Freightos Announces Record Transactions for Fourth Quarter of 2023 and Date of Fourth Quarter and Full Year Earnings Release
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Insights
The reported preliminary Q4 2023 Key Performance Indicators (KPIs) for Freightos Limited demonstrate a robust growth trend in the international freight industry. The increase in transactions to 286.9 thousand, which marks the 16th consecutive quarter of record transactions, signifies a strong demand for Freightos' services. This growth is indicative of a successful implementation of digital solutions within the freight sector, often referred to as 'platformification', where digital platforms streamline complex processes and enhance efficiency.
The concept of the 'marketplace flywheel' is central to understanding Freightos' growth. As more buyers and sellers use the platform, it creates a virtuous cycle that attracts even more users, enhancing liquidity and making the platform more valuable for all participants. The reported 12% increase in Unique Buyer Users and the addition of 10 new carriers in a single quarter exemplify this effect. For stakeholders, this suggests a positive outlook on the company's ability to sustain growth and capture market share.
The Gross Booking Value (GBV) of $187.5 million exceeding management's expectations is a strong indicator of financial performance, especially when considering the context of reduced freight rates in the market. The 10% year-on-year growth in GBV, despite these market conditions, underscores the company's ability to leverage transaction growth to offset price declines. This resilience in revenue generation is a critical factor for investors evaluating the company's financial health and its potential for sustained profitability.
Additionally, the year-over-year transaction growth of 36% significantly outpaces the GBV growth, raising questions about the average value per transaction. Investors will be interested in understanding the dynamics behind this discrepancy, as it may affect future revenue and margin projections.
The disruption in the Red Sea mentioned in the report highlights the vulnerability of global supply chains to geopolitical and environmental factors. Freightos' ability to navigate these disruptions and still report growth is noteworthy. It suggests that the company has developed a resilient platform capable of adapting to market volatility. For businesses relying on international freight, this resilience is a critical factor in vendor selection, potentially increasing Freightos' appeal as a reliable partner.
The expansion of carrier options, from 35 to 45 within a year, is also significant. It reflects an increase in the platform's supply-side capacity, which can lead to more competitive rates and services for users. This expansion is essential for maintaining the platform's attractiveness and can have a positive impact on transaction volumes and, consequently, on revenue.
Actuals* | Management's | Actuals* | Management's | |
Q4 2023 | Q4 2023 | FY 2023 | FY 2023 | |
# Transactions ('000) | 286.9 | 273.0 - 287.0 | 1,024.7 | 1,010.5 - 1,021.5 |
Year over Year Growth | 36 % | 53 % | ||
GBV ($m) | 187.5 | 163.5 - 175.0 | 671.7 | 647.5 - 659.0 |
Year over Year Growth | 10 % | 10 % | ||
*Numbers are preliminary and subject to change with the full earnings release | ||||
The fourth quarter of 2023 was another quarter of strong performance by Freightos. With 286.9 thousand transactions, Q4 was the 16th consecutive quarter of record #Transactions booked on Freightos' platform, bringing full year transactions to surpass the significant one million transaction milestone, exceeding management expectations for the year. The
Gross Booking Value (GBV) exceeded management expectations, increasing in the fourth quarter
The sustained #Transactions growth is fueled by the marketplace flywheel dynamics, as buyer and seller growth bring additional supply and demand which in turn attract additional buyers and sellers. During the fourth quarter, the number of Unique Buyer Users reached 17.6 thousands, up approximately
Conference Participation
Freightos' management will participate at the Needham Growth Conference today, January 16, 2024. A link to the live webcast of the presentation at 8:00 a.m. EST, and to the replay thereafter, is available here: https://wsw.com/webcast/needham134/register.aspx?conf=needham134&page=crgo&url=https://wsw.com/webcast/needham134/crgo/2243758
Q4 2023 Earnings Call
Financial results for the fourth quarter of 2023 and outlook for the first quarter and full year of 2024 will be reported before markets open on February 26, 2024. Information about Freightos' financial results, including a link to the live webcast, will be available on Freightos' investor relations website at https://www.freightos.com/investor-news/.
Freightos' management will host a webcast and conference call to discuss the results that morning at 8:30 a.m. EST.
To participate in the call, please register at the following link:
https://freightos.zoom.us/webinar/register/WN_2GO5J16IQNiw3KBf9-Befw
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.
A replay of the webcast will be available on Freightos' Investor Relations website following the call, as well as the call's transcript.
#Transactions: Number of bookings for freight services, and related services, placed by buyers across the Freightos platform with third-party sellers and with Clearit. Beginning in the third quarter of 2022, #Transactions include trucking bookings, which were added to the Freightos platform following the acquisition of 7LFreight. The number of transactions booked on the Freightos platform in any given time period is net of transactions canceled during the same time period.
GBV: Total value of transactions on the Freightos platform, which is the monetary value of freight and related services contracted between buyers and sellers on the Freightos platform, plus related fees charged to buyers and sellers, and pass-through payments such as duties. GBV is converted to
Unique buyer users: Unique buyer users represent the number of individual users placing bookings, typically counted based on unique email logins. The number of buyers, which counts unique customer businesses, does not reflect the fact that some buyers are large multinational organizations while others are small or midsize businesses. Therefore, we find it more useful to monitor the number of unique buyer users than the number of buyer businesses.
Carriers: Number of unique air and ocean carriers who have been sellers of transactions. For airlines, we count the booking carrier, which includes separate airlines within the same carrier group. We do not count dozens of other airlines that operate individual segments of air cargo transactions as we do not have a direct booking relationship with them. Carriers include ocean less-than-container load (LCL) consolidators. In addition, we only count carries when more than five bookings were placed with them over the course of a quarter.
Certain amounts, percentages and other figures included in this press release have been subject to rounding adjustments and therefore may not sum.
Media:
Tali Aronsky
press@freightos.com
Investors:
ir@freightos.com
About Freightos
Freightos® (NASDAQ: CRGO) operates a leading, vendor-neutral booking and payment platform for international freight. Freightos' platform supports supply chain efficiency and agility by enabling real-time procurement of ocean and air shipping across more than ten thousand importers/exporters, thousands of forwarders, and dozens of airlines and ocean carriers.
Freightos.com is a premier digital international freight marketplace for importers and exporters for instant pricing, booking, and shipment management. Thousands of SMBs and enterprises have sourced shipping services via Freightos across dozens of logistics service providers.
WebCargo® by Freightos is a leading global freight platform connecting carriers and forwarders. In particular, it is the largest air cargo eBooking platform, enabling simple and efficient freight pricing and booking between thousands of freight forwarders, including the top twenty global freight forwarders, and hundreds of airlines, ocean liners and trucking carriers. Airlines on the platform represent over a third of global air cargo capacity. WebCargo also offers software as a service for forwarders to facilitate digital freight rate management, quoting, and online sales.
Freightos Data calculates the Freightos Baltic Index, the industry's key daily benchmark of container shipping prices, the Freightos Air Index, as well as other market intelligence products that improve supply chain decision-making, planning, and pricing transparency.
Freightos is a widely recognized logistics technology leader with a worldwide presence and a broad customer network. Incorporated in the
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FAQ
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