Summary of Freightos Conference Call Company Overview - **Company**: Freightos - **Industry**: International Freight and Logistics - **Market Size**: The international freight market is approximately $600 billion annually, with $150 billion in air cargo and $350 billion in ocean cargo [6][20] Core Insights and Arguments - **Digital Transformation**: Freightos aims to digitize the international freight industry, which is largely offline, using a platform that connects carriers, freight forwarders, and shippers [4][5] - **Market Opportunity**: Over 90% of international freight bookings are still offline, indicating a significant opportunity for digital solutions [6][20] - **Platform Structure**: The platform operates as a three-sided network, facilitating real-time pricing, instant booking, and efficient procurement across the supply chain [5][12] - **Growth Metrics**: Freightos reported over 1.3 million bookings in 2024, with a run rate of over 1.5 million bookings for the current year [9][21] - **Revenue Streams**: Revenue is divided into solutions revenue (SaaS and data) and platform revenue (transaction fees), with two-thirds currently from solutions revenue [16][17] Financial Performance - **Revenue Growth**: Expected revenue for 2025 is projected between $29.5 billion and $29.6 billion, with a year-on-year growth of 20%-22% [16][19] - **Gross Margin**: Non-IFRS gross margin is expected to grow from 73%-75%, while IFRS gross margin is projected to increase from 65%-69% [17][24] - **Profitability Outlook**: Freightos anticipates reaching profitability by Q4 of the next year, with a current cash position of $31 million [18][20] Competitive Landscape - **Market Position**: Freightos maintains a higher market share in the forwarding sector, with a unique position as it combines SaaS and transaction-based services [29][30] - **Competitive Advantage**: The company has built a robust network over 13 years, providing trust and reliability in its data and services [30] Additional Insights - **Cohort Retention**: Forwarders typically see their bookings grow 3-5 times over the first two years on the platform, indicating strong customer retention and value [13] - **Impact of Tariffs**: Tariffs have increased demand for Freightos' services as companies seek visibility and efficiency in navigating supply chain disruptions [31][32] - **Capital Structure**: Freightos has a clean balance sheet with no debt, operating primarily on an OpEx model [33] Conclusion - **Vision**: Freightos aims to become the indispensable digital backbone of global trade, leveraging its platform to drive efficiency and transparency in the international freight industry [21][20]

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]