Freightos' Strong Momentum Underscores Digital Transformation Resilience Amid Tariff Uncertainties BARCELONA, Spain, April 15, 2025 /PRNewswire/ -- Freightos Limited (NASDAQ: CRGO), a leading, vendor-neutral booking and payment platform for the international freight industry, today reported preliminary key performance indicators for the first quarter of 2025, demonstrating continued growth across the digital freight network. Actuals*Management's Expectations Q1 2025 Q1 2025 | # Transactions ('000) | 370.9 | ...

BARCELONA, Spain, April 2, 2025 /PRNewswire/ -- Freightos (NASDAQ: CRGO), the world's leading vendor-neutral digital freight booking and payment platform, today announced that Air Europa, a leading Spanish airline, has joined WebCargo by Freightos' cargo booking platform. With the addition of Air Europa, WebCargo strengthens its offering across key Spain-Latin America trade lanes, providing freight forwarders instant access to Air Europa's extensive network of 15 domestic destinations within Spain and 40 in ...

Core Insights - Freightos Limited has filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the SEC, which includes audited financial statements [1] - The company offers a hard copy of its annual report free of charge to shareholders upon request [2] Company Overview - Freightos is a leading vendor-neutral global freight booking platform connecting airlines, ocean carriers, freight forwarders, and over ten thousand importers and exporters, enhancing world trade efficiency [3] - The Freightos platform digitalizes the international freight industry, providing a suite of software solutions for pricing, quoting, booking, shipment management, and payments [4] - Freightos also offers real-time industry data through Freightos Terminal, which includes leading spot pricing indexes such as the Freightos Air Index (FAX) and the Freightos Baltic Index (FBX) [4]

