Rubicon Reports Second Quarter 2023 Financial Results
- Record Gross Profit of $12 million
- Positive trajectory for Adjusted EBITDA
- None.
Second Quarter 2023 Financial Highlights
-
Revenue was approximately
$174.6 million $10.0 million 6.0% compared to$164.6 million -
Gross profit was
$11.8 million $6.3 million 116.1% compared to$5.5 million -
Adjusted Gross Profit was approximately
$17.9 million $5.3 million 41.4% compared to$12.7 million -
Gross Profit Margin was
6.8% , an increase of 340 bps compared to3.3% in the second quarter of 2022. -
Adjusted Gross Profit Margin was
10.3% , an increase of 260 bps compared to7.7% in the second quarter of 2022. -
Net loss was
$(22.8) million $5.0 million $(27.8) million -
Adjusted EBITDA was a negative
$(9.7) million $9.2 million $(18.9) million
Operational and Business Highlights
-
Rubicon announced a new, 3-year partnership withDenver, 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 andCanada , including at all of Gap’s lifestyle brands and Gap Outlet and Banana Republic Factory locations. Additionally, Goodyear Tires renewed their contract withRubicon for a further two years. RUBICONConnect is deployed at more than 800 Goodyear retail and commercial locations acrossthe 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
Second Quarter Review
Total Revenue in the second quarter of 2023 was approximately
Gross profit for the second quarter of 2023 was
Adjusted Gross Profit in the second quarter of 2023 was approximately
Net Loss in the second quarter of 2023 was
Adjusted EBITDA for the second quarter of 2023 was negative
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,
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 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 TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share data) |
|||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||
June 30, |
June 30, |
||||||||||||
2023 |
2022 |
|
2023 |
2022 |
|||||||||
Revenue: |
|
|
|
|
|
||||||||
Service |
$ |
160,641 |
|
$ |
140,268 |
|
|
$ |
327,006 |
|
$ |
274,966 |
|
Recyclable commodity |
|
13,923 |
|
|
24,338 |
|
|
|
28,656 |
|
|
49,446 |
|
Total revenue |
|
174,564 |
|
|
164,606 |
|
|
|
355,662 |
|
|
324,412 |
|
Costs and Expenses: |
|
|
|
|
|
||||||||
Cost of revenue exclusive of amortization and depreciation: |
|||||||||||||
Service |
|
150,194 |
|
|
136,185 |
|
|
|
308,195 |
|
|
265,878 |
|
Recyclable commodity |
|
11,968 |
|
|
22,386 |
|
|
|
25,155 |
|
|
45,622 |
|
Total cost of revenue exclusive of amortization and depreciation |
|
162,162 |
|
|
158,571 |
|
|
|
333,350 |
|
|
311,500 |
|
Sales and marketing |
|
2,747 |
|
|
4,546 |
|
|
|
6,021 |
|
|
8,496 |
|
Product development |
|
7,224 |
|
|
9,315 |
|
|
|
15,316 |
|
|
18,533 |
|
General and administrative |
|
13,932 |
|
|
13,253 |
|
|
|
32,079 |
|
|
25,880 |
|
Gain on settlement of incentive compensation |
|
- |
|
|
- |
|
|
|
(18,622 |
) |
|
- |
|
Amortization and depreciation |
|
1,344 |
|
|
1,402 |
|
|
|
2,705 |
|
|
2,892 |
|
Total Costs and Expenses |
|
187,409 |
|
|
187,087 |
|
|
|
370,849 |
|
|
367,301 |
|
Loss from Operations |
|
(12,845 |
) |
|
(22,481 |
) |
|
|
(15,187 |
) |
|
(42,889 |
) |
Other Income Expense: |
