Freightos (NasdaqCM:CRGO) FY Conference September 09, 2025 01:30 PM ET Speaker0Afternoon. My name is Ian Arroyo, and I'm the chief strategy officer for Fredos. In my role, I'm responsible for group strategy, m and a, executive relationships across our network, and and I'm excited to be here today. So thank you for for joining me. I first got my start a little bit about me.I first got my start in logistics and supply chain in 2010. That time, I was working in a startup, that I cofounded for the US military a ...

Freightos Limited (CRGO) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.The po ...

Financial Data and Key Metrics Changes - The company reported revenue of $7.4 million for Q2 2025, marking a 31% increase year over year [31] - Adjusted EBITDA for Q2 was negative $2.5 million, an improvement from negative $3.1 million in Q2 2024 [32] - Gross margin on IFRS basis was approximately 67%, up from 65% in Q2 last year [32] Business Line Data and Key Metrics Changes - Platform revenue reached $2.5 million, up 23% year over year, marking the fourth consecutive quarter of growth exceeding 20% [31] - Solutions revenue increased by 36% year over year to $4.9 million, reflecting proactive expansion of product capabilities [31][24] Market Data and Key Metrics Changes - The air cargo market saw a 3% increase in volumes compared to Q2 last year, despite challenges from tariff changes [14] - Ocean freight rates rose 43% from Q1 but were still 11% lower than last year, indicating capacity growth and potential overcapacity [15] Company Strategy and Development Direction - The company aims to digitalize international freight, positioning itself as a leading global freight platform [10][11] - Strategic expansion includes adding new carriers, with a total of 75 carriers now on the platform, enhancing coverage on critical routes [19] - The company is focused on increasing liquidity in ocean capacity and modernizing IT among ocean carriers [21][23] Management's Comments on Operating Environment and Future Outlook - Management noted that while tariffs have created some headwinds, the overall impact is minor compared to the trend of digitalization driving long-term growth [17] - The company remains on track to achieve breakeven adjusted EBITDA by the end of 2026, with confidence in sustaining growth rates [33][75] Other Important Information - The company has a strong balance sheet with $34 million in cash and cash equivalents [33] - The company plans to participate in several investor events, including the H. C. Wainwright Annual Investment Conference in September [4] Q&A Session Summary Question: Why did the company raise full year GBV guidance but keep revenue largely unchanged? - Management indicated that the mix of transactions affects revenue, with some lower take rate transactions growing faster [38][39] Question: How is the ShipStar position helping drive solutions revenue? - The integration of ShipStar has enhanced the product portfolio, enabling cross-sell opportunities and improving data offerings [41][42] Question: What is driving the pressure for modernization in the ocean freight sector? - The need for digital connections is being driven by customer demand for efficiency, moving away from traditional methods like Excel sheets [52] Question: Are there any strategic changes or new growth areas being evaluated? - Management is continuously reviewing resource allocation but does not expect any major changes at this time [60][61] Question: How much did FX fluctuations impact Q2 profitability? - FX fluctuations significantly affected adjusted EBITDA, but the company has managed to hedge nearly 100% of its exposure [62][64] Question: How does the company expect to achieve breakeven by the end of next year? - Management is confident in reaching breakeven with current growth trends and operational expense management [75][76]

Q2 2025 Highlights - Transactions reached 397,000, a 26% year-over-year growth[26] - The company achieved record revenue of $74 million, a 31% year-over-year increase[26] - The platform has expanded to include 75 carriers[26] Financial Performance - Q2 2025 revenue was $74 million, exceeding the guidance of $70 million - $71 million[55] - Adjusted EBITDA for Q2 2025 was $(29) million, aligning with the guidance of $(29) million - $(28) million[55] - Non-IFRS gross margin reached 735% for Q2 2025, compared to 720% in Q2 2024[75] Guidance - Q3 2025 transaction guidance is 419,000 - 425,000, representing a 24%-25% year-over-year growth[69] - Q3 2025 revenue is projected to be $76 million - $77 million, a 23%-25% year-over-year increase[69] - Full year 2025 revenue guidance is $295 million - $300 million, reflecting a 24%-26% year-over-year growth[69] - Full year 2025 Adjusted EBITDA is expected to be $(109) million - $(105) million[69]

Exhibit 99.1 Freightos Reports Second Quarter 2025 Results August 18, 2025 - Barcelona /PRNewswire/ - Freightos Limited (NASDAQ: CRGO), the leading vendor-neutral digital booking and payment platform for the international freight industry, today reported its financial results for the quarter ended June 30, 2025. "Freightos continues to solidify its position as a leader in the end-to-end digital transformation of the international freight industry, achieving robust second-quarter results with a 31% year-over ...

