Earnings call transcript Q4 2022

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Operator

Good afternoon and welcome to Rubicon Technologies Fourth Quarter and Full Year 2022 Earnings Call. My name is Emma and I'll be your operator for today's call.

As a reminder, this conference call is being recorded. At this time all participants are in a listen only mode. After the speakers remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator

my Finance. introduce now Vice Spooner, President of pleasure is Chris to Senior It

begin. may You

Chris Spooner

can a our This and we full Thank you. few of found@www.rubicon.com. and XXXX. will webcast year we Hello, Q&A everyone, Today's the can present XXXX and investor section fourth be start. the for earnings full be quarter accessed call. is A quarter of call Rubicon's quick from before be fourth by welcome reminders followed being to will session. website, which Today, financial results year Rubicon's

During our discussed statements statements our harbor These the to earnings in results due materially actual as filings. Reform call and provisions management our release are safe and XXXX. and we'll of are be may risks differ not Litigation making the and known Securities uncertainties Act that greater to forward-looking guarantees of of SEC unknown in Private the detail performance, subject future

We except assume no obligation by law. statements required as to update forward-looking

Additionally, to non-GAAP EBITDA. during isolation most GAAP gross non-GAAP including considered measures we and not will today, results be directly profit adjusted these provide the should We measures. in refer informational a adjusted purposes and from call for comparable financial

in to SEC. we earnings non-GAAP the believe found discussion measures, A why release of limitations with measures investors, are and filings of reconciliations the our these measure most be GAAP can useful to certain our and these using directly comparable

Officer. Kevin call today President on the Rodoni, Financial Chief Officer, Joining Phil Schubert, me Rubicon's Executive and Chief are and

to Phil. would over With to like now call the I that, turn

Phil Rodoni

for everyone Thank today. you you, Chris. to thank us And joining

has by we was today waste minutes describe to to cloud-based governments. a our and do new leader Rubicon and a and who and global be grown Rubicon begin those are to story. few businesses work providing our to over ago partners. recycling I in with and customers decade the solutions founded a For taking will

generators, that innovative waste engagement waste and and fleets network efficiency recycling provides for customer transparency, cities, management and and greater services waste such manage of solutions as waste deliver a the of industry. Rubicon We waste processors. within and haulers companies recycling

Prior had processes. governance of no with This impossible no vendors, to focus Furthermore, multiple reporting was to and a made use unified metrics. management landfills track report or on diversion or which to and businesses Rubicon there the little it corporate to capabilities. environmental, most a had unified have diversion social program way to coordinate commodities landfill virtually of

and which report through Rubicon Rubicon these their address deliver optimize intelligence vision technology of their and their easily data and services, performance. partnership ESG monitor artificial analytics and Today, solutions better products procure can problems easily service transformative computer schedule, Through customers management, with a service suite reporting.

million surpassing XX unique XXX of This scale to locations approach partners and significant ability X,XXX waste achieve Rubicon today over hauler has service manage recycler over types streams. the and with allowed to

offering businesses generate was enable extractions. from to in turn to line As cases, divert network our some properly the that businesses aligned provide and landfill an solutions waste, what our broader commodity more service continues revenue expanding a incentives improve we Or array of through opportunity into material generating benefit performance. from diversion pricing, and capabilities better that customers and grow cost and

our Our of proprietary many platform customers are business Rubicon which fleet use opportunities, can new find to the platform. to exclusive

fleet city and and parts, resulted as fleet savings. These for and save buying optimization customers such products management purchase municipal and and as easy time have benefits technology can insurance can fleet services, where in fuel, well consortium tires route and as also help discounts. at to Our customers use provides taxpayer services a money our fleets

growing fastest municipal our In is City for products. fleets one our Smart of solution Rubicon fact,

more effective and Our operations. faster, proprietary technology and waste helps heavy-duty miserable fleet recycling smarter run cities

only city recycling It to miss improve routes. satisfaction, to which operations, information also Our captures dumping. can substantial illegal back response and can drivers morale operators. more contamination software cost and savings citizen this sends their bins, and not like safety become blocked pickups, employees, lead All improve with efficient lower times increased time municipal helps and carbon for for issues driver

