XPO Logistics, Inc. (XPO) today announced financial results for the third quarter of 2021. The company reported revenue of $3.27 billion for the quarter, the highest revenue of any quarter in its history.
Adjusted diluted earnings came in at $0.94 for the third quarter, a year-over-year increase of $0.52.
Truck Brokerage Growth
The strong quarter was led by the company's truck brokerage segment, with net revenue growing by 62% and load count per day increasing 37%. Brad Jacobs, chairman and CEO of XPO Logistics, said, "These gains are being driven by our massive brokered capacity, robust digital capabilities, and customer trust in our experienced broker leaders."
On the digital platform alone, over 550,000 users have downloaded the app, and usage is up over 100% year-over-year
Labor Shortages
Despite the robust growth, XPO warned a number of worrying trends that hampered gross profit. In particular, XPO mentioned the truck driver shortage in North America, and their decision to continue insourcing purchased transportation in the midst of driver and equipment restraints," which "negatively impacted operating ration.
The company took actions that accelerated yield growth in October and plan to continue to monitor driver levels in the future.
Chip Shortage
XPO also commented on the semiconductor shortage, "which constrained consumer demand for freight transportation services in the UK and America."
While the global crisis has affected thousands of worldwide brands, the company will have to find ways to power its products while supply chains are constrained.