Core Insights - Freightos Limited reported a strong second-quarter performance with a 31% year-over-year revenue increase, reaching $7.4 million, driven by robust transaction growth and strategic adaptability in a fluctuating market [2][7][6] - The company achieved a record 397,000 transactions in Q2 2025, marking the 22nd consecutive quarter of record transactions, and a Gross Booking Value (GBV) of $317 million, up 56% year-over-year [7][6] - Management has revised the full-year transaction outlook upward, reflecting confidence in sustained growth despite global trade uncertainties [2][6] Financial Highlights - Revenue for Q2 2025 was $7.4 million, a 31% increase from $5.7 million in Q2 2024 [7] - IFRS Gross Margin improved to 67.1%, up from 64.9% in the same quarter last year, while Non-IFRS Gross Margin rose to 73.5% from 72.0% [7] - The company reported an IFRS loss of $4.3 million, an improvement from a loss of $5.3 million in Q2 2024, and an Adjusted EBITDA loss of $2.9 million, slightly better than the $3.1 million loss in the prior year [7][24] Business Growth - The number of unique buyer users increased by 6% year-over-year, reaching approximately 20,200 [7] - The number of carriers on the platform grew from 71 to 75, including new additions like China Airlines and Air Europa, enhancing service diversity [7] - Total platform revenue was $2.5 million, up 23% year-over-year, while solutions revenue increased by 36% to $4.9 million [7] Future Outlook - For Q3 2025, management expects transactions to range between 419,000 and 425,000, with a year-over-year growth of 24% to 25% [8] - The full-year revenue forecast is projected between $29.5 million and $30 million, reflecting a year-over-year growth of 24% to 26% [8] - The company aims to achieve breakeven Adjusted EBITDA by the end of 2026, despite potential currency fluctuations impacting financial metrics [2][8]

Summary of Freightos (CRGO) FY Conference Call - August 11, 2025 Company Overview - **Company**: Freightos (CRGO) - **Industry**: Global freight and logistics, focusing on digitalizing shipping processes Key Points and Arguments Industry Context - The global shipping industry is valued at approximately **$600 billion** annually, with **90%** of products in stores in the US and Europe being imported [9][8] - The industry remains largely offline, presenting a significant opportunity for digital transformation [6][7] Business Model - Freightos aims to be the **Booking.com or Expedia** for global freight, providing a digital platform for shipping [8] - The company operates two segments: - **Platform**: Transactional revenue from bookings - **Solutions**: Subscription-based revenue from software and data services [30] Financial Performance - The company has seen a **26% growth** in the number of transactions and a **24% increase** in booking per transaction [42] - Gross booking value increased by **56%**, exceeding expectations by **13%** [42] - The company is not yet profitable but has a clear path to profitability, projecting to reach positive EBITDA by Q4 of the following year [67] Market Dynamics - The freight forwarding industry consists of **100,000 freight forwarders**, with the largest handling **$2.03 trillion** annually [17] - Most transactions in the industry are still conducted via emails and phone calls, leading to inefficiencies such as **2-3 days** wait for price quotes [20][19] Digitalization Efforts - Freightos is a leader in the digitalization of the freight industry, with a focus on improving transaction speed and reducing costs [45] - The company has developed a digital customs broker, **Clearit**, to enhance its service offerings [81] AI Integration - The company is actively integrating AI to improve internal efficiencies and product offerings, particularly in dynamic pricing for airlines [51][53] - Unique data assets allow Freightos to create tailored AI solutions that competitors may find hard to replicate [54] Growth Opportunities - The ocean freight market is seen as a significant growth area, with signs of digitalization finally emerging [57] - The company is exploring ways to aggregate small importers and exporters, which represents a large market opportunity [71] Strategic Considerations - M&A is considered an option but not a necessity; the company prefers to preserve cash and focus on organic growth [68] - Partnerships with transportation management systems have been beneficial, but direct sales remain the primary revenue source [66] Regulatory Impact - The recent removal of the **de minimis exemption** for low-value imports is expected to positively impact Freightos by increasing demand for customs brokerage services and freeing up air cargo capacity [80][82] Additional Important Insights - The company has established a strategic footprint by owning both the backend (Webcargo) and frontend (Freightos marketplace) of its platform, creating barriers to competition [28][30] - The growth dynamic of marketplaces is emphasized, where increased participation from buyers and sellers enhances overall platform value [64] This summary encapsulates the key insights from the Freightos FY conference call, highlighting the company's strategic positioning, market dynamics, and growth potential in the logistics industry.

