Atlanta, GA – November 22, 2024 – Rubicon Technologies, Inc. (“Rubicon” or the “Company”) (OTC: RBTC), a leading provider of technology-based waste and recycling solutions, today reported financial and operational results for the third quarter of 2024.
“We’re thrilled with our Q3 performance, where Rubicon’s relentless focus on partner-centricity and strategic account management drove continued momentum,” said Osman Ahmed, Interim CEO of Rubicon. “Our financial results highlight material improvements in net loss and adjusted EBITDA, along with significant revenue growth. I would like to thank our amazing employees, customers, and vendor partners for their role in achieving these results.”
Third Quarter 2024 Financial Highlights
- Revenue was $182.5 million, an increase of $14.0 million or 8.3% compared to $168.5 million in the third quarter of 2023.
- Gross Profit was $8.6 million, a decrease of $3.1 million or 26.1% compared to $11.7 million in the third quarter of 2023.
- Adjusted Gross Profit was $14.2 million, a decrease of $2.8 million or 16.6% compared to $17.0 million in the third quarter of 2023.
- Net Loss was $(8.5) million, an increase of $21.7 million or 71.9% compared to the net loss of $(30.2) million in the third quarter of 2023.
- Adjusted EBITDA was $(3.2) million, an increase of $5.6 million or 63.4% compared to $(8.8) million in the third quarter of 2023. Adjusted EBITDA for Q3 included $3.7 million in non-cash expenses related to Rubicon’s contract with Palantir.
Operational and Business Highlights
- Select customer renewals this quarter included Papa John’s International, Inc. and Caleres, a global footwear company home to a diverse portfolio of loved and admired brands including Sam Edelman, Famous Footwear, and Vince.
- In Q3, Rubicon experienced strong growth in its ancillary services for commercial customers including the expansion of newer service offerings such as power washing and a comprehensive grease trap maintenance program.
- The Company saw increased interest from customers and prospects for its Technical Advisory Services (TAS), which provide tailored consulting on zero waste programs, waste audits and material characterizations, and extended producer responsibility (EPR) guidance.
For more information about Rubicon’s third quarter 2024 financial results, please see the Company’s shareholder letterShareholder Letter Q 3 2 0 2 4 Third Quarter 2024 Financial Highlights • Revenue was $182.5 million, an increase of $14.0 million or 8.3% compared to $168.5 million in the third quarter of 2023. • Gross Profit was $8.6 million, a decrease of $3.1 million or 26.1% compared to $11.7 million in the third quarter of 2023. • Adjusted Gross Profit was $14.2 million, a decrease of $2.8 million or 16.6% compared to $17.0 million in the third quarter of 2023. • Net Loss was $(8.5) million, an increase of $21.7 million or 71.9% compared to the net loss of $(30.2) million in the third quarter of 2023. • Adjusted EBITDA was $(3.2) million, an increase of $5.6 million or 63.4% compared to $(8.8) million in the third quarter of 2023. Adjusted EBITDA for Q3 included $3.7 million in non-cash expenses related to Rubicon’s contract with Palantir. “We’re thrilled with our Q3 performance, where Rubicon’s relentless focus on partner-centricity and strategic account management drove continued momentum,” said Osman Ahmed, Interim CEO of Rubicon. “Our financial results highlight material improvements in net loss and adjusted EBITDA, along with significant revenue growth. I would like to thank our amazing employees, customers, and vendor partners for their role in achieving these results.” Rubicon Technologies, Inc. | rubicon.com Page 1 November 22, 2024 Dear Shareholders, Q3 demonstrated continued momentum for Rubicon as we achieved YoY improvements in adjusted EBITDA while delivering significant revenue growth. In other words, our world-class employees delivered both enhanced profitability and substantial market share gains. In addition to growing our core waste brokerage offering, Rubicon experienced strong growth in our ancillary service offerings. These include the expansion of newer services such as power washing and a comprehensive grease trap program, all of which can be seamlessly ordered through the RUBICONConnect portal. We continue to see increased interest from customers and prospects in our Technical Advisory Services (TAS), which provide tailored consulting on zero waste programs, waste audits and material characterizations, and extended producer responsibility (EPR) guidance. Select customer renewals this quarter included Papa John’s International, Inc. and Caleres, a global footwear company home to a diverse portfolio of loved and admired brands including Sam Edelman, Famous Footwear, and Vince. Through these relationships and service expansions, we continue to drive value for our customers and strengthen our commitment to building a sustainable future together. While our customer momentum is clearly