Financial Data and Key Metrics Changes - The company reported Q1 revenue of $5.4 million, an 11% increase compared to Q1 of 2023, marking the highest growth rate in five quarters as a public company [37] - IFRS gross margin improved to 62.6%, up from 58.3% in Q1 of 2023, while non-IFRS gross margin reached 70.3%, up from 65% in Q1 of 2023 [4] - Adjusted EBITDA for Q1 2024 was negative $3.6 million, an improvement from negative $5.8 million in Q1 last year, attributed to cost restructuring and increased revenues [39] Business Line Data and Key Metrics Changes - Total platform revenues in Q1 were $1.9 million, up 12% compared to Q1 of 2023, primarily driven by air cargo digital bookings [38] - Solution revenue was $3.5 million, reflecting a 10% increase from Q1 of last year, with balanced growth across software and data subscriptions [38] Market Data and Key Metrics Changes - The gross booking value (GBV) for Q1 was over $192 million, growing 14% year-over-year, exceeding expectations [55] - Global air cargo volumes increased by 13% compared to Q1 last year, while total ocean volumes were up 9% [30][29] Company Strategy and Development Direction - The company aims to digitalize the offline freight market, which is still 98% offline, presenting a significant growth opportunity [11] - The strategic partnership with United Airlines to build a dedicated air cargo web portal is expected to enhance service offerings and increase transaction volumes [61][75] - The company is investing in research and development to innovate and enhance its platform offerings, targeting a potential $10 billion in high-margin recurring transactional revenue [76] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential despite macroeconomic uncertainties, emphasizing the importance of capturing offline freight [11] - The company expects Q2 revenue to reach between $5.5 million and $5.6 million, driven by transaction growth and monetization of the platform [43] - Management highlighted the ongoing investment in growth while balancing the path to profitability with existing cash reserves [24] Other Important Information - The company facilitated nearly 296,000 transactions in Q1, a 29% increase year-over-year, indicating strong platform engagement [48] - The carrier base expanded to 49 sellers, with significant partnerships established with major airlines [50] Q&A Session Summary Question: Can you walk through the cohort analysis and pricing from platform participants? - Management indicated that as transaction volumes grow, the platform becomes a more valuable sales channel for sellers, aiding in negotiations for higher fees [16] Question: How unique is the United deal in terms of the portal being created? - Management clarified that the United deal is unique as they are building a dedicated portal for United, unlike other airlines where they merely connect to existing platforms [18] Question: Can you discuss the impact of the Red Sea issue on air cargo rates? - Management noted that while demand for air cargo out of India and Asia has increased, it has not significantly benefited the company due to capacity monopolization by larger companies [20] Question: What is the pathway to sustainable 20% revenue growth? - Management emphasized a balance between growth and reaching breakeven, with ongoing investments in R&D and marketing to support growth while managing costs [24]
Freightos(CRGO) - 2024 Q1 - Earnings Call Transcript