Company Overview - Freightos Limited (NASDAQ: CRGO) is a leading vendor-neutral global freight booking platform that connects airlines, ocean carriers, freight forwarders, and importers/exporters, enhancing the efficiency and resilience of world trade [4][5]. - The platform digitizes the trillion-dollar international freight industry, offering a suite of software solutions for pricing, quoting, booking, shipment management, and payments [5]. Financial Results Announcement - Freightos will report its Q1 2025 financial results before market open on May 20, 2025, with a management-hosted webcast and conference call scheduled for 8:30 a.m. EST on the same day [1]. Investor Relations - Information regarding the financial results and a link to the live webcast will be available on Freightos' investor relations website [2]. - Participants can register for the call via a provided link, and a replay of the webcast along with the call's transcript will be accessible on the investor relations website post-call [3]. Industry Data - Freightos is a prominent provider of real-time industry data through Freightos Terminal, which includes leading spot pricing indexes such as the Freightos Air Index (FAX) for air cargo and the Freightos Baltic Index (FBX) for container shipping [6].

Core Insights - Freightos has launched Freightos Enterprise, an integrated logistics procurement suite aimed at large importers and exporters, addressing the fragmented nature of global freight procurement and execution [1][4] - The platform combines annual, quarterly, and spot procurement of air, ocean, and ground freight, providing essential market intelligence to navigate industry volatility [1][4] Company Overview - Freightos (NASDAQ: CRGO) is a leading digital freight booking and payment platform that connects airlines, ocean carriers, freight forwarders, and over ten thousand importers and exporters [5] - The company digitizes the trillion-dollar international freight industry with a suite of software solutions for pricing, quoting, booking, shipment management, and payments [6] Product Features - Freightos Enterprise includes three modules: Procure, Rate, Book & Manage, and Terminal, which streamline the procurement process and enhance operational efficiency [2][8] - The Procure module automates RFQs and contract optimization, reducing procurement time by up to 90% [8][9] - The Rate, Book & Manage module offers direct digital connectivity to hundreds of carriers for rate comparison and shipment tracking [8] - The Terminal module provides real-time freight market intelligence and enhanced contract benchmarking capabilities [8] Market Context - The launch of Freightos Enterprise aligns with current industry challenges, including trade uncertainties and volatile rates, necessitating optimized spending and efficiency in complex supply chains [4] - Customers using Freightos Enterprise have reported significant benefits, including a 20% reduction in freight spend and an 80% decrease in email communication related to quoting and booking [9]

Core Insights - Freightos Limited reported strong preliminary key performance indicators for Q1 2025, showcasing continued growth in its digital freight network despite tariff uncertainties [1][4]. Performance Metrics - The company facilitated 371,000 transactions in Q1 2025, reflecting a 25% year-over-year growth and surpassing management's expectations [3][7]. - Gross Booking Value (GBV) reached $276.1 million in Q1 2025, marking a 43% year-over-year increase, driven by higher transaction volumes and freight rate stability [3][7]. Platform Expansion and Network Growth - Freightos expanded its network to 71 carriers in Q1 2025, including new specialized cargo operators, and unique buyer users grew by 10% year-over-year to 19,700 [7]. - The company emphasized the resilience of its digital platform, stating that changes in trade policies would have a marginal impact on the vast growth opportunities available [4][7]. Future Outlook - Financial results for Q1 2025 will be reported in the second half of May, with specific details to be published in early May [5].

Core Insights - Freightos has announced that Air Europa has joined its WebCargo platform, enhancing its digital freight booking capabilities in the Spain-Latin America trade lanes [1][3] - The partnership aims to provide freight forwarders with instant access to Air Europa's network, which includes 15 domestic destinations in Spain and 40 international routes [1][3] Group 1: Partnership and Network Expansion - The addition of Air Europa strengthens WebCargo's offering, particularly in the Spanish export routes connecting major cities like Madrid, Barcelona, and Valencia with Air Europa's global network [2][3] - This partnership is seen as a significant step in the digital transformation of air cargo in the Spanish and Latin American markets, enhancing supply chain resilience [3] Group 2: Benefits for Freight Forwarders - Freight forwarders will benefit from instant shipment securing through Air Europa's extensive network, which is part of a platform that already includes dozens of major airlines [3][8] - The platform represents nearly 70% of global air cargo capacity, providing unprecedented digital access to shipping options for freight forwarders [3] Group 3: Digital Transformation and Innovation - Air Europa's commitment to innovation and digital optimization is highlighted by its integration into the WebCargo platform, which streamlines booking processes and enhances capacity accessibility [3] - The Freightos platform digitizes the international freight industry, offering a suite of software solutions for pricing, quoting, booking, shipment management, and payments [6]

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]

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 [25] - Adjusted EBITDA for Q4 2024 was negative $3.1 million, within guidance range, with a full year adjusted EBITDA loss of negative $12.6 million, significantly improved from negative $19 million in 2023 [27][29] - Gross margins improved, with IFRS gross margin reaching 68%, up from 62% in Q4 2023, and non-IFRS gross margin increasing to 74% from 70% last year [26] Business Line Data and Key Metrics Changes - Platform revenue grew 21% year-over-year to $2.3 million, supported by steady transaction growth [26] - Solutions revenue increased 28% year-over-year to $4.3 million, benefiting from SaaS expansion and the inclusion of the Chipster business [26] - Unique buyer users increased 14% year-over-year, breaking the 20,000 mark, reinforcing network effects [15] 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 [7] - Air cargo rates reached year highs during peak season, with a global average price essentially flat on Q4 2023 and up 5% from Q3 2024 [8] - The U.S. reinstated the de minimis exemption for e-commerce goods, which could impact air cargo volumes and rates [10] Company Strategy and Development Direction - The company is focused on capturing the market opportunity of digitalizing international freight, with ongoing investments in market education [6] - Three strategic pillars are emphasized: Platform, Solutions, and Network, with a focus on enhancing capabilities and expanding carrier adoption [12][20] - A major initiative called Fusion aims to unify all software into a modern, efficient stack, with significant development planned for 2024 [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term digitalization of freight, despite potential short-term uncertainties from tariffs [11][24] - The company expects continued improvements in adjusted EBITDA, reflecting revenue growth and operational efficiencies, aiming for breakeven by the end of 2026 [27][29] - Management highlighted the importance of achieving API connectivity in the ocean freight segment as a key milestone for digital transformation [36] Other Important Information - The company plans to reinvest in platform development after reducing investment in mid-2023, with results expected to materialize in 2026 [16] - The integration of AI across the platform is a priority, with new tools like Skyway showing promise in optimizing pricing and procurement [19][55] Q&A Session Summary Question: What examples indicate the industry is closer to an inflection point in digital adoption? - Management noted that air freight is further along in digitalization, while ocean freight is still in early stages, with hopes for API connectivity to accelerate adoption [36][38] Question: How does the company view potential M&A opportunities with the rebound in stock price? - Management stated that while they are not actively planning acquisitions, they remain open to opportunistic deals if attractive opportunities arise [40][41] Question: Can you elaborate on the potential impacts of tariffs? - Management indicated that while tariffs could dampen world trade, they do not expect a major impact, and potential changes in e-commerce regulations could benefit their platform [46][50] Question: What is the timeline for the rollout of AI opportunities? - Management mentioned that AI tools are being rolled out internally and in products, with significant impacts expected in productivity and customer offerings throughout the year [54][56]

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].