Symbotic, a leading warehouse automation company, experienced a remarkable surge in its stock price, rising by over 50% as the firm reported its earnings. This surge resulted in an astounding increase in the net worth of its majority owner, billionaire Rick Cohen, who gained more than $7 billion in a single day. According to Forbes’ real-time wealth tracker, Cohen and his family’s combined net worth reached $27.8 billion by the end of the day, highlighting the robust growth in the industrial robotics sector. In the previous year’s Forbes 400 list, Cohen was ranked at number 99 with a net worth of $7.6 billion.
Rick Cohen, now 70, initially built his family’s grocery distribution business, C&S Wholesale Grocery, into the eighth-largest private company in the United States, with $33 billion in revenue. However, it is Symbotic, the warehouse automation firm, that has brought him remarkable wealth. With the recent surge in its stock price, Symbotic’s market capitalization reached $35 billion.
Cohen’s journey with Symbotic began as he sought solutions to address distribution challenges within C&S. Operating from Wilmington, Massachusetts, Symbotic operated mostly in stealth mode until it went public in 2022, through a SPAC deal sponsored by SoftBank, a prominent venture capital giant. At that point, the company had already secured Walmart as a customer, marking a significant milestone. In May 2022, Symbotic expanded its partnership with Walmart, extending its services to all 42 of the retail giant’s distribution centers. Symbotic’s clientele also includes major retailers like Albertsons and Target, in addition to Cohen’s C&S Wholesale Grocery.
Symbotic’s remarkable stock surge was driven by its strong third-quarter results. The company reported revenue of $312 million, marking a substantial 78% increase compared to the $176 million from the same period the previous year. Symbotic anticipates fourth-quarter revenue in the range of $290 million to $310 million, which would push its annual revenue beyond $1 billion for the first time. Although the company reported a net loss of $39 million for the quarter, primarily due to the expansion of automated warehouses, it expects to achieve positive Ebitda for the first time in the fourth quarter, ranging between zero and $3 million.
Furthermore, Symbotic recently established a joint venture with SoftBank Group called GreenBox Systems, aimed at introducing its robotic warehouses on a rental model. This initiative will provide small- and mid-sized companies with access to advanced automation technology. The rollout of GreenBox Systems is expected to commence in 2024, with Symbotic anticipating over $500 million in annual recurring revenue once the operation is fully operational in six years. During a recent conference call with investors, Cohen expressed his vision for GreenBox, emphasizing the importance of bringing AI-enabled automation to companies of all sizes.
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