Freightos Posts New Records for Transactions and Gross Booking Value for Second Quarter of 2024
Freightos (NASDAQ: CRGO) reported strong preliminary Q2 2024 results, surpassing management expectations. Key highlights include:
- 316,500 transactions, up 32% year-over-year, exceeding the 20-30% long-term growth target
- Gross Booking Value (GBV) of $203.4 million, a 31% increase from Q2 2023
- Expanded carrier network to 51 carriers, up from 37 in Q2 2023
- Unique Buyer Users rose to approximately 19,000, a 16% increase year-over-year
The company's growth underscores the ongoing digitalization of the spot freight market and expanding market reach. Freightos will report full Q2 2024 financial results on August 19, 2024.
- Transaction volume grew 32% year-over-year, exceeding management expectations and long-term growth targets
- Gross Booking Value increased 31% year-over-year to $203.4 million
- Carrier network expanded to 51 carriers, up from 37 in Q2 2023
- Unique Buyer Users increased by 16% year-over-year to approximately 19,000
- None.
The preliminary results for Freightos show a substantial growth in both the number of transactions and Gross Booking Value (GBV), outperforming management’s expectations. This indicates a robust demand for Freightos' digital platform in the freight industry. The 32% year-over-year growth in transactions against the management’s expectation of 27%-29% demonstrates a strong market adoption. Similarly, the 31% increase in GBV outpacing the anticipated 15%-18% is noteworthy and can be attributed to stable market prices, despite the Red Sea crisis.
For retail investors, these figures suggest that Freightos is effectively capitalizing on market conditions and expanding its user base. The increase in the number of carriers from 37 to 51 and the 16% rise in unique buyer users reflect a broader network effect, which could potentially lead to higher future revenues.
However, it's essential to remain cautious as these are preliminary numbers and subject to change. Investors should look out for the final earnings report on August 19, 2024, for more detailed insights and financial projections.
Freightos’ significant growth in both transactions and GBV underscores the increasing digitalization and efficiency imperative in the freight market. The industry is moving away from traditional methods and embracing technology for better facilitation of international freight transactions. The 32% increase in transactions and 31% rise in GBV year-over-year highlight that Freightos is well-positioned in this transformation.
The increase from 37 to 51 carriers and the 16% growth in unique buyer users is a positive sign of the platform's expanding reach. This growth is likely driven by the platform’s ability to provide more options and better prices, thus attracting more users.
Retail investors should note that while the growth rates are impressive, the overall freight market can be volatile and influenced by geopolitical events, such as the ongoing Red Sea crisis. Therefore, while the outlook appears promising, it is essential to consider these external factors that could impact future performance.
The Company Plans To Report Earnings on August 19, 2024
Actuals* | Management's Expectations | |
Q2 2024 | Q2 2024 | |
# Transactions ('000) | 316.5 | 303.0 - 309.0 |
Year over-Year Growth | 32 % | |
GBV ($m) | 203.4 | 178.0 - 182.0 |
Year over-Year Growth | 31 % |
*Numbers are preliminary and subject to change with the full earnings release
In Q2 2024, Freightos continued to progress toward its long-term growth objectives. The company facilitated 316.5 thousand transactions, representing a year-over-year growth of
Gross Booking Value (GBV) for Q2 2024 grew
In Q2 2024, Freightos expanded its Carrier network to 51 carriers, up from 37 in Q2 2023. Additionally, the count of Unique Buyer Users rose to approximately 19 thousand, reflecting a
This growth underscores the ongoing marketplace network effects, where buyers attract sellers and sellers attract buyers. This momentum represents the continued digitalization of the spot freight market, estimated to comprise 30
Q2 2024 Earnings Call
Financial results for the second quarter of 2024 and outlook for the third quarter will be reported before markets open on August 19, 2024. Freightos' management will host a webcast and conference call to discuss the results that morning at 8:30 a.m. EST.
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/.
To participate in the call, please register at the following link:
https://freightos.zoom.us/webinar/register/WN_9pLPTFSkSQ2euHunGhX1gw
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, as well as the call's transcript, will be available on Freightos' Investor Relations website following the call.
Glossary
We have provided below a glossary of certain terms used in this press release:
- Carriers: Number of unique air and ocean carriers, mostly airlines, that have been sellers of transactions. For airlines, we count booking carriers, which include 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 carriers when more than five bookings were placed with them over the course of a quarter.
- Unique buyer users: 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.
- 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
U.S . dollars at the time of each transaction on the Freightos platform. This metric may be similar to what others call gross merchandise value (GMV) or gross services volume (GSV). We believe that this metric reflects the scale of the Freightos platform and our opportunities to generate platform revenue. - Transactions: Number of bookings for freight services, and related services, placed by Buyers across the Freightos platform with third-party sellers and with Clearit. Sellers of Transactions include Carriers (that is, airlines, ocean liners and LCL consolidators) and also other providers of freight services such as trucking companies, freight forwarders, general sales agents, and air master loaders. The number of transactions booked on the Freightos platform in any given time period is net of transactions that were canceled prior to the end of the period. Transactions booked on white label portals hosted by Freightos are included if there is a transactional fee associated with them.
About Freightos
Freightos® (NASDAQ: CRGO) is the leading, vendor-neutral booking and payment platform for international freight, improving world trade. WebCargo® by Freightos and 7LFreight by WebCargo form the largest global air cargo booking platform, connecting airlines and freight forwarders. Over ten thousand freight forwarder offices, including the top twenty global forwarders, place thousands of eBookings a day on the platform with over fifty airlines. These airlines represent over 2/3rds of global air cargo capacity. Alongside ebookings, freight forwarders use WebCargo and 7LFreight to automate rate management, procurement, pricing and sales of freight services, across all modes, resulting in more efficient and more transparent freight services. More information is available at freightos.com/investors.
Contacts
Media:
Tali Aronsky
press@freightos.com
Investors:
ir@freightos.com
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SOURCE Freightos
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