AutoStore (AUTO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $154.2 million, up 11.6% sequentially but down 12.2% year-over-year due to longer backlog conversion cycles and project delivery postponements.

• Order intake rose 3.4% year-over-year to $141.4 million, with H1 2024 order intake up 8% year-over-year to $324 million and backlog up 5.9% to $478.8 million.

• Gross margin improved to 73.3%, marking the 8th consecutive quarter of gains, driven by favorable sourcing and product mix.

• Adjusted EBITDA margin was 48.7%, up 300 bps sequentially but down 0.9 percentage points year-over-year.

• Leadership team strengthened with new Chief Product Officer and Chief Solutions Officer appointments to support innovation and high-throughput solutions.

Financial highlights

• Q2 gross profit was $113 million, down 4.7% year-over-year; adjusted EBITDA was $75.1 million, down 13.7% year-over-year.

• Order backlog at June 30, 2024, stood at $479 million with no cancellations.

• Cash flow from operations was $16.3 million after settlement payments; cash reserves ended at $269.3 million.

• CapEx spiked to 10% of sales due to facility completions but is expected to normalize to around 8%.

• Q2 net profit was $44.7 million, compared to a loss of $148.1 million last year; basic EPS at 0.013.

Outlook and guidance

• Sequential revenue improvement expected in H2 2024, with the majority of growth anticipated in Q4.

• Gross margin for the full year is expected to be in the low 70s%.

• Continued investment in R&D, marketing, and production capacity, including new facilities in Poland and Thailand.

• Management remains optimistic about long-term growth, citing a large addressable market with only 15-20% automation penetration.

• Backlog quality is high, supporting future growth, but timing of order conversion remains uncertain due to economic conditions.