With take Rubicon platform, to and this through understanding to moment you how of want money. Rubicon I services makes a walk

platform from via three sources. the revenue network generates Our primarily

generator that platform. waste the price procure the services services which First, between margin our our from We services within the the a and for of we our and we're revenues hauler reflective our difference make waste based network. sell to are all price transact to those on customers, recycling over which our at able

within and hauler optimize Rubicon's markets, technology we generators, for levels improve. we drive service margins as to marketplace our leverage density As waste

to which and value earn to unique providing monetizes Secondly, commodities pulled customers processor higher predictability by revenue. from and waste recycling of customers, volumes. drive may adding turning otherwise into the Rubicon able ended are supply landfill. margins to for we previous the by from quality have the Through streams this process, in costs our our And up

It customers certain with our align drive generators at as positive incentives our is not adjusted level. profit price that worth for do margins to typically so commodity waste assume gross achieving exposure our we environmental noting processes, with that contracts environmental the outcomes improve. that such outcomes we Further, risk we structure our and to interests our agreements feature

date. or software our Rubicon to constituents whether subscription a a at for fee fleet, is a to waste Rubicon access are of charges proud very platform. generator We achievements monthly proprietary Finally, customer our

quarter. to take accomplishments milestones commercial our to I fourth and minutes a of few the from So, like few would review a now

increase as of Walmart, of waste management with retail enabling landfills and to and these enhancement to was of recycling multiyear as account distribution extension continue the centers for agreement Rubicon waste and from stores. the the The its diversion of corporations a first consolidation the Walmart's services retail well

expanded to profit recycled Add gross states. its share streams new its to wallet improve five adjusted by new adding subsequently renewal, Rubicon margins. material this Amidst and program, was able his

Rubicon addition, food seeks mission serve driven a with extension to which Sweetgreen, In at restaurant three-year scale. secured the healthy brand

waste to partner Rubicon to expand and continue waste enabling management is enhanced partnership account diversion Sweetgreen provide for services. the company's composting Our recycling lead and as efforts

We lines. continue increased see within higher product momentum for SaaS our to margin also

This efficient Rubicon cities operations. waste Hampshire. save experienced smart to Specifically, that quarter a new announce chose Smart with New city and record contracts of Rochester, collection in we're Surprise to with Rockville, City customers the help QX proud the solid Manchester, money run more Rubicon new York, and addition included XX and Arizona them Maryland. city's New at

management environmental strong is Rubicon was with Under February, a are nonexclusive to well. to across cities agreement, with and Kingdom, software a sales a United products route service off this addition, leading counties able In Kingdom. supplier United agreement partnership in is proud license to announce on In reseller start we software-based as technology. that leading to a report formation innovative Rubicon's pleased sequencing Bartec of the the XXXX Rubicon and market channel and of focus of Bartec, the suite to multiyear optimization

Through the on new in expansion existing as company's partnerships progress its leaders achieving Rubicon around world, strategy. build continuing is to Bartec. global the with further markets footprint and such regional channel

recent quarter President, results. over call pleased fourth the and I going Anderson, Schubert took to through and public, during as be our Kevin company management who late the the Officer. in a serve and Rubicon for of would period. year support Financial provide that now like Rubicon missed the Jevan in leading full opportunities. Jevan were I review transition on also process in and necessary as turning changes. to Kevin other Rubicon a to framework of acknowledge February take the Jevan he Chief moment Before XXXX. to then moves board over to announce joined Kevin our financial to was pursue to the will instrumental functions will preparing

direct operations and already for of has helping and assumed leadership strides strategic earnings next Kevin public making achievement and goals out our Rubicon accelerate a management, laid of great in well company's Rubicon during targets. responsibility its in phase the our the the future is for of last has the helping we in and life. success positioned strong course team is call, financial

of call year Kevin outlook. full a XXXX update as will financial a over now and and review quarter fourth well turn the as I to the results provide to

