NYSE$RXO

RXO Inc. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

RXO delivered a strong fourth quarter driven by brokerage volume growth.

RXO's Q4 2022 revenue was $1.1 billion. Companywide gross margin was 19.6 percent, up 250 basis points year-over-year. The company reported a GAAP net loss of $4 million, compared to net income of $42 million in the fourth quarter of 2021.

  • Companywide gross margin was 19.6 percent, up 250 basis points year-over-year; brokerage profitability remained strong with 17.9 percent gross margin in the fourth quarter, up 290 basis points year-over-year
  • Brokerage volume increased by 4% year-over-year and set a company record for loads per day
  • Downloads of RXO Drive™ app increased 45% year-over-year, and 87% of loads in the quarter were created or covered digitally
  • Company expects continued year-over-year brokerage volume growth in the first quarter of 2023, driven by strong sales pipeline

Headline financials

Total Revenue

$1.12B

Previous: $276M+305.8%
EPS (adj)

$0.28

Previous: $0.36-22.2%
Companywide Gross Margin

19.6%

Previous: 17.1%+14.6%
Brokerage Gross Margin

17.9%

Previous: 15.0%+19.3%
Brokerage Volume Change

4.0%

Previous: 0.0%
Capital Expenditures

$18M

Previous: $9M+100.0%
Free Cash Flow

$58M

Previous: $27M+114.8%
Net Income

-$4M

Previous: $42M-109.5%
Operating Income

-$1M

Previous: $55M-101.8%
Gross Profit

$278M

Previous: $276M+0.7%
Cash & Equivalents

$98M

Previous: $29M+237.9%
Total Assets

$2.03B

Previous: $2.07B-1.8%
Stock-Based Comp

$23M

Previous: $2M+1050.0%

Revenue & EPS history

RXO · Revenue · Quarterly

$1.12B

Q4 2022+305.8%vs Q4 2021
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

RXO · $1.07B total across 3 segments · Q4 2022

  • Truck Brokerage
    $664M
  • Last Mile
    $277M
  • Managed Transportation
    $129M

Forward guidance

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

Tailwinds

  • Continued year-over-year brokerage volume growth expected in Q1 2023
  • Strong sales pipeline

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 Q4 2022

Historical avgQ4 2022

-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

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