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.
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
- 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.
- 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.
- 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.
- 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.
- Gross Profit Margin was 7.8%, an increase of 424 bps compared
to 3.6% in the third quarter of 2022.
- Adjusted Gross Profit Margin was 11.6%, an increase of 395 bps
compared to 7.6% in the third quarter of 2022.
- Adjusted EBITDA was $(8.9) million, an improvement of $12.2
million or 57.7% compared to $(21.1) million in the third quarter
of 2022.
Operational and Business Highlights
- The Company announced a new, 5-year partnership with the City
of Phoenix, Arizona in September. The new agreement with Phoenix,
which is the fifth largest city in the United States, will put
Rubicon’s smart city software at the heart of the City’s Public
Works Department, providing waste and recycling collection to more
than 418,000 locations weekly. Rubicon will help Phoenix digitize
its solid waste collection operation, transitioning from largely
manual and paper-based processes to running the Company’s software
in the City’s solid waste and recycling fleet of more than 300
vehicles.
- The Company is pleased to announce a new, 5-year partnership
with the City of Austin, Texas. Rubicon will help Austin, the
eleventh largest city in the United States, continue its process of
digitizing its solid waste and recycling collection operations
across its fleet of 290 vehicles, which service more than 210,000
locations every week. Austin will use the Company’s technology to
streamline collection, track material and tonnage on its bulky
trash routes, and reduce missed pickups and unnecessary go-backs.
Austin will be able to closely monitor route performance, identify
areas where waste and recycling services can be improved, and make
data-driven decisions to enhance route efficiency and better serve
its residents.
- RUBICONConnect™ welcomed the addition of Neiman Marcus and
Atlantis Management Group to the platform, among others. Both
companies will experience the full benefits of Rubicon’s digital
platform for scalable waste and recycling services, which supports
their efforts to reduce environmental impact while providing
exceptional value and service to their own customers.
- The Company also announced a 2-year extension of its existing
agreement with Americold. RUBICONConnect has been deployed at more
than 150 Americold locations since 2020, and the Company manages
Americold’s trash, mixed recycling, baled cardboard, baled plastic,
and food waste. The new agreement extends this relationship through
the end of 2025 and includes a go-forward plan to onboard more
locations from within the Americold portfolio.
“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:
- Extending debt maturities. Rubicon successfully pushed
maturities out to 2025 from 2023.
- Improving its liquidity position. Rubicon closed a $75 million
term loan and expanded its revolver capacity by $15 million.
- Reducing expenses. Rubicon reduced expenses by $55 million on
an annualized basis.
- Expanding Adjusted Gross Profit margin to double digits by the
end of 2023. Rubicon surpassed 10% in the second quarter, ahead of
its goal.
- Securing additional financing. Rubicon brought in an additional
$24 million of equity financing from new and existing investors in
Q2.
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 September
30,
Nine Months Ended September
30,
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
-
-
6,996
-
Loss on extinguishment of debt
obligations
(9,348
)
-
(18,234
)
-
Interest expense
(9,179
)
(4,578
)
(24,474
)
(12,264
)
Related party interest expense
(453
)
-
(1,707
)
-
Other expense
(1,116
)
(1,307
)
(2,019
)
(1,994
)
Total Other Income (Expense)
(17,832
)
(15,629
)
(34,880
)
(25,312
)
Loss Before Income Taxes
(30,157
)
(211,106
)
(62,392
)
(263,678
)
Income tax expense
16
19
49
60
Net Loss
$
(30,173
)
$
(211,125
)
$
(62,441
)
$
(263,738
)
Net loss attributable to Holdings LLC