Financial Instruments and Risk Management - The company entered into forward contracts to hedge forecasted payments denominated in NIS, with notional amounts of $1.9 million and $2.5 million as of December 31, 2024 and 2023, respectively [92]. - The fair value of outstanding forward contracts was positive $0.0 million and positive $0.1 million as of December 31, 2024 and 2023, respectively [92]. Operational Risks - The company is subject to seasonal volume fluctuations, which could adversely affect operating results and financial condition if revenue is lower than expected during peak periods [93]. - The company relies on service providers for freight services, and any financial instability or reduced capacity among these providers could negatively impact operations and financial results [96]. - Disputes between buyers and sellers on the platform may increase during economic downturns, potentially leading to reputational harm and increased costs [107]. - The company is dependent on key personnel, including the CEO, and losing their services could compromise business strategy and operations [110]. - The company faces intense competition for qualified personnel, particularly software engineers, which may increase costs and affect business continuity if key personnel are lost [112]. - Labor unrest, including strikes and work stoppages, could adversely affect the company's business operations and results [117]. - Errors or disruptions in the company's platform could harm brand reputation and negatively impact operating results [119]. Cybersecurity and Data Protection - Cyberattacks targeting the company have increased due to geopolitical tensions, posing risks to critical infrastructure and potentially impacting operations and reputation [123]. - The company has experienced and expects to continue facing cyberattacks, which could lead to significant operational disruptions and financial losses [122]. - The company must continuously improve security measures to protect sensitive data, as breaches could lead to reputational damage and financial liabilities [124]. - The company may incur significant additional resources to protect against security incidents, and insurance coverage may not be adequate to cover all associated losses [126]. Intellectual Property - The company is vulnerable to intellectual property infringement claims, which could result in significant legal costs and operational disruptions [128]. - The likelihood of intellectual property-related litigation is expected to increase due to heightened market activity in the global freight solutions segment [132]. - The company relies on various intellectual property rights, including patents and trademarks, to protect its proprietary technology and data [133]. - There is no assurance that additional patents or trademarks will be issued, which could limit the company's competitive advantage [135]. - The company may face challenges in enforcing its intellectual property rights, which could adversely affect its brand and business [141]. Regulatory and Compliance Risks - Legal and regulatory developments regarding data privacy and cybersecurity could increase compliance costs for the company [148]. - The company is subject to various privacy laws, including the California Consumer Privacy Act (CCPA), which imposes increased privacy obligations and civil penalties for violations [149]. - The General Data Protection Regulation (GDPR) could impose fines of up to €20 million or 4% of annual global revenue for non-compliance, affecting the company's operations in the EEA and the UK [152]. - Compliance with GDPR and similar laws may increase operational costs and limit the company's ability to collect and share data, potentially harming financial results [153]. - The company faces evolving data protection requirements globally, which may lead to increased compliance costs and operational challenges [156]. - The EU AI Act, effective February 2, 2025, could impose fines of up to €35 million or 7% of total worldwide annual turnover for non-compliance, impacting the company's AI operations [162]. - Changes in international tax legislation, including OECD's BEPS recommendations, may increase tax costs and compliance burdens for the company [165]. - The company may face additional tax liabilities due to changes in tax laws or business practices, which could adversely affect financial condition and cash flows [168]. - Increased audit activity and aggressive positions by tax authorities may lead to additional taxes or assessments beyond current provisions [169]. - The introduction of digital services taxes in certain countries could adversely impact the company's operations and cash flows, potentially increasing the worldwide effective tax rate [170]. - The company is subject to various non-income-based taxes, which may result in additional liabilities due to audits or investigations by tax authorities [171]. - The regulatory environment is complex, and failure to comply could lead to penalties and increased operational costs [172]. - The company may face increased operating costs and reputational damage due to non-compliance with anti-corruption and anti-money laundering laws [178]. Geopolitical and Economic Risks - Changes in export and import regulations or economic sanctions could decrease the use of the company's platform by international users [183]. - The company may incur significant legal liabilities and financial losses due to political and trade tensions affecting global operations [182]. - The ongoing conflict in the West Bank has led to significant operational disruptions, with general strikes affecting team performance and potentially harming the company's liquidity and cash flows [216]. - The Israeli government currently provides coverage for damages caused by terrorist attacks or acts of war, but there is no assurance that this coverage will be maintained, which could adversely impact the company's business [217]. - The company faces risks from economic boycotts and restrictive laws against Israeli businesses, which may negatively affect its financial condition and expansion efforts [218]. - The conflict has resulted in a downgrade of Israel's credit rating by agencies such as Moody's and S&P Global, potentially slowing international investment and impacting the business environment [219]. Shareholder and Market Risks - The price of Freightos Ordinary Shares and Warrants may be volatile, influenced by various factors including financial performance and market conditions [233]. - The company may redeem outstanding Freightos Warrants at a price of $0.01 per warrant, which could disadvantage warrant holders [238]. - As of March 1, 2025, approximately 58% of Freightos Ordinary Shares are held by a limited number of shareholders, including the founder and early investors [243]. - The concentrated ownership structure significantly impacts the liquidity of Freightos Ordinary Shares, leading to lower trading volumes and increased price volatility [245]. - Freightos is classified as an "emerging growth company" and will remain so until December 31, 2028, allowing it to take advantage of reduced reporting requirements [248]. - The company is required to file an annual report on Form 20-F within four months of the end of each fiscal year, but the information provided is less extensive compared to U.S. domestic issuers [253]. - If Freightos loses its foreign private issuer status, it will incur significant additional legal, accounting, and compliance costs [254]. - The company may face challenges in attracting new institutional investors due to limited liquidity and trading volume [247]. - Freightos Ordinary Shares and Warrants have not experienced significant trading levels on Nasdaq since becoming public, which may affect market development [240]. - The potential volatility of Freightos securities may lead to securities litigation, diverting management's attention and resources [242]. - The company has agreed to use its best efforts to maintain a current and effective prospectus for the Freightos Warrants, but cannot assure compliance [239]. Financial Performance and Future Outlook - The company expects to continue operating at a loss in the foreseeable future and does not anticipate paying any cash dividends [267]. - The company has granted share incentive awards in the past and will continue to do so, which may lead to increased share-based compensation expenses [270]. - The company completed a business combination with Gesher on January 25, 2023, resulting in Gesher becoming a wholly-owned subsidiary [278]. - The company is currently classified as an "emerging growth company," allowing it to take advantage of certain reporting exemptions [281]. - The issuance of additional share capital in the future is expected, which will dilute existing shareholders [264]. - The company may face adverse effects on investor confidence if material weaknesses in internal controls are identified [262]. - The company has incurred additional annual expenses as a public company, including increased audit and legal fees [279]. - The trading market for the company's ordinary shares depends on the research published by securities or industry analysts [265]. - The company does not guarantee that its ordinary shares will appreciate in value or that the market price will not decline [269]. - The company may be classified as a passive foreign investment company (PFIC) for U.S. federal income tax purposes, which could result in adverse tax consequences [276]. - The company will remain an emerging growth company until the earliest of December 31, 2028, total annual gross revenue of at least $1.235 billion, or a market value exceeding $700 million [282]. Market Context - The global freight booking and payment platforms, Freightos.com and WebCargo, support supply chain efficiency by enabling real-time procurement across more than 10,000 importers/exporters and thousands of freight forwarders [290]. - The value of goods exported internationally reached $23.8 trillion in 2023, representing approximately 23% of global GDP [290]. - The third-party logistics market generated $1.2 trillion in revenue in 2023, exceeding pre-pandemic numbers by about 25% [290]. - Global freight services remain largely offline and inefficient, with importers/exporters often waiting several days for spot price quotes, leading to unpredictable pricing and transit times [291].