represented in our topline performance, our adjusted gross profit in Q3 was negatively impacted by $2.2 million in emergency services cost. It is worth noting that our emergency services cost in Q3 improved significantly from $4.5 million in Q2—a greater than 50% reduction. In addition, our Q3 adjusted EBITDA of $(3.2) includes $3.7 million in non-cash expenses related to our contract with Palantir, which concludes at the end of 2024. Adjusting for Palantir and emergency services cost would imply an adjusted EBITDA of $2.7 million. Going forward, I expect a continued decrease in emergency services cost, further improvement in adjusted EBITDA, and as always, continued focus by our team on executing opportunities to transform our business on both the top and bottom lines. When I became Rubicon’s Interim CEO in July, I announced Partner-Centricity as a key tenet of the Rubicon strategy, and as one of our newly stated core values. We are dedicated to our Rubicon Technologies, Inc. | rubicon.com Page 2 partner ecosystem, from our waste generator customers to the haulers and vendors that support us in serving them. As Rubicon grows, our partners succeed and grow with us. As we close out the third quarter, I want to recognize the strength of Rubicon’s core digital waste brokerage offering and the incredible efforts of our team and partners. While many of our peers in the waste brokerage industry face stagnant or declining market share amidst rising operating costs, Rubicon continues to achieve meaningful YoY growth through new customer acquisitions, deeper and more lucrative relationships with existing customers, and greater margin expansion opportunities. This quarter’s significant revenue growth alongside substantial improvements in net loss and adjusted EBITDA underscores the resilience of our business and the shared commitment to our mission to end waste. Together, we are building a more sustainable world and winning alongside our partners. As we reach the end of 2024 with the tailwind of our latest quarterly performance, I remain confident in Rubicon’s future. Osman H. Ahmed Interim CEO Non-GAAP Financial Measures This shareholder letter contains “non-GAAP financial measures,” including Adjusted Gross Profit 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 our financial statements. The non-GAAP financial measures in this shareholder letter may differ Rubicon Technologies, Inc. | rubicon.com Page 3 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, and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included under “Key Metrics and Non-GAAP Financial Measures” in the Quarterly Report filed on Form 10-Q. Forward-Looking Statements This shareholder letter 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 shareholder letter, are forward-looking statements. When used in this shareholder letter, 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) changes in applicable laws or regulations; 3) the possibility that Rubicon may be adversely affected by other economic, business and/or competitive factors; 4) Rubicon’s execution of anticipated operational efficiency initiatives, cost reduction measures and financing arrangements; and 5) 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 for the year ended December 31, 2023 (filed March 28, 2024 with the Securities and Exchange Commission Rubicon Technologies, Inc. | rubicon.com Page 4 (the “SEC”)), Registration Statement on Form S-3, as amended, filed with 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 shareholder letter 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. Rubicon Technologies, Inc. | rubicon.com Page 5 dated November 22, 2024.
About Rubicon
Rubicon builds technology products and provides expert sustainability solutions to waste generators and material processors to help them understand, manage, and reduce waste. As a mission-driven company, Rubicon helps its customers improve operational efficiency, unlock economic value, and deliver better environmental outcomes. To learn more, visit rubicon.com.
Non-GAAP Financial Measures
This press 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 press release. The non-GAAP financial measures in this press 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) changes in applicable laws or regulations; 3) the possibility that Rubicon may be adversely affected by other economic, business and/or competitive factors; 4) Rubicon’s execution of anticipated operational efficiency initiatives, cost reduction measures and financing arrangements; and 5) 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 for the year ended December 31, 2023 (filed March 28, 2024 with the Securities and Exchange Commission (the “SEC”)), Registration Statement on Form S-3, as amended, filed with 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.
Investor Contact
Grant Deans
Interim Chief Financial Officer
grant.deans@rubicon.com
Media Contact
Benjamin Spall
Director of Communications
benjamin.spall@rubicon.com
