Summary of Freightos (CRGO) FY Conference Call - August 11, 2025 Company Overview - **Company**: Freightos (CRGO) - **Industry**: Global freight and logistics, focusing on digitalizing shipping processes Key Points and Arguments Industry Context - The global shipping industry is valued at approximately **$600 billion** annually, with **90%** of products in stores in the US and Europe being imported [9][8] - The industry remains largely offline, presenting a significant opportunity for digital transformation [6][7] Business Model - Freightos aims to be the **Booking.com or Expedia** for global freight, providing a digital platform for shipping [8] - The company operates two segments: - **Platform**: Transactional revenue from bookings - **Solutions**: Subscription-based revenue from software and data services [30] Financial Performance - The company has seen a **26% growth** in the number of transactions and a **24% increase** in booking per transaction [42] - Gross booking value increased by **56%**, exceeding expectations by **13%** [42] - The company is not yet profitable but has a clear path to profitability, projecting to reach positive EBITDA by Q4 of the following year [67] Market Dynamics - The freight forwarding industry consists of **100,000 freight forwarders**, with the largest handling **$2.03 trillion** annually [17] - Most transactions in the industry are still conducted via emails and phone calls, leading to inefficiencies such as **2-3 days** wait for price quotes [20][19] Digitalization Efforts - Freightos is a leader in the digitalization of the freight industry, with a focus on improving transaction speed and reducing costs [45] - The company has developed a digital customs broker, **Clearit**, to enhance its service offerings [81] AI Integration - The company is actively integrating AI to improve internal efficiencies and product offerings, particularly in dynamic pricing for airlines [51][53] - Unique data assets allow Freightos to create tailored AI solutions that competitors may find hard to replicate [54] Growth Opportunities - The ocean freight market is seen as a significant growth area, with signs of digitalization finally emerging [57] - The company is exploring ways to aggregate small importers and exporters, which represents a large market opportunity [71] Strategic Considerations - M&A is considered an option but not a necessity; the company prefers to preserve cash and focus on organic growth [68] - Partnerships with transportation management systems have been beneficial, but direct sales remain the primary revenue source [66] Regulatory Impact - The recent removal of the **de minimis exemption** for low-value imports is expected to positively impact Freightos by increasing demand for customs brokerage services and freeing up air cargo capacity [80][82] Additional Important Insights - The company has established a strategic footprint by owning both the backend (Webcargo) and frontend (Freightos marketplace) of its platform, creating barriers to competition [28][30] - The growth dynamic of marketplaces is emphasized, where increased participation from buyers and sellers enhances overall platform value [64] This summary encapsulates the key insights from the Freightos FY conference call, highlighting the company's strategic positioning, market dynamics, and growth potential in the logistics industry.