Freightos FY Conference Summary Company Overview - Company: Freightos (NasdaqCM: CRGO) - Industry: Global logistics and freight management - Market Size: The global freight market is valued at approximately $600 billion, with $150 billion in air freight and $350 billion in ocean freight [8][9] Core Insights - Digital Transformation: Freightos aims to digitize the largely offline global freight industry, where 90% of transactions are still conducted offline [9][28] - Market Opportunity: Only 10% of the $600 billion market is transacted digitally, and only 2% of that is platformized, indicating significant growth potential for digital platforms like Freightos [9][28] - Focus on Spot Market: Freightos primarily targets the spot market, which is approximately $3.3 trillion annually, providing ample room for growth [10][11] Business Model - Triple-Sided Network: Freightos operates as a triple-sided network, connecting carriers, freight forwarders, and shippers, enhancing liquidity and efficiency in the logistics process [6][29] - SaaS Solutions: The company offers mission-critical SaaS solutions for rate management, procurement, and market intelligence, which represent two-thirds of its revenue [15][27] - Transaction Revenue: Transaction-based revenue accounts for one-third of total revenue, with expectations for this segment to grow significantly [27][28] Growth Metrics - Transaction Growth: Freightos has seen a substantial increase in transactions, growing from a few hundred per quarter in 2020 to over 1.3 million in 2024 [14] - User Engagement: Over 20,000 unique buyers use the platform daily, indicating strong engagement and adoption [19] - Freight Forwarder Adoption: Freight forwarders using the platform have experienced transaction volume growth of 3 to 5 times over eight quarters [20] Competitive Advantage - Integration and Stickiness: Freightos is deeply integrated into the daily operations of its clients, making it difficult for them to switch to competitors [29] - Real-Time Adjustments: Airlines using the platform can adjust pricing and offerings in real-time based on market feedback, enhancing their competitiveness [23] Challenges and Future Outlook - Adoption Barriers: The main obstacles to greater adoption include the availability of contract capacity and specialized services like customs and dangerous goods handling [41][42] - Profitability Goals: Freightos aims to achieve profitability by 2026, with a declining adjusted EBITDA loss and over $30 million in cash reserves [28] Additional Insights - Market Dynamics: The logistics industry is characterized by inefficiencies due to outdated practices, such as reliance on phone calls and emails for transactions [12][13] - Future Growth Areas: The company plans to expand its offerings to include less-than-truckload (LTL) services and enhance its platform's capabilities for door-to-door services [23][24] This summary encapsulates the key points from the Freightos FY Conference, highlighting the company's strategic direction, market potential, and operational insights.
Freightos (NasdaqCM:CRGO) FY Conference Transcript