Rubicon Technologies, Inc. (“Rubicon” or the “Company”) (NYSE: RBT), a leading provider of software-based waste, recycling, and fleet operations products for businesses and governments worldwi...
Rubicon achieves third consecutive quarter of record Gross Profit at approximately $13.4 million, more than double Gross Profit over the third quarter of 2022.
NEW YORK: Rubicon Technologies, Inc. (“Rubicon” or the “Company”) (NYSE: RBT), a leading provider of software-based waste, recycling, and fleet operations products for businesses and governments worldwide, today reported financial and operational results for the third quarter of 2023.
Third Quarter 2023 Financial Highlights
Operational and Business Highlights
“We are excited to announce our third quarter 2023 results, which include a third consecutive quarter of record Adjusted Gross Profit,” said Phil Rodoni, Chief Executive Officer of Rubicon. “The results we are reporting today reflect continued progress against our Bridge to Profitability plan and are a testament to the entire Rubicon team and their hard work and dedication. We are focused on execution and driving even greater results for the Company and our valued customers.”
Third Quarter Review
Revenue was $171.3 million, a decrease of $13.7 million or 7.4% compared to $185.0 million in the third quarter of 2022. The decline is mainly driven by softness in commodities, in particular prices of old corrugated cardboard.
Gross Profit was $13.4 million, an increase of $6.8 million or 102.8% compared to $6.6 million in the third quarter of 2022. The growth in Gross Profit was driven by portfolio optimization and margin improvement in the RUBICONConnect business, and by platform support cost reduction initiatives.
Adjusted Gross Profit was $19.8 million, an increase of $5.7 million or 40.5% compared to $14.1 million in the third quarter of 2022. The increase in Adjusted Gross Profit was primarily the result of the optimization of the portfolio and margin improvement in the RUBICONConnect business.
Net Loss was $(30.2) million, an improvement of $180.9 million or 85.7% compared to $(211.1) million in the third quarter of 2022.
Adjusted EBITDA was $(8.9) million, an improvement of $12.2 million or a reduction of more than half of the loss of $(21.1) million in the third quarter of 2022.
Update on Strategic Plan
In the third quarter of 2022, Rubicon outlined its strategic plan and committed to materially improving its operational performance and strengthening its financial position. The Company acknowledged the challenges it faced and laid out the steps required to get to profitability and growth. Rubicon completed all the highest priority tasks from its plan, with certain goals achieved ahead of schedule. Specifically, the Company committed to:
To underscore the Company’s exceptional performance during an extremely turbulent time, while completing all of the above it was able to drive 35.1% growth in Adjusted Gross Profit on a year-to-date basis in 2023 as compared to the same prior year period. All of this was accomplished while Rubicon continued to deliver for its customers, diverting over 800 thousand tons of waste from landfill equating to approximately 1.6 million MTCO2e emissions avoided for the first half of 2023.
Webcast Information
The Rubicon Technologies, Inc. management team will host a conference call to discuss its third quarter 2023 financial results this afternoon, Wednesday, November 8, 2023, at 5:00 p.m. ET. The call can be accessed via telephone by dialing (929) 203-2112, or toll free at (888) 660-6863, and referencing Rubicon Technologies, Inc. A live webcast of the conference will also be available on the Events and Presentations page on the Investor Relations section of Rubicon’s website (https://investors.rubicon.com/events-presentations/default.aspx). Please log in to the webcast or dial in to the call at least 10 minutes prior to the start of the event.
About Rubicon
Rubicon Technologies, Inc. (NYSE: RBT) is a leading provider of software-based waste, recycling, and fleet operations products for businesses and governments worldwide. Striving to create a new industry standard by using technology to drive environmental innovation, the Company helps turn businesses into more sustainable enterprises, and neighborhoods into greener and smarter places to live and work. Rubicon’s mission is to end waste. It helps its partners find economic value in their waste streams and confidently execute on their sustainability goals. To learn more, visit rubicon.com.
Non-GAAP Financial Measures
This earnings release contains “non-GAAP financial measures,” including Adjusted Gross Profit, Adjusted Gross Profit Margin and Adjusted EBITDA, which are supplemental financial measures that are not calculated or presented in accordance with generally accepted accounting principles (GAAP). Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies. Definitions of these non-GAAP financial measures, including explanations of the ways in which Rubicon’s management uses these non-GAAP measures to evaluate its business, the substantive reasons why Rubicon’s management believes that these non-GAAP measures provide useful information to investors and limitations associated with the use of these non-GAAP measures, are included under “Use of Non-GAAP Financial Measures” after the tables below. In addition, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included under “Reconciliations of Non-GAAP Financial Measures” after the tables below.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, are forward-looking statements. When used in this press release, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon current expectations, estimates, projections, and assumptions that, while considered reasonable by Rubicon and its management, are inherently uncertain; factors that may cause actual results to differ materially from current expectations include, but are not limited to: 1) the outcome of any legal proceedings that may be instituted against Rubicon or others following the closing of the business combination; 2) Rubicon’s ability to continue to meet the New York Stock Exchange’s listing standards following the consummation of the business combination; 3) the ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, the ability of the combined company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; 4) continued costs related to the business combination; 5) changes in applicable laws or regulations; 6) the possibility that Rubicon may be adversely affected by other economic, business and/or competitive factors, including the continued impacts of the COVID-19 pandemic, geopolitical conflicts, such as the conflict between Israel and Hamas or Russia and Ukraine, the effects of inflation and potential recessionary conditions; 7) Rubicon’s execution of anticipated operational efficiency initiatives, cost reduction measures and financing arrangements; and 8) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K, Registration Statement on Form S-1, as amended, filed with the U.S. Securities and Exchange Commission (the “SEC”), and other documents Rubicon has filed with the SEC. Although Rubicon believes the expectations reflected in the forward-looking statements are reasonable, nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward looking statements will be achieved. There may be additional risks that Rubicon presently does not know of or that Rubicon currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements, many of which are beyond Rubicon’s control. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Rubicon does not undertake, and expressly disclaims, any duty to update these forward-looking statements, except as otherwise required by applicable law.
