Freight Technologies, Inc. Preliminary Results for Q4 2023 Show Strong Revenue Growth
- Freight Technologies, Inc. experienced a significant 16% Year-over-Year Revenue Growth in Q4 2023.
- The company generated approximately $5 million in quarterly revenue, a 7.5% increase compared to the previous quarter.
- YTD gross margin percentage rose to 9.3%, showcasing a more than 50-basis point improvement over the prior year.
- Fr8Tech's Fr8App is witnessing increased client engagement, streamlining operations for enhanced efficiency and cost-effectiveness.
- The company's CFO, Don Quinby, highlighted strong execution in core offerings for cross-border shipping and dedicated fleet services.
- Fr8Tech is optimistic about continued growth and margin improvements for 2024, focusing on innovation, client expansion, and shareholder value.
- The strategic focus on core segments and commitment to client satisfaction position Fr8App as a market leader in freight technology.
- None.
Insights
The report from Freight Technologies, Inc. highlights a sustained period of revenue growth, which is a positive indicator of the company's performance and market acceptance of its Fr8App platform. The 16% year-over-year revenue increase is a robust figure, particularly in the context of the logistics and freight industry which has been subject to volatility due to economic fluctuations. The year-to-date gross margin improvement suggests that the company is not only increasing its sales but also becoming more efficient in its operations, potentially due to economies of scale or improved cost management strategies.
Investors may view these financial results as a signal of the company's strong competitive position, especially given the reported growth in client engagement. The emphasis on AI and machine learning within its platform could be a differentiating factor that enhances its value proposition. The results may also reflect a broader recovery in the market, as mentioned by the CFO, which could indicate a favorable environment for the logistics sector going forward.
The announcement of preliminary financial results by Fr8Tech provides a snapshot of the company's fiscal health and trajectory. The 7.5% quarter-over-quarter revenue growth is indicative of solid short-term performance, while the 16% year-over-year growth aligns with a positive long-term trend. The increase in gross margin percentage points to improved profitability, which is critical for investors looking at the company's potential for sustained earnings.
From a financial perspective, the company's focus on expanding its client base and carrier capacity could lead to increased market share and higher revenue streams. The commitment to enhancing platform capabilities suggests ongoing investment in technology, which could further improve operational efficiency and customer satisfaction. However, investors should consider the costs associated with these investments and the competitive landscape of freight technologies to assess the potential for future returns.
Fr8Tech's reliance on AI and machine learning within its Fr8App platform is a significant aspect of its business model. The technology sector, especially within freight and logistics, is increasingly competitive, with numerous players seeking to innovate and capture market share. The company's reported improvements in client engagement and platform efficiency suggest that its technology investments are yielding positive outcomes.
The focus on B2B cross-border and domestic shipping within the USMCA region indicates a strategic targeting of a niche market, which could be advantageous in terms of specialized service offerings. The mention of 'real-time' capabilities is particularly relevant in logistics, where timing and accuracy are important for client satisfaction and operational success. As the industry evolves, Fr8Tech's advancements in technology could position it as a leader in this space, but it will be important to monitor how the company scales and adapts to changing market demands and technological advancements.
Results include
HOUSTON, March 25, 2024 (GLOBE NEWSWIRE) -- Freight Technologies, Inc. (Nasdaq: FRGT or “Fr8Tech”), a technology company offering its custom-developed Fr8App, an industry-leading freight-matching platform powered by AI and machine-learning that offers a real-time portal for B2B cross-border and domestic shipping within the USMCA region, today announces its preliminary financial results for Q4 2023 which concluded on Dec. 31, 2023.
Fr8Tech marks its third consecutive quarter of notable revenue growth in Q4 2023 achieving approximately
Fr8Tech is excited to witness an upward trajectory in client engagement with Fr8App. Clients increasingly leverage the platform’s real-time, all-in-one portal, streamlining their operations for enhanced efficiency and cost-effectiveness.
Don Quinby, CFO of Fr8Tech, said: "The company continued to demonstrate strong execution in its core offerings for cross-border shipping and dedicated fleet services with the third straight quarter of revenue growth. The market has recovered from its lows in late 2022 and early 2023, and we are back on a growth trajectory. The team continues to add customers and build carrier capacity while enhancing the capabilities and efficiency of the platform. We are well positioned for continued growth and margin improvements for 2024."
Fr8Tech anticipates a healthy 2024 and remains dedicated to advancing innovation, expanding its client base, and delivering value to shareholders. The strategic focus on core segments and the commitment to client satisfaction position Fr8App as a market leader in the evolving landscape of freight technology.
About Freight Technologies Inc.
Freight Technologies (Nasdaq: FRGT) (“Fr8Tech") is a technology company developing solutions to optimize and automate the supply chain process. Its wholly owned subsidiary, Freight App, Inc. (Fr8App Inc.), is a B2B cross-border shipping marketplace in the USMCA region powered by AI and machine learning. Focused on making shipping transparent and efficient, Fr8App provides carriers with increased growth opportunities and shippers with flexibility, visibility and simplicity for the once-complex process of international over-the-road (OTR) shipping. Fr8App uses its proprietary technology platform to connect carriers and shippers and significantly improve matching and operation efficiency via innovative technologies such as live pricing and real-time tracking, digital freight marketplace, broker, transportation management, fleet management, and committed capacity solutions. The company is headquartered in Houston, Texas. For more information, please visit fr8technologies.com.
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. Fr8Tech’s and Fr8App Inc.’s actual results may differ from their expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements.
These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside Fr8Tech’s and Fr8App Inc.’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the impact of the COVID-19 pandemic on Fr8App Inc.’s business, if it should recur; (2) the inability to obtain or maintain the listing of Fr8Tech’s ordinary shares on Nasdaq; (3) changes in applicable laws or regulations; (4) the possibility that Fr8Tech or Fr8App Inc. may be adversely affected by other economic, business and/or competitive factors; (5) risks relating to the uncertainty of the projected financial information with respect to Fr8App Inc.; (6) risks related to the organic and inorganic growth of Fr8App Inc.’s business and the timing of expected business milestones; and (7) other risks and uncertainties identified, including those under “Risk Factors,” to be filed in ’Fr8Tech other filings with the SEC. Fr8Tech cautions that the foregoing list of factors is not exclusive. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Fr8Tech and Fr8App Inc. caution readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Fr8Tech and Fr8App Inc. do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based.
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