Berkshire Grey Reports Fourth-Quarter and Full-Year 2022 Results

Revenue of $66 Million for Full Year 2022 Meets Full Year Outlook

Company Achieves Positive Gross Margins in Q4

BEDFORD, Mass. , March 29, 2023 (GLOBE NEWSWIRE) -- Berkshire Grey Inc. (Nasdaq: BGRY) (the “Company”), a leader in AI-enabled robotic solutions that automate supply chain processes, today announced results for its fourth quarter and year ended December 31, 2022. The Company:

  • Executed 71 installations of Berkshire Grey’s advanced robotics solutions during 2022.
  • Entered 2023 with backlog of approximately $100 million.
  • Increased total orders since inception to $265 million.
  • Achieved positive gross margin in the fourth quarter of 2022.

“We had another strong quarter in terms of execution, and we continue to make significant progress improving our financial performance,” said Tom Wagner, Chief Executive Officer of the Company. “Our customers are impressed with the ability of our AI-enabled robotics solutions to increase efficiency and drive out costs across their logistics operations.”

Full Year 2022 Financial Highlights

  • Total orders received in 2022 of over $65.0 million.
  • Revenue of $65.9 million, an increase of 29% compared to 2021. Revenue includes $3.6 million for the provision for common stock warrants, which is recorded as a reduction in revenue.
  • Net loss of $102.8 million, or ($0.44) per share.
  • Adjusted EBITDA of ($105.4) million.

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

Non-GAAP Financial Measures
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. 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, FedEx warrant provision, and stock-based compensation expense. 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 Note 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 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,” “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 are subject to a number of significant risks and uncertainties, including, without limitation (a) risks and uncertainties related to Berkshire Grey’s proposed merger with a wholly-owned subsidiary of SoftBank Group Corp. (the “Proposed Merger”) such as (i) the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement; (ii) the failure to obtain stockholder approval of the Proposed Merger; (iii) the failure to obtain certain required regulatory approvals to the completion of the Proposed Merger or the failure to satisfy any of the other conditions to the completion of the Proposed Merger; (iv) the effect of the announcement of the Proposed Merger on the ability of the Company to retain and hire key personnel and maintain relationships with its key business partners and customers, and others with whom it does business, or on its operating results and businesses generally; (v) the response of the Company’s competitors to the Proposed Merger; (vi) risks associated with the disruption of management’s attention from ongoing business operations due to the Proposed Merger; (vii) the ability to meet expectations regarding the timing and completion of the Proposed Merger; (viii) significant costs associated with the Proposed Merger, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the Proposed Merger; (ix) potential litigation relating to the Proposed Merger; (x) restrictions during the pendency of the Proposed Merger that may impact the Company’s ability to pursue certain business opportunities; (xi) the outcome of any legal proceedings that may be instituted against the parties and others following announcement of the merger agreement; and (xii) the completion of the convertible note financing that was agreed to with the merger agreement; (b) current and future conditions in the global economy, including as a result of the impact of the COVID-19 pandemic, inflation and rising interest rates; (c) the loss of any customers, or the termination of existing contracts by any customers; (d) the inability to penetrate new markets and generate revenues from the pipeline; (e) demand for Berkshire Grey products and services from FedEx and other customers that does not grow as expected; (f) dependence on a limited number of third-party contract manufacturers; (g) the failure to manage any growth in the company or its business; (h) increased competition; (i) the difficulty of predicting order flow and revenue generated from Berkshire Grey’s small number of customers with generally large order sizes and many variables that can impact project schedules and the completion of sales; (j) risks associated with Berkshire Grey’s plans to develop and commercialize its product candidates to meet constantly evolving customer demands; (k) Berkshire Grey’s ability to maintain and establish collaborations or obtain additional funding; (l) other risks associated with companies, such as Berkshire Grey, that are engaged in the intelligent automation industry; and (m) 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 believes 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.

Investors: Ian Rhoades
Sharon Merrill Associates, Inc.

Media: Method Communications for Berkshire Grey

Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except for share data)

    Years Ended December 31,  
    2022     2021  
Revenue   $ 65,850     $ 50,852  
Cost of revenue     71,118       59,099  
Gross loss     (5,268 )     (8,247 )
Operating expenses:            
General and administrative expense     22,491       40,313  
Sales and marketing expense     13,503       51,960  
Research and development expense     72,580       63,819  
Total operating expenses     108,574       156,092  
Loss from operations     (113,842 )     (164,339 )
Other income (expense)            
Interest income     163       32  
Change in fair value of warrant liabilities     12,391       11,061  
Other (expense)     (1,398 )     (76 )
Net loss before income taxes     (102,686 )     (153,322 )
Income tax   108       58  
Net loss   $ (102,794 )   $ (153,380 )
Other comprehensive (loss):            
Net foreign currency translation adjustments     (23 )     (17 )
Total comprehensive loss   $ (102,817 )   $ (153,397 )
Net loss per common share (Class A and C) – basic and diluted   $ (0.44 )   $ (1.33 )
Weighted average shares outstanding – basic and diluted     234,675,258       115,301,526  

