Freightos reports fourth quarter and full-year results with substantial transaction growth and strong financial position

By Matthew Kalman

Feb 26, 2024

Freightos Limited (NASDAQ: CRGO), a leading vendor-neutral digital booking and payment platform for the international freight industry, today reported financial results for the quarter and year ended December 31, 2023.

"As we reflect on our first year as a public company - a year marked by significant challenges for the freight industry - Freightos not only demonstrated remarkable resilience, but also achieved a significant milestone in the growth of our platform, powering over a million transactions in 2023. This pivotal year has solidified our position as a leading platform for international freight, highlighting how our relentless drive to digitalize the industry delivers exceptional value to our customers. I want to take this opportunity to thank our talented team, which is focused on continually advancing our offerings to streamline operations for our carrier, forwarder and importer or exporter customers," said Zvi Schreiber, CEO of Freightos. "Celebrating one year of public company transparency and accountability, Freightos is more dedicated than ever to our mission of delivering smoother shipping to improve trade between the people of the world."

"The past year has shown solid growth and solid progress towards profitability, illustrating our strategic balance between fostering growth and managing costs, while maintaining a healthy financial position," said Ran Shalev, CFO of Freightos. "As we enter 2024, we aim to efficiently scale transactions and revenue, while further reducing our cash burn. Our long-term financial strategy is about establishing our platform as a standard in the digital international freight market."

Fourth Quarter 2023 financial highlights

• Revenue of $5.3 million for the fourth quarter of 2023, an increase of 8% compared to the fourth quarter of 2022.
• IFRS Gross Margin of 62.2%, up from 59.2% in the fourth quarter of 2022. Non-IFRS Gross Margin of 70.0%, up from 65.8% for the fourth quarter of 2022.
• IFRS operating loss of $4.6 million, compared to $8.9 million for the fourth quarter of 2022.
• Adjusted EBITDA of negative $3.8 million, compared to negative $4.4 million for the fourth quarter of 2022.

Full Year 2023 financial highlights

• Revenue of $20.3 million for the full year 2023, an increase of 6% compared to 2022.
• IFRS Gross Margin of 58.2% in 2023, compared with 58.8% in 2022. Non-IFRS Gross Margin of 67.4%, up from 65.2% in 2022.
• IFRS operating loss of $77.8 million, including a one-time non-cash $46.7 million share listing expense, compared to $24.3 million for 2022.
• Adjusted EBITDA of negative $19.0 million, compared to negative $14.6 million for 2022.
• Cash and cash equivalents and short term deposits and investments balance at the end of December 2023 of $51.7 million.

Recent business highlights

• #Transactions Growth: Freightos achieved a record 287 thousand Transactions in the fourth quarter of 2023, up 36% year over year, concluding the year with 1 million and 25 thousand Transactions. This was a significant outperformance compared to overall international freight market volumes, which remained modest. Both global air cargo volumes based on IATA data and global ocean container shipping volumes according to Container Trades Statistics were up only 7% from the fourth quarter of 2022..
• Gross Booking Value Growth: Gross Booking Value (GBV) was $187.5 million in the fourth quarter, up 10% compared to the fourth quarter of 2022, reflecting strong Transactions growth, offset, in part, by lower average freight prices. While disruption to shipping in the Red Sea did drive a rate increase, this only came in the final days of the year.
• Unique Buyer Users: The number of unique buyer users digitally booking freight services across the Freightos Platform grew by 12% compared to the fourth quarter of 2022, reaching 17.6 thousand.
• Revenue Growth: Revenue of $5.3 million continues to reflect strong growth of air cargo digital bookings, as well as solid growth in revenues generated by forwarders' software solutions and by Freightos Terminal, the Company's global air and ocean freight market intelligence solution. Total Platform revenue in the fourth quarter was $1.9 million, up 1% from the fourth quarter of 2022, and Solutions revenue was $3.4 million, up 13% year over year.
• Carrier Growth: The number of carriers selling on the Platform, primarily on WebCargo, increased to 45 as of the end of the fourth quarter of 2023. Among these carriers are Japan Airlines and a leading North American airline. Additional new airlines signed to join the WebCargo platform in the fourth quarter, including two top-20 air cargo carriers. In addition, the Company signed its largest SaaS contract ever with another top-20 carrier that relies on Freightos for its cargo portal.

Financial outlook

This outlook assumes freight price levels and freight volumes as of January 31, 2024

Earnings Webcast

Freightos' management will host a webcast and conference call to discuss the results today, February 26, 2024 at 8:30 a.m. EST. The call will include presentation of a general model for long term growth during 2025-2030, as well as an analysis of the current freight market using Freightos Terminal data.

To participate in the call, please register at the following here:

Following registration, you will be sent the link to the conference call which is accessible either via the Zoom app, or alternatively from a dial-in telephone number.

Questions may be submitted in advance to ir@freightos.com or via Zoom during the call.

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