RXO, Inc. (NYSE:RXO) Q4 2023 Earnings Conference Call February 8, 2024 8:00 AM ET
Company Participants
Drew Wilkerson - CEO
James Harris - CFO
Jared Weisfeld - CSO
Conference Call Participants
Ken Hoexter - Bank of America
Jordan Alliger - Goldman Sachs
Stephanie Moore - Jefferies
Brandon Oglenski - Barclays
Allison Poliniak - Wells Fargo
Scott Schneeberger - Oppenheimer
Ravi Shanker - Morgan Stanley
Scott Group - Wolfe Research
Bruce Chan - Stifel
Jack Atkins - Stephens
Operator
Welcome to RXO Q4 2023 Earnings Conference Call and Webcast. My name is Lara 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 and 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. Wilkerson, you may begin.
Drew Wilkerson
Good morning, everyone, and thank you for joining today. With me here in Charlotte are Chief Financial Officer Jamie Harris and Chief Strategy Officer Jared Weisfeld. Before I get into our fourth quarter results, I want to recap 2023, a historic year for RXO. When we spun from XPO in November of 2022, we created a new public company that is more fit for purpose with the ability to allocate capital even more effectively. While market conditions were difficult when we spun, we viewed this as an opportunity to demonstrate the power of our model.
In 2023, we doubled down on our strengths, exceptional customer service, solutions that help our customers solve their toughest transportation challenges, innovation, and deep customer relationships. We also successfully integrated new leaders into our existing long-tenured team. Our model delivered outperformance for 2023 despite the extended soft freight market conditions.
Brokerage volume grew by 12% year-over-year, with gross margin of more than 15%. Brokerage cross-border loads grew by 37% year-over-year. Brokerage productivity, as measured by loads per head per day, increased by over 15%. In maintenance transportation, we significantly grew the synergy loads provided to our other lines of business, largely truck brokerage. We also on-boarded several large new customers. We grew last mile adjusted EBITDA year-over-year. We also generated strong adjusted free cash flow of $49 million, which Jamie will expand on later. We achieved all of this, while making investments for our future, including our people, offices, technology, and services. I couldn't be prouder of what the RXO team delivered in 2023, and I'm looking forward to continuing to outperform this year.