Kevin Schubert

part approximately company's history. the continue quarter XXXX a million and Thanks few warm fourth $XXX to million Rubicon's the quarter. be beginning I year to an in a the introduction. compared take This I fourth in quarter appreciate of $X excited as the management of truly team serve of generated Phil. was XXXX. Rubicon revenue And time quarter. in fourth minutes review dynamic now of I'll the to or to the such with our X% increase fourth results full

$XX lower approximately to by impacted negatively $XX quarter profit price of was was XXXX of as quarter first fourth compared Adjusted fourth the headwind. result XXXX. for which gross million, Revenue a was of X% quarter in million approximately the commodity

gross quarter negatively adjusted expenses, initiatives for optimization million which million have for $X.X resulted in gross of Adjusted onetime in improvement profit approximately over enable profit and customer impacted margin the price part $XX by that negotiated increases XXXX. helped was already collectively annualized

expenses $XX associated negative severance, still combination and biographies, EBITDA Adjusted company's including and quarter includes strategic executive shift, fourth for the with Adjusted transition million. a expenses. EBITDA was employee business

negative coming these impact of quarters. expenses to complete expect the be We in the

million, in sharp the $XXX despite was results, XXXX. year decline full revenue increase approximately an a growth, $XX recyclable commodity compared volume XXXX full our prices. or core XX% to our substantial higher now evidencing Turning company the to generated in year of This million

was or This to by compared commodities primarily year higher approximately million gross for was driven Adjusted XX% increases million, year SaaS XXXX profit full our and businesses. the which of increase $X was full the $XX in XXXX.

expect our in coming continue part We that quarters. to marketplace this products outpace business our core to and growth SaaS momentum to see of and continue in of business our strength in

well partnership and year million. XXXX for related $XX impacted negative and strategic was year as from agreement combination Palantir. full resulting business EBITDA with was by license as Adjusted increase expense the EBITDA to shift, expenses strategic adjusted our software Full

profitability, recall call, ensure as for our maturities to the financial have quarter's of company debt. from last may flexibility earnings liquidity out you and as working the we well to diligently If been drive extend increase current

are of We headway each these significant to for that items. pleased announce made we've

the due over debt last raised net this year. we've with million earliest out of of $XX extended number end maturity a now successfully our maturities until is capital our not of the and call, Since funded

part this upsize XXXX. able As now not we're finance which a fully mature revolver, process, also does and until of to

we result, approximately liquidity million on a of As had as February. sheet of available balance the end of $XX our

this attain remaining year. able be to will But to of and for our the discussion matures at in to update accomplish seek goal we of which we call. end you close guarantee there successfully tasks the middle the on our are of we loan, no to term The an is expect this have recapitalization next is refinancing,

Finally, we we some in belief to our confidence underlines progress able date, the to XXXX, wanted guidance made have to for and provide business. the be and of strength which our the

year to be full range, to million revenue to $XXX approximately expect $XX $XX within and profit We million. the million gross to be adjusted $XXX million

a expect gross our of end. drive by XX% to As year this, margin adjusted result we profit above

fourth Furthermore, forecasts future to update positive we're impact adjusted any key note projections. full give well the on now as Phil XXXX. M&A these an also exclude to you the this that implementing achieve quarter of year, year potential we these expect the strategies for I generate activity. would as the EBITDA of for

Phil Rodoni

Thank you, Kevin.

generators, industry leading the fleets positioned to Rubicon's service for experience in believe to and limiting years waste waste processors platform well as is for come. continue definitive strategically We

efforts. We pleased increase curtail financial expansion observing and flexibility, progress investments, profitability. to across profitability diligently have seeking achieve and lower-ROI reductions already am and are made to margin to executing portfolio plan, these due to bridge thoughtfully have report we that been increase the I our cost substantial

number We a of actions. have achieved this early focus success through

margin increased The achieved these margins, of improve actions Rubicon success. to higher This such have early been such observed has has we Smart products our City. SaaS through sales of the as first where as our of been already implementation

of prices outcomes economic the services for optimization industry, In driving addition, superior in and generating broader revenue customers through line service the with waste while still select generator appropriate, we where are our recycling increasing waste programs.

