Financial Data and Key Metrics Changes - Full year 2025 revenue grew 24% to $29.5 million, with Q4 revenue at $7.4 million, up 12% year-over-year [10][24] - Gross booking value (GBV) reached $357 million in Q4, up 27% year-over-year, indicating strong transaction growth [12] - Non-IFRS gross margin for Q4 was 72.7%, down from 74.3% in Q4 2024, while full year gross margin improved to 73.7%, up 130 basis points compared to 2024 [25] Business Line Data and Key Metrics Changes - Platform revenue for the full year grew 18%, while solutions revenue increased by 27% from 2024 [24] - Q4 saw 445,000 bookings, marking a 27% increase year-over-year, with a record active carrier network of 77 carriers [11][12] - Solutions growth was softer than anticipated, with enterprise sales cycles lengthening due to budget constraints [15] Market Data and Key Metrics Changes - The company maintained a record of 445,000 bookings in Q4, reflecting strong market demand despite a volatile global trade environment [11] - The integration of new carriers and increased utilization of existing carriers contributed to transaction growth [12] Company Strategy and Development Direction - The company is prioritizing profitability and disciplined growth, aiming for break-even by the end of 2026 [4][8] - A solutions-first strategy is being adopted, focusing on enhancing product offerings and deepening customer relationships [19][20] - The company plans to expand into ocean freight and tendering, which are expected to drive significant long-term growth [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving adjusted EBITDA break-even by Q4 2026, emphasizing cost discipline and operational efficiency [27] - The board believes there is a significant long-term opportunity to digitalize and modernize global freight, with a focus on governance and leadership transitions [5][6] Other Important Information - The company closed the quarter with $27.9 million in cash and short-term bank deposits, slightly better than expectations [26] - The transition from a founder-led to a professional CEO-led organization is progressing, with a new CEO expected to be appointed before the next earnings release [7] Q&A Session Questions and Answers Question: Has there been a fundamental change in the go-to-market strategy? - The go-to-market change is not drastic but focuses on a customer-led approach, prioritizing projects with better returns [32] Question: Any operational changes to pursue a more selective strategy? - The focus will be on higher-value targets and improving overall execution in the go-to-market strategy [33] Question: What is driving the gap between transaction growth and revenue guidance? - The gap is due to the solutions revenue being affected by market volatility and longer sales cycles, while transactions represent only one-third of total revenue [53] Question: Are you still confident in achieving EBITDA breakeven in 2026? - The company remains focused on cost discipline and operational efficiency to achieve adjusted EBITDA breakeven by Q4 2026 [51] Question: Can you elaborate on the decision of a board member stepping down? - The decision was not planned and was made by the individual, but the board remains strong and aligned on the company's strategy [55]
Freightos(CRGO) - 2025 Q4 - Earnings Call Transcript