CEO Mike Bell presents annual updates on Miso’s business, product development and funding. The presentation was recorded live April 6, 2023 at Miso HQ in Pasadena, CA. Watch below or on YouTube.
Forward-looking statements notice: This letter and presentation contains “forward-looking statements” as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “estimate,” “expects,” “projects,” “intends,” “plans,” “believes,” “will” and words and terms of similar substance typically indicate forward-looking statements. All forward-looking statements are management’s present expectations of future events and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.
You are cautioned not to rely on such forward-looking statements, which speak only as of the date they were made. Miso is not under any obligation and expressly disclaims any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise. All subsequent forward-looking statements attributable to Miso, its affiliates, or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements referred to in this section.
Annual Letter to Shareholders
Hello Miso shareholders,
I’m happy to provide you with the following update on Miso Robotics, Inc.
Let me start by thanking you for your patience while we were heads down over the past few months. Miso recently closed a round of equity financing from a strategic investor (more on this below). With this investment closed, I am now free to supply a more comprehensive update on Miso’s progress.
In 2022, many installations of Flippy 2 carried important lessons and opportunities for improvements in Miso product design, processes, and overall execution. Each installation brought valuable learnings and steady improvement. This journey, although slower than a “foot on the gas” pace of installation, laid the necessary foundation for the increased scale we will realize in 2023.
Another important lesson for 2022 was reliability. Although Flippy was capable of operating with percentage uptime in the high 90s, we needed to perform even better in live restaurant environments. Separate from uptime, we began working with our partners to track instances in which Flippy caused an interruption to restaurant workflow – even minor ones. This metric raised the bar for Flippy’s performance and pushed the Miso engineering team to optimize the technology even further. Today, we are tracking less than one interruption per month in some of the most demanding, high-volume deployments. We believe this performance record reduces uncertainty for other restaurants to begin working with Miso.
The Flippy 2 flags that were planted in international territories are also performing well and are poised for expansion in 2023. The Flippy 2 working at a Wimpy location in the Dubai Mall, continues to draw worldwide attention.
Recently, we began deploying a Flippy 2 to a new White Castle restaurant every week and are looking to double that pace in the weeks ahead. Many other pilots, underway with major brands, are now in various stages of expansion.
Often, the specific details of Miso’s expansion are the purview of individual Miso customers who may not see it useful to make such information public. As Miso continues to grow, the purchase commitments from our customers will, in many cases, be less newsworthy or simply information that is deemed private to our customers. With or without public announcements, Miso pilots as a whole are performing well and earning rollouts to additional store locations.
Our current installations of Flippy are preparing food at a rate of over one million baskets of food per year – but of course, this pace increases with each robot we add to the fleet.
Miso’s Product Family
Flippy 2 gains the majority of attention, as it is our flagship product and our first one to enter production and commercial rollout. Miso’s other products are following right behind. Based on current test results, we expect Sippy to be turned over to manufacturing in the second quarter of this year. It is now achieving impressive throughput metrics in our testing lab. The next step will be getting early production units into live, test locations. Flippy Lite (aka “Chippy”), has gone from a Chipotle test kitchen pilot to a live restaurant pilot and is looking to expand in additional locations soon after. There are three additional brands expected to pilot Flippy Lite in the time at hand. CookRight coffee is deployed in a number of locations throughout different regions of the US. One of our early restaurant brand partners is planning to double the size of their live pilot locations next month. The preliminary insights produced by this solution are promising and are anticipated to lead to a real-life ROI that could outperform our expectations. All of these products are on their journey to making a meaningful and lasting impact and each one holds significant potential for scale in the years ahead.
Bringing AI-powered robotics solutions to market, and producing them at scale, requires large amounts of capital. A 2022 survey of robotic companies across various industries, showed the average amount of funding required to reach the point of volume production was over $200 million dollars. Similar to some biotech companies, robotic solutions require years of intense R&D investment to enable the variety of hardware and software technologies to work together and to perform reliably as a fleet, at scale. With over $100 million dollars invested into its technology since 2016, Miso is poised to enter its era of scaled manufacturing with an immense head start. Miso’s investment has enabled it to get a solid lead on would-be competitors we are aware of.
Ultimately, the growing fleet of Miso’s robots is expected to produce incoming cash flow that exceeds its monthly outflows. Until then, Miso will continue to raise investment capital in the most efficient manner and with the best economic terms available.
In December of last year, Miso took the important step of consolidating the various classes of preferred stock into a single common class. This step proved vital in enabling Miso to attract interest from institutional investors and bring in additional capital necessary for Miso to continue its long-term mission.
New, Strategic Investor
On March 10, 2023, Miso closed a $15 million round of equity capital from a strategic investor. A press release, which of course, will name the investor, will be released to the public in the coming weeks, as permitted by their press calendar. The company is a global brand with a $40B market capitalization and is a leading supplier to the restaurant industry. The investment and the partnership will help Miso develop an exciting new category of robotic solutions in the restaurant industry. In addition to important market validation, this partnership carries with it valuable avenues of growth for Miso.
As part of this financing, Miso can sell up to $55 million dollars of this class of stock ($40m additional).
What to Expect in the Near Future
Miso’s team will remain focused on our key priorities in the coming quarters. We plan to:
- Bring in additional capital to better enable our vision and protect your investment.
- Increase the pace of Flippy unit installations.
- Release products currently in development to commercial production and begin to generate revenue from them.
We are still in the very, very early stages of realizing Miso’s potential in the marketplace. There are over 300,000 QSR restaurants in the US alone. With certainty, there will be a day when they cease to rely on humans to fry food and perform other repetitive tasks. Capturing this future, for Miso and for the world at large, requires steady, determined focus and time to execute this grand vision. Thank you for being part of this exciting journey.