volume-based compressed which underperforming rebates line. and and securing We also have been previously bottom remove thoughtfully in successful hydrating our to haulers we been key margins hurt accounts, portfolio amongst our have

in we the mentioned, these measures to in have observed progress sharing forward I success look I As additional and already future.

with coupled us with order The systems. integration servicing level their working service improve our functions increase and customers second costs have has by efficiencies automation to reduce streamline the work been enabled the increasing profitability service action of we been our associated headcount. and select model outsourcing has focus overall and This office to of and on standardizing accounts with our back to

And across reducing in third, which $XX expenses reduction over Rubicon company, has progress in million. SG&A has the made annualized non-service our material of cost related resulted

we actions this and expense non-payroll have access The and expense legal efficiency licensing services, as achieve transaction, procurement included improvements have cutting, payroll post software and taken to processes. third-party centralizing reductions, select and rationalizing and such expenses

as continue additional efficiency will improvements well implementing these as We ones.

quarter. plan, our implementing Since reduced a these around to to the third $X.XX loss we of million, million intensity. forecast our million to reduction Bridge observed March $X approximate compared to adjusted have And $X.X Profitability efforts our capital significantly the be approximately EBITDA in XX%

our this improved million profitability Profitability Bridge finer put on an on point the adjusted we $XX approximately EBITDA October, a basis. Rubicon has progress, annualized months six just introduced by in plan its to in To since

scale While verticals. quickly in attractive continuing to

this by we intently the to our we progress to-date, remain year flow our positive range. progress to EBITDA gross to ability ability have confident analysts’ be achieve Building current our made expectations. goals this in while expanding our the profit this say to-date, cash the we executing for adjusted quarter are fully adjusted on and in positive in of margins ahead year, within confident we that low-double-digit are Supported expect on to focused fourth

scaling haulers work municipal and prospects analyzing and We've What our infrastructure. excite become over million opportunities about stop to to in today doesn't lie the will the continues And end However, business the be XX of over we our images locations. March, we waste once million ahead. and by with X,XXX profitable. service our invested that work per day service business one future we insights are unique over streams related for me

established scale. are of can customers, of we sell we advantage scale this, additional positioned this to utilize services. of Think a of with result relationships begin a platform built-in partners to book and of as taking As well our business and products which

of which current XXX to be waste increase types the our share expect handled waste a wallet offering We amongst profile than for today, more margin platform able by the solutions margins than and different service. already on increase vast municipal of to solid have generator material customers our better majority

SaaS The based investment on our expand platform solutions. to provides additional our opportunities

to expect business year-over-year has continue. and mentioned, high our SmartCity As margin doubled we that growth

achieved by primarily that reminder, a U.S. manage to As within municipalities this their growth the has been fleet. selling own market

building In commercial and focused for while the we have capabilities, international past, functionality purposely constrained invoicing. ourselves, support developing we including billing on building fleets sales channels, and

domestically. other. look we Even And of while business, our to SaaS with our part business maintaining year, support the municipalities, last business, we internationally of these double constraints, SaaS based to our in and XX%. beyond margins year, forward marketplace both each this growing excess and Strategically were the lines SaaS able the

marketplace sell solutions more The more and more digital larger more fleets the on the on can based attracts fleets and marketplace the the solutions have solutions. the more can the more customers, offer SaaS With to we to customers. we offer platform, broader haulers platform, our the marketplace, material commercially, the customers haulers. on internationally have we solutions and where territories The opportunities we

and Extending of this more fleets we solutions. on the new us already the and future, larger allow The we turning products collect our services. the into platform, turn the file offer data varied This number and is have marketplace, larger in the today. the innovative the will of and number the to larger more

this and of will development continue release of the inform wealth used to solutions. demand use have data We and to

feedback actually when future successful product vision waste routes sweepers that loop our occurred. simply imaginations. fleet models when the opportunities customers can confirming are and like service to identify so street and artificial support develop are or enters been From use illegal that perspective, access us when As where is growth has snow intelligence today. plowed. data contamination and of We computer are image actually limitation an confirm in have swept there when can and to dumping, This our my City product other stream Smart example, plows bins a has types being overfilled our

you you for quarters. this the I will along who questions. look progress with our us, updating way call the the With that, we open on journey operator continuing coming in can Thank forward over the to turn the for line to

Operator

[Operator Instructions] Your line the with first Canaccord. question from Maria today comes of Ripps

Your line is now open.