Core Insights - Freightos has appointed Udo Lange as Non-Executive Chairman and Rotem Hershko as a Director, effective July 28, 2025, to enhance its digital freight vision [1][3] Leadership Appointments - Udo Lange brings over 30 years of logistics leadership experience, including roles at FedEx and advising the White House Supply Chain Disruption Task Force [2][3] - Rotem Hershko has a strong background in technology and logistics, having held leadership positions at Amazon and Maersk, and currently serves as a Senior Advisor at McKinsey & Company [3][4] Strategic Direction - The new leadership aims to advance Freightos' mission of end-to-end global freight digitization, enhancing connections among shippers, forwarders, and carriers [3][4] - The company has made significant strides, reporting an annualized run rate of over 1.5 million platform transactions after 22 consecutive quarters of growth [4] Product Offerings - Freightos provides a suite of software solutions for the international freight industry, including Freightos Enterprise for multinational importers and exporters, and various products for freight forwarders and airlines [6] - The platform aims to digitize the trillion-dollar international freight industry, making global trade more efficient and accessible [6] Market Position - Freightos is recognized as a leading vendor-neutral global freight booking platform, connecting airlines, ocean carriers, freight forwarders, and over ten thousand importers and exporters [5][6] - The company also offers real-time industry data through Freightos Terminal, which includes leading spot pricing indexes for air cargo and container shipping [7]

Core Insights - Freightos has partnered with SriLankan Cargo to enhance online air cargo booking and payments, significantly expanding its presence in South Asia and improving access to Colombo as a transshipment hub [1][4] Company Overview - Freightos is a leading digital booking and payment platform for the international freight industry, facilitating connections among airlines, ocean carriers, freight forwarders, and importers/exporters [7][8] - SriLankan Cargo, the air freight division of SriLankan Airlines, connects to 32 online destinations in 21 countries and over 200 destinations globally, with strong capacity to India and the Gulf [3][11] Partnership Details - The integration allows over 10,000 freight forwarding offices using WebCargo to access, quote, book, and pay for SriLankan's air freight capacity through a single platform [2] - The partnership democratizes access to SriLankan Cargo's capacity for non-IATA forwarders in Asia, removing the need for airline credit lines or bank guarantees, which is particularly beneficial for SMEs in emerging markets [4] Service Enhancements - SriLankan Cargo will leverage Freightos' rate management and procurement tools to enhance visibility during the freight buying process [5] - The integration will also enable seamless booking of complex multi-carrier routes, optimizing load factors for partner airlines like Qatar Airways and Emirates SkyCargo [5] Industry Context - The partnership is positioned to enhance agility in the freight industry, which is increasingly reliant on digital solutions for efficiency and resilience [4][8]

Core Viewpoint - Freightos Limited reported strong preliminary key performance indicators for Q2 2025, highlighting its essential role in the international freight industry amid ongoing trade challenges [1][4]. Financial Performance - The company recorded 397,000 transactions in Q2 2025, exceeding management's expectations of 380,000 to 385,000, representing a year-over-year growth of 26% [2][7]. - Gross Booking Value (GBV) reached $317 million in Q2 2025, a significant increase of 56% year-over-year, surpassing management's expectations of $278 million to $285 million [2][7]. Platform Expansion and Network Growth - Freightos achieved its 22nd consecutive quarter of record transactions, reinforcing its position as a key player in facilitating international trade during volatile times [3]. - The network expanded to include 75 carriers, adding notable airlines such as China Airlines and Air Europa, which enhances service diversity [7]. Customer Engagement - Unique buyer users grew by 6% year-over-year to 20,200, indicating broad appeal and customer diversification for the platform [7]. Upcoming Events - The company plans to report its full financial results for Q2 2025 on August 18, 2025, with a conference call scheduled for the same day at 8:30 a.m. EDT [4][5].