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]

Freightos (CRGO) Q4 2024 Earnings Call February 24, 2025 08:30 AM ET Company Participants Anat Earon-Heilborn - VP - Investor RelationsZvi Schreiber - CEO & Chairman of BoardTeresa Carreras - Director of Financial Planning & AnalysisPablo Pinillos - CFOJason Helfstein - Managing Director - Head of Internet Research Conference Call Participants George Sutton - Senior Research Analyst Anat Earon-Heilborn and welcome to Freitas Q4 twenty twenty four Earnings Conference Call. A press release with detailed finan ...

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]

Group 1 - Freightos Limited has added WestJet Cargo to its WebCargo and 7LFreight platforms, allowing freight forwarders to access real-time rates, place eBookings, and pay online [1][2] - WestJet Cargo expands WebCargo's network on key tradelanes from Calgary to major international hubs such as Tokyo, London, and Paris, facilitating the transport of various cargo types including perishables and pharmaceuticals [2][3] - The collaboration enhances WestJet Cargo's capacity, connecting thousands of forwarders to over 100 destinations, and supports the growing demand for efficient digital logistics solutions [3][4] Group 2 - Freightos has facilitated tens of thousands of eBookings from Europe to Canada since launching WebCargo, indicating a strong uptake of its digital platform [3] - The company reported a 22% year-over-year increase in transactions, highlighting the rising demand for digital logistics solutions [4] - Freightos operates a suite of software solutions that digitize the international freight industry, including pricing, quoting, booking, shipment management, and payments [6]

Core Insights - Freightos Limited reported preliminary key performance indicators for Q4 2024 and FY 2024, indicating continued growth in platform usage and network expansion, achieving the 20th consecutive quarter of record transactions and the highest number of new carriers added in a single quarter [1][4][8] Performance Metrics - Transactions: Freightos facilitated 350,400 transactions in Q4 2024, representing a 22% year-over-year growth, exceeding management's expectations [3][8] - Gross Booking Value (GBV): The total GBV reached $280.5 million in Q4 2024, reflecting a 50% year-over-year increase, driven by robust transaction growth and sustained elevated market rates [3][8] - Year-over-Year Growth: For FY 2024, GBV was $894 million, showing a 33% year-over-year growth [3][8] Network Expansion - Carrier Growth: The number of unique carriers increased to 67 in Q4 2024, up from 45 in Q4 2023, marking the strongest carrier growth in a single quarter in the company's history [8] - Buyer Growth: Unique buyer users on the platform grew by 14% to approximately 20,100 by the end of Q4 2024, highlighting the network effects of Freightos' platform [8] Future Outlook - The company plans to report full financial results for Q4 2024 on February 24, 2025, with a conference call scheduled for the same day [6][8]

Group 1 - Swiss WorldCargo and Freightos Limited have established a collaboration to enhance the digital booking experience for customers in the air freight sector [1][2] - The partnership integrates Swiss WorldCargo's long-haul connectivity with Freightos' real-time rate comparisons and eBooking capabilities, aiming to provide a seamless digital experience [2][4] - Swiss WorldCargo is recognized for its expertise in transporting high-value, care-intensive, and temperature-sensitive shipments across a network of over 170 destinations globally [3][8] Group 2 - The collaboration aims to provide freight forwarders with enhanced options for specialized shipments, including pharmaceuticals, through the WebCargo platform [4][5] - Swiss WorldCargo's product portfolio available on WebCargo includes SWISS General Cargo and SWISS Pharma and Healthcare, which can be paired with temperature-sensitive transportation solutions [5][6] - The integration into WebCargo is seen as a significant milestone in the digital transformation of the air cargo industry, allowing freight forwarders to book air cargo needs instantly [7][10] Group 3 - Swiss International Air Lines (SWISS) operates one of Europe's most advanced and carbon-efficient aircraft fleets, committed to ambitious climate goals [8] - Freightos is a leading vendor-neutral global freight booking platform that connects various stakeholders in the freight industry, enhancing efficiency and resilience in world trade [9][10] - The Freightos platform digitizes the international freight industry, offering a suite of software solutions for pricing, quoting, booking, shipment management, and payments [10][11]