Maria Ripps

so much Thanks Great. questions. taking my for

your seeing any what about and with spending with it of First, elongate you’re And having maybe of some you pull some are can kind including just the back or corporate sort sales and of you cycles? municipalities talk your of clients, clients? conversations

Phil Rodoni

is Phil. Hi, this

So, question. thank you for the

no, either of and/or our aren't seeing any going actually it corporate kind to our customers. from we So, pullback so kind actually of municipalities

we In fact, that mentioned, this based again, SaaS to kind doubled. as And of again our business has we double expect year.

seeing kind of channels. those So, we're actually great on momentum

Maria Ripps

that And recyclable that’s I point the at have then growth? what that helpful. it. normalize to return I sort Got do to commodity then but very expect there's of you And segment, little visibility, or on bit quick of And maybe a less a understand follow-up. sort segment

Chris Spooner

Hey, price. there's be gross about at With component. a Maria, course our of throughout revenue going volume that driven year-over-year this the the Chris by XX% reduction resulted Commodity line, pressure pricing is a course, price revenue individually in commodities, in saw of to level, commodities and XXXX, always Spooner. top

some we That going that growth existing expect our related those XXXX, deploy from commodity customers and the And was continue margin higher to as look products said, our to transition in we underlying of landfill volumes commodities expansion with there to customers. into waste. forward away

Kevin Schubert

they add depressed the -- gave a we assumption that of you these that they Maria would we go is is this put forecasts this will to at is is year, back levels. to Obviously, of the commodity prices extent that assuming be that that add just just course throughout up, that that the stay stay would kind And I tailwind. were out I Kevin. would our

Maria Ripps

going Got pressure and and commodity revenue sort year, could call bit margin higher to gross cost of sort of of sort drive more adjusted could. be is expansion the it. pressure That’s all sort all little efforts under one of And I give under especially very color if of this around more a what of there, near-term? I expenses appreciate helpful. your or as and remains kind us you margin operating maybe business in the the maybe but should

Phil Rodoni

can one question repeat Maria, Sorry you that just time, more apologize? I

Maria Ripps

just for a of more Yes. margin around what should expansion I was bit color of looking gross drive little and revenue adjusted this year? cost sort

Kevin Schubert

Sure, But have Chris, able I for and extra. you mean, to then sort chime free of target I'll we've going as start higher areas. of anything if feel through, been selectively margin we're obviously, sort to in us,

the right. mindful -- optimizing and very sort So, been We've of increasing gone to-date, gross portfolio, where of in adjusted those sort been actually it's us putting margin optimization profit sort through can we about really targets very and been for gives which of lot we've end pushing out we've successful in already comfort, year. of of the we've a and at the

to weed. with SaaS so sort very successful year. is very Connect our of is So, already been things. It's high which a two far it's this current continuing business, sort obviously optimizing business, The of grow we've which like margin

drive strongly about to very very, there. feel able margin we being incremental So,

bit really commodities as market business well. to new sort business, of for and margin and And tends higher unique really down margin, then going higher areas, be also after which more going are margins, a Connect, about new it for much it's prioritizing prioritizing that and higher also

really it's of a those all combination So, three.

Chris Spooner

Kevin $XX profit the what business, with said, existing just within added the annualized existing gross we've adjusted RubiconConnect Just optimizations to portfolio. within this year million an of the margin already underscore

the products our higher scales So course business continue commodity additional blend. expansion year, of growth to these over to the SaaS course, market higher on as that the margin accelerate the will of margin

