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]
Freightos (NasdaqCM:CRGO) Conference Transcript