Berkshire Grey, Inc.

Net revenue in Q3 was $23.6 million, up over 26% year over year. Year-to-date revenue was $52.5 million, up 93% from the prior year. Gross margin was negative 5% in Q3, or negative 3.6% excluding the approximately $350,000 provision for the FedEx warrant; prior-quarter gross margins were negative 22% in Q1 and negative 13% in Q2. Adjusted EBITDA was negative $26.1 million, an improvement of over $4 million from Q2 and almost $6 million from Q1. Cash at quarter end was approximately $78 million with no debt. Management updated full-year 2022 revenue guidance to $65 million-$70 million, excluding any impact of the FedEx warrant, citing some customer project delays into next year. They also said Q4 installations should decline somewhat seasonally, backlog is over $100 million, and they expect most of that backlog to be realized over the next 12 to 15 months.

Tom Wagner emphasized that Berkshire Grey’s systems are delivering quantifiable ROI in production, including 100% accuracy, throughput improvements of up to 3x, and lower labor costs. He framed the macro backdrop as supportive because inflation, wage pressure, and labor constraints increase the need for automation. He also highlighted strategic momentum with FedEx, active discussions with Target, and first wins in EMEA, saying the company has a pipeline worth over $6 billion and remains very bullish on the long-term opportunity.

Mark Fidler focused on the operating and financial improvements, noting Q3 revenue of $23.6 million, a 93% increase in year-to-date revenue to $52.5 million, and gross margin improving to negative 3.6% excluding the FedEx warrant provision. He said operating expense was $26 million excluding stock comp, more than $2 million below Q2 and more than $5 million below Q1, and adjusted EBITDA improved to negative $26.1 million. He also said the company ended with about $78 million of cash and no debt, and highlighted the Lincoln Park equity purchase agreement that could provide up to $75 million of additional cash flexibility.

Analysts pressed on whether project delays were due to supply chain, labor, or budget issues; management said they were mainly customer-requested schedule changes and construction timing adjustments, not broad supply chain problems. They said delayed projects are likely to move into later Q1 or Q2, and that backlog should mostly be recognized over the next 12 to 15 months, assuming no new supply chain disruptions. On Europe, management said the two expected EMEA projects would be the company’s first wins in that region and are with new customers, while Target discussions remain active but no details were given.