NEW YORK
,
August 9, 2023
(press release)
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Rubicon achieves second consecutive quarter of record Gross Profit at approximately $12 million, more than double Gross Profit in the second quarter of 2022. The Company remains on track to achieve positive Adjusted EBITDA for Q4 2023. 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 second quarter of 2023. Second Quarter 2023 Financial Highlights Revenue was approximately $174.6 million, an increase of $10.0 million or 6.0% compared to $164.6 million in the second quarter of 2022. Gross profit was $11.8 million, an increase of $6.3 million or 116.1% compared to $5.5 million in the second quarter of 2022. Adjusted Gross Profit was approximately $17.9 million, an increase of $5.3 million or 41.4% compared to $12.7 million in the second quarter of 2022. Gross Profit Margin was 6.8%, an increase of 340 bps compared to 3.3% in the second quarter of 2022. Adjusted Gross Profit Margin was 10.3%, an increase of 260 bps compared to 7.7% in the second quarter of 2022. Net loss was $(22.8) million, an improvement of $5.0 million compared to $(27.8) million in the second quarter of 2022. Adjusted EBITDA was a negative $(9.7) million, an improvement of $9.2 million compared to $(18.9) million in the second quarter of 2022. Operational and Business Highlights Rubicon announced a new, 3-year partnership with Denver, Colorado in June. RUBICONSmartCity™ technology is now powering the City and County of Denver’s entire solid waste and recycling fleet of more than 150 vehicles, digitizing operations and enabling greater efficiency. The Company also announced that RUBICONSmartCity has been successfully deployed in more than 100 cities, including eight of the top 20 U.S. cities by population. This milestone was achieved in just 6 years, with city adoption doubling year-over-year over the last few years. RUBICONConnect™ continues to expand with the addition of, among others, True Food Kitchen and Artisent Floors to the platform. 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 secured some notable customer renewals, including a new 5-year extension with Gap, Inc. RUBICONConnect has been deployed at more than 2,000 Gap retail stores across the United States and Canada, including at all of Gap’s lifestyle brands and Gap Outlet and Banana Republic Factory locations. Additionally, Goodyear Tires renewed their contract with Rubicon for a further two years. RUBICONConnect is deployed at more than 800 Goodyear retail and commercial locations across the United States. “We are excited to announce our second quarter 2023 results, which include a second consecutive quarter of record Adjusted Gross Profit. This outstanding performance is the result of our team’s diligent execution of our Bridge to Profitability plan, and I am pleased to report that we remain on target to achieve positive Adjusted EBITDA for the fourth quarter of this year,” said Phil Rodoni, Chief Executive Officer of Rubicon. “With a solid foundation in place, we are now focused on growth and driving even greater results for the Company and our valued customers.” Second Quarter Review Total Revenue in the second quarter of 2023 was approximately $174.6 million, an increase of $10.0 million or 6.0%, compared to the second quarter of 2022. This growth was driven primarily by strength in the RUBICONConnect business, as well as continued growth of the SaaS business. Gross profit for the second quarter of 2023 was $11.8 million, an increase of $6.3 million or 116.1% compared to $5.5 million in the second quarter of 2022. The growth in gross profit was supported by an increase in the RUBICONConnect business and growth of the SaaS business. Adjusted Gross Profit in the second quarter of 2023 was approximately $17.9 million, an increase of $5.3 million or 41.4% compared to the second quarter of 2022. The increase in Adjusted Gross Profit was primarily due to positive impacts from actions taken to enhance margins in the RUBICONConnect business and growth in SaaS products. Net Loss in the second quarter of 2023 was $(22.8) million, an improvement of $5.0 million compared to a Net Loss of $(27.8) million in the second quarter of 2022. Adjusted EBITDA for the second quarter of 2023 was negative $(9.7) million, an improvement of approximately $9.2 million or a reduction of approximately half of the loss of $(18.9) million in the second quarter of 2022. Strategic Progress Moving forward, the Company will remain focused on reaching profitability, making improvements in its leading digital platform and suite of products, and executing its strategic plan in order to achieve its next phase of growth. Having accomplished its initial foundational objectives, Rubicon can now focus on driving profitable growth through customer wallet share expansion, new product offerings, and improved operational efficiency. The Company will provide updates on these efforts in the coming quarters. Webcast Information The Rubicon Technologies management team will host a conference call to discuss its second quarter 2023 financial results this afternoon, Tuesday, August 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. 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 meet the New York Stock Exchange’s listing standards following the consummation of the business combination; 3) the risk that the business combination disrupts current plans and operations of Rubicon as a result of consummation of the business combination; 4) 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; 5) costs related to the business combination; 6) changes in applicable laws or regulations; 7) the possibility that Rubicon may be adversely affected by other economic, business and/or competitive factors, including the impacts of the COVID-19 pandemic, geopolitical conflicts, such as the conflict between Russia and Ukraine, the effects of inflation and potential recessionary conditions; 8) Rubicon’s execution of anticipated operational efficiency initiatives, cost reduction measures and financing arrangements; and 9) 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 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: Media Contact: Statements and balance sheets related to this release can be found on the Investor Relations section of Rubicon’s website.
Alexandra Clark
Director of Finance & Investor Relations
alexandra.clark@rubicon.com
Dan Sampson
Chief Marketing & Corporate Communications Officer
dan.sampson@rubicon.com
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