Freightos Limited, a leading vendor-neutral digital booking and payment platform for the international freight industry, has reported financial results for the quarter and year ended December 31, 2023.
“As we reflect on our first year as a public company – a year marked by significant challenges for the freight industry – Freightos not only demonstrated remarkable resilience, but also achieved a significant milestone in the growth of our platform, powering over a million transactions in 2023. This pivotal year has solidified our position as a leading platform for international freight, highlighting how our relentless drive to digitalise the industry delivers exceptional value to our customers…,” said Zvi Schreiber, CEO of Freightos.
“The past year has shown solid growth and solid progress towards profitability, illustrating our strategic balance between fostering growth and managing costs, while maintaining a healthy financial position,” said Ran Shalev, CFO of Freightos. “As we enter 2024, we aim to efficiently scale transactions and revenue, while further reducing our cash burn. Our long-term financial strategy is about establishing our platform as a standard in the digital international freight market.”
Fourth Quarter 2023 financial highlights
• Revenue of $5.3 million for the fourth quarter of 2023, an increase of 8% compared to the fourth quarter of 2022.
• IFRS Gross Margin of 62.2%, up from 59.2% in the fourth quarter of 2022. Non-IFRS Gross Margin of 70.0%, up from 65.8% for the fourth quarter of 2022.
• IFRS operating loss of $4.6 million, compared to $8.9 million for the fourth quarter of 2022.
• Adjusted EBITDA of negative $3.8 million, compared to negative $4.4 million for the fourth quarter of 2022.
Full Year 2023 financial highlights
• Revenue of $20.3 million for the full year 2023, an increase of 6% compared to 2022.
• IFRS Gross Margin of 58.2% in 2023, compared with 58.8% in 2022. Non-IFRS Gross Margin of 67.4%, up from 65.2% in 2022.
• IFRS operating loss of $77.8 million, including a one-time non-cash $46.7 million share listing expense, compared to $24.3 million for 2022.
• Adjusted EBITDA of negative $19.0 million, compared to negative $14.6 million for 2022.
• Cash and cash equivalents and short-term deposits and investments balance at the end of December 2023 of $51.7 million.
Transactions growth
Freightos achieved a record 287,000 transactions in the fourth quarter of 2023, up 36% year over year, concluding the year with 1 million and 25 thousand transactions. This was a significant outperformance compared to overall international freight market volumes, which remained modest. Both global air cargo volumes based on IATA data and global ocean container shipping volumes, according to Container Trades Statistics, were up only 7% from the fourth quarter of 2022, said a release.