RXO(RXO)2025-02-05 11:31Revenue Performance - RXO's revenue for Q4 2024 was $1.7 billion, a 70.7% increase from $1.0 billion in Q4 2023[3] - Total revenue for Q4 2024 was $1,667 million, a 70.5% increase from $978 million in Q4 2023[29] - Total revenue for the year ended December 31, 2024, was $4,550 million, up from $3,927 million in 2023, reflecting a year-over-year growth of 15.8%[33] Profitability and Loss - The company reported a GAAP net loss of $20 million in Q4 2024, compared to a net income of $2 million in Q4 2023[4] - Net loss for the year ended December 31, 2024, was $285 million, compared to a net income of $4 million in 2023[27] - Adjusted diluted earnings per share for Q4 2024 were $0.06, compared to $0.06 in Q4 2023[5] - Adjusted diluted earnings per share for the year was $0.12, down from $0.30 in 2023[31] EBITDA and Margins - Adjusted EBITDA for Q4 2024 was $42 million, up from $31 million in Q4 2023, with an adjusted EBITDA margin of 2.5%[5] - Adjusted EBITDA for the year was $118 million, with an adjusted EBITDA margin of 2.6%, down from $132 million and 3.4% in 2023[30] - Gross margin for Q4 2024 was 15.5%, down from 18.0% in Q4 2023[3] - Gross margin as a percentage of revenue decreased to 15.5% in Q4 2024 from 18.0% in Q4 2023[33] Revenue Streams - Truck brokerage revenue reached $1,267 million in Q4 2024, up 107.9% from $610 million in Q4 2023[29] - Complementary services revenue for Q4 2024 was $431 million, slightly up from $411 million in Q4 2023, showing a growth of 4.9%[33] Cost and Expenses - Cost of transportation and services for Q4 2024 was $1,357 million, up from $743 million in Q4 2023, marking an increase of 82.3%[33] - The company reported a total cost of transportation and services for the year of $3,565 million, compared to $2,967 million in 2023, an increase of 20.1%[33] Growth Indicators - Brokerage volume increased by 10% sequentially in Q4 2024, although it declined by 6% year-over-year[6] - Last Mile stops grew by 15% year-over-year, indicating strong growth in complementary services[7] - Managed Transportation's sales pipeline reached nearly $2 billion in freight under management[7] Future Outlook - The company expects Q1 2025 adjusted EBITDA to be between $20 million and $30 million[8] - RXO is raising its estimate for annualized cost synergies from the Coyote Logistics acquisition to at least $50 million[2] Balance Sheet Highlights - Cash and cash equivalents increased to $35 million at the end of Q4 2024, up from $5 million at the end of Q4 2023[27] - Total assets grew to $3,418 million in 2024, compared to $1,825 million in 2023, reflecting significant growth[25] - Total current liabilities increased to $1,066 million in 2024, up from $682 million in 2023[25] - The company reported a significant increase in accounts receivable, net of allowances, rising to $1,228 million in 2024 from $743 million in 2023[25] One-Time Charges - The company incurred a one-time charge of $216 million related to a deemed non-pro rata distribution in connection with a private placement common stock issuance[31] Operating Expenses - Direct operating expenses for complementary services decreased to $50 million in Q4 2024 from $56 million in Q4 2023, a reduction of 10.7%[33] - The gross margin for truck brokerage in Q4 2024 was $167 million, compared to $90 million in Q4 2023, representing an increase of 85.6%[33] - The gross margin for complementary services in Q4 2024 was $91 million, up from $86 million in Q4 2023, reflecting a growth of 5.8%[33]