unitholders prior to the Mergers
-
(176,384
)
-
(228,997
)
Net loss attributable to noncontrolling
interests
(2,519
)
(16,933
)
(18,456
)
(16,933
)
Net Loss Attributable to Class A Common
Stockholders
$
(27,654
)
$
(17,808
)
$
(43,985
)
$
(17,808
)
Net loss per Class A Common share – basic
and diluted
$
(0.85
)
$
(2.93
)
$
(2.47
)
$
(2.93
)
Weighted average shares outstanding –
basic and diluted
32,381,649
6,083,847
17,786,466
6,083,847
RUBICON TECHNOLOGIES, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
(in thousands)
September 30, 2023
December 31, 2022
ASSETS
Current Assets:
Cash and cash equivalents
$
13,433
$
10,079
Accounts receivable, net
59,600
65,923
Contract assets
68,629
55,184
Prepaid expenses
19,532
10,466
Other current assets
4,168
2,109
Related-party notes receivable
-
7,020
Total Current Assets
165,362
150,781
Property and equipment, net
1,633
2,644
Operating right-of-use assets
792
2,827
Other noncurrent assets
2,043
4,764
Goodwill
32,132
32,132
Intangible assets, net
8,465
10,881
Total Assets
$
210,427
$
204,029
LIABILITIES AND MEMBERS’ (DEFICIT)
EQUITY
Current Liabilities:
Accounts payable
$
52,965
$
75,113
Line of credit
65,477
51,823
Accrued expenses
83,666
108,002
Contract liabilities
6,524
5,888
Operating lease liabilities, current
925
1,880
Warrant liabilities
26,502
20,890
Derivative liabilities
8,428
-
Debt obligations, net of deferred debt
charges
-
3,771
Total Current Liabilities
244,487
267,367
Long-Term Liabilities:
Deferred income taxes
239
217
Operating lease liabilities,
noncurrent
60
1,826
Debt obligations, net of deferred debt
charges
76,818
69,458
Related-party debt obligations, net of
deferred debt charges
15,794
10,597
Derivative liabilities
5,536
826
Earn-out liabilities
160
5,600
Other long-term liabilities
-
2,590
Total Long-Term Liabilities
98,607
91,114
Total Liabilities
343,094
358,481
Commitments and Contingencies
Stockholders’ (Deficit) Equity:
Common stock – Class A, par value of
$0.0001 per share, 690,000,000 shares authorized, 34,803,951 and
6,985,869 shares issued and outstanding as of September 30, 2023
and December 31, 2022, respectively
3
1
Common stock – Class V, par value of
$0.0001 per share, 275,000,000 shares authorized, 4,425,388 and
14,432,992 shares issued and outstanding as of September 30, 2023
and December 31, 2022, respectively
-
1
Preferred stock – par value of $0.0001 per
share, 10,000,000 shares authorized, 0 issued and outstanding as of
September 30, 2023 and December 31, 2022, respectively
-
-
Additional paid-in capital
118,884
34,659
Accumulated deficit
(381,845
)
(337,860
)
Total stockholders’ deficit attributable
to Rubicon Technologies, Inc.
(262,958
)
(303,199
)
Noncontrolling interests
130,291
148,747
Total Stockholders’ Deficit
(132,667
)
(154,452
)
Total Liabilities and Stockholders’
(Deficit) Equity
$
210,427
$
204,029
RUBICON TECHNOLOGIES, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS (UNAUDITED)
(in thousands)
Nine Months Ended
September 30,
2023
2022
Cash flows from operating
activities:
Net loss
$
(62,441
)
$
(263,738
)
Adjustments to reconcile net loss to net
cash flows from operating activities:
Loss on disposal of property and
equipment
777
23
Gain on lease agreement amendment
(220
)
-
Amortization and depreciation
3,982
4,026
Amortization of debt discount and issuance
costs
6,392
2,378
Amortization of related party debt
discount and issuance costs
586
-
Paid-in-kind interest capitalized to
principal of debt obligations
6,733
-
Paid-in-kind interest capitalized to
principal of related party debt obligations
1,012
-
Bad debt reserve
2,065
(2,366
)
(Gain) Loss on change in fair value of
warrants
(2,885
)
436
Loss on change in fair value of
derivatives
3,778
76,919
Gain on change in fair value of earn-out
liabilities
(5,440
)
(67,100
)
Loss on extinguishment of debt
obligations
18,234
-
Excess fair value over the consideration
received for SAFE
-
800
SEPA commitment fee settled in Class A
Common Stock
-
892
Equity-based compensation
13,239
88,546
Phantom unit expense
-
6,783
Deferred compensation expense
-
1,250
Settlement of accrued incentive
compensation
(26,826
)
-
