Freightos Reports Fourth Quarter and Full Year 2024 Results

Fourth Quarter Revenue Increase of 25% year-on-year, Highest Growth Rate Since Going Public, Full Year Revenue Increase of 17% 20th Consecutive Quarter of Record Transactions, Strengthening Digital Freight Leadership , /PRNewswire/ -- Freightos Limited (NASDAQ: CRGO), the 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, 2024. "Freightos continues to lead the digital transformation of global freight, delivering in the fourth quarter our highest revenue growth rate since going public, our strongest carrier expansion ever, and record gross profit margin," said Zvi Schreiber, CEO of Freightos. "In an industry that is still in the early stages of digital adoption, our platform is proving vitally important - connecting more carriers, freight forwarders, and importers/exporters than ever before. We have ambitious plans for product launches, and aggressive adoption of AI this year, setting the stage for growth to breakeven by the end of 2026. I'm excited to welcome Pablo Pinillos as our new CFO starting next week, bringing fresh leadership as we advance our vision for a more connected and digital global freight industry, supporting smoother global trade." Fourth Quarter 2024 Financial Highlights Revenue of $6.6 million for the fourth quarter of 2024, an increase of 25% compared to $5.3 million in the fourth quarter of 2023. IFRS Gross Margin of 67.6%, up from 62.2% in the fourth quarter of 2023. Non-IFRS Gross Margin of 74.3%, up from 70.0% for the fourth quarter of 2023. IFRS loss of $9.8 million, (which includes a one-time, non-cash $3.0 million accounting impairment of goodwill related to an acquisition from 2022), compared to a loss of $3.3 million for the fourth quarter of 2023. Adjusted EBITDA of negative $3.1 million, compared to negative $3.8 million for the fourth quarter of 2023. Full Year 2024 Financial Highlights Revenue of $23.8 million for the full year 2024, an increase of 17% compared to $20.3 million in 2023. IFRS Gross Margin of 65.2% in 2024, compared with 58.2% in 2023. Non-IFRS Gross Margin of 72.4%, up from 67.4% in 2023. IFRS loss of $22.5 million (which includes a one-time, non-cash $3.0 million impairment of goodwill related to an acquisition from 2022), compared to a loss of $65.5 million in 2023 (which included a one-time, non-cash $46.7 million share listing expense). Adjusted EBITDA of negative $12.6 million, compared to negative $19.0 million for 2023. Cash and cash equivalents and a short term bank deposit balance at the end of December 2024 of $37.3 million. Recent Business Highlights Transactions Growth: Freightos achieved a record 350.4 thousand Transactions in the fourth quarter of 2024, up 22% year over year. For the full year of 2024, Freightos facilitated approximately 1.3 million Transactions, up 27% from 2023. The fourth quarter of 2024 was the 20th consecutive quarter of record Transactions. Carrier Growth: The number of carriers selling on the platform increased from 55 in the third quarter to 67 in the fourth quarter of 2024. Among the recent carrier additions is CMA CGM AIR CARGO. After the end of the quarter, Freightos announced the addition of Norwegian Cargo and WestJet Cargo to the platform. Unique Buyer Users: The number of Unique buyer users digitally booking freight services across the platform grew by 14% compared to the fourth quarter of 2023, reaching 20.1 thousand. Gross Booking Value Growth: Gross Booking Value (GBV) was $280.7 million in the fourth quarter, up 50% compared to the fourth quarter of 2023, significantly exceeding management's expectations and reflecting a run rate of over $1 billion. GBV in the full year 2024 was $894.0 million, up 33% from 2023. This growth was buoyed by airline portals and early adoption of ground transportation transactions. Revenue Growth: Fourth quarter revenue of $6.6 million reflected continued strong growth from the WebCargo by Freightos platform and from customs clearance services. In addition, SaaS Solutions, including Shipsta, generated its highest quarterly revenue ever in the fourth quarter of 2024. Total Platform revenue in the fourth quarter was $2.3 million, up 21% from the fourth quarter of 2023, and Solutions revenue was $4.3 million, up 28% year over year. Total Platform revenue in the full year was $8.4 million, up 18% from 2023, and Solutions revenue was $15.4 million, up 17% from 2023. Financial Outlook Management Expectations Q1 2025 FY 2025 Transactions (k) 362 - 370 1,562 - 1,637 Year over Year Growth 22% - 25% 20% - 26% GBV ($m) 272 - 280 1,142 - 1,195 Year over Year Growth 41% - 45% 28% - 34% Revenue ($m) 6.7 - 6.8 29.0 - 30.6 Year over Year Growth 25% - 27% 22% - 29% Adjusted EBITDA ($m) (3.2) - (3.0) (10.9) - (10.2) This outlook assumes