Freightos Limited, a leading vendor-neutral digital booking and payment platform for the international freight industry, on Monday reported financial results for the quarter ending June 30, 2023.
“The Freightos Platform facilitated record Transaction numbers, and earned slightly increased Platform Revenue during the second quarter of 2023, with our growth successfully overcoming depressed international freight rates and reduced industry volumes,” said Zvi Schreiber, founder and CEO of Freightos. “Growth and innovation on the carrier supply side, as well as a 10% year over year growth in Unique Buyer Users, has fuelled an increase in our market share that emphasises the continued adoption of digital bookings.”
“Looking ahead, we are encouraged to observe that global freight rates in Q3 appear to be recovering slightly as we approach peak season, including a 35% gain on the bellwether FBX01 (China – US West Coast) index since the beginning of the year,” Schreiber continued. “Furthermore, In July we announced and implemented an operational efficiency plan which we believe will further improve our profitability from Q3 onwards and enable us to reach profitability with existing funds.”
“We are pleased to reaffirm our 2023 guidance that we provided together with the efficiency plan announcement,” said Ran Shalev, CFO of Freightos. “Despite difficult industry conditions, the company remains on track to improve Adjusted EBITDA in Q3 and after. The results of the operational efficiency plan implemented in early Q3 are anticipated to be reflected in the Company’s financials as early as this quarter and are not expected to compromise underlying growth. The combination of sustained Solutions sales, particularly the growing data business unit, improved take rates, and careful monitoring of spend, have kept gross margins high and stable.”
“The digitalisation of global freight is progressing and outperforming the broader market,” continued Zvi Schreiber. “Our marketplace growth flywheel, across carriers, forwarders, and importers/exporters continues its momentum, and we expect benefits from new, unique combinations such as our recently piloted interline bookings between airlines, as well as by carefully managing expenses to reach profitability on the existing cash raised.”