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Rubicon Reports Strong Q2 2024 Financial Results
August 22, 2024
3 Min Read
Rubicon
ATLANTA -- Rubicon Technologies, Inc., a provider of technology-based waste and recycling solutions, today reported financial and operational results for the second quarter of 2024.
“We’re thrilled with our Q2 performance, where our team’s relentless focus on customer success and strategic account management has paid off,” said Osman Ahmed, Interim CEO of Rubicon. “By signing new customers and unlocking upsell opportunities within our existing base, we have demonstrated that when our partners win, we win. We look forward to building on this momentum and achieving even greater success going forward.”
Second Quarter 2024 Financial Highlights
Revenue was $163.1 million, a decrease of $8.8 million or 5.1% compared to $171.9 million in the second quarter of 2023.
Gross Profit was $4.5 million, a decrease of $5.5 million or 54.6% compared to $10.0 million in the second quarter of 2023.
Adjusted Gross Profit was $10.6 million, a decrease of $5.6 million or 34.5% compared to $16.2 million in the second quarter of 2023.
Pro-forma Adjusted Gross Profit excluding operating expenses attributable to the Fleet Technology Business Unit was $11.6 million, a decrease of $4.6 million or 28.3% compared to $16.2 million in the second quarter of 2023.
Net Income was $27.3 million, an increase of $50.1 million or 219% compared to the net loss of $(22.8) million in the second quarter of 2023.
Adjusted EBITDA was $(12.4) million, a decrease of $2.7 million or 27.8% compared to $(9.7) million in the second quarter of 2023.
Pro-forma Adjusted EBITDA excluding operating expenses attributable to the Fleet Technology Business Unit was $(9.9) million.
Operational and Business Highlights
On July 1, 2024, Rubicon announced the appointment of Osman Ahmed, formerly lead independent director on the Company’s Board of Directors, as interim CEO. Ahmed is Co-Founder of New Circle Capital, a structured capital provider to small and mid-cap companies, and Senior Advisor at 10X Capital, a multi-strategy technology investment firm.
Select new customers this quarter included The Army & Airforce Exchange Service, Fortune Brands, TK Elevators, and the Veterinary Emergency Group (VEG).
In Q2, Rubicon renewed one of its largest accounts—a leading big-box retailer—through 2027. When this account was first launched, the Company managed just over 100 sites; Rubicon now oversees more than 1,800 sites across multiple material streams.
For more information about Rubicon’s second quarter 2024 financial results, please see the Company’s shareholder letter dated August 21, 2024.
Sale of Fleet Technology Business Unit
On May 7, 2024, Rubicon announced that the Company has sold its fleet technology business unit and issued convertible preferred stock in Rubicon to Rodina Capital, a private investment firm based in Florida, in a sale with a total transaction value of $94.2 million, which includes up-front cash of $61.7 million and an earnout consideration of $12.5 million that would be payable in 2024, along with a $20 million issuance of convertible preferred stock.
These transactions are transformational for the Company, ensuring Rubicon’s long-term viability, improving its balance sheet by reducing debts and providing additional liquidity to enable the Company to quickly achieve its business objectives, accelerate its journey to profitability, and continue growing its core business. Importantly, it marks a return to Rubicon’s core principles, a business centered on a customer-focused approach that has been instrumental in the Company’s growth from the outset. This strategic move underscores Rubicon’s dedication to the RUBICONConnect™ product, which serves commercial waste generators from small to medium-sized businesses to Fortune 500 companies. Many of the Company’s commercial customers are looking to Rubicon to help them achieve sustainability goals with tailored zero waste and circular economy solutions, including through the Company’s Technical Advisory Services (TAS). This sale and the new capital will be dedicated to improving services and strengthening Rubicon’s longstanding relationship with more than 8,000 vendor and hauler partners, 90 percent of which are small, independent businesses.
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