|
|
|
|
|
||||||||
Interest earned |
|
5 |
|
|
- |
|
|
|
6 |
|
|
- |
|
Loss on change in fair value of warrant liabilities |
|
(414 |
) |
|
(232 |
) |
|
|
(469 |
) |
|
(510 |
) |
Gain on change in fair value of earnout liabilities |
|
470 |
|
|
- |
|
|
|
5,290 |
|
|
- |
|
Loss on change in fair value of derivatives |
|
(335 |
) |
|
- |
|
|
|
(2,533 |
) |
|
- |
|
Excess fair value over the consideration received for SAFE |
|
- |
|
|
(800 |
) |
|
|
- |
|
|
(800 |
) |
Gain on service fee settlements in connection with the Mergers |
|
6,364 |
|
|
- |
|
|
|
6,996 |
|
|
- |
|
Loss on extinguishment of debt obligations |
|
(6,783 |
) |
|
- |
|
|
|
(8,886 |
) |
|
- |
|
Interest expense |
|
(8,119 |
) |
|
(3,911 |
) |
|
|
(15,295 |
) |
|
(7,686 |
) |
Related party interest expense |
|
(661 |
) |
|
- |
|
|
|
(1,254 |
) |
|
- |
|
Other expense |
|
(482 |
) |
|
(357 |
) |
|
|
(903 |
) |
|
(687 |
) |
Total Other Income Expense |
|
(9,955 |
) |
|
(5,300 |
) |
|
|
(17,048 |
) |
|
(9,683 |
) |
Loss Before Income Taxes |
|
(22,800 |
) |
|
(27,781 |
) |
|
|
(32,235 |
) |
|
(52,572 |
) |
Income tax expense benefit |
|
17 |
|
|
13 |
|
|
|
33 |
|
|
41 |
|
Net Loss |
$ |
(22,817 |
) |
$ |
(27,794 |
) |
|
$ |
(32,268 |
) |
$ |
(52,613 |
) |
Net loss attributable to Holdings LLC unitholders prior to the Mergers |
|
- |
|
|
(27,794 |
) |
|
|
- |
|
|
(52,613 |
) |
Net loss attributable to noncontrolling interests |
|
(9,615 |
) |
|
- |
|
|
|
(15,937 |
) |
|
- |
|
Net Loss Attributable to Class A Common Stockholders |
$ |
(13,202 |
) |
|
- |
|
|
$ |
(16,331 |
) |
|
- |
|
Loss per share - for the three months ended June 30, 2023: |
|||||||||||||
Net loss per Class A Common share – basic and diluted |
|
|
|
|
|
(0.12 |
) |
||||||
Weighted average shares outstanding, basic and diluted |
|
|
|
|
|
106,211,259 |
|
||||||
Loss per share - for the six months ended June 30, 2023: |
|||||||||||||
Net loss per Class A Common share – basic and diluted |
|
|
|
|
|
(0.2 |
) |
||||||
Weighted average shares outstanding, basic and diluted |
|
|
|
|
|
82,943,357 |
|
||||||
As a result of the Mergers with Founder SPAC consummated on August 15, 2022 (the “Closing Date”), the capital structure has changed and loss per share information is only presented for the period after the Closing Date of the Mergers.
RUBICON TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands) |
|||||||
|
June 30, |
|
December 31, |
||||
|
2023 |
|
2022 |
||||
ASSETS |
|
|
|
||||
Current Assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
23,516 |
|
|
$ |
10,079 |
|
Accounts receivable, net |
|
66,323 |
|
|
|
65,923 |
|
Contract assets |
|
51,321 |
|
|
|
55,184 |
|
Prepaid expenses |
|
15,624 |
|
|
|
10,466 |
|
Other current assets |
|
1,970 |
|
|
|
2,109 |
|
Related-party notes receivable |
|
- |
|
|
|
7,020 |
|
Total Current Assets |
|
158,754 |
|
|
|
150,781 |
|
|
|
|
|
||||
Property and equipment, net |
|
2,569 |
|
|
|
2,644 |
|
Operating right-of-use assets |
|
2,205 |
|
|
|
2,827 |
|
Other noncurrent assets |
|
2,505 |
|
|
|
4,764 |
|
Goodwill |
|
32,132 |
|
|
|
32,132 |
|
Intangible assets, net |
|
9,270 |
|
|
|
10,881 |
|
Total Assets |
$ |
207,435 |
|
|
$ |
204,029 |
|
|
|
|
|
