**London**: Freightos reports remarkable growth in Q4 2024, processing 350,400 transactions, and achieving record gross profit margins, despite facing unexpected losses. CEO Zvi Schreiber highlights the company’s leadership in freight digitalisation and plans for further AI integration and product launches in 2025.
Freightos, a key player in the global freight industry, reported significant advances in digital transformation during a fourth-quarter earnings call with investors on 24 February 2024. The company’s CEO, Zvi Schreiber, highlighted the impressive results achieved in the quarter, marking the highest revenue growth since the firm went public, with substantial expansion and record gross profit margins. Schreiber noted the importance of Freightos’ platform, stating, “Freightos continues to lead the digital transformation of global freight,” emphasising that it connects more carriers, freight forwarders, and importers/exporters than ever before.
Freightos achieved remarkable growth during the fourth quarter, processing a record 350,400 transactions, which reflects a 22% increase from the same quarter in 2023. Over the entire fiscal year, the company facilitated approximately 1.3 million transactions, equating to a 27% increase from the previous year, making it Freightos’ 20th consecutive quarter of record transactions. The number of unique buyer users booking freight services digitally on the platform rose by 14%, reaching 20,100.
Despite these achievements, Freightos experienced losses that exceeded analysts’ expectations for the fourth quarter, which led to a nearly 10% drop in its share price. However, the company did beat revenue projections for the quarter, surpassing Wall Street’s consensus earnings per share on two occasions during the fiscal year.
In financial performance specifics, Freightos’ gross booking value (GBV) increased significantly to $280.7 million in the fourth quarter, a rise of 50%. The full-year GBV reached $894.0 million, demonstrating a 33% increase year-on-year, largely buoyed by expanding airline portals and early adoption of ground transportation transactions. The company noted noteworthy growth in its carrier base, which expanded from 55 in the third quarter to 67 in the fourth.
Freightos plans to further propel digital adoption in the freight industry through aggressive integration of artificial intelligence and the launch of new products in 2025. Additionally, the company has revealed the appointment of Pablo Pinillos as the new Chief Financial Officer, set to begin next week, tasked with steering the company’s financial strategy. Freightos is targeting a breakeven position by the end of 2026.
For the first quarter of 2025, Freightos anticipates processing between 362,000 and 370,000 transactions, signalling a year-over-year growth rate of 22% to 25%. The forecast for GBV is projected to be between $272 million and $280 million, reflecting a substantial increase of 41% to 45% compared to Q1 2024. Revenue expectations range from $6.7 million to $6.8 million, indicative of a 25% to 27% growth, with an anticipated adjusted EBITDA loss ranging from negative $3.2 million to negative $3.0 million.
Freightos has made strategic moves in the past few months, including the acquisition of the freight-tender procurement platform Shipsta, aimed at expanding the range of services available to its users beyond basic freight bookings. The company also recently enhanced its platform with new tools allowing for dynamic contract pricing that adjusts in real-time to market changes.
Overall, the ongoing digital transformation within the freight industry signifies a shift from traditional practices to more efficient, tech-driven solutions, cementing Freightos’ role as a leader in this evolving landscape.
Source: Noah Wire Services
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