Company reports completion of highest priority components of its
‘Bridge to Profitability’ plan, including securing new term loan,
recapitalization of debt, attraction of additional equity
investment, and material cost reductions across the
organization
Rubicon Technologies, Inc. (“Rubicon” or the “Company”) (NYSE:
RBT), a leading digital marketplace for waste and recycling and
provider of innovative software-based products for businesses and
governments worldwide, recently announced the closing of
significant new debt and equity financing and today provides an
update on the progress of its strategic ‘Bridge to Profitability’
plan, as discussed in the Company’s recent earnings materials.
Rubicon’s focus since the fourth quarter of 2022 has been to
improve its liquidity position and accelerate its progress to
profitability through a number of key initiatives designed to
improve margins, reduce operating costs, and increase the Company’s
financial strength and flexibility. Rubicon has successfully
completed all the highest priority tasks within its strategic plan
and remains confident in its ability to achieve its goals of
generating positive Adjusted EBITDA for the fourth quarter of 2023,
as well as for the full year 2024. The Company is confident in its
runway to achieve these targets and beyond based on the additional
liquidity secured through the instruments further outlined
below.
The Company has successfully:
- Closed a new $75 million term loan and extended debt maturities
to June 2025;
- Expanded revolver capacity by $15 million with a new $90
million revolving credit line and extended the maturity to March
2025;
- Secured an additional $24 million of equity financing from new
and existing investors;
- Reduced expenses by estimated $28 million on an annualized
basis as of May 2023, through actions designed to help optimize
supplier costs and general and administrative expenses, and
previously announced workforce reductions;
- Expanded Adjusted Gross Profit Margin by 130 bps as compared to
the third quarter of 2022, immediately prior to initiating the
Bridge to Profitability Plan, resulting in an Adjusted Gross Profit
Margin of 8.9% for the first quarter of 2023. This was achieved
through growth in higher-margin SaaS business, high-grading the
existing customer portfolio, and eliminating less profitable
accounts;
- Completed high-priority expense reduction and profitability
initiatives while driving 13% growth in revenue year over year in
the first quarter of 2023, demonstrating strong unit economics as
the Company continues to scale its category-defining sustainable
products.
As a result of these actions, Rubicon is already benefitting
from an increase in available working capital, which will enable
continued investment in its market-leading digital platform,
support the development of new product and service offerings,
facilitate its next phase of growth, and increase shareholder
value.
“We are thrilled to share this progress update on our key goals
for 2023 and beyond. In less than a year, we have accomplished all
of the highest priority tasks that we laid out in November last
year,” said Phil Rodoni, CEO of Rubicon. “We had an extremely steep
hill to climb, and there is more work yet to do, but I am so
grateful to our customers, partners, and investors for their
continued support. I would also like to say a special thank you to
the entire Rubicon team for their tireless work in support of our
Bridge to Profitability plan. I am excited for the future of
Rubicon and cannot wait to see what we do next.”
For additional information please refer to Rubicon’s earnings
materials and SEC filings, available on the IR section of the
Company’s website.
About Rubicon
Rubicon Technologies, Inc. (NYSE: RBT) is a digital marketplace
for waste and recycling, and provider of innovative software-based
products for businesses and governments worldwide. Striving to
create a new industry standard by using technology to drive
environmental innovation, the Company helps turn businesses into
more sustainable enterprises, and neighborhoods into greener and
smarter places to live and work. Rubicon’s mission is to end waste.
It helps its customers find economic value in their waste streams
and confidently execute on their sustainability goals. To learn
more, visit rubicon.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995 and within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
All statements, other than statements of present or historical fact
included in this press release, are forward-looking statements.
When used in this press release, the words “could,” “should,”
“will,” “may,” “believe,” “anticipate,” “intend,” “estimate,”
“expect,” “project,” the negative of such terms and other similar
expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain such
identifying words. Such forward-looking statements are subject to
risks, uncertainties, and other factors which could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements. These forward-looking statements
are based upon current expectations, estimates, projections, and
assumptions that, while considered reasonable by Rubicon and its
management, are inherently uncertain; factors that may cause actual
results to differ materially from current expectations include, but
are not limited to: 1) the outcome of any legal proceedings that
may be instituted against Rubicon or others following the closing
of the business combination; 2) Rubicon’s ability to meet the New
York Stock Exchange’s listing standards following the consummation
of the business combination; 3) the risk that the business
combination disrupts current plans and operations of Rubicon as a
result of consummation of the business combination; 4) the ability
to recognize the anticipated benefits of the business combination,
which may be affected by, among other things, the ability of the
combined company to grow and manage growth profitably, maintain
relationships with customers and suppliers and retain its
management and key employees; 5) costs related to the business
combination; 6) changes in applicable laws or regulations; 7) the
possibility that Rubicon may be adversely affected by other
economic, business and/or competitive factors, including the
impacts of the COVID-19 pandemic, geopolitical conflicts, such as
the conflict between Russia and Ukraine, the effects of inflation
and potential recessionary conditions; 8) Rubicon’s execution of
anticipated operational efficiency initiatives, cost reduction
measures and financing arrangements; and 9) other risks and
uncertainties set forth in the sections entitled “Risk Factors” and
“Cautionary Note Regarding Forward-Looking Statements” in the
Company’s Annual Report on Form 10-K, Registration Statement on
Form S-1, as amended, filed with the SEC, and other documents
Rubicon has filed, with the SEC. Although Rubicon believes the
expectations reflected in the forward-looking statements are
reasonable, nothing in this press release should be regarded as a
representation by any person that the forward-looking statements
set forth herein will be achieved or that any of the contemplated
results of such forward-looking statements will be achieved. There
may be additional risks that Rubicon presently does not know of or
that Rubicon currently believes are immaterial that could also
cause actual results to differ from those contained in the
forward-looking statements, many of which are beyond Rubicon’s
control. You should not place undue reliance on forward-looking
statements, which speak only as of the date they are made. Rubicon
does not undertake, and expressly disclaims any duty to update
these forward-looking statements, except as otherwise required by
applicable law.
Non-GAAP Financial Measures
This press release contains “non-GAAP financial measures,”
including Adjusted Gross Profit Margin and Adjusted EBITDA, which
are supplemental financial measures that are not calculated or
presented in accordance with generally accepted accounting
principles (GAAP). Such non-GAAP financial measures should not be
considered superior to, as a substitute for or alternative to, and
should be considered in conjunction with, the GAAP financial
measures presented in the Company’s Current Reports on Form 8-K
filed on March 9, 2023 and May 22, 2023, and other filings with the
Securities and Exchange Commission. The non-GAAP financial measures
in this press release may differ from similarly titled measures
used by other companies. Definitions of these non-GAAP financial
measures, including explanations of the ways in which Rubicon’s
management uses these non-GAAP measures to evaluate its business,
the substantive reasons why Rubicon’s management believes that
these non-GAAP measures provide useful information to investors and
limitations associated with the use of these non-GAAP measures as
well as reconciliations of these non-GAAP financial measures to the
most directly comparable GAAP financial measures, are included
under “Reconciliations of Non-GAAP Financial Measures” contained in
the Company’s Current Reports on Form 8-K filed on March 9, 2023
and May 22, 2023.
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version on businesswire.com: https://www.businesswire.com/news/home/20230614364882/en/
Investor Contact: Sioban Hickie, ICR, Inc.
rubiconIR@icrinc.com
Media Contact: Dan Sampson Chief Marketing &
Corporate Communications Officer dan.sampson@rubicon.com
RubiconPR@icrinc.com
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