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Sep 30, 2023
RXO Q3 2023 Earnings Report
RXO executed well, achieving a record number of brokerage loads per day and double-digit brokerage volume growth for the second consecutive quarter.
Key Takeaways
RXO's revenue was $1.0 billion, compared to $1.1 billion in the third quarter of 2022. The company reported a GAAP net loss of $1 million, compared to net income of $13 million in the third quarter of 2022. Brokerage volume grew 18 percent year-over-year.
Brokerage volume grew 18 percent year-over-year.
Full-truckload brokerage volume increased 13 percent year-over-year and less-than-truckload volume increased 55 percent year-over-year.
Companywide gross margin was 17.7 percent; brokerage gross margin was 15.1 percent.
Brokerage contract volume increased by 30 percent year-over-year.
RXO
RXO
RXO Revenue by Segment
Revenue by Segment
Truck brokerage Revenue
CapyFin.comLast mile Revenue
CapyFin.comManaged transportation Revenue
CapyFin.com Forward Guidance
The company expects brokerage volumes to continue to grow on a year-over-year basis in the fourth quarter of 2023.
Positive Outlook
- Brokerage volumes are expected to continue to grow
- Strong brokerage sales pipeline
- Increased brokerage sales pipeline by 115 percent since the third quarter of 2021
- Last mile business grew EBITDA year-over-year
- Company continues to expect to grow full-year last mile EBITDA year-over-year
Challenges Ahead
- Market remains soft
- Monitoring the freight markets closely
- GAAP net loss of $1 million, compared to net income of $13 million in the third quarter of 2022
- Adjusted EBITDA was $26 million, compared to $66 million in the third quarter of 2022
- Adjusted EBITDA margin was 2.7 percent, compared to 5.8 percent in the third quarter of 2022
Revenue & Expenses
Visualization of income flow from segment revenue to net income