||||
LIABILITIES AND MEMBERS’ (DEFICIT) EQUITY |
|
|
|
||||
Current Liabilities: |
|
|
|
||||
Accounts payable |
$ |
72,032 |
|
|
$ |
75,113 |
|
Line of credit |
|
46,198 |
|
|
|
51,823 |
|
Accrued expenses |
|
66,047 |
|
|
|
108,002 |
|
Deferred compensation |
|
- |
|
|
|
- |
|
Contract liabilities |
|
7,397 |
|
|
|
5,888 |
|
Operating lease liabilities, current |
|
1,871 |
|
|
|
1,880 |
|
Warrant liabilities |
|
29,795 |
|
|
|
20,890 |
|
Derivative liabilities, current |
|
7,915 |
|
|
|
- |
|
Debt obligations, net of debt issuance costs |
|
9,456 |
|
|
|
3,771 |
|
Total Current Liabilities |
|
240,711 |
|
|
|
267,367 |
|
|
|
|
|
||||
Long-Term Liabilities: |
|
|
|
||||
Deferred income taxes |
|
235 |
|
|
|
217 |
|
Operating lease liabilities, noncurrent |
|
903 |
|
|
|
1,826 |
|
Debt obligations, net of debt issuance costs |
|
70,820 |
|
|
|
69,458 |
|
Related-party debt obligations, net of debt issuance costs |
|
16,161 |
|
|
|
10,597 |
|
Derivative liabilities, noncurrent |
|
7,133 |
|
|
|
826 |
|
Earn-out liabilities |
|
310 |
|
|
|
5,600 |
|
Other long-term liabilities |
|
- |
|
|
|
2,590 |
|
Total Long-Term Liabilities |
|
95,562 |
|
|
|
91,114 |
|
Total Liabilities |
|
336,273 |
|
|
|
358,481 |
|
|
|
|
|
||||
Commitments and Contingencies |
|
|
|
||||
|
|
|
|
||||
Stockholders’ (Deficit) Equity: |
|
|
|
||||
Common stock – Class A, par value of |
|
23 |
|
|
|
6 |
|
Common stock – Class V, par value of |
|
4 |
|
|
|
12 |
|
Preferred stock – par value of |
|
- |
|
|
|
- |
|
Additional paid-in capital |
|
92,532 |
|
|
|
34,658 |
|
Accumulated deficit |
|
(354,207 |
) |
|
|
(337,875 |
) |
Total stockholders’ deficit attributable to Rubicon Technologies, Inc. |
|
(261,648 |
) |
|
|
(303,199 |
) |
Noncontrolling interests |
|
132,810 |
|
|
|
148,747 |
|
Total Stockholders’ Deficit |
|
(128,838 |
) |
|
|
(154,452 |
) |
Total Liabilities and Stockholders’ (Deficit) Equity |
$ |
207,435 |
|
|
$ |
204,029 |
|
The accompanying notes to the condensed consolidated financial statements are an integral part of these statements.
RUBICON TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) |
|||||||
|
|
|
|
||||
|
Six Months Ended |
||||||
|
June 30, |
||||||
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(32,268 |
) |
|
$ |
(52,613 |
) |
Adjustments to reconcile net loss to net cash flows from operating activities: |
|
|
|
||||
Loss on disposal of property and equipment |
|
13 |
|
|
|
21 |
|
Amortization and depreciation |
|
2,705 |
|
|
|
2,899 |
|
Amortization of debt issuance costs |
|
3,338 |
|
|
|
1,663 |
|
Amortization of related party debt issuance costs |
|
504 |
|
|
|
- |
|
Paid-in-kind interest capitalized to principal of debt obligations |
|
3,473 |
|
|
|
- |
|
Paid-in-kind interest capitalized to principal of related party debt obligations |
|
641 |
|
|
|
- |
|
Bad debt reserve |
|
1,398 |
|
|
|
(2,467 |
) |
Loss on change in fair value of warrants |
|
469 |
|
|
|
510 |
|
Loss on change in fair value of derivatives |
|
2,533 |
|
|
|
- |
|
Gain on change in fair value of earn-out liabilities |
|
(5,290 |
) |
|
|
- |
|
Loss on extinguishment of debt obligations |
|
8,886 |
|
|
|
- |
|
Excess fair value over the consideration received for SAFE |
