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Freightos Reports Impressive Q4 and Full Year 2024 Results

Freightos Limited (NASDAQ: CRGO), a prominent vendor-neutral digital booking platform for the international freight industry, has unveiled its financial results for both the fourth quarter and full year of 2024. The company achieved remarkable growth, boasting a revenue increase of 25% year-over-year in Q4, which reflects its highest growth rate since going public. Additionally, Freightos recorded a 17% increase in full-year revenue, cementing its position within the digital freight industry.

CEO Insights

Zvi Schreiber, the CEO of Freightos, expressed confidence in the company’s trajectory. He stated that Freightos is at the forefront of digital transforming the global freight sector. The platform is increasingly connecting carriers, freight forwarders, and importers/exporters, highlighting the importance of Freightos as digital adoption accelerates within the industry. Schreiber also announced plans for ambitious product launches and the integration of AI technologies in the year ahead. The expectation is set for the company to break even by the end of 2026.

Fourth Quarter Highlights

In the fourth quarter of 2024, Freightos reported a revenue of approximately $6.6 million, a jump from $5.3 million in Q4 2023. Alongside impressive financial figures, the gross profit margin improved from 62.2% to 67.6%. However, the company recorded an IFRS loss of $9.8 million, attributed in part to a one-time accounting impairment of goodwill related to a previous acquisition.

The adjusted EBITDA loss also showed improvement, falling to $3.1 million from $3.8 million in the same period last year.

Full Year Performance

Looking at the overall performance for the full year 2024, Freightos achieved a revenue of $23.8 million, a 17% enhancement from $20.3 million in 2023. The gross margin rose from 58.2% in 2023 to 65.2% in 2024, indicating growing efficiency. The full-year loss of $22.5 million marked a significant improvement compared to the previous year, where losses reached $65.5 million.

Freightos's cash and cash equivalents, along with short-term bank deposits, stood at an encouraging $37.3 million at year-end.

Operational Achievements

In terms of operational metrics, Freightos reported record-setting transaction volumes, achieving 350.4 thousand transactions in Q4, a 22% increase Y-o-Y. Over the whole year, the company facilitated approximately 1.3 million transactions, a rise of 27% when compared to 2023. This quarter marked Freightos's 20th consecutive quarter of record transaction activity.

The carrier network has also expanded, growing from 55 carriers in Q3 to 67 carriers by the end of Q4. Recent additions to the platform include CMA CGM AIR CARGO, Norwegian Cargo, and WestJet Cargo, highlighting the continuous efforts to broaden the company's network.

Moreover, unique buyer users booking freight services on the platform surged by 14%, reaching 20.1 thousand in Q4. The Gross Booking Value (GBV) saw an impressive increase of 50% year-over-year, totaling $280.7 million in Q4, demonstrating a robust growth trajectory that exceeded market expectations.

Looking Ahead

Freightos is optimistic moving forward, with clear goals set for the first quarter of 2025 and the entire fiscal year. For Q1 2025, the expected transaction range is between 362 - 370 thousand, with projected revenue between $6.7 - 6.8 million. The company forecasts continued growth across all metrics, fueled by a focus on enhancing existing products and the rollout of additional AI capabilities.

In closing, as Freightos charts its path towards enhancing global trade efficiency and connectivity, its latest financial results underscore a pivotal shift towards a more digitally adept freight industry. The intricate interplay between incremental growth and technological innovations continues to position Freightos as a key player in reshaping the global freight landscape.