NYSE$RXO

RXO Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

RXO executed well, achieving a record number of brokerage loads per day and double-digit brokerage volume growth for the second consecutive quarter.

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.

Headline financials

Total Revenue

$976M

Previous: $1.14B-14.2%
EPS (adj)

$0.05

Previous: $0.11-54.5%
Companywide Gross Margin

17.7%

No prior period
Brokerage Gross Margin

15.1%

No prior period
Brokerage Volume Change

18.0%

No prior period
Capital Expenditures

-$46M

Previous: -$39M-17.9%
Free Cash Flow

-$47M

Previous: -$26M-80.8%
Net Income

-$1M

Previous: $13M-107.7%
Operating Income

$6M

Previous: $15M-60.0%
Gross Profit

-$741M

Previous: -$857M+13.5%
Cash & Equivalents

$104M

Previous: $187M-44.4%
Total Assets

$1.95B

Previous: $2.24B-13.0%
Stock-Based Comp

$5M

Previous: $3M+66.7%

Revenue & EPS history

RXO · Revenue · Quarterly

$976M

Q3 2023-14.2%vs Q3 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

RXO · $954M total across 3 segments · Q3 2023

  • Truck Brokerage
    $591M
  • Last Mile
    $256M
  • Managed Transportation
    $107M

Forward guidance

The company expects brokerage volumes to continue to grow on a year-over-year basis in the fourth quarter of 2023.

Tailwinds

  • 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

Headwinds

  • 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

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 16 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-1.8%

Avg return

Earnings day

-2.4%

Avg return

5 days after

-1.0%

Avg return

30 days after

47%

9 / 19 earnings

Positive

+9.6%

Q4 2022

Best reaction

-23.1%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+8.9%+2.0%+36.9%
Q4 2025+1.9%-1.5%-17.1%
Q3 2025-23.1%-30.9%-18.1%
Q1 2025-5.6%+17.4%+16.5%
Q4 2024-14.9%-14.9%-21.6%
Q3 2024-6.6%-12.9%-10.5%
Q2 2024-3.4%-5.8%-10.5%
Q1 2024+7.4%+9.1%+7.4%
Q4 2023-9.8%-4.6%-7.0%
Q3 2023-5.1%-1.4%+14.6%
Q2 2023-10.4%-8.3%-16.7%
Q1 2023+3.5%+4.9%+19.3%
Q1 2022+3.5%+4.9%+19.3%
Q4 2020-0.9%-1.9%-9.7%
Q2 2022-0.9%-1.9%-9.7%
Q4 2022+9.6%+4.6%+3.8%
Q3 2021+3.7%-1.3%-5.6%
Q4 2021+3.7%-1.3%-5.6%
Q3 2022+3.7%-1.3%-5.6%
Q2 2021
Q1 2021

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro