Freightos Reports First Quarter 2024 Results with Double-digit Revenue Growth
Freightos (CRGO) reported robust financial results for Q1 2024, including a 11% increase in revenue to $5.4 million, and an IFRS gross margin rise to 62.6%. The company achieved record transactions, with a 29% year-over-year growth, totaling 295.6 thousand transactions. Gross Booking Value (GBV) rose by 14% to $192.4 million. The company reduced its IFRS operating loss from $58 million to $5.5 million, despite a one-time expense in Q1 2023. Adjusted EBITDA improved from negative $5.8 million to negative $3.6 million. Freightos holds $49.8 million in cash and equivalents. The outlook for Q2 2024 includes projected revenue of $5.5-$5.6 million and continued strong transaction and GBV growth.
- Revenue increased by 11% to $5.4 million.
- IFRS gross margin rose to 62.6%.
- Non-IFRS gross margin increased to 70.3%.
- Record transactions totaling 295.6 thousand for Q1 2024, up 29% year-over-year.
- Gross Booking Value (GBV) increased by 14% to $192.4 million.
- Unique buyer users grew by 11% to 18 thousand.
- Carrier count increased to 49, including additions like Virgin Atlantic Cargo and Delta Cargo.
- Cash and cash equivalents totaled $49.8 million.
- IFRS operating loss of $5.5 million, despite a reduction from a previous $58 million loss.
- Adjusted EBITDA was still negative at $3.6 million.
- Q2 2024 guidance shows continued expected negative Adjusted EBITDA between $3.5 and $3.4 million.
- Full-year 2024 Adjusted EBITDA projected to remain negative between $15.3 million and $13.8 million.
Insights
Freightos Limited has demonstrated notable performance in Q1 2024, particularly through its **11% revenue increase**, reaching
One highlight is the **cash and equivalents balance of $50 million**, providing a cushion to capture market opportunities. The company’s ability to continually achieve record transactions, outpacing global cargo and shipping volume growth, further solidifies its market position. The **29% increase in transactions**, alongside a 14% rise in Gross Booking Value to
In summary, while there are positive indicators of growth and efficiency, the ongoing operating losses and negative EBITDA require careful monitoring. These financial metrics should be weighed against the company's growth strategy and market potential.
Freightos’ strategy to expand its market footprint, especially in high-value shipments like pharmaceuticals, shows a targeted approach towards capturing sectors with higher margins. The **11% growth in unique buyer users** and the addition of new carriers like Virgin Atlantic Cargo and Delta Cargo, suggest a broadening of their user base and service network, which bodes well for future growth. The platform's outperformance relative to global market growth—29% transaction growth versus 13% in air cargo and 9% in ocean shipping—indicates a significant competitive advantage.
The company’s focus on digitizing freight booking and payment processes aligns with broader industry trends towards automation and efficiency, which is a positive signal for long-term sustainability. However, the company must continue demonstrating this capability across varied market conditions to sustain investor confidence.
Another critical aspect is the resilience shown through an increase in Gross Booking Value and transaction volumes during a period affected by the Red Sea crisis. This adaptability reflects well on Freightos' platform capabilities and market positioning.
- Record Transactions, GBV, Revenue and Adjusted EBITDA, exceeding management expectations
- Cash and equivalents balance of
$50 million
"We are pleased with the strong first quarter of the year, which highlights the robustness and growing acceptance of our platform, and the strides we are making in digitalizing international freight, bringing efficiency and transparency to this crucial sector," said Zvi Schreiber, CEO of Freightos. "We pursued several initiatives to increase not only the number but also the value of the transactions, including investing in
"The first quarter results exceeded our expectations in every metric: the number of transactions, Gross Booking Value, revenue, and profitability," said Ran Shalev, CFO of Freightos. "We remain on track to achieve our 2024 guidance, as well as our long-term goals for growth, profitability, and cash generation."
