Freightos(CRGO) - 2023 Q1 - Quarterly Report

Revenue and Growth - Revenue for Q1 2023 was $4.8 million, a 9.9% increase compared to Q1 2022, or 11.3% on a constant currency basis[2] - The company expects Q2 2023 Transactions to be between 239,500 and 244,500, representing a year-over-year growth of 109% to 113%[22] - Gross Bookings Value (GBV) for Q2 2023 is projected to be between$ 159.1 million and $162.4 million, reflecting a year-over-year growth of 26% to 29%[22] - The company anticipates full-year 2023 revenue to be between$ 22.3 million and $23.6 million, with a year-over-year growth of 15% to 22%[22] - Freightos achieved a record 229 thousand transactions in Q1 2023, representing a 100% year-over-year increase, with a Gross Booking Value (GBV) of$ 168.7 million[34] User and Ecosystem Growth - The number of unique buyer users increased by 29% year-over-year, indicating strong ecosystem growth[1] - The number of unique buyer users grew by 29% year-over-year, reaching 16 thousand in Q1 2023[34] - The number of carriers selling on the platform reached 37 in Q1 2023, a 19% increase year-over-year, representing approximately 57% of global cargo capacity[34] Financial Performance - IFRS Gross Margin was 58.3%, down from 61.7% in Q1 2022; Non-IFRS Adjusted Gross Margin was 65.0%, compared to 66.5% in Q1 2022[2] - Adjusted EBITDA for Q1 2023 was negative $5.8 million, worsening from negative$ 3.3 million in Q1 2022 due to increased investment in growth[2] - Freightos reported a non-IFRS gross profit of $3,134 thousand for Q1 2023, compared to$ 2,920 thousand in Q1 2022, with a non-IFRS gross margin of 65.0%[29] - The company incurred an operating loss of $57,960 thousand in Q1 2023, significantly higher than the$ 4,182 thousand loss in Q1 2022[30] - Adjusted EBITDA for Q1 2023 was $(5,816) thousand, with an adjusted EBITDA margin of (121)%[30] Cash and Assets - Cash and cash equivalents at the end of the period increased to$ 46,778 thousand from $16,903 thousand year-over-year[28] - Total assets increased significantly to$ 102,510 million as of March 31, 2023, compared to $41,806 million on December 31, 2022, reflecting a growth of 144%[40] - Cash and cash equivalents rose sharply to$ 46,778 million from $6,492 million, indicating a substantial increase of 620%[40] - Total equity surged to$ 82,949 million, up from $21,660 million, representing an increase of 284%[40] - Current liabilities decreased to$ 13,654 million from $17,080 million, a reduction of 20%[40] - Long-term liabilities increased to$ 5,907 million from $3,066 million, a rise of 93%[40] - Trade receivables increased to$ 2,390 million from $1,936 million, reflecting a growth of 23%[40] - User accounts remained stable at$ 3,309 million, slightly down from $3,328 million[40] - The company reported a significant increase in intangible assets, which totaled$ 9,051 million, down from $9,465 million, indicating a decrease of 4%[40] Strategic Initiatives - Freightos continues to invest in R&D and new customer acquisition, which is expected to yield high profit margins in the future[11] - Air cargo payments using Freightos' solution have grown over 30% since Q4 2022, indicating strong progress in payment solutions[16] - The Freightos platform has achieved close to 60% IFRS gross margins and is introducing new sales channels like Freightos Terminal, which is generating high profit margins[19] - Freightos launched Freightos Terminal in May 2023, a real-time global freight market intelligence solution[34] - Freightos plans to expand its solutions to other global manufacturers and retailers following a successful pilot with Electrolux[34]