Rubicon Technologies Inc (RBT) Reports Q3 2023 Earnings: Gross Profit Soars as Net Loss Narrows
Rubicon Technologies Inc (NYSE:RBT) achieves record third-quarter Gross Profit of $13.4 million, a 102.8% increase year-over-year.
Adjusted Gross Profit rises to $19.8 million, marking a 40.5% improvement from the same quarter in 2022.
Net Loss shows significant improvement, decreasing by 85.7% to $(30.2) million compared to the prior year.
Adjusted EBITDA loss reduced by more than half to $(8.9) million, compared to $(21.1) million in Q3 2022.
On November 8, 2023, Rubicon Technologies Inc (NYSE:RBT), a leader in software-based waste, recycling, and fleet operations solutions, disclosed its financial outcomes for the third quarter of 2023. The company reported a third consecutive quarter of record Gross Profit, which more than doubled from the same period last year, reaching approximately $13.4 million. Despite a revenue decrease of 7.4% to $171.3 million, primarily due to a downturn in commodity prices, particularly old corrugated cardboard, the company's strategic initiatives have led to a substantial improvement in profitability metrics.
Financial Performance Overview
Rubicon's third-quarter review highlighted a Gross Profit surge to $13.4 million, a 102.8% increase, driven by portfolio optimization and margin improvement in the RUBICONConnect business, alongside platform support cost reduction initiatives. Adjusted Gross Profit also saw a significant rise to $19.8 million, up 40.5% compared to the third quarter of 2022. The company's Net Loss improved dramatically by $180.9 million to $(30.2) million, an 85.7% enhancement over the previous year. Adjusted EBITDA loss was more than halved to $(8.9) million, compared to a loss of $(21.1) million in the same quarter of 2022.
Strategic Plan and Operational Highlights
Rubicon's CEO, Phil Rodoni, expressed enthusiasm over the results, attributing them to the company's "Bridge to Profitability" plan and the team's dedication. The company successfully completed all high-priority tasks from its strategic plan, some ahead of schedule, leading to a 35.1% growth in Adjusted Gross Profit on a year-to-date basis compared to the prior year. Rubicon also continued its commitment to sustainability, diverting over 800 thousand tons of waste from landfills, equivalent to approximately 1.6 million MTCO2e emissions avoided in the first half of 2023.
Webcast and Company Information
Rubicon will host a conference call to discuss the Q3 2023 financial results, accessible via telephone and a live webcast on the company's investor relations website. For more details about Rubicon and its mission to end waste, stakeholders are encouraged to visit the company's website at rubicon.com.
Financial Statements and Non-GAAP Measures
The earnings release includes non-GAAP financial measures such as Adjusted Gross Profit, Adjusted Gross Profit Margin, and Adjusted EBITDA, which exclude certain expenses and provide a more focused view of the company's operational performance. Reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures are provided in the release.
Investors and media can find statements and balance sheets related to this release on the Investor Relations section of Rubicon's website. For further inquiries, contact details for investor relations and media representatives are available.
Overall, Rubicon Technologies Inc (NYSE:RBT) has demonstrated a strong ability to improve profitability and execute its strategic plan effectively, despite revenue headwinds. The significant reduction in net loss and the impressive growth in gross profit margins underscore the company's resilience and operational efficiency. These results may appeal to value investors looking for companies with improving financial health and a clear path to profitability.
Explore the complete 8-K earnings release (here) from Rubicon Technologies Inc for further details.
This article first appeared on GuruFocus.