Maria Ripps

helpful. very That’s it. much. Got you Thank very

Operator

Moore of next Stephanie Jefferies. the line question Your from comes with

Your line is open. now

Stephanie Moore

commodity your think Thank on Maybe And the third when question underlying little on just partly which it's bit take commodity we maybe kind helps that all on fully a business. in here the kind a since was not discussed of of the the Hi. a commodity, impacts. understanding, spoke to spread quarter, I Good afternoon. you. Maria's follow-up of exposure prices with you some different,

talk third what through between So, I happened prices didn't quarter, the believe quarter. better were commodity weak, pretty even can and you XQ the in XQ? maybe get and in certainly fourth

effect? timing a of how of out? Or it that is kind pan just kind So, does

Phil Rodoni

Yes, revenues It's profit the the does kind questions, fluctuation. times the of both price At marketplace. net Rubicon adjusted line, Stephanie. commodity level, of thanks the at contractually to That exposure revenue sort hedged Rubicon have a Q P gross essentially, gross equation. of said, for on sides were

we you think business of commodities of a revenues so, fee. And can is tolling from more the generate the that

the Our gross the don't the commodity spreads transactions effectively of bear exposure at over we profit customer level. a life are on in adjusted locked relationship. And

profit pretty XXXX, So, over commodity adjusted meaningful Rubicon insulated. remained course in despite the gross a decrease overall prices of

Stephanie Moore

So, I break it know you out.

gross you adjusted for commodity would been XQ, what on have recycled say business similar that your seeing despite XQ, top-line? the the So, we're would profit

Phil Rodoni

Yes, right. that's

line. For the profit gross adjusted

Stephanie Moore

it. That’s you. helpful. Got Thank

you non-municipality opportunity guys, municipalities contract about, partnering the what beyond and at -- and talk is? the So from these businesses bit of your be might terms also versus for what comment hearing a you could growing in maybe little customers, taking you're about kind it with they're looking municipalities. what maybe SaaS them Maybe of what

Kevin Schubert

the for Thanks Great. Stephanie.

couple So, a things of there.

well. that are platform from their commercial to as help package their kind of much fleets know, be fleet operators fleets, same we that used there and offer that a help them efficiently can of run telematics you run to So, of we more efficiently. of as out kind kind have of more business But actually kind kind municipal

of additional kind the they and kind module municipal to service, able into commercial invoice of kind invoicing, that year, capability their of The a well. we this And mentioned, need specifically a commercial not kind us of sell that bill that say in to past, and I are kind that there And around into to directly I of that will client as for those kind an to allow kind customers. the rolling difference fleets that be that key area. versus typically would of of chose of as kind in of go so of between client or out is we'll billing kind kind need the be

And so, thing the I reception that's the do think few that key already, we're of is already see piloting customers a you'll with kind that, has been great.

In that fact, looking that few able out routing we to our a of solution. of offer that them. kind kind are to have quite that clients sequencing all kind one there and one of now of really And for we'll kind love be of capabilities, in really kind time,

very sales to increase on we're of additional excited the side. about kind So, being that able

the component both and expansion of capabilities as that our internationally is well. standpoint, second The as and sales also from extending well capability taking now commercially kind

product is of kind the expand, as across, domestically you'll there. with yet when kind Rubicon to call And line this that commercial customer. well as Pro we of sell actually internationally think see out really another I So, we

Stephanie Moore

given I for understood. again, part which And then the strategy. believe on your in liquidity for a kind pause it's tapping there M&A of was just of lastly, not included always a kind comment bit your been a needs. the is Okay, about you of of year. But market me, into last made quarter, that target potentially

to an current relates near-term kind more it liquidity? through your as strategy, maybe walk and your particularly M&A updated on of stance So

Kevin Schubert

Yes, for sure.

to primary and getting And as positive kind profitability I kind so is we again, And organic as adjusted so, really fourth talked kind now and the EBITDA accelerating the of path continue of our in margins possible again, focus, think, quarter. businesses. right our for to our from kind of of kind strengthening of fast about of to our kind growth as

our so And concentration. been really that's

the being of exact any the be predict certainly to kind will they along as acquisition but get we opportunistic, so. as can't, kind we'll we potential them again, the We and will we take, do look kind that of those will present said, timing transactions, capital opportunities for Now, and certainly get kind way. of there themselves, of it of as pursue necessary

