RXO, Inc. (NYSE:RXO) Q4 2022 Earnings Conference Call February 8, 2023 8:00 AM ET
Company Participants
Drew Wilkerson - Chief Executive Officer
Jamie Harris - Chief Financial Officer
Jared Weisfeld - Chief Strategy Officer
Conference Call Participants
Stephanie Moore - Jefferies LLC
Ken Hoexter - Bank of America Merrill Lynch
Scott Group - Wolfe Research
Scott Schneeberger - Oppenheimer & Co.
Thomas Wadewitz - UBS
Allison Poliniak - Wells Fargo Securities LLC
Brian Ossenbeck - JPMorgan Chase & Co
Jack Atkins - Stephens Inc.
Jordan Alliger - Goldman Sachs Group, Inc.
Bascome Majors - Susquehanna Financial Group
Operator
Welcome to the RXO Q4 2022 Earnings Conference Call and Webcast. My name is Michelle, and I will be the 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 the 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 files, as well as the earnings release. You should refer to a copy of the Company's earnings release in the Investor Relations section of the Company's website for additional important information regarding forward-looking statements, and disclosures and reconciliations of the non-GAAP financial measures that the Company uses when discussing its results.
I will now turn the call over to Drew Wilkerson. Mr. Wilkerson, you may begin.
Drew Wilkerson
Good morning, everyone. Thanks for joining today's earnings call, our first since our spin-off from XPO. Joining me today in Charlotte are Chief Financial Officer, Jamie Harris; and Chief Strategy Officer, Jared Weisfeld.
Our first quarterly report as a standalone company was a strong one, despite the challenging macroeconomic environment. We reported adjusted EBITDA of $64 million. Our Q4 results were driven by another quarter of profitable volume growth in brokerage, despite a muted peak season. Our complementary services, including last mile and managed transportation, also performed well.
Overall, our gross margin remained strong at 19.6%, up 250 basis points year-over-year. Our tech-enabled brokerage business continued to significantly outperform the industry, take share and grow volume profitably. We set a new volume record in the fourth quarter.
Brokerage volume was up 4% year-over-year in the fourth quarter of 2022. For the year, we grew brokerage volume by 12%. We are proud of our sustained volume growth. Since the fourth quarter of 2020, RXO's brokerage volume has increased by 27%. And since 2019, our brokerage volume has increased by 56%. We are focused on continuing this momentum, and we are confident that we will deliver. This is profitable growth.