freight price levels and market freight volumes as of February 2025 Further financial details are included as an appendix below. Earnings Webcast Freightos' management will host a webcast and conference call to discuss the results today, February 24, 2025, at 8:30 a.m. EST. To participate in the call, please pre-register at the following link: https://freightos.zoom.us/webinar/register/5017367615534/WN_vgcHjqxVQheZLIIOa4eb2Q#/registration 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 [email protected] 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: Freightos' ability to successfully integrate the Shipsta business without disruption to its business; the ongoing military conflict in the Middle East; Freightos' ability to effectively execute its previously announced operational efficiency and cost reduction plan without undue disruption to its business; competition; the ability of Freightos to build and maintain relationships with carriers, freight forwarders and importers/exporters; Freightos' ability to retain its management and key employees; changes in applicable laws or regulations; whether increased tariffs and protectionist trade policies being implemented by the United States and other countries will reduce shipping volume and, hence, number of Transactions, GBV and Platform revenue; any downturn or volatility in economic conditions whether related to inflation, armed conflict or otherwise; changes in the competitive environment affecting Freightos or its users, including Freightos' ability to introduce new products or technologies; risks to Freightos' ability to protect its intellectual property and avoid infringement by others, or claims of infringement against Freightos; and those additional factors discussed under the heading "Risk Factors" in Freightos' annual report on Form 20-F filed with the SEC on March 21, 2024, and any other risk factors Freightos includes in any subsequent reports of foreign private issuer on Form 6-K furnished to the SEC. If any of these risks materializes or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks of which Freightos is not aware presently or that Freightos currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Freightos' expectations, plans or forecasts of future events and views as of the date of this press release. Freightos anticipates that subsequent events and developments will cause Freightos' assessments to change. However, while Freightos may elect to update these forward-looking statements at some point in the future, Freightos specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Freightos' assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements. 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". 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. These non-IFRS measures are presented to permit investors and others to more fully understand how management assesses our performance for internal planning and forecasting purposes. 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. Glossary We have provided below a glossary of certain terms used in this press release: 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. 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. Adjusted EBITDA: Loss before income taxes, finance income, finance expense, share-based compensation expense, depreciation and amortization,impairment of goodwill, changes in the fair value of contingent consideration, operating expense settled by issuance of shares, 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, acquisition-related costs 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 or enterprise shippers often negotiating fixed, 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 global freight booking platform. Airlines, ocean carriers, thousands of freight forwarders, and well over ten thousand importers and exporters connect on Freightos, making world trade faster, more efficient and more resilient. The Freightos platform digitizes the trillion dollar international freight industry, supported by a suite of software solutions that span pricing, quoting, booking, shipment management, and payments for global businesses of all shapes and sizes. Products include the Freightos Marketplace, WebCargo, WebCargo for Airlines, Shipsta by Freightos, 7LFreight by WebCargo, and Clearit. Freightos is a leading provider of real-time industry data via Freightos Terminal, which includes the world's leading spot pricing indexes, Freightos Air Index (FAX) for air cargo and Freightos Baltic Index (FBX) for container shipping. More information is available at freightos.com/investors. Contacts Media:Tali Aronsky[email protected] Investors:Anat Earon-Heilborn[email protected] CONSOLIDATED BALANCE SHEETS (in thousands) December 31, 2024 December 