RXO, Inc. (NYSE:RXO) Q1 2024 Earnings Conference Call May 2, 2024 8:00 AM ET
Company Participants
Drew Wilkerson - CEO
James Harris - CFO
Jared Weisfeld - CSO
Conference Call Participants
Stephanie Moore - Jefferies
Tom Wadewitz - UBS
Scott Schneeberger - Oppenheimer
Brandon Oglenski - Barclays
Ken Hoexter - Bank of America
Jason Seidl - TD Cowen
Ravi Shanker - Morgan Stanley
Jordan Alliger - Goldman Sachs
Daniel Imbro - Stephens Inc.
Kevin Gainey - Thompson Davis
Operator
Welcome to the 1Q 2024 RXO Earnings Conference Call. My name is Julie 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 filing as well as in its earnings release. You should refer to the copy of the company's earnings release in the Investors 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 for 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. I'm here in Charlotte with RXO's Chief Financial Officer, Jamie Harris; and Chief Strategy Officer, Jared Weisfeld.
In the first quarter, the prolonged soft freight environment continued. RXO delivered adjusted EBITDA at the midpoint of the range we gave you in February. In our brokerage business, we posted double-digit volume growth for the fourth consecutive quarter. Total brokerage volume grew by 11%, with 8% growth in full truckload and 29% growth in less than truckload. Full truckload represented 83% of our volume in the quarter.
Our LTL business is growing rapidly, and our increased scale and automation capabilities are enabling it to deliver profitable growth. Jared will discuss our results by vertical later, but most of our full truckload verticals grew year-over-year.
In addition, cross-border volume increased by 37% year-over-year. We continue to strategically manage our mix of contract and spot volume. Contract business represented 79% of our mix in the quarter and positions us well to earn spot volume and project loads when the market improves. Within brokerage, our gross margin was 14.2% in the quarter.