Freightos Achieves Record Growth in Latest Financial Report
Financial Highlights from Freightos Limited
Freightos Limited (NASDAQ: CRGO), a renowned vendor-neutral digital booking and payment platform for the international freight industry, recently revealed its financial performance for the fourth quarter and full year 2024. The company recorded a remarkable 25% increase in fourth-quarter revenue year-over-year, reaching $6.6 million, marking the highest growth rate since its IPO. For the full year, Freightos reported a 17% revenue increase, totaling $23.8 million compared to last year's figures.
Record Transactions Surge
In another show of strength, Freightos achieved its 20th consecutive quarter of record transactions, boosting its standing as a leader in the digital freight space. The company facilitated an impressive 350.4 thousand transactions during the fourth quarter, a 22% increase year-over-year.
Comments from Leadership
CEO Zvi Schreiber expressed excitement about the company's recent achievements: "Freightos continues to lead the digital transformation of global freight. We have ambitious plans for product launches, and aggressive adoption of AI this year, setting the stage for future growth. We are thrilled to welcome Pablo Pinillos as our new CFO, bringing fresh leadership to our mission of enhancing global trade efficiency."
Financial Metrics
The IFRS gross margin improved significantly to 67.6%, an increase from 62.2% in the previous year’s fourth quarter. Freightos reported an IFRS loss of $9.8 million, which includes a one-time accounting impairment of $3.0 million from an acquisition earlier. The adjusted EBITDA also showed improvement, nearing a less negative $3.1 million compared to $3.8 million in the same quarter last year.
Growth in Carrier Partnerships
In the realm of partnerships, Freightos expanded the number of carriers on its platform from 55 to 67 within a quarter. Recently, notable additions include CMA CGM AIR CARGO, Norwegian Cargo, and WestJet Cargo. This strategic growth boosts the operational capabilities of the Freightos platform.
Revenue Streams and Strategic Growth
Freightos reported that its SaaS solutions, including Shipsta, generated record revenues. Overall, the company expects to see substantial growth in its revenue streams from WebCargo by Freightos and customs clearance services. Notably, the total gross booking value (GBV) surged by 50% year-over-year to $280.7 million for the fourth quarter.
Continued Digital Expansion
Freightos continues to innovate and expand its offerings within the digital freight landscape. This commitment to growth, paired with their platform’s user-friendly capabilities, positions the company favorably in an industry that is rapidly moving towards digital solutions.
Strategic Outlook
Looking ahead to Q1 2025 and the full year, Freightos sets a robust outlook, aiming for continued revenue growth supported by the ongoing digital transformation in the freight industry. Management anticipates substantial momentum from the increasing number of transactions processed through the Freightos platform as it enhances connectivity among carriers, forwarders, and shippers.
Frequently Asked Questions
What were the key financial results for Freightos in 2024?
Freightos reported a 25% revenue growth in Q4, totaling $6.6 million, and an annual revenue of $23.8 million, a 17% increase from the previous year.
How did Freightos perform in terms of transactions?
Freightos achieved a record 350.4 thousand transactions in Q4, marking their 20th consecutive quarter of record transaction growth.
What improvements were seen in Freightos' gross margins?
The company reported an IFRS gross margin improvement to 67.6%, an increase from 62.2% in the previous year’s fourth quarter.
Who is the new CFO of Freightos?
Pablo Pinillos has joined Freightos as the new Chief Financial Officer, bringing fresh leadership to the organization.
What revenue streams contributed to Freightos' overall growth?
Key contributors included SaaS solutions such as Shipsta, customs clearance services, and continuing strong growth from the WebCargo by Freightos platform, leading to a gross booking value of $280.7 million in Q4.
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