Service fees settled in common stock
5,863
-
Gain on service fee settlement in
connection with the Mergers
(6,996
)
-
Deferred income taxes
22
41
Change in operating assets and
liabilities:
Accounts receivable
4,258
(13,636
)
Contract assets
(13,445
)
(5,821
)
Prepaid expenses
(6,731
)
(5,528
)
Other current assets
(2,122
)
(131
)
Operating right-of-use assets
868
801
Other noncurrent assets
140
355
Accounts payable
(22,148
)
10,967
Accrued expenses
17,033
52,450
Contract liabilities
636
(142
)
Operating lease liabilities
(1,335
)
(1,273
)
Other liabilities
(1,602
)
150
Net cash flows from operating
activities
(66,573
)
(112,918
)
Cash flows from investing
activities:
Property and equipment purchases
(750
)
(1,150
)
Forward purchase option derivative
purchase
-
(68,715
)
Net cash flows from investing
activities
(750
)
(69,865
)
Cash flows from financing
activities:
Net borrowings on line of credit
13,653
179
Proceeds from debt obligations
86,226
-
Repayments of debt obligations
(53,500
)
(4,500
)
Proceeds from related party debt
obligations
14,520
-
Financing costs paid
(13,891
)
(2,000
)
Proceeds from issuance of common stock
24,767
-
Proceeds from SAFE
-
8,000
Proceeds from the Mergers
-
196,778
Equity issuance costs
(31
)
(21,827
)
RSUs withheld to pay taxes
(1,067
)
-
Net cash flows from financing
activities
70,677
176,630
Net change in cash and cash
equivalents
3,354
(6,153
)
Cash, beginning of period
10,079
10,617
Cash, end of period
$
13,433
$
4,464
Supplemental disclosure of cash flow
information:
Cash paid for interest
$
9,934
$
9,023
Supplemental disclosures of non-cash
investing and financing activities:
Exchange of warrant liability for Class A
and Class V Common Stock
$
2,250
$
1,716
Conversion of SAFE for Class B Units
$
-
$
8,000
Establishment of earn-out liabilities
$
-
$
74,100
Equity issuance costs accrued but not
paid
$
-
$
44,235
Fair value of derivatives issued as debt
discount and issuance costs
$
12,739
$
-
Conversions of debt obligations to common
stock
$
17,000
$
-
Conversions of related-party debt
obligations to common stock
$
3,080
$
-
Equity issuance costs waived
$
6,364
$
-
Equity issuance costs settled with common
stock
$
7,069
$
-
Loan commitment asset reclassed to debt
discount
$
2,062
$
-
Use of Non-GAAP Financial
Measures
Adjusted Gross Profit and Adjusted Gross Profit
Margin
Adjusted Gross Profit and Adjusted Gross Profit Margin are
considered non-GAAP financial measures under the rules of the SEC
because they exclude, respectively, certain amounts included in
Gross Profit and Gross Profit Margin calculated in accordance with
GAAP. Specifically, the Company calculates Adjusted Gross Profit by
adding back amortization and depreciation for revenue generating
activities and platform support costs to GAAP Gross Profit, the
most comparable GAAP measure. Adjusted Gross Profit Margin is
calculated as Adjusted Gross Profit divided by total GAAP revenue.
The Company believes presenting Adjusted Gross Profit and Adjusted
Gross Profit Margin is useful to investors because they show the
progress in scaling Rubicon’s digital platform by quantifying the
markup and margin the Company charges its customers that are
incremental to its marketplace vendor costs. These measures
demonstrate this progress because changes in these measures are
driven primarily by the Company’s ability to optimize services for
its customers, improve its hauling and recycling partners’
efficiency and achieve economies of scale on both sides of the
marketplace. Rubicon’s management team uses these non-GAAP measures
as one of the means to evaluate the profitability of the Company’s
customer accounts, exclusive of certain costs that are generally
fixed in nature, and to assess how successful the Company is in
achieving its pricing strategies. However, it is important to note
that other companies, including companies in our industry, may
calculate and use these measures differently or not at all, which
may reduce their usefulness as a comparative measure. Further,
these measures should not be read in isolation from or without
reference to our results prepared in accordance with GAAP.
