Freightos Limited, a leading vendor-neutral digital booking and payment platform for the international freight industry, has reported financial results for the quarter ended September 30, 2024. The consistent growth trend continued, with record transactions, record revenue, and the highest revenue growth rate and highest adjusted EBITDA since going public, highlighted a communique.
“Our strong third-quarter results highlight the transformative impact our platform is making in freight digitalization,” said Zvi Schreiber, CEO of Freightos. “We saw impressive growth in transaction volumes, driven by our expanding network of engaged buyers and sellers. The addition of Shipsta has further strengthened our solution portfolio and our customer base of enterprise shippers. We continued releasing product features at a high rate including AI-powered features that leverage our significant industry traction. These innovations underscore the growing reliance of the industry on digital solutions to bring transparency, efficiency, and resilience to global freight, a shift in which Freightos plays a pivotal role.”
“Our third-quarter results once again exceeded expectations across all key metrics,” said Ran Shalev, CFO of Freightos. “We’re pleased not only with our strong performance in transactions, Gross Booking Value (GBV), revenue, and adjusted EBITDA, but also with our ability to update guidance for the final quarter of 2024. We are increasing Adjusted EBITDA guidance and expecting that revenue will be towards the top end of previous guidance. This performance reflects our continued commitment to growth and efficiency, further reinforcing our path toward achieving positive Adjusted EBITDA by the end of 2026 on existing cash reserves.”
Third Quarter 2024 Financial Highlights
- Revenue of $6.2 million for the third quarter of 2024, an increase of 21% compared to $5.1 million in the third quarter of 2023.
- IFRS Gross Margin of 65.0%, up from 54.9% in the third quarter of 2023. Non-IFRS Gross Margin of 72.7%, up from 69.5% for the third quarter of 2023.
- IFRS operating loss of $4.9 million, compared to an operating loss of $9.3 million for the third quarter of 2023.
- Adjusted EBITDA of negative $2.8 million, compared to negative $4.1 million for the third quarter of 2023.
- Cash and cash equivalents and short term bank deposit amounting to $41.3 million as of September 30, 2024.
Recent Business Highlights
- Shipsta: In the third quarter, Freightos successfully integrated Shipsta, a leading freight tender procurement platform serving dozens of Global 1000 enterprises, following its acquisition in August. The integration is progressing as planned, and the cross-introduction of Shipsta’s offerings to Freightos’ customer base – and vice versa – is already gaining promising traction.
- Transactions Growth: Freightos achieved a record 339.1 thousand Transactions in the third quarter of 2024, up 26% year over year. This was the 19th consecutive quarter of record Transactions. The Platform continues its consistent outperformance compared to the market growth: In the third quarter, global air cargo volumes (according to IATA data) grew 11% year on year, and global ocean shipping volumes (according to CTS) grew 4.2%.
- Carrier Growth: The number of carriers selling on the Platform, primarily on WebCargo, increased to 55 for the third quarter of 2024. Among the recent carrier additions are Qantas and Air India (via the GSA Euro Cargo Aviation). Freightos also recently announced the addition of Pacific Air Cargo and HNA Cargo to its platform.
- Unique Buyer Users: The number of Unique buyer users digitally booking freight services across the Freightos Platform grew by 14% compared to the third quarter of 2023, reaching 19.7 thousand.
- Gross Booking Value Growth: Gross Booking Value (GBV) was $217.5 million in the third quarter, up 35% compared to the third quarter of 2023, significantly exceeding management’s expectations.
- Revenue Growth: Revenue of $6.2 million reflected particularly strong growth from the WebCargo by Freightos platform, from customs clearance services, and from SaaS Solutions including Shipsta. Total Platform revenue in the third quarter was $2.3 million, up 29% from the third quarter of 2023, and Solutions revenue was $3.9 million, up 18% year over year.