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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.
Revenue by Segment
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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