Adjusted EBITDA
Adjusted EBITDA is considered a non-GAAP financial measure under
the rules of the SEC because it excludes certain amounts included
in net loss calculated in accordance with GAAP. Specifically, the
Company calculates Adjusted EBITDA by GAAP net loss adjusted to
exclude interest expense and income, income tax expense and
benefit, amortization and depreciation, gain or loss on
extinguishment of debt obligations, equity-based compensation,
phantom unit expense, gain or loss on change in fair value of
warrant liabilities, gain or loss on change in fair value of
earn-out liabilities, gain or loss on change in fair value of
derivatives, executive severance charges, gain or loss on
settlement of the Management Rollover Bonuses, gain or loss on
service fee settlements in connection with the Mergers, other
non-operating income and expenses, and unique non-recurring income
and expenses.
The Company has included Adjusted EBITDA because it is a key
measure used by Rubicon’s management team to evaluate its operating
performance, generate future operating plans, and make strategic
decisions, including those relating to operating expenses. Further,
the Company believes Adjusted EBITDA is helpful in highlighting
trends in Rubicon’s operating results because it allows for more
consistent comparisons of financial performance between periods by
excluding gains and losses that are non-operational in nature or
outside the control of management, as well as items that may differ
significantly depending on long-term strategic decisions regarding
capital structure, the tax jurisdictions in which Rubicon operates
and capital investments. Adjusted EBITDA is also often used by
analysts, investors and other interested parties in evaluating and
comparing Rubicon’s results to other companies within the industry.
Accordingly, the Company believes that Adjusted EBITDA provides
useful information to investors and others in understanding and
evaluating its operating results in the same manner as Rubicon’s
management team and board of directors.
Adjusted EBITDA has limitations as an analytical tool, and it
should not be considered in isolation or as a substitute for
analysis of net loss or other results as reported under GAAP. Some
of these limitations are:
- Adjusted EBITDA does not reflect the Company’s cash
expenditures, future requirements for capital expenditures, or
contractual commitments;
- Adjusted EBITDA does not reflect changes in, or cash
requirements for, the Company’s working capital needs;
- Adjusted EBITDA does not reflect the Company’s tax expense or
the cash requirements to pay taxes;
- although amortization and depreciation are non-cash charges,
the assets being amortized and depreciated will often have to be
replaced in the future and Adjusted EBITDA does not reflect any
cash requirements for such replacements;
- Adjusted EBITDA should not be construed as an inference that
the Company’s future results will be unaffected by unusual or
non-recurring items for which the Company may make adjustments in
historical periods; and
- other companies in the industry may calculate Adjusted EBITDA
differently than the Company does, limiting its usefulness as a
comparative measure.
Reconciliations of Non-GAAP Financial Measures
Adjusted Gross Profit and Adjusted Gross Profit
Margin
The following table presents reconciliations of Adjusted Gross
Profit and Adjusted Gross Margin to the most directly comparable
GAAP financial measures for each of the periods indicated.