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $6.6 million, reflecting a 25% year-over-year increase, the highest quarterly growth rate since going public [43][134] - Adjusted EBITDA for Q4 2024 was negative $3.1 million, within guidance range, with an expected improvement in adjusted EBITDA for 2025 [46][50] - Gross margins improved, with IFRS gross margin reaching 68%, up from 62% in Q4 2023, and non-IFRS gross margin rising to 74% compared to 70% last year [45][135] Business Line Data and Key Metrics Changes - Platform revenue grew 21% year-over-year to $2.3 million, supported by steady transaction growth [44][135] - Solution revenue increased 28% year-over-year to $4.3 million, benefiting from SaaS expansion and the inclusion of Shipster [44][135] - The SaaS solution subsegment generated its highest quarterly revenue ever in Q4, highlighting strong demand for digital procurement and benchmarking solutions [28][117] Market Data and Key Metrics Changes - The air cargo market saw robust demand driven by e-commerce, with Q4 volumes up 10% compared to the previous year [15][104] - Air cargo rates reached year highs during peak season, with a global average price essentially flat on Q4 2023 and up 5% from Q3 [15][104] - The potential reinstatement of the de minimis exemption could lead to a sharp drop in transpacific air cargo volumes and rates, impacting the industry [16][106] Company Strategy and Development Direction - The company is focused on capturing the market opportunity of digitalizing international freight, with a commitment to innovation and operational excellence [11][100] - Three strategic pillars are emphasized: platform, solutions, and network, with ongoing enhancements to capabilities across these fronts [20][109] - A major initiative called Fusion aims to unify all software into one modern, efficient, scalable stack, enhancing operational efficiency [118][119] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term digitalization of freight as the most powerful driver of business, despite potential short-term uncertainties from tariffs [18][40] - The company expects continued improvements in adjusted EBITDA, reflecting revenue growth and operational efficiencies, with a target for breakeven by the end of 2026 [47][50] - Management noted that the industry is still at an early stage of digitalization, with expectations for significant growth as digital connections become more prevalent [60][62] Other Important Information - The company added twelve new carriers in Q4, marking the strongest onboarding of new carriers in its history, bringing the total to 67 carriers [13][102] - The integration of Shipster is progressing well, with plans to retire the Shipster brand and incorporate its capabilities into the company's solutions [33][123] - The company is promoting a toolkit for index linking for freight contracts, enabling rates to adjust dynamically based on market conditions [125][126] Q&A Session Summary Question: Industry Inflection Point - Management indicated that the air cargo sector is further along in digitalization compared to ocean freight, which is still in early stages, with hopes for API connectivity from ocean liners [60][62] Question: Strategic M&A Using Stock - Management stated that while the stock price rebound provides more options, there are no active plans for acquisitions using stock, but they remain open to opportunistic opportunities [67][68] Question: Potential Tariff Impacts - Management discussed the short-term positive effects of front-loading shipments to avoid tariffs, but noted potential mid-term uncertainties and the resilience of global trade [74][76][79] Question: AI Adoption and Rollout - Management highlighted ongoing efforts to integrate AI across the platform, with promising results from AI-driven solutions like dynamic pricing tools, and anticipates measurable impacts on productivity [82][86]

Group 1 - Freightos Limited reported a quarterly loss of $0.20 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.09, and compared to a loss of $0.06 per share a year ago, indicating an earnings surprise of -122.22% [1] - The company posted revenues of $6.59 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.81%, and this represents an increase from year-ago revenues of $5.26 million [2] - Freightos Limited shares have increased by approximately 33.1% since the beginning of the year, significantly outperforming the S&P 500's gain of 2.2% [3] Group 2 - The earnings outlook for Freightos Limited is mixed, with the current consensus EPS estimate for the coming quarter at -$0.10 on revenues of $6.83 million, and for the current fiscal year at -$0.35 on revenues of $30.43 million [7] - The Zacks Industry Rank indicates that the Financial Transaction Services industry is currently in the top 36% of over 250 Zacks industries, suggesting a favorable environment for stocks in this sector [8]

