The following is a summary of the RXO, Inc. (RXO) Q1 2024 Earnings Call Transcript:
Financial Performance:
RXO reported a Q1 revenue of $913 million, down from $1 billion in the same period last year.
Gross margin declined by 130 basis points to 17.4%, and an adjusted EBITDA of $15 million was reported.
Adjusted diluted loss per share was reported at $0.03.
The company's Brokerage business and Complementary Services revenue witnessed a decrease of 6% and 12% year-over-year respectively.
Q2 is expected to see a significant sequential increase in adjusted EBITDA to between $24 million and $30 million.
Cost-saving actions anticipated to result in at least $35 million of annualized savings.
Full-year 2024 adjusted effective tax rate is expected to be approximately 30%.
The average diluted share count for RXO is anticipated to be 120 million shares.
Business Progress:
-An 11% year-over-year growth in brokerage volumes marked fourth consecutive quarter of growth.
Less than Truckload (LTL) business witnessed notable year-over-year growth due to increased scale and automation.
Cross-border volume increased by 37% year-over-year.
Company managed its mix of contract and spot volume tactically, with contract business dominating the mix in Q1.
Managed Transportation and Freight Forwarding businesses were combined to enhance customer experience and promote growth.
Company executed proactive cost-cutting measures while also making strategic investments.
RXO saw volume growth year-over-year in major verticals such as retail, e-commerce, and automotive.
New technology enhancements launched across multiple modes of transportation to boost productivity.
RXO reported the largest sales pipeline in four years, indicating positive momentum and strategic investment.
Despite truckload volumes being down, the company maintained an overall volume growth and reported progress in cost savings initiatives.
RXO anticipates a market recovery in the next 6 to 12 months and plans to be the first-point-contact for customers when the need for spot loads arises.
More details: RXO Inc IR
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