Phil Rodoni

We just we're highlighted, like to is Stephanie, add I SaaS still sort a we perspective, would from Yes, to current that you of the that, mean look growing haulers business, the rolling I I have sort the mean, as and commercial around, another out. sort we we're SaaS of growth SaaS have actually of offering going a be weed, that rolling new going offering business maybe just shortly of stratifying, to suite the customers that a to to isn't full out the that allows Connect, maybe Connect whom who, sell us sort additional for current applicable, they want on piece of maybe out it, year piece rolling roadmap ESG as another actually SaaS sourcing, that the the reporting of or we're the so this the metrics of well. or piece sort

we're that doing So, we've side. outlined side. Connect on we've the things growth the got obviously, all on ton of a And

we of lot organic forward. move confident a growth we have, in feel we there's So, as that that really

that do we So, definitely if definitely have targets organic the pipeline, that there obviously profile interesting sort that any growth can we would some where And a from into that incremental very feel be would still real high to just M&A drive get growth, bring margin interesting niche and us that out have about in we capital, areas have would that. still the really of business. did on but be a jet would dependent we incremental some M&A even margin fuel strongly capital we without we

Stephanie Moore

so much. you Thank Okay.

Operator

of Fitzgerald. line with Cantor Knoblauch the from comes question next Brett Your

now open. is line Your

Brett Knoblauch

me. my Two for Hi, for taking guys. Thanks question.

disclose give SaaS help insight on, you of And of little, to how To that that revenue? a impacted pruning should then segment of the more had and second, First, base kind I adjusted that us retention profit customers guess rate has for put gross a that forward? did just going how customer is? of is actions guys guess that and ballpark number that revenue if the in of you lower like, maybe this your what just I quarter? percentage And percentage we margin into think big

Chris Spooner

I Spooner. appreciate question. Chris Hey, appreciate the Brett, call the is this --

is net of more? terms a the excess XXX% at on that margins basis. a We're a question accounts seeing gross of Do profit once GAAP It on this gross your In even accounts mind effectively repeating in business adjusted business, margin. But margin for SaaS XX% today. first you basis.

Brett Knoblauch

about was and for rate the it and putting what retention It going customer actions net impacted should forward? your base? expect metric that the Has that we revenue

Chris Spooner

me. excuse Yes,

we customer So And QX. net related ongoing even and in for margin optimization as amidst margin QX, to expenses optimization revenue XX% we mentioned, posted incurred hydrating, portfolio initiatives. these of Kevin initiatives, onetime million about retention these $X.X

Now, as customer roughly transition model oftentimes improve already enable this will that's we $XX profit to our helped gross year gross to to service -- our And of as XXXX. will this in new million adjusted new with Rubicon discussed customers providers improvements levels equipment or margins. reduce

Brett Knoblauch

sure. posted guys just make This to XXX% compares last I you want to number quarter? the retention

Chris Spooner

correct. overall taken very our With profitability. targeted portfolio That's improve to actively and the actions hydrate

Brett Knoblauch

metric was, it. little there? like is Got or to or? And it done trend I say we're there can would trend more to finish sideways guess you to close expect up you process? that work this to a Or be for

Chris Spooner

so. don't I No, believe

which RubiconConnect XXXX. margin it's And share and to continue the to average, very journey improvement we But deminimis has businesses been to our net the customers, see company's within we going as with expand or going margins to continue push never be and going ending kind as for to to continue the revenue XXX% wallet you're X%, be retention, churn. historical us a continue course within think the of to roughly I to less blend. existing the higher obviously, of of initiatives of continue are throughout XXX% customer gross

Brett Knoblauch

appreciated Congrats guys. a on Thanks the lot, and quarter. Perfect.

Operator

We the remarks. final back for time. I further to at call over have Rodoni, questions Mr. will this no turn

Phil Rodoni

us Well, forward thank you we look all the showing continued for of joining progress to stay And tuned. today. kind our to come in and quarters you

So and much again, thank soon. talk you very all we'll

Operator

you for today's This call. attending. concludes conference Thank

You may disconnect. now

Rubicon (RBTC) 8 Mar 232022 Q4 Earnings call transcript