Core Insights - Freightos Limited reported its highest revenue growth rate since going public, with a fourth quarter revenue increase of 25% year-on-year, reaching $6.6 million, and a full year revenue increase of 17% to $23.8 million [7][8][22]. Financial Highlights - Fourth Quarter 2024: Revenue of $6.6 million, up 25% from $5.3 million in Q4 2023; IFRS Gross Margin of 67.6%, up from 62.2% in Q4 2023; IFRS loss of $9.8 million, compared to a loss of $3.3 million in Q4 2023 [8][22]. - Full Year 2024: Revenue of $23.8 million, a 17% increase from $20.3 million in 2023; IFRS Gross Margin of 65.2%, compared to 58.2% in 2023; IFRS loss of $22.5 million, significantly improved from a loss of $65.5 million in 2023 [8][22]. Transaction and User Growth - Freightos achieved a record 350.4 thousand transactions in Q4 2024, a 22% increase year-over-year; for the full year, approximately 1.3 million transactions were facilitated, up 27% from 2023 [8][22]. - The number of unique buyer users grew by 14% year-over-year, reaching 20.1 thousand in Q4 2024 [8]. Carrier Expansion - The number of carriers on the platform increased from 55 in Q3 2024 to 67 in Q4 2024, with notable additions including CMA CGM AIR CARGO, Norwegian Cargo, and WestJet Cargo [8]. Gross Booking Value (GBV) - GBV for Q4 2024 was $280.7 million, up 50% compared to Q4 2023, reflecting a run rate of over $1 billion; full year GBV was $894.0 million, a 33% increase from 2023 [8][22]. Revenue Streams - Revenue from the WebCargo by Freightos platform and customs clearance services contributed to the strong growth; SaaS solutions, including Shipsta, achieved their highest quarterly revenue ever in Q4 2024 [8][22].

Core Insights - Freightos has launched the Freightos Index Linking Toolkit, enhancing its Freightos Terminal market intelligence solution to enable dynamic contract pricing that adjusts to market fluctuations [1][2] - The index-linking approach is transforming freight contract management, particularly in containerized shipping and air cargo, by providing a more resilient and efficient pricing model [2][3] Company Overview - Freightos is a leading digital freight booking and payment platform, connecting airlines, ocean carriers, freight forwarders, and importers/exporters to streamline global trade [7][8] - The platform digitizes the international freight industry, offering a suite of software solutions for pricing, quoting, booking, shipment management, and payments [8] Industry Impact - Index-linking is becoming increasingly important in the freight industry, allowing for stable and reliable contracts while reducing the need for renegotiations [2][3] - The Freightos Baltic Index (FBX) and Freightos Air Index (FAX) serve as foundational elements for the index-linking toolkit, based on extensive transactional data [4][9] Operational Efficiency - The toolkit aims to reduce freight pricing exposure and improve internal efficiency for carriers, forwarders, and beneficial cargo owners (BCOs) when combined with freight future agreements [5] - Logistics teams are shifting from annual to quarterly renegotiations of freight contracts due to ongoing market volatility, highlighting the need for more adaptive solutions [6]

Company Overview - Freightos Limited (NASDAQ: CRGO) is a leading vendor-neutral digital booking and payment platform for the international freight industry [1][4] - The platform digitizes the trillion-dollar international freight industry, offering a suite of software solutions for pricing, quoting, booking, shipment management, and payments [5] Leadership Appointment - Pablo Pinillos has been appointed as Chief Financial Officer, effective March 1, 2025 [1] - Pinillos brings over 20 years of global leadership experience in finance, strategy, and operations, with a strong track record in scaling high-growth tech companies [2] Strategic Vision - CEO Zvi Schreiber emphasized that Pinillos' leadership in finance and operations will be crucial for Freightos as it continues to scale and digitalize the international freight industry [3] - Pinillos expressed his commitment to driving growth, operational efficiency, and stakeholder value at Freightos [3]

Group 1 - Freightos Limited has added CMA CGM AIR CARGO to its WebCargo and 7LFreight cargo booking platforms, allowing forwarders to access CMA CGM's global air freight network and real-time rates [1][2] - This partnership emphasizes the need for flexibility and scalability in the post-COVID supply chain environment, addressing ongoing disruptions and the demand for reliable freight solutions [2][3] - The integration of CMA CGM AIR CARGO's capacity into Freightos' platforms aims to streamline logistics and provide expanded capacity across major trade hubs in Europe, North America, and Asia [3] Group 2 - Freightos operates as a vendor-neutral global freight booking platform, connecting airlines, ocean carriers, freight forwarders, and importers/exporters to enhance world trade efficiency [5][6] - The company digitizes the international freight industry, offering a suite of software solutions for pricing, quoting, booking, shipment management, and payments [6][7] - Freightos provides real-time industry data through Freightos Terminal, which includes leading spot pricing indexes for air cargo and container shipping [7]