31,776

)

$

(19,944

)