|
- |
|
|
|
800 |
|
Equity-based compensation |
|
11,106 |
|
|
|
184 |
|
Phantom unit expense |
|
- |
|
|
|
4,570 |
|
Settlement of accrued incentive compensation |
|
(26,826 |
) |
|
|
- |
|
Service fees settled in common stock |
|
3,808 |
|
|
|
- |
|
Gain on service fee settlement in connection with the Mergers |
|
(6,996 |
) |
|
|
- |
|
Deferred income taxes |
|
18 |
|
|
|
40 |
|
Change in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(1,798 |
) |
|
|
(2,471 |
) |
Contract assets |
|
3,863 |
|
|
|
(5,159 |
) |
Prepaid expenses |
|
(2,668 |
) |
|
|
225 |
|
Other current assets |
|
95 |
|
|
|
(204 |
) |
Operating right-of-use assets |
|
622 |
|
|
|
522 |
|
Other noncurrent assets |
|
(163 |
) |
|
|
46 |
|
Accounts payable |
|
(3,081 |
) |
|
|
21,476 |
|
Accrued expenses |
|
(588 |
) |
|
|
14,510 |
|
Contract liabilities |
|
1,509 |
|
|
|
87 |
|
Operating lease liabilities |
|
(932 |
) |
|
|
(1,011 |
) |
Other liabilities |
|
(1,680 |
) |
|
|
100 |
|
Net cash flows from operating activities |
|
(37,309 |
) |
|
|
(16,272 |
) |
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Property and equipment purchases |
|
(628 |
) |
|
|
(685 |
) |
Net cash flows from investing activities |
|
(628 |
) |
|
|
(685 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Net (payments) borrowings on line of credit |
|
(5,625 |
) |
|
|
11,510 |
|
Proceeds from debt obligations |
|
86,226 |
|
|
|
- |
|
Repayments of debt obligations |
|
(53,500 |
) |
|
|
(3,000 |
) |
Proceeds from related party debt obligations |
|
14,520 |
|
|
|
- |
|
Financing costs paid |
|
(13,916 |
) |
|
|
(2,000 |
) |
Proceeds from issuance of common stock |
|
24,767 |
|
|
|
- |
|
Proceeds from SAFE |
|
- |
|
|
|
8,000 |
|
Payments of deferred offering costs |
|
- |
|
|
|
(1,288 |
) |
Equity issuance costs |
|
(31 |
) |
|
|
- |
|
RSUs withheld to pay taxes |
|
(1,067 |
) |
|
|
- |
|
Net cash flows from financing activities |
|
51,374 |
|
|
|
13,222 |
|
|
|
|
|
||||
Net change in cash and cash equivalents |
|
13,437 |
|
|
|
(3,735 |
) |
Cash, beginning of period |
|
10,079 |
|
|
|
10,617 |
|
Cash, end of period |
$ |
23,516 |
|
|
$ |
6,882 |
|
|
|
|
|
||||
Supplemental disclosure of cash flow information: |
|
|
|
||||
Cash paid for interest |
$ |
7,010 |
|
|
$ |
5,940 |
|
Deferred offering costs recognized in accounts payable |
$ |
- |
|
|
$ |
1,837 |
|
|
|
|
|
||||
Supplemental disclosures of non-cash investing and financing activities: |
|
|
|
||||
Exchange of warrant liabilities for common stock |
$ |
1,050 |
|
|
$ |
- |
|
Fair value of derivatives issued as debt discount |
$ |
475 |
|
|
$ |
- |
|
Fair value of derivatives issued as debt issuance cost |
$ |
12,264 |
|
|
$ |
- |
|
Conversions of debt obligations to common stock |
$ |
5,500 |
|
|
$ |
- |
|
Conversions of related-party debt obligations to common stock |
|
3,080 |
|
|
|
- |
|
Equity issuance costs waived |
$ |
6,364 |
|
|
$ |
- |
|
Equity issuance costs settled with common stock |
$ |
7,069 |
|
|
$ |
- |
|
Loan commitment asset reclassed to debt discount |
$ |
2,062 |
|
|
$ |
- |
|
The accompanying notes to the condensed consolidated financial statements are an integral part of these statements.
