Freightos (CRGO) Conference Summary Company Overview - **Company**: Freightos - **Industry**: International Freight and Shipping - **CEO**: Zvi Schreiber - **Founded**: 12 years ago Key Points and Arguments Industry Context - The international shipping industry is valued at approximately **$600 billion** [8] - 90% of goods in stores in America and Europe are imported, highlighting the industry's significance [8] Digital Transformation - Freightos aims to digitize the international shipping industry, which is considered one of the last major industries without a digital platform [6] - The company has grown from **100,000 bookings per quarter** three years ago to **close to 400,000** in Q1 [9] - Freightos has established a network of **13,000 importers and exporters**, **4,000 freight forwarders**, and **71 carriers** [9] Financial Performance - Revenue is growing every quarter, with a reaffirmed guidance for the year despite industry uncertainties [12] - EBITDA has been increasing every quarter, with the exception of a quarter impacted by an acquisition [13] - The gross profit margin is currently at **74%** and is expected to reach **80%** over time [15] - The company is projected to break even by the end of **2026** [15] Market Segmentation - The industry consists of three tiers: carriers (ocean liners, airlines), freight forwarders, and importers/exporters [16][18] - There are approximately **100,000 freight forwarders** globally, with major players like Expeditors and C.H. Robinson [19][20] Challenges and Opportunities - The industry still relies heavily on offline transactions, with many price quotes taking **2-3 days** [25] - There is significant underutilization of cargo capacity, leading to wasted resources and emissions [27] - The digitalization trend presents a substantial growth opportunity for Freightos [25] Product Offerings - Freightos has two main revenue segments: platform (transactional revenue) and solutions (software and data subscriptions) [31] - The platform includes **Webcargo**, which connects airlines and ocean liners to freight forwarders, and **Freightos**, which connects freight forwarders to importers/exporters [32][33] - The company has a growing data revenue stream from the **Freightos Baltic Index (FBX)**, which is used for market insights and trading [45] Strategic Initiatives - The company maintains a focus on capital efficiency and aims to improve its take rates on both platforms [54] - The long-term growth model anticipates a **20-30%** annual growth in transactions and revenue [57] Additional Important Information - Freightos has significant strategic investors, including **Qatar Airways** and **FedEx**, holding approximately **50%** of the company [61][62] - The impact of tariffs on the business is mixed; while they can reduce volume, they also create opportunities for alternative solutions [70][71] Conclusion Freightos is positioned to capitalize on the digital transformation of the international shipping industry, with strong growth metrics and a clear path to profitability. The company’s focus on building a comprehensive digital platform and its strategic partnerships provide a solid foundation for future expansion.

Freightos Limited (CRGO) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing ear ...

Summary of Freightos Conference Call Company Overview - **Company Name**: Freightos - **Industry**: Digital Freight Forwarding and Logistics - **Key Executives**: Svee Schreiber (CEO), Pablo Pinelos (CFO), Anna Aaron Halbrunn (IR) Core Points and Arguments 1. **Market Position**: Freightos is a leader in digitizing the freight forwarding industry, which is still largely offline, with over a million digital bookings annually, representing a small portion of a multi-billion dollar industry [5][6][9] 2. **Growth Metrics**: The number of transactions has grown 3.5 times over the last three years, indicating rapid growth in the marketplace [7][41] 3. **Marketplace Structure**: Freightos operates a three-sided marketplace involving carriers, freight forwarders, and importers/exporters, which enhances network effects and growth dynamics [8][41] 4. **Financial Performance**: Revenue has been consistently growing, with a non-IFRS margin currently at 74%, aiming for 80% [9][10][50] 5. **Investment Strategy**: The company is intentionally not break-even yet, as it prioritizes investment in marketing and R&D to capture market opportunities [10][12] 6. **Cash Position**: Freightos has over $30 million in cash, sufficient to reach profitability without needing to raise additional capital in the near term [11][62] 7. **Revenue Segmentation**: Revenue is divided into two segments: platform revenue (transactional) and solutions revenue (subscription-based), with the expectation that platform revenue will grow faster [48][49] 8. **Tariff Impact**: While tariffs can create short-term headwinds, the overall trend of world trade remains positive, and the company is positioned to benefit from increased marketplace usage during volatility [35][36][38] Additional Important Insights 1. **Industry Dynamics**: The freight forwarding industry is characterized by a high number of manual processes and intermediaries, presenting a significant opportunity for digital transformation [23][24] 2. **Comparison with Competitors**: Freightos differentiates itself from competitors like Flexport by being a neutral platform rather than a freight forwarder, allowing for higher margins and a broader market reach [70] 3. **Long-term Growth Potential**: The company believes it can grow significantly regardless of fluctuations in global trade, as it has only digitized a small percentage of the market [67][68] 4. **Market Trends**: The shift towards digital platforms in B2B commerce is seen as a major trend, with Freightos aiming to be a leader in this space [27][28] Conclusion Freightos is positioned as a leading digital platform in the freight forwarding industry, with strong growth metrics, a solid financial foundation, and a clear strategy for future expansion. The company is focused on leveraging its marketplace structure to capitalize on the ongoing digital transformation in logistics.

Q1 2025 Earnings Call Nasdaq: CRGO May 20, 2025 08:30 Disclaimer About this Presentation This presentation does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any security. Please see our SEC filings for the most up to date information. The information contained herein does not purport to be all-inclusive and none of Freightos or its affiliates or representatives makes any representation or warranty, express or implied, as to the accuracy, completeness or ...

Freightos (CRGO) Q1 2025 Earnings Call May 20, 2025 08:30 AM ET Company Participants Anat Earon-Heilborn - VP - Investor RelationsZvi Schreiber - CEO & Chairman of BoardPablo Pinillos - CFOJason Helfstein - Managing Director - Head of Internet ResearchGeorge Sutton - Partner- Co-Director of Research Anat Earon-Heilborn Hello, everyone. Welcome to Schrader's Q1 twenty twenty five Earnings Conference Call. A press release with detailed financial results was released earlier today and is available on the Inves ...

Freightos (CRGO) Q1 2025 Earnings Call May 20, 2025 08:30 AM ET Speaker0 Hello, everyone. Welcome to Schrader's Q1 twenty twenty five Earnings Conference Call. A press release with detailed financial results was released earlier today and is available on the Investor Relations section of our website, fredos.com/investors. My name is Anaty Ron Haubern, and I am joined today by Doctor. Zvi Schreiber, the CEO of Fredos and Pablo Pinheos, CFO. Following the prepared remarks, we will open the call for questions. ...

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].