Second quarter revenue grew to $165 million,
20% higher compared to the prior year period
Successful completion of business combination;
Shares commenced trading on New York Stock Exchange
Rubicon Technologies, Inc. (“Rubicon” or the “Company”) (NYSE:
RBT), a leading digital marketplace for waste and recycling and
provider of innovative software-based products for businesses and
governments worldwide, today reported financial and operational
results for the second quarter of 2022.
In the second quarter, Revenue totaled $165 million, an increase
of 20% compared to $138 million in the second quarter of 2021. This
strong revenue growth reflected continued expansion within the
Company’s existing customer base as well as the addition of new
customers.
Gross Profit in the second quarter was $5 million, 26% higher
compared to the prior year quarter, and Adjusted Gross Profit in
the second quarter was $13 million, 19% higher compared to the
prior year quarter. This growth in profit was driven by increased
service levels with both new and existing customers.
“Becoming a public company was a tremendous accomplishment and
strengthens Rubicon’s market position as we accelerate growth,
bring more digitization to the waste and recycling industry, and
continue our mission to end waste,” said Nate Morris, Chairman and
CEO of Rubicon. “In addition, we are very pleased to report second
quarter results, with solid Revenue growth of 20% and increases in
Gross Profit of 26% and Adjusted Gross Profit of 19% versus the
second quarter in 2021. Despite cost inflation pressures across the
category, waste and recycling continues to outperform the broader
market even with current market challenges. I am so proud of our
achievements in the second quarter of this year, and look forward
to sharing updates on our progress in the future.”
Recent Highlights
- Completed business combination on August 16, raising $196.8
million in gross proceeds and commenced trading on the NYSE under
the new ticker “RBT”
- Entered strategic data and technology partnership with Palantir
Technologies, a software company that empowers organizations to
integrate their data, decisions, and operations
- Featured in a documentary series produced by Amazon about the
company’s transformative work with the City of Santa Fe, New
Mexico
- Expanded its RUBICONSmartCityTM customer base with three-year
contracts with the cities of Houston, Texas and Scranton,
Pennsylvania, and announced multi-year extension agreement with
Tuesday Morning Corporation
- Announced multi-year agreement with new customer SRS
Distribution, Inc.
- Expanded suite of RUBICONSmartCityTM solutions with launch of
new product to optimize municipal snow removal
About Rubicon
Rubicon Technologies, Inc. (NYSE: RBT) is a digital marketplace
for waste and recycling, and provider of innovative software-based
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 www.Rubicon.com.
Non-GAAP Financial Measures
The following information provides definitions and
reconciliations of the non-GAAP financial measures presented in
this earnings release to the most directly comparable financial
measures calculated and presented in accordance with generally
accepted accounting principles (GAAP). The company has provided
this non-GAAP financial information, which is not calculated or
presented in accordance with GAAP, as information supplemental and
in addition to the financial measures presented in this earnings
release that are calculated and presented in accordance with 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.
Adjusted Gross Profit
Adjusted Gross Profit (non-GAAP) is considered a non-GAAP
financial measure under the U.S. Securities and Exchange
Commission’s rules because it excludes certain amounts included in
Gross Profit 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. Rubicon believes presenting Adjusted Gross Profit is
useful to investors because it shows the progress in scaling
Rubicon’s digital platform by quantifying the markup and margin
Rubicon charges its customers that are incremental to its
marketplace vendor costs. This measure demonstrates this progress
because changes in this measure are driven primarily by Rubicon’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
this non-GAAP measure as one of the means to evaluate the
profitability of Rubicon’s customer accounts, exclusive of certain
costs that are generally fixed in nature, and to assess how
successful Rubicon is in achieving its pricing strategies.
The table below reflects the reconciliation of Gross Profit to
Adjusted Gross Profit for the three months ended June 30, 2022
compared to the same periods in 2021:
Three Months Ended June
30,
2022
2021
(in thousands, except
percentages)
Total revenue
$
164,606
$
137,584
Less: total cost of revenue (exclusive of
amortization and depreciation)
158,571
132,247
Less: amortization and depreciation for
revenue generating activities
579
997
Gross profit
$
5,456
$
4,340
Gross profit margin
3.3
%
3.2
%
Gross profit
$
5,456
$
4,340
Add: amortization and depreciation for
revenue generating activities
579
997
Add: platform support costs
6,657
5,343
Adjusted gross profit
$
12,692
$
10,680
Adjusted gross profit margin
7.7
%
7.8
%
Amortization and depreciation for revenue
generating activities
$
579
$
997
Amortization and depreciation for sales,
marketing, general and administrative activities
823
992
Total amortization and depreciation
$
1,402
$
1,989
Platform support costs (1)
$
6,657
$
5,343
Marketplace vendor costs (2)
151,914
126,904
Total cost of revenue (exclusive of
amortization and depreciation)
$
158,571
$
132,247
(1)
We define platform support costs
as costs to operate our revenue generating platforms that do not
directly correlate with volume of sales transactions procured
through our digital marketplace. Such costs include employee costs,
data costs, platform hosting costs and other overhead costs.
(2)
We define marketplace vendor costs as
direct costs charged by our hauling and recycling partners for
services procured through our digital marketplace.
Additional information regarding Rubicon’s operational and
financial results for the second quarter can be found in the
Company’s Current Report on Form 8-K, filed with the Securities and
Exchange Commission (the “SEC”) on August 19, 2022.
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
NYSE’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; and 8) other risks and
uncertainties set forth in the sections entitled “Risk Factors” and
“Cautionary Note Regarding Forward-Looking Statements” in Founder’s
Registration Statement on Form S-4, as amended, filed with the SEC,
and other documents of Founder and Rubicon 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20220822005098/en/
Investor Contact: Sioban Hickie, ICR, Inc.
rubiconIR@icrinc.com
Media Contact: Dan Sampson Chief Marketing &
Corporate Communications Officer dan.sampson@rubicon.com
RubiconPR@icrinc.com
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