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
(in thousands, except
percentages)
Total revenue
$
171,257
$
184,983
$
526,919
$
509,395
Less: total cost of revenue (exclusive of
amortization and depreciation)
157,290
177,738
490,640
489,238
Less: amortization and depreciation for
revenue generating activities
606
657
1,794
1,886
Gross profit
$
13,361
$
6,588
$
34,485
$
18,271
Gross profit margin
7.8
%
3.6
%
6.5
%
3.6
%
Gross profit
$
13,361
$
6,588
$
34,485
$
18,271
Add: amortization and depreciation for
revenue generating activities
606
657
1,794
1,886
Add: platform support costs(1)
5,883
6,884
17,661
19,761
Adjusted gross profit
$
19,850
$
14,129
$
53,940
$
39,918
Adjusted gross profit margin
11.6
%
7.6
%
10.2
%
7.8
%
Amortization and depreciation for revenue
generating activities
$
606
$
657
$
1,794
$
1,886
Amortization and depreciation for sales,
marketing, general and administrative activities
671
782
2,188
2,445
Total amortization and depreciation
$
1,277
$
1,439
$
3,982
$
4,331
Platform support costs(1)
$
5,883
$
6,884
$
17,661
$
19,761
Marketplace vendor costs(2)
151,407
170,854
472,979
469,477
Total cost of revenue (exclusive of
amortization and depreciation)
$
157,290
$
177,738
$
490,640
$
489,238
(1)
Platform support costs are defined as
costs to operate the Company’s revenue generating platforms that do
not directly correlate with volume of sales transactions procured
through Rubicon’s digital marketplace. Such costs include employee
costs, data costs, platform hosting costs and other overhead
costs.
(2)
Marketplace vendor costs are defined as
direct costs charged by the Company’s hauling and recycling
partners for services procured through Rubicon’s digital
marketplace.
Adjusted EBITDA
The following table presents reconciliations of Adjusted EBITDA
to the most directly comparable GAAP financial measure for each of
the periods indicated.
Three Months Ended
September 30,
Nine Months Ended September
30,
2023
2022
2023
2022
(in thousands, except
percentages)
Total revenue
$
171,257
$
184,983
$
526,919
$
509,395
Net loss
$
(30,173
)
$
(211,125
)
$
(62,441
)
$
(263,738
)
Adjustments:
Interest expense
9,179
4,578
24,474
12,264
Related party interest expense
453
-
1,707
-
Interest earned
(5
)
(1
)
(11
)
(1
)
Income tax expense (benefit)
16
19
49
60
Amortization and depreciation
1,277
1,439
3,982
4,331
Loss on extinguishment of debt
obligations
9,348
-
18,234
-
Equity-based compensation
2,133
88,793
13,239
88,977
Phantom unit expense
-
2,213
-
6,783
Deferred compensation expense
-
1,250
-
1,250
(Gain) loss on change in fair value of
warrant liabilities
(3,354
)
(74
)
(2,885
)
436
Gain on change in fair value of earn-out
liabilities
(150
)
(67,100
)
(5,440
)
(67,100
)
Loss on change in fair value of
derivatives
1,245
76,919
3,778
76,919
Executive severance charges
-
-
4,553
-
Gain on settlement of Management Rollover
Bonuses
-
-
(26,826
)
-
Excess fair value over the consideration
received for SAFE
-
-
-
800
Nonrecurring merger transaction
expenses(3)
-
80,712
-
80,712
Gain on service fee settlements in
connection with the Mergers
-
-
(6,996
)
-
Other expenses(4)
1,116
1,307
2,019
1,994
Adjusted EBITDA
$
(8,915
)
$
(21,070
)
$
(32,564
)
$
(56,313
)
Net loss as a percentage of total
revenue
(17.6
)%
(114.1
)%
(11.9
)%
(51.8
)%
Adjusted EBITDA as a percentage of total
revenue
(5.2
)%
(11.4
)%
(6.2
)%
(11.1
)%
(3)
Nonrecurring merger transaction expenses
primarily consist of management bonus payments and related accruals
in connection with the Mergers.
(4)
Other expenses primarily consist of
foreign currency exchange gains and losses, taxes, penalties, fees
for certain financing arrangements, and gains and losses on sale of
property and equipment.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231108237302/en/
Investor Contact: Alexandra Clark Director of Finance
& Investor Relations alexandra.clark@rubicon.com Media
Contact: Dan Sampson Chief Marketing & Communications
Officer dan.sampson@rubicon.com
Rubicon Technologies (NYSE:RBT)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024
Rubicon Technologies (NYSE:RBT)
과거 데이터 주식 차트
부터 12월(12) 2023 으로 12월(12) 2024
