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Rubicon Technologies Inc., a Lexington, Kentucky-based software management company for the waste and recycling industry, has reported its financial and operational results for the fourth quarter and full year of 2022.
“We are very proud of our achievements to date and are excited to begin our journey as a publicly traded company,” Rubicon CEO Phil Rodoni says. “We believe we have built the definitive platform for eliminating waste, which enables us to provide a differentiated service offering to our customers. Our core business is strong and we are focused on accelerating the company’s progress to profitability while driving Rubicon’s next phase of growth.”
In the fourth quarter, revenue totaled $166 million, an increase of $2.7 million, or 2 percent, from $163.3 million in the fourth quarter of 2021. This growth was driven primarily by increased service with new and existing customers across business lines.
Gross profit in the fourth quarter was $6.8 million, 17 percent higher compared with $5.8 million in the fourth quarter of 2021. The growth in gross profit was driven primarily by increased service with new and existing customers across business lines.
In the fourth quarter, adjusted gross profit was $13.4 million, a 1 percent decrease compared with $13.5 million generated in the fourth quarter of 2021. The company says this decline was driven by one-time customer expenses but was largely offset by stronger performance in the SaaS product lines.
Net loss was $18 million in the fourth quarter, an improvement of $12.3 million compared with $30.3 million in the fourth quarter of 2021. Impacts from increased revenue and a decrease in general and administrative expenses as a result of a $10.4 million gain on the settlement of certain management bonuses contributed to the result in the fourth quarter of 2022, according to the company.
In the fourth quarter, adjusted earnings before interest taxation depreciation and amortization (EBITDA) were negative $17.6 million compared with negative $19.5 million in the fourth quarter of 2021. Impacts from the company’s merger with Founder SPAC and strategic shift contributed to the result in the fourth quarter of 2022.
The report says revenue for the full year 2022 totaled $675.4 million, which was $92.3 million or 16 percent higher compared with the full year 2021. This revenue growth was driven by volume growth in the company’s core business.
Gross profit in 2022 totaled $25 million, which was $3.6 million or 17 percent higher compared with $21.4 million in 2021. The growth in gross profit was driven primarily by continued expansion within the company’s existing customer base, as well as the addition of new customers, according to the report.
In 2022, adjusted gross profit totaled $53.3 million, an increase of $6.4 million or 14 percent compared with $46.9 million generated in 2021. Rubicon says this growth was driven primarily by continued expansion within the company’s existing customer base, as well as the addition of new customers.
Net losses totaled $281.8 million in 2022, compared with net losses of $73.2 million in 2021. Impacts from nonrecurring expenses in connection with the merger, including management bonus payments and equity compensation costs, contributed to the annual result in 2022.
Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, totaled negative $74.3 million compared with negative $57.7 in 2021. Impacts from the merger and strategic shift as well as a software expense increase related to the company’s license and strategic partnership agreement with Palantir contributed to the lower result in 2022.
To address cash needs and increase working capital, the company says it is in discussions with financing sources to potentially raise new equity and recapitalize debt before its maturity. Additionally, management is implementing measures to reduce spending and extend cash availability.
Though there is no guarantee the company will be able to successfully implement any or all of its current plans, these initiatives are intended to increase financial flexibility and push out debt maturities to realize greater shareholder value by improving Rubicon’s financial position and future liquidity, the company says.
Rubicon says it is aiming to accelerate its progress to profitability, investing in its leading digital marketplace and a suite of products and further developing the strategic vision and execution plan for Rubicon’s next phase of growth. Rubicon has increased its focus on operational efficiencies and working to accelerate cost reduction measures across the organization, with a goal of thoughtfully and diligently optimizing margins across the portfolio.
The company expects to generate positive adjusted EBITDA for the fourth quarter of 2023.