The market gets many things wrong about Symbotic (NASDAQ: SYM), including the significance of its swelling backlog and the multiyear growth runway it presents. The timing and lumpiness of early results aside, the company is ramping capacity while leaning into backlog conversion, accelerating both its deployments and profitability in the process. Other details the market gets wrong are the company’s model, which is neither a hardware or equipment pureplay, as well as customer concentration risk.
The company’s model is hardware-centric today, as deployments are central to the endgame, which is high-margin services and software maintenance.