31, 2023 (unaudited) Assets Current Assets: Cash and cash equivalents $ 10,118 $ 20,165 User funds 4,494 3,553 Trade receivables, net 3,057 1,880 Short-term bank deposit 27,153 20,000 Short-term investments - 11,520 Other receivables and prepaid expenses 1,281 2,598 46,103 59,716 Non-current Assets: Property and equipment, net 420 583 Right-of-use assets, net 1,191 1,577 Intangible assets, net 8,852 7,607 Goodwill 15,040 15,628 Deferred taxes 536 969 Other long-term assets 1,637 1,605 27,676 27,969 Total assets $ 73,779 $ 87,685 Liabilities and Equity Current liabilities: Current maturity of lease liabilities 615 587 Trade payables 2,731 3,113 User accounts 4,494 3,553 Warrants liabilities 2,450 1,485 Accrued expenses and other payables 7,023 4,931 17,313 13,669 Long Term Liabilities: Lease liabilities 339 712 Employee benefit liabilities, net 1,239 1,256 Other long-term liabilities - 6 1,578 1,974 Equity: Share capital *) *) Share premium 261,769 256,194 Foreign currency translation reserve (307) - Reserve from remeasurement of defined benefit plans 96 27 Accumulated deficit (206,670) (184,179) Total equity 54,888 72,042 Total liabilities and equity $ 73,779 $ 87,685 *) Represents an amount lower than $1. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) Three Months Ended Twelve months December 31, December 31, 2024 2023 2024 2023 (unaudited) (unaudited) Revenue $ 6,587 $ 5,258 $ 23,785 $ 20,281 Cost of revenue 2,134 1,986 8,285 8,479 Gross profit 4,453 3,272 15,500 11,802 Operating expenses: Research and development 2,817 2,501 10,275 11,507 Selling and marketing 3,688 3,359 13,880 14,384 General and administrative 5,985 2,054 14,292 12,407 Reorganization - - - 884 Share listing expense (1) - - - 46,717 Transaction-related costs - - - 3,703 Total operating expenses 12,490 7,914 38,447 89,602 Operating loss (8,037)(2) (4,642) (22,947)(2) (77,800) Change in fair value of warrants (1,410) 459 (965) 9,440 Finance income 282 822 2,211 3,189 Finance expenses (23) (100) (178) (387) Financing income, net 259 722 2,033 2,802 Loss before taxes on income (9,188) (3,461) (21,879) (65,558) Income taxes (tax benefit), net 649 (146) 612 (85) Loss $ (9,837) $ (3,315) $ (22,491) $ (65,473) Other comprehensive loss (net of tax effect): Amounts that will not be reclassified subsequently to profit or loss: Remeasurement gain (loss) from defined benefit plans 69 (110) 69 (110) Amounts that will be or that have been reclassified to profit or loss when specific conditions are met: Adjustments arising from translating financial statements of foreign operations (396) - (307) - Total comprehensive loss $ (10,164) $ (3,425) $ (22,729) $ (65,583) Basic and diluted loss per Ordinary share $ (0.20) $ (0.07) $ (0.46) $ (1.47) Weighted average number of shares outstanding used to compute basic and diluted loss per share 49,344,367 47,787,112 48,579,804 44,907,105 (1) Represents non-recurring, non-cash $46.7 million share-based listing expense incurred in connection with the business combination with Gesher I Acquisition Corp. (2) Includes a non-recurring, non-cash $3.0 million accounting impairment of goodwill related to the acquisition of Clearit in 2022; this amount was more than covered by earn-out payments that were not made. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended Twelve months December 31, December 31, 2024 2023 2024 2023 (unaudited) (unaudited) Cash flows from operating activities: Loss $ (9,837) $ (3,315) $ (22,491) $ (65,473) Adjustments to reconcile net loss to net cash used in operating activities: Adjustments to profit or loss items: Depreciation and amortization 870 710 3,083 2,791 Impairment of goodwill 3,000 - 3,000 - Share listing expense - - - 46,717 Change in fair value of warrants 1,410 (459) 965 (9,440) Changes in the fair value of contingent consideration - (924) (6) (1,718) Share-based compensation 1,049 923 3,625 5,426 Operating expense settled by issuance of shares - 136 351 320 Finance income, net (259) (739) (2,027) (2,667) Income taxes (tax benefit), net 649 (146) 612 (85) 6,719 (499) 9,603 41,344 Changes in asset and liability items: Decrease (increase) in user funds (74) 1,187 (968) (209) Increase (decrease) in user accounts 74 (1,187) 968 209 Decrease in other receivables and prepaid expenses 391 427 37 91 Decrease (increase) in trade receivables (184) 480 (920) 143 Decrease in trade payables (1,375) (240) (957) (176) Increase (decrease) in accrued severance pay, net (18) 76 (7) (140) Increase (decrease) in accrued expenses and other payables (187) (315) 336 (3,711) (1,373) 428 (1,511) (3,793) Cash received (paid) during the year for: Interest received, net 99 733 2,642 1,256 Taxes paid, net (137) (339) (343) (430) (38) 394 2,299 826 Net cash used in operating activities (4,529) (2,992) (12,100) (27,096) Cash flows from investing activities: Purchase of property and equipment (16) (6) (48) (80) Proceeds from sale of property and equipment - - 2 8 Acquisition of a subsidiary, net of cash acquired (a) - - (3,350) - Payment of payables for previous acquisition of a subsidiary - (75) - (211) Investment in long-term assets (52) - (70) (374) Withdrawal of deposits - 15 24 16 Withdrawal of (investment in) short term investments, net - 18,150 11,520 (11,520) Investment in short-term bank deposit, net - (6,000) (20,000) Net cash provided by (used in) investing activities (68) 18,084 2,078 (32,161) Cash flows from financing activities: Proceeds from the issuance of share capital and warrants net of transaction costs - - - 76,044 Repayment of lease liabilities (208) (176) (629) (549) Repayment of short-term bank loan and credit - - - (2,504) Exercise of options 411 135 714 186 Net cash provided by (used in) financing activities 203 (41) 85 73,177 Exchange differences on balances of cash and cash equivalents (19) 38 (91) (247) Losses from translation of cash and cash equivalents of foreign activity (19) - (19) - Increase (decrease) in cash and cash equivalents (4,432) 15,089 (10,047) 13,673 Cash and cash equivalents at the beginning of the period 14,550 5,076 20,165 6,492 Cash and cash equivalents at the end of the period $ 10,118 $ 20,165 $ 10,118 $ 20,165 (a) Acquisition of an initially consolidated subsidiary: Working capital (excluding cash and cash equivalents) $ - $ - $ (1,271) $ - Property and equipment - - 51 - Right-of-use assets - - 350 - Intangible assets - - 3,538 - Goodwill - - 2,546 - Shares issued - - (885) - Payable for acquisition of subsidiary - - (629) - Lease liabilities - - (350) - Acquisition of a subsidiary, net of cash acquired $ - $ - $ 3,350 $ - (b) Significant non-cash transactions: Right-of-use asset recognized with corresponding lease liability $ 2 $ 613 $ 2 $ 852 Issuance of shares for previous acquisition of a subsidiary $ - $ 58 $ - $ 171 RECONCILIATION OF IFRS TO NON-IFRS GROSS PROFIT AND GROSS MARGIN (in thousands, except gross margin data) Three Months Ended Twelve months December 31, December 31, 2024 2023 2024 2023 (unaudited) (unaudited) IFRS gross profit $ 4,453 $ 3,272 $ 15,500 $ 11,802 Add: Share-based compensation 65 101 378 692 Depreciation and amortization 373 309 1,345 1,180 Non-IFRS gross profit $ 4,891 $ 3,682 $ 17,223 $ 13,674 IFRS gross margin 67.6 % 62.2 % 65.2 % 58.2 % Non-IFRS gross margin 74.3 % 70.0 % 72.4 % 67.4 % RECONCILIATION OF IFRS LOSS TO ADJUSTED EBITDA (in thousands , except adjusted EBITDA margin data) Three Months Ended Twelve months December 31, December 31, 2024 2023 2024 2023 (unaudited) (unaudited) IFRS loss $ (9,837) $ (3,315) $ (22,491) $ (65,473) Add: Change in fair value of warrants 1,410 (459) 965 (9,440) Financing income, net (259) (722) (2,033) (2,802) Income taxes (tax benefit), net 649 (146) 612 (85) Share-based compensation 1,049 923 3,625 5,426 Depreciation and amortization 870 710 3,083 2,791 Impairment of goodwill 3,000 - 3,000 - Share listing expense - - - 46,717 Non-recurring expenses - - - 499 Transaction-related costs - - - 3,703 Changes in the fair value of contingent consideration - (941) - (1,583) Acquisition-related costs - - 283 - Reorganization - - - 884 Operating expense settled by issuance of shares - 136 351 320 Adjusted EBITDA $ (3,118) $ (3,814) $ (12,605) $ (19,043) Adjusted EBITDA margins -47 % -73 % -53 % -94 % RECONCILIATION OF IFRS LOSS TO NON-IFRS LOSS AND LOSS PER SHARE (in thousands, except share and per share data) Three Months Ended Twelve months December 31, December 31, 2024 2023 2024 2023 (unaudited) (unaudited) IFRS loss $ (9,837) $ (3,315) $ (22,491) $ (65,473) Add: Share-based compensation 1,049 923 3,625 5,426 Depreciation and amortization 870 710 3,083 2,791 Impairment of goodwill 3,000 - 3,000 - Share listing expense - - - 46,717 Non-recurring expenses - - - 499 Transaction-related costs - - - 3,703 Changes in the fair value of contingent consideration - (924) (6) (1,718) Acquisition-related costs - - 283 - Reorganization - - - 884 Operating expense settled by issuance of shares - 136 351 320 Change in fair value of warrants 1,410 (459) 965 (9,440) Non IFRS loss $ (3,508) $ (2,929) $ (11,190) $ (16,291) Non IFRS basic and diluted loss per Ordinary share $ (0.07) $ (0.06) $ (0.23) $ (0.38) Weighted average number of shares outstanding used to compute basic and diluted loss per share 49,344,367 47,787,112 48,579,804 44,907,105 Logo - https://mma.prnewswire.com/media/2319256/4496202/Freightos_Logo.jpg SOURCE Freightos WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Freightos Reports Fourth Quarter and Full Year 2024 Results

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