First Quarter 2024 Financial Highlights
- Revenue of
$5.4 million 11% compared to$4.8 million - IFRS Gross Margin of
62.6% , up from58.3% in the first quarter of 2023. Non-IFRS Gross Margin of70.3% , up from65.0% for the first quarter of 2023. - IFRS operating loss of
$5.5 million $58.0 million $46.7 million - Adjusted EBITDA of negative
$3.6 million $5.8 million - Cash and cash equivalents, short term deposits and short term investments amounting to
$49.8 million
Recent Business Highlights
- Transactions Growth: Freightos achieved a record 295.6 thousand Transactions in the first quarter of 2024, up
29% year over year. This was the 17th consecutive quarter of record Transactions. The Platform's growth significantly outpaced market growth: Global air cargo volumes according to IATA data grew13% year on year, and global ocean shipping volumes grew9% . - Gross Booking Value Growth: Gross Booking Value (GBV) was
$192.4 million 14% compared to the first quarter of 2023, and significantly above management's expectations. This outperformance stems mostly from recovery in freight rates during the first quarter, primarily as a result of the Red Sea crisis and the subsequent modal shift to air cargo. - Unique Buyer Users: The number of Unique buyer users digitally booking freight services across the Freightos Platform grew by
11% compared to the first quarter of 2023, reaching 18.0 thousand. - Revenue Growth: Revenue of
$5.4 million $1.9 million 12% from the first quarter of 2023, and Solutions revenue was$3.5 million 10% year over year. - Carrier Growth: The number of Carriers selling on the Platform, primarily on WebCargo, increased to 49 for the first quarter of 2024. Among the recent carrier additions are Virgin Atlantic Cargo and Delta Cargo.
Financial outlook
Management Expectations | |||
Q2 2024 | FY 2024 | ||
Transactions | 303,000 - 309,000 | 1,286,500 - 1,376,000 | |
Year over Year Growth | |||
GBV ($m) | |||
Year over Year Growth | |||
Revenue ($m) | |||
Year over Year Growth | |||
Adjusted EBITDA ($m) | |||
| |||
Earnings Webcast
Freightos' management will host a webcast and conference call to discuss the results today, May 20, 2024 at 8:30 a.m. EST. To participate in the call, please register at the following link:
https://freightos.zoom.us/webinar/register/WN_p3eUH_UlQxaD0OU8BoQr_g
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 conference call transcript, will be available on Freightos' Investor Relations website following the call.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements, which include the financial outlook of Freightos, are based on various assumptions, whether or not identified in this press release, and on the current expectations of Freightos, and are not predictions of actual performance. These forward-looking statements are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Freightos. These forward-looking statements are subject to a number of risks and uncertainties, including the ongoing military conflict in the
Financial Information; Non-IFRS Financial Measures
While certain financial figures included in this press release have been computed in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board, this press release does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, "Interim Financial Reporting" nor a financial statement as defined by International Accounting Standards 1 "Presentation of Financial Statements". Not all of the financial information in this press release has been audited.
This press release includes certain financial measures not presented in accordance with generally accepted accounting principles of the IFRS including, but not limited to, Adjusted EBITDA. These non-IFRS measures differ from the most directly comparable measures determined under IFRS. For the historical non-IFRS results included herein, we have provided tables at the end of this press release providing a reconciliation of those results to our results achieved under the most directly comparable IFRS measures. For the forward-looking non-IFRS data included under "Financial outlook", we have not included such a reconciliation, because the reconciliation of forward-looking data cannot be prepared without unreasonable effort. Our results and forecasts expressed as non-IFRS measures should not be considered in isolation or as an alternative to revenue, net income, cash flows from operations or other measures of profitability, liquidity or performance under IFRS. You should be aware that the presentation of these measures may not be comparable to similarly-titled measures used by other companies. Freightos believes that Adjusted EBITDA and other non-IFRS measures provide useful information to investors and others in understanding and evaluating Freightos' operating results because they provide supplemental measures of our core operating performance and offer consistency and comparability with both our own past financial performance and with corresponding financial information provided by peer companies. Certain monetary amounts, percentages and other figures included in this press release have been subject to rounding adjustments, and therefore may not sum due to rounding.
Definitions
- Carriers: Number of unique air and ocean carriers, mostly airlines, who 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.
- Adjusted EBITDA: Loss before income taxes, finance income, finance expense, share-based compensation expense, depreciation and amortization, changes in the fair value of contingent consideration, operating expense settled by issuance of shares, redomicile costs, share listing expense, change in fair value of warrants, transaction-related costs, non-recurring expenses associated with the business combination with Gesher I Acquisition Corp and reorganization expenses.
- Platform revenue: Fees charged to buyers and sellers in relation to transactions executed on the Freightos platform. For bookings conducted by importers/exporters, our fees are typically structured as a percentage of booking value, depending on the mode and nature of the service. When freight forwarders book with carriers, the sellers often pay a pre-negotiated flat fee per transaction. When sellers transact with a buyer who is a new customer to the seller, we may charge a percentage of the booking value as a fee.