Use of Non-GAAP Financial Measures
Adjusted Gross Profit and Adjusted Gross Profit Margin
Adjusted Gross Profit and Adjusted Gross Profit Margin are considered non-GAAP financial measures under the rules of the
Adjusted EBITDA
Adjusted EBITDA is considered a non-GAAP financial measure under the rules of the SEC because it excludes certain amounts included in net loss calculated in accordance with GAAP. Specifically, the Company calculates Adjusted EBITDA by GAAP net loss adjusted to exclude interest expense and income, income tax expense and benefit, amortization and depreciation, gain or loss on extinguishment of debt obligations, equity-based compensation, phantom unit expense, gain or loss on change in fair value of warrant liabilities, gain or loss on change in fair value of earn-out liabilities, gain or loss on change in fair value of derivatives, executive severance charges, gain or loss on settlement of the Management Rollover Bonuses, gain or loss on service fee settlements in connection with the Mergers, other non-operating income and expenses, and unique non-recurring income and expenses.
The Company has included Adjusted EBITDA because it is a key measure used by Rubicon’s management team to evaluate its operating performance, generate future operating plans, and make strategic decisions, including those relating to operating expenses. Further, the Company believes Adjusted EBITDA is helpful in highlighting trends in Rubicon’s operating results because it allows for more consistent comparisons of financial performance between periods by excluding gains and losses that are non-operational in nature or outside the control of management, as well as items that may differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which
Adjusted EBITDA has limitations as an analytical tool, and it should not be considered in isolation or as a substitute for analysis of net loss or other results as reported under GAAP. Some of these limitations are:
- Adjusted EBITDA does not reflect the Company’s cash expenditures, future requirements for capital expenditures, or contractual commitments;
- Adjusted EBITDA does not reflect changes in, or cash requirements for, the Company’s working capital needs;
- Adjusted EBITDA does not reflect the Company’s tax expense or the cash requirements to pay taxes;
- although amortization and depreciation are non-cash charges, the assets being amortized and depreciated will often have to be replaced in the future and Adjusted EBITDA does not reflect any cash requirements for such replacements;
- Adjusted EBITDA should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items for which the Company may make adjustments in historical periods; and
- other companies in the industry may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure.
Reconciliations of Non-GAAP Financial Measures
Adjusted Gross Profit and Adjusted Gross Profit Margin
The following table presents reconciliations of Adjusted Gross Profit and Adjusted Gross Margin to the most directly comparable GAAP financial measures for each of the periods indicated.
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2023 |
|
2022 |
|
2022 |
|
2021 |
||||||||
|
|
(in thousands, except percentages) |
||||||||||||||
Total revenue |
|
$ |
174,564 |
|
|
$ |
164,606 |
|
|
$ |
355,662 |
|
|
$ |
324,412 |
|
Less: total cost of revenue (exclusive of amortization and depreciation) |
|
|
162,162 |
|
|
|
158,571 |
|
|
|
333,350 |
|
|
|
311,500 |
|
Less: amortization and depreciation for revenue generating activities |
|
|
614 |
|
|
|
579 |
|
|
|
1,188 |
|
|
|
1,229 |
|
Gross profit |
|
$ |
11,788 |
|
|
$ |
5,456 |
|
|
$ |
21,124 |
|
|
$ |
11,683 |
|
Gross profit margin |
|
|
6.8 |
% |
|
|
3.3 |
% |
|
|
5.9 |
% |
|
|
3.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit |
|
$ |
11,788 |
|
|
$ |
5,456 |
|
|
$ |
21,124 |
|
|
$ |
11,683 |
|
Add: amortization and depreciation for revenue generating activities |
|
|