Statements and balance sheets related to this release can be found on the Investor Relations section of Rubicon’s website.
RUBICON TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
| Three Months Ended |
| Nine Months Ended | ||||||||||||
|
| 2023 |
| 2022 |
| 2023 |
| 2022 | ||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Service |
| $ | 159,119 |
|
| $ | 162,789 |
|
| $ | 486,125 |
|
| $ | 437,755 |
|
Recyclable commodity |
|
| 12,138 |
|
|
| 22,194 |
|
|
| 40,794 |
|
|
| 71,640 |
|
Total revenue |
|
| 171,257 |
|
|
| 184,983 |
|
|
| 526,919 |
|
|
| 509,395 |
|
Costs and Expenses: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Cost of revenue (exclusive of amortization and depreciation): |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Service |
|
| 147,018 |
|
|
| 157,504 |
|
|
| 455,213 |
|
|
| 423,382 |
|
Recyclable commodity |
|
| 10,272 |
|
|
| 20,234 |
|
|
| 35,427 |
|
|
| 65,856 |
|
Total cost of revenue (exclusive of amortization and depreciation) |
|
| 157,290 |
|
|
| 177,738 |
|
|
| 490,640 |
|
|
| 489,238 |
|
Sales and marketing |
|
| 2,903 |
|
|
| 4,840 |
|
|
| 8,924 |
|
|
| 13,336 |
|
Product development |
|
| 8,309 |
|
|
| 9,803 |
|
|
| 23,625 |
|
|
| 28,336 |
|
General and administrative |
|
| 13,803 |
|
|
| 186,640 |
|
|
| 45,882 |
|
|
| 212,520 |
|
Gain on settlement of incentive compensation |
|
| - |
|
|
| - |
|
|
| (18,622 | ) |
|
| - |
|
Amortization and depreciation |
|
| 1,277 |
|
|
| 1,439 |
|
|
| 3,982 |
|
|
| 4,331 |
|
Total Costs and Expenses |
|
| 183,582 |
|
|
| 380,460 |
|
|
| 554,431 |
|
|
| 747,761 |
|
Loss from Operations |
|
| (12,325 | ) |
|
| (195,477 | ) |
|
| (27,512 | ) |
|
| (238,366 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest earned |
|
| 5 |
|
|
| 1 |
|
|
| 11 |
|
|
| 1 |
|
Gain (loss) on change in fair value of warrant liabilities |
|
| 3,354 |
|
|
| 74 |
|
|
| 2,885 |
|
|
| (436 | ) |
Gain on change in fair value of earnout liabilities |
|
| 150 |
|
|
| 67,100 |
|
|
| 5,440 |
|
|
| 67,100 |
|
Loss on change in fair value of derivatives |
|
| (1,245 | ) |
|
| (76,919 | ) |
|
| (3,778 | ) |
|
| (76,919 | ) |
Excess fair value over the consideration received for SAFE |
|
| - |
|
|
| - |
|
|
| - |
|
|
| (800 | ) |
Gain on service fee settlements in connection with the Mergers |
|
| - |
|
|
| - |
If you liked this article and want to stay up to date with news from
InnovationOpenLab.com subscribe to ours
Free newsletter.
Related newsLast NewsMetaverse: between fashion, ecommerce and real estate in Italy strong…The European market for the metaverse will generate $119.35 billion in revenue. Companies must make themselves ready. Italy's Space Economy ecosystem looks to the MoonItalian Space Agency is developing a lunar habitation module that could be used in the NASA Artemis Space exploration program Bravo Innovation Hub Palermo: 20 startups selected for accelerationThe acceleration program developed by MIMIT selected the best startups for the “New energy, green and clean tech” and “Inclusion, social impact and Health”… Italian system integrator Var Group expands digital security services…With the acquisition of 51% of the South Tyrolean company ICS, the business unit Digital Security will also strengthen its Security Operation Center Most readItalian system integrator Var Group expands digital security services…With the acquisition of 51% of the South Tyrolean company ICS, the business unit Digital Security will also strengthen its Security Operation Center Italy's Space Economy ecosystem looks to the MoonItalian Space Agency is developing a lunar habitation module that could be used in the NASA Artemis Space exploration program Metaverse: between fashion, ecommerce and real estate in Italy strong…The European market for the metaverse will generate $119.35 billion in revenue. Companies must make themselves ready. BrainChip Attracts Former Intel AI Sales Executive to Head Up SalesBrainChip Holdings Ltd (ASX: BRN, OTCQX: BRCHF, ADR: BCHPY), the world’s first commercial producer of ultra-low power, fully digital, event-based, neuromorphic… G11 Media Networks |