- Solutions revenue: Primarily subscription-based SaaS and data. It is typically priced per user or per site, per time period, with larger customers such as multinational freight forwarders often negotiating flat, all- inclusive subscriptions. Revenue from our Solutions segment includes certain non-recurring revenue from services ancillary to our SaaS products, such as engineering, customization, configuration and go-live fees, and data services for digitizing offline data.
About Freightos
Freightos® (NASDAQ: CRGO) is the leading, vendor-neutral booking and payment platform for international freight, improving world trade. WebCargo® and 7LFreight by Freightos, 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 about 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:
Anat Earon-Heilborn
ir@freightos.com
CONSOLIDATED BALANCE SHEETS | ||
(In thousands) | ||
March 31, | December 31, | |
(unaudited) | (audited) | |
Assets | ||
Current Assets: | ||
Cash and cash equivalents | $ 12,272 | $ 20,165 |
User funds | 4,353 | 3,553 |
Trade receivables, net | 2,039 | 1,880 |
Short-term bank deposit | 26,021 | 20,000 |
Short-term investments | 11,520 | 11,520 |
Other receivables and prepaid expenses | 1,515 | 2,598 |
57,720 | 59,716 | |
Non-current Assets: | ||
Property and equipment, net | 530 | 583 |
Right-of-use assets, net | 1,409 | 1,577 |
Intangible assets, net | 7,124 | 7,607 |
Goodwill | 15,628 | 15,628 |
Deferred taxes | 1,038 | 969 |
Other long-term assets | 1,595 | 1,605 |
27,324 | 27,969 | |
Total assets | $ 85,044 | $ 87,685 |
Liabilities and Equity | ||
Current liabilities: | ||
Trade payables | 3,461 | 3,113 |
User accounts | 4,353 | 3,553 |
Current maturity of lease liabilities | 538 | 587 |
Warrants liabilities | 1,201 | 1,485 |
Accrued expenses and other payables | 4,931 | 4,931 |
14,484 | 13,669 | |
Long Term Liabilities: | ||
Lease liabilities | 588 | 712 |
Employee benefit liabilities, net | 1,324 | 1,256 |
Other long-term liabilities | 6 | 6 |
1,918 | 1,974 | |
Equity: | ||
Share capital | *) | *) |
Share premium | 257,410 | 256,194 |
Reserve from remeasurement of defined benefit plans | 27 | 27 |
Accumulated deficit | (188,795) | (184,179) |
Total equity | 68,642 | 72,042 |
Total liabilities and equity | $ 85,044 | $ 87,685 |
*) Represents an amount lower than | ||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||
(in thousands, except share and per share data) | ||
Three Months Ended | ||
March 31, | ||
2024 | 2023 | |
(unaudited) | (unaudited) | |
Revenue | $ 5,355 | $ 4,823 |
Cost of revenue | 2,005 | 2,013 |
Gross profit | 3,350 | 2,810 |
Operating expenses: | ||
Research and development | 2,466 | 2,997 |
Selling and marketing | 3,562 | 3,620 |
General and administrative | 2,806 | 3,733 |
Transaction-related costs | 0 | 3,703 |
Share listing expense (1) | 0 | 46,717 |
Total operating expenses | 8,834 | 60,770 |
Operating loss | (5,484) | (57,960) |
Change in fair value of warrants | 284 | 7,957 |
Finance income | 638 | 852 |
Finance expenses | (67) | (133) |
Financing income, net | 571 | 719 |
Loss before taxes on income | (4,629) | (49,284) |
Income taxes (tax benefit) | (13) | 3 |
Loss | $ (4,616) | $ (49,287) |
Basic and diluted loss per Ordinary share | $ (0.10) | $ (1.38) |
Weighted average number of shares outstanding used to compute basic and diluted | 47,962,821 | 36,231,234 |
(1) Represents non-recurring, non-cash share-based listing expense incurred in connection with the business | ||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
(in thousands) | ||
Three Months Ended | ||
March 31, | ||
2024 | 2023 | |
(unaudited) | ||
Cash flows from operating activities: | ||
Loss | $ (4,616) | $ (49,287) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Adjustments to profit or loss items: | ||
Depreciation and amortization | 704 | 643 |
Operating expense settled by issuance of shares | 351 | - |
Share listing expense | 0 | 46,717 |
Change in fair value of warrants | (284) | (7,957) |