614 |
|
|
|
579 |
|
|
|
1,188 |
|
|
|
1,229 |
|
Add: platform support costs |
|
|
5,541 |
|
|
|
6,657 |
|
|
|
11,777 |
|
|
|
12,877 |
|
Adjusted gross profit |
|
$ |
17,943 |
|
|
$ |
12,692 |
|
|
$ |
34,089 |
|
|
$ |
25,789 |
|
Adjusted gross profit margin |
|
|
10.3 |
% |
|
|
7.7 |
% |
|
|
9.6 |
% |
|
|
7.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization and depreciation for revenue generating activities |
|
$ |
614 |
|
|
$ |
579 |
|
|
$ |
1,188 |
|
|
$ |
1,229 |
|
Amortization and depreciation for sales, marketing, general and administrative activities |
|
|
730 |
|
|
|
823 |
|
|
|
1,517 |
|
|
|
1,663 |
|
Total amortization and depreciation |
|
$ |
1,344 |
|
|
$ |
1,402 |
|
|
$ |
2,705 |
|
|
$ |
2,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Platform support costs(1) |
|
$ |
5,541 |
|
|
$ |
6,657 |
|
|
$ |
11,777 |
|
|
$ |
12,877 |
|
Marketplace vendor costs(2) |
|
|
156,621 |
|
|
|
151,914 |
|
|
|
321,573 |
|
|
|
298,623 |
|
Total cost of revenue (exclusive of amortization and depreciation) |
|
$ |
162,162 |
|
|
$ |
158,571 |
|
|
$ |
333,350 |
|
|
$ |
311,500 |
|
(1) |
Platform support costs are defined as costs to operate the Company’s revenue generating platforms that do not directly correlate with volume of sales transactions procured through Rubicon’s digital marketplace. Such costs include employee costs, data costs, platform hosting costs and other overhead costs. |
(2) |
Marketplace vendor costs are defined as direct costs charged by the Company’s hauling and recycling partners for services procured through Rubicon’s digital marketplace. |
Adjusted EBITDA
The following table presents reconciliations of Adjusted EBITDA to the most directly comparable GAAP financial measure for each of the periods indicated.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
|
(in thousands) |
||||||||||||||
Net loss |
|
$ |
(22,817 |
) |
|
$ |
(27,794 |
) |
|
$ |
(32,268 |
) |
|
$ |
(52,613 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
|
8,119 |
|
|
|
3,911 |
|
|
|
15,295 |
|
|
|
7,686 |
|
Related party interest expense |
|
|
661 |
|
|
|
- |
|
|
|
1,254 |
|
|
|
- |
|
Interest earned |
|
|
(5 |
) |
|
|
- |
|
|
|
(6 |
) |
|
|
- |
|
Income tax expense |
|
|
17 |
|
|
|
13 |
|
|
|
33 |
|
|
|
41 |
|
Amortization and depreciation |
|
|
1,344 |
|
|
|
1,402 |
|
|
|
2,705 |
|
|
|
2,892 |
|
Loss on extinguishment of debt obligations |
|
|
6,783 |
|
|
|
- |
|
|
|
8,886 |
|
|
|
- |
|
Equity-based compensation |
|
|
1,804 |
|
|
|
126 |
|
|
|
11,106 |
|
|
|
184 |
|
Phantom unit expense |
|
|
- |
|
|
|
2,021 |
|
|
|
- |
|
|
|
4,570 |
|
Loss on change in fair value of warrant liabilities |
|
|
414 |
|
|
|
232 |
|
|
|
469 |
|
|
|
510 |
|
Gain on change in fair value of earn-out liabilities |
|
|
(470 |
) |
|
|
- |
|
|
|
(5,290 |
) |
|
|
- |
|
Loss on change in fair value of derivatives |
|
|
335 |
|
|
|
- |
|
|
|
2,533 |
|
|
|
- |
|
Executive severance charges |
|
|
- |
|
|
|
- |
|
|
|
4,553 |
|
|
|
- |
|
Gain on settlement of Management Rollover Bonuses |
|
|
- |
|
|
|
- |
|
|
|
(26,826 |
) |
|
|
- |
|
Excess fair value over the consideration received for SAFE |
|
|
- |
|
|
|
800 |
|
|
|
- |
|
|
|
800 |
|
Gain on service fee settlements in connection with the Mergers |
|
|
(6,364 |
) |
|
|
- |
|
|
|
(6,996 |
) |
|
|
- |
|
Other expenses(3) |
|
|
482 |
|
|
|
357 |
|
|
|
903 |
|
|
|
687 |
|
Adjusted EBITDA |
|
$ |
(9,697 |
) |
|
$ |
(18,932 |
) |
|
$ |
(23,649 |
) |
|
$ |
(35,243 |
) |
(3) |
Other expenses primarily consist of foreign currency exchange gains and losses, taxes, penalties, fees for certain financing arrangements, and gains and losses on sale of property and equipment. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230808897455/en/
Investor Contact:
Alexandra Clark
Director of Finance & Investor Relations
alexandra.clark@rubicon.com
Media Contact:
Dan Sampson
Chief Marketing & Corporate Communications Officer
dan.sampson@rubicon.com
Source: Rubicon Technologies, Inc.