Consolidated Balance Sheets
(in thousands, except for share data)

    December 31,  
    2022     2021  
Current assets:            
Cash and cash equivalents   $ 64,322     $ 171,089  
Accounts receivable     5,006       13,291  
Inventories – net     8,090       2,641  
Deferred fulfillment costs     3,971       7,689  
Prepaid expenses     4,293       5,138  
Contract assets     7,333       4,257  
Other current assets     1,254       821  
Total current assets     94,269       204,926  
Property and equipment – net     10,810       10,874  
Operating lease right-of-use assets     7,485        
Restricted cash     1,254       862  
Other non-current assets     23       22  
Total assets   $ 113,841     $ 216,684  
Current liabilities:            
Accounts payable   $ 5,290     $ 6,766  
Accrued expenses     10,698       15,659  
Contract liabilities     15,923       19,216  
Other current liabilities     1,039       146  
Total current liabilities     32,950       41,787  
Share-based compensation liability     1,089       15,435  
Warrant liability     885       13,277  
Operating lease liabilities, noncurrent     8,590        
Other non-current liabilities           1,954  
Total liabilities     43,514       72,453  
Stockholders’ equity:            
Common stock – Class A shares, $0.0001 par value; 385,000,000 shares authorized, 234,844,952 and 225,428,187 shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively; Class C shares, par value $0.0001, 5,750,000 issued and outstanding as of December 31, 2022 and December 30, 2021     25       24  
Additional paid-in capital     478,219       449,307  
Accumulated deficit     (407,878 )     (305,084 )
Accumulated other comprehensive (loss)     (39 )     (16 )
Total stockholders’ equity     70,327       144,231  
Total liabilities and stockholders’ equity   $ 113,841     $ 216,684  

Consolidated Statements of Cash Flows
(in thousands, except for share data)

    Years Ended December 31,  
    2022     2021  
Net loss   $ (102,794 )   $ (153,380 )
Adjustments to reconcile net loss to net cash used in operating activities            
Depreciation and amortization     3,385       2,745  
Loss on disposal of fixed assets     29       18  
Gain on change in fair value of warrants     (12,391 )     (11,061 )
Gain on foreign currency transactions     79       73  
Stock-based compensation     1,434       49,843  
FedEx warrant provision     3,574        
Other expense related to equity purchase agreement     1,262        
Change in operating assets and liabilities            
Accounts receivable     8,285       3,461  
Inventories     (5,449 )     (1,883 )
Deferred fulfillment costs     3,718       (4,228 )
Contract assets     (3,076 )     (4,257 )
Prepaid expenses and other assets     1,082       (4,944 )
Accounts payable     (1,560 )     4,952  
Accrued expenses     (5,208 )     7,856  
Contract liabilities     (3,293 )     (3,115 )
Other liabilities     (3 )     (138 )
Net cash used in operating activities     (110,926 )     (114,058 )
Capital expenditures     (3,132 )     (4,069 )
Net cash used in investing activities     (3,132 )     (4,069 )
Proceeds from exercise of stock options     3,511       3,103  
Proceeds from issuance of common stock pursuant to equity purchase agreement     4,223        
Proceeds from issuance of common stock upon Merger, net of issuance costs paid           192,088  
Net cash provided by financing activities     7,734       195,191  
Effect of exchange rate on cash     (51 )     (91 )
Net (decrease) increase in cash, cash equivalents, and restricted cash     (106,375 )     76,973  
Cash, cash equivalents, and restricted cash at beginning of period     171,951       94,978  
Cash, cash equivalents, and restricted cash at end of period     65,576       171,951  
Assumption of merger warrants liability           24,338  
Conversion of redeemable convertible preferred stock to common stock           (223,442 )
Right of use asset     (7,485 )      
Lease liability     9,618        
Settlement of promissory note through repurchase of shares           10,238  
Purchase of property and equipment included in accounts payable and accrued expenses     331       165  
Cash (inclusive of money market funds and cash equivalents of $53,830 and $162,164 at December 31, 2022 and 2021, respectively)     64,322       171,089  
Restricted cash     1,254       862  
Total cash, cash equivalents, and restricted cash   $ 65,576     $ 171,951  

Reconciliations of EBITDA and Adjusted EBITDA

    For the Years Ended
December 31,
(Dollars in thousands)   2022     2021  
Net loss   $ (102,794 )   $ (153,380 )
Interest income, net     (163 )     (32 )
Income tax expense     108       58  
Depreciation and amortization     3,385       2,745  
EBITDA     (99,464 )     (150,609 )
Stock-based compensation     1,434       49,843  
Change in fair value of warrant liabilities     (12,391 )     (11,061 )
FedEx warrant provision     3,574       -  
Other (expense)     1,398       76  
Adjusted EBITDA   $ (105,449 )   $ (111,751 )

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Source: Berkshire Grey, Inc.