Changes in the fair value of contingent consideration | 0 | (258) |
Share-based compensation | 843 | 582 |
Finance income, net | (571) | (461) |
Income taxes (tax benefit) | (13) | 3 |
1,030 | 39,269 | |
Changes in asset and liability items: | ||
Decrease (increase) in user funds | (806) | 26 |
Increase (decrease) in user accounts | 806 | (26) |
Decrease in other receivables and prepaid expenses | 66 | 70 |
Increase in trade receivables | (184) | (452) |
Increase in trade payables | 387 | 926 |
Increase (decrease) in accrued severance pay, net | 70 | (5) |
Decrease in accrued expenses and other payables | (22) | (3,244) |
317 | (2,705) | |
Cash received (paid) during the year for: | ||
Interest received, net | 1,540 | 359 |
Taxes paid, net | (12) | - |
1,528 | 359 | |
Net cash used in operating activities | (1,741) | (12,364) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (8) | (46) |
Proceeds from sale of property and equipment | 2 | 1 |
Proceeds from receivables for previous acquisition of a subsidiary | - | (136) |
Investment in long-term assets | 8 | (453) |
Investment in short-term bank deposit | (6,000) | (20,000) |
Net cash used in investing activities | (5,998) | (20,634) |
Cash flows from financing activities: | ||
Proceeds from the issuance of share capital and warrants net of | - | 76,044 |
Repayment of lease liabilities | (150) | (140) |
Repayment of short-term bank loan and credit | 0 | (2,504) |
Exercise of options | 22 | 19 |
Net cash provided by (used in) financing activities | (128) | 73,419 |
Exchange differences on balances of cash and cash equivalents | (26) | (135) |
Increase (decrease) in cash and cash equivalents | (7,893) | 40,286 |
Cash and cash equivalents at the beginning of the period | 20,165 | 6,492 |
Cash and cash equivalents at the end of the period | $ 12,272 | $ 46,778 |
(a) Significant non-cash transactions: | ||
Issuance of shares for previous acquisition of a subsidiary | - | $ 113 |
RECONCILIATION OF IFRS TO NON-IFRS GROSS PROFIT AND GROSS MARGIN | ||
(in thousands, except gross margin data) | ||
Three Months Ended | ||
March 31, | ||
2024 | 2023 | |
(unaudited) | (unaudited) | |
IFRS gross profit | $ 3,350 | $ 2,810 |
Add: | ||
Share-based compensation | 101 | 82 |
Depreciation & Amortization | 311 | 242 |
Non-IFRS gross profit | $ 3,762 | $ 3,134 |
IFRS gross margin | 62.6 % | 58.3 % |
Non-IFRS gross margin | 70.3 % | 65.0 % |
RECONCILIATION OF IFRS OPERATING LOSS TO ADJUSTED EBITDA | ||
(in thousands) | ||
Three Months Ended | ||
March 31, | ||
2024 | 2023 | |
(unaudited) | (unaudited) | |
Operating loss | $ (5,484) | $ (57,960) |
Add: | ||
Share-based compensation | 843 | 582 |
Depreciation & Amortization | 704 | 643 |
Share listing expense | 0 | 46,717 |
Non-recurring expenses | 0 | 499 |
Transaction-related costs | 0 | 3,703 |
Operating expense settled by issuance of shares | 351 | 0 |
Adjusted EBITDA | $ (3,586) | |
RECONCILIATION OF IFRS LOSS TO NON-IFRS LOSS AND LOSS PER SHARE | ||
(in thousands, except share and per share data) | ||
Three Months Ended | ||
March 31, | ||
2024 | 2023 | |
(unaudited) | (unaudited) | |
IFRS loss attributable to ordinary shareholders | $ (4,616) | |
Add: | ||
Share-based compensation | 843 | 582 |
Depreciation & Amortization | 704 | 643 |
Share listing expense | 0 | 46,717 |
Non-recurring expenses | 0 | 499 |
Transaction-related costs | 0 | 3,703 |
Changes in the fair value of contingent consideration | 0 | (258) |
Operating expense settled by issuance of shares | 351 | 0 |
Change in fair value of warrants | (284) | (7,957) |
Non IFRS loss | $ (3,002) | $ (5,358) |
Non IFRS basic and diluted loss per Ordinary share | $ (0.06) | $ (0.17) |
Weighted average number of shares outstanding used to compute | 47,962,821 | 36,231,234 |
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SOURCE Freightos
FAQ
What were Freightos' Q1 2024 revenue results?
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