Financial Data and Key Metrics Changes - In Q2 2024, the company reported revenue of $5.7 million, an 11% increase compared to Q2 2023 [29] - Gross booking value (GBV) reached $203.4 million, a 31% increase year-over-year [5] - Non-IFRS gross margins improved to 72%, up from 65% in the same period last year [31] - Adjusted EBITDA loss was $3.1 million, significantly better than the $5.3 million loss in Q2 2023 [32] Business Line Data and Key Metrics Changes - The company facilitated 316.5 thousand transactions in Q2, a 32% increase year-over-year [5] - Unique buyer users increased by 16%, reaching approximately 19,000 [7] - The Platform & Solutions segment grew 11% year-on-year, reflecting strong user engagement [29] Market Data and Key Metrics Changes - Global ocean freight container volumes increased by 6.5% compared to Q1 and were 5.7% higher than Q2 last year [24] - Global air cargo volumes grew by 15% compared to Q2 last year, with a 6% increase from Q1 [25] - Ocean container shipping rates were 65% higher than the end of Q1 and over 250% higher than the previous year [26] Company Strategy and Development Direction - The acquisition of Shipsta is aimed at enhancing the company's offerings in tender management and long-term freight procurement [13][22] - The company is focused on digitizing both spot and contract procurement processes to create a comprehensive digital freight booking platform [14][22] - Expansion efforts include new services such as handling dangerous goods and temperature-controlled shipments [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow despite market challenges, citing the ongoing digital transformation in the freight industry [28] - The company anticipates transaction growth of 20% to 24% year-on-year in Q3, with full-year expectations of 25% to 27% growth [34] - Management noted caution regarding transaction growth in the second half of the year due to market uncertainties and delays in airline rollouts [34] Other Important Information - The company had $47.3 million in cash and short-term deposits at the end of June, providing sufficient funds for operations [33] - The integration of Shipsta is expected to enhance revenue and operational synergies, with an anticipated contribution of approximately $800,000 in revenues for Q4 [34] Q&A Session Summary Question: Can you talk about the revenue and cost synergy opportunities between Freightos and Shipsta? - Management highlighted expectations of $800,000 in revenue from Shipsta for the remainder of the year and emphasized the complementary nature of both companies' products [35][36] Question: Can you provide an update on recent trends in U.S. trucking and ocean initiatives? - Management noted green shoots in U.S. trucking, particularly in LTL, and emphasized the strategic connection between trucking and air cargo operations [38][39][42] Question: How did the company achieve significant leverage in gross profit this quarter? - Management attributed the increase in gross profit to economies of scale and continued investment in automation and software development [43][45]
Freightos(CRGO) - 2024 Q2 - Earnings Call Transcript