If want to learn how to stake your claim on the coming AI gold rush, you've come to the right place. Here are two pioneering businesses that are set to deliver bountiful artificial intelligence-driven gains to their shareholders in the coming years.
1. Symbotic
AI has the potential to bring previously unattainable levels of speed and efficiency to warehouse operations. Symbotic (SYM 1.62%) is a leader in this emerging industry -- at a time when countering rising logistics costs is becoming increasingly challenging for businesses of all sizes.
Symbotic wants to help its customers offset inflationary cost pressures by automating their warehouses. Symbotic's software and AI-powered robots can fulfill orders with 99.99% accuracy. Its high-density storage system can slash square footage needs by as much as 60%. And its tech makes it possible to load trailers in just minutes rather than hours.
Based on these and other benefits, Symbotic estimates that its clients could save $10 million annually from a $50 million investment in its tech, while also reducing inventory requirements by $50 million.
These advantages have caught the attention of some retail heavyweights. In May, Walmart disclosed its plan to integrate Symbotic's automation platform in all 42 of its regional distribution centers.
"Using high-speed robotics and intelligent software to organize and optimize inventory, the Symbotic System helps us get products to our customers quickly and seamlessly by revolutionizing how we receive and distribute products to stores," Walmart executive David Guggina said in a statement release announcing the partnership.
Symbotic's sales, in turn, are exploding. Its revenue for the quarter ended June 24 soared 78% year over year to $312 million.
Importantly, although Symbotic is not yet profitable, its margins are rapidly improving as it expands its client base. The fast-growing company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss came in at $3 million, compared to $22 million in the prior-year period. Sustained profitability should come as Symbotic grows its installed base of automation systems and begins to generate more recurring revenue.
Looking ahead, Symbotic has a long runway for further growth. The AI automation specialist pegs its massive market opportunity at $350 billion.
2. CrowdStrike
Artificial intelligence promises untold benefits, but the powerful technology does not come without risks. Worrisomely, nefarious actors can use AI to propagate sophisticated cyberattacks. Thankfully, CrowdStrike (CRWD 2.03%) stands between these threats and its customers.
CrowdStrike deploys an AI-powered threat-detection shield around its clients' cloud networks. Advanced machine learning technology enables CrowdStrike's platform to continuously grow more intelligent as it analyzes more than 2 trillion cloud security events per day. When a new threat is detected, the cloud guardian updates its network in real time to protect all users.
CrowdStrike pays particular attention to endpoint protection. Endpoints are devices that connect to a company's network from outside its traditional cyber defenses, such as laptops, tablets, and other mobile devices. The rise of remote workforces has made effective endpoint security a vital part of businesses' cloud strategies, and CrowdStrike is widely regarded as a leader in this area.
Unsurprisingly, CrowdStrike is growing briskly. The cyber sentinel's annual recurring revenue jumped 37% year over year to $2.9 billion as of July 31. The company's free cash flow growth is even more impressive at 42%, to $416 million, over the trailing six months.
Like Symbotic, CrowdStrike has plenty of room for further expansion in the coming years. The cybersecurity leader sees its addressable market growing to $158 billion by 2026.
