RXO, Inc. (NYSE:RXO) Q2 2023 Earnings Conference Call August 2, 2023 8:00 AM ET
Company Participants
Drew Wilkerson - Chief Executive Officer
James Harris - Chief Financial Officer
Jared Weisfeld - Chief Strategy Officer
Conference Call Participants
Stephanie Moore - Jefferies
Brandon Oglenski - Barclays
Ken Hoexter - Bank of America Merrill Lynch
Scott Schneeberger - Oppenheimer
Ravi Shanker - Morgan Stanley
Scott Group - Wolfe Research
Allison Poliniak - Wells Fargo
Thomas Wadewitz - UBS
Jack Atkins - Stephens
Jordan Alliger - Goldman Sachs
Operator
Welcome to RXO Q2 2023 Earnings Conference Call and Webcast. My name is Sylvie and I will be your operator for today’s call. Please note that this conference is being recorded.
During this call, the company will make certain forward-looking statements within the meaning of federal securities laws, which by their nature, involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those in the forward-looking statements. A discussion of factors that could cause actual results to differ materially is contained in the company’s SEC filings as well as in its earnings release.
You should refer to a copy of the company’s earnings release in the Investor Relations section on the company’s website for additional important information regarding forward-looking statements and disclosures and reconciliations of non-GAAP financial measures that the company uses when discussing its results.
I will now turn the call over to Drew Wilkerson. Mr. Wilkinson, you may begin.
Drew Wilkerson
Good morning, everyone. Thanks for joining today’s earnings call. Joining me today in Charlotte are Chief Financial Officer, Jamie Harris; and Chief Strategy Officer, Jared Weisfeld.
I’m pleased with RXO’s performance in the second quarter of 2023 despite the soft freight market. Importantly, we accelerated our market share gains and achieved the goals we laid out for you last quarter. We continued to grow broker volume year-over-year and we grew adjusted sequentially.
In addition, last mile is on track to grow EBITDA year-over-year for 2023. Overall, our company-wide gross margin remained strong, 18.6%, and our adjusted EBITDA margin was up sequentially, even though revenue declined quarter-over-quarter. We continued to optimize our cost structure and invested to support our growth. Jamie will discuss our efforts in more detail in a few minutes.
Our Q2 results were driven by another quarter of impressive year-over-year brokerage volume growth, strong brokerage profitability and improved results from last mile. In brokerage, we continue to grow profitably, significantly outperforming the industry. Volume grew by 10% year-over-year and we achieved gross margin of 15.4%. We set multiple brokerage volume records in the quarter, including new records for total volume, quarterly loads per day and monthly loads per day during the month of June. Year-over-year volume growth accelerated every month as the quarter progressed.