RXO Announces Results for Second Quarter 2023, Including Double-Digit Brokerage Volume Growth

RXO Pronounces Outcomes for Second Quarter 2023, Together with Double-Digit Brokerage Quantity Progress



RXO (NYSE: RXO) right now introduced its monetary outcomes for the second quarter of 2023.

Drew Wilkerson, chief govt officer of RXO, stated, “RXO executed effectively in a tender freight market. In our brokerage enterprise, we continued to realize vital market share and recorded 10 % quantity development year-over-year. We set a number of brokerage quantity information within the quarter, together with whole quantity, quarterly hundreds per day and month-to-month hundreds per day. Companywide and brokerage gross margin remained robust at 18.6 % and 15.4 %, respectively.

“Our margin efficiency was the results of continued buyer and service adoption of RXO’s cutting-edge, AI-enabled know-how, together with our industry-leading pricing algorithms,” Wilkerson stated. “Ninety-six % of RXO’s orders within the quarter have been created or coated digitally and 78 % of carriers utilizing our know-how returned to our platform inside seven days.”

Wilkerson concluded, “Our market share positive factors are accelerating, and we’re well-positioned at this stage of the freight cycle. We are going to proceed to offer excellent customer support, develop market share profitably and management prices whereas investing for the long run. Following this playbook will allow vital earnings development when the cycle inflects, and we stay assured in our potential to ship our long-term adjusted EBITDA goal.”

Companywide Outcomes

The corporate’s income was $1.0 billion for the second quarter, in comparison with $1.2 billion within the second quarter of 2022. Gross margin was 18.6 %.

The corporate reported second-quarter 2023 GAAP web earnings of $3 million, in comparison with web earnings of $44 million within the second quarter of 2022. GAAP web earnings included $6 million in transaction, integration, restructuring and different prices. Adjusted web income1 within the quarter was $10 million, in comparison with $64 million within the second quarter of 2022.

Adjusted EBITDA1 was $38 million, in comparison with $101 million within the second quarter of 2022. Adjusted EBITDA margin1 was 3.9 %, in comparison with 8.2 % within the second quarter of 2022.

Transaction, integration, restructuring and different prices, and amortization of intangibles, impacted GAAP earnings per share by $0.05, web of tax. For the second quarter, RXO reported GAAP diluted earnings per share of $0.03. Adjusted diluted earnings per share1 have been $0.08.

Brokerage

RXO’s brokerage enterprise grew quantity 10 % year-over-year within the second quarter. Brokerage gross margin was 15.4 % within the second quarter.

Brokerage contract quantity elevated by 19 % year-over-year within the second quarter, the results of the corporate’s elevated bid exercise within the fourth quarter of 2022 and the primary quarter of 2023. RXO’s brokerage gross sales pipeline stays robust, and annual bid depend elevated by 23 % year-over-year within the second quarter.

To place the corporate for additional development when the freight cycle inflects, RXO introduced that it has invested within the enlargement of its brokerage places of work in Ann Arbor, Michigan; Columbia, South Carolina; and Kansas Metropolis, Missouri.

The corporate expects brokerage volumes to proceed to develop on a year-over-year foundation within the third quarter of 2023.

Complementary Companies

RXO’s complementary providers gross margin was flat year-over-year within the quarter and elevated by 50 foundation factors sequentially. Masses offered by RXO’s managed transportation enterprise to its brokerage enterprise elevated each year-over-year and quarter-over-quarter.

RXO’s final mile enterprise grew EBITDA year-over-year within the second quarter, and the corporate continues to count on to develop full-year final mile EBITDA year-over-year.

Expertise Replace

Within the second quarter of 2023, 96 % of RXO’s brokerage hundreds have been created or coated digitally utilizing RXO’s best-in-class know-how platform, up from 80 % within the second quarter of 2022.

The seven-day service retention charge was 78 %, in comparison with 73 % within the second quarter of 2022. Weekly common customers on the platform elevated 3 % year-over-year within the second quarter.

Convention Name

The corporate will maintain a convention name and webcast on Wednesday, August 2 at 8 a.m. Jap Daylight Time. Contributors can name in toll-free (from U.S./Canada) at 1-888-259-6580; worldwide callers dial +1-206-962-3782. The convention ID is 16669759.

A stay webcast of the convention name shall be accessible on the investor relations space of the corporate’s web site, http://buyers.rxo.com. A replay of the convention name shall be accessible by way of August 23, 2023, by calling toll-free (from U.S./Canada) 1-877-674-7070; worldwide callers dial +1-416-764-8692. Use the passcode 669759#. Moreover, the decision shall be archived on http://buyers.rxo.com.

About RXO

RXO (NYSE: RXO) is a number one supplier of asset-light transportation options. RXO presents tech-enabled truck brokerage providers along with complementary options together with managed transportation, freight forwarding and final mile supply. The corporate combines large capability and cutting-edge know-how to maneuver freight effectively by way of provide chains. RXO’s proprietary know-how connects roughly 10,000 prospects with over 100,000 unbiased carriers throughout North America. The corporate is headquartered in Charlotte, N.C. Go to RXO.com for extra data and join with RXO on Fb, Twitter, LinkedIn, Instagram and YouTube.

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