Loading...
•
Dec 31, 2023
RXO Q4 2023 Earnings Report
RXO reported mixed results for Q4 2023, with revenue declining year-over-year but brokerage volume growing double-digits for the third consecutive quarter and sequential gross margin expansion.
Key Takeaways
RXO's Q4 2023 results showed a decrease in revenue to $1.0 billion compared to $1.1 billion in Q4 2022. However, the brokerage business experienced a 15% volume increase. Net income was $2 million, a turnaround from the $4 million net loss in the same quarter last year.
Brokerage volume grew 15% year-over-year, marking the third consecutive quarter of double-digit growth.
Full-truckload brokerage volume increased 11% year-over-year, and less-than-truckload volume increased 45% year-over-year.
Companywide gross margin was 18.0%, with brokerage gross margin at 14.8%.
97% of brokerage loads were created or covered digitally, up from 87% in the fourth quarter of 2022.
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 first quarter of 2024.
Positive Outlook
- Brokerage volumes expected to grow year-over-year in Q1 2024.
- Strong brokerage sales pipeline.
- Focus on profitable market share.
- Strategic investments in the business.
- Cost reduction initiatives.
Challenges Ahead
- Prolonged soft freight environment.
- Continued cost reductions.
- Market conditions.
- Unspecified risks in SEC filings.
- Potential impacts from the company's separation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income