Freightos Reports First Quarter 2024 Results with Double-digit Revenue Growth PR Newswire JERUSALEM, May 20, 2024 JERUSALEM, May 20, 2024 /PRNewswire/ -- Freightos Limited (NASDAQ: CRGO), a leading vendor-neutral digital booking and payment platform for the international freight industry, today reported financial results for the quarter ended March 31, 2024. "We are pleased with the strong first quarter of the year, which highlights the robustness and growing acceptance of our platform, and the strides we are making in digitalizing international freight, bringing efficiency and transparency to this crucial sector," saidZvi Schreiber, CEO of Freightos. "We pursued several initiatives to increase not only the number but also the value of the transactions, including investing in Asia, and an emphasis on high value shipments such as pharma. Looking ahead, we remain focused on the opportunities in the massive air and ocean freight markets, driving continued growth and innovation in the quarters to come." "The first quarter results exceeded our expectations in every metric: the number of transactions, Gross Booking Value, revenue, and profitability," said Ran Shalev, CFO of Freightos. "We remain on track to achieve our 2024 guidance, as well as our long-term goals for growth, profitability, and cash generation." First Quarter 2024 Financial Highlights Recent Business Highlights Financial outlook Management Expectations Q2 2024 FY 2024 Transactions 303,000 - 309,000 1,286,500 - 1,376,000 Year over Year Growth 27% - 29% 26% - 34% GBV ($m) $ 178.0 - $ 182.0 $ 788.9 - $ 844.1 Year over Year Growth 15% - 18% 17% - 26% Revenue ($m) $ 5.5 - $ 5.6 $ 22.4 - $ 24.0 Year over Year Growth 8% - 10% 11% - 18% Adjusted EBITDA ($m) $ (3.5) - $ (3.4) $ (15.3) - $ (13.8) Freightos' management will host a webcast and conference call to discuss the results today, May 20, 2024 at 8:30 a.m. EST. To participate in the call, please register at the following link: https://freightos.zoom.us/webinar/register/WN_p3eUH_UlQxaD0OU8BoQr_g Following registration, you will be sent the link to the conference call which is accessible either via the Zoom app, or alternatively from a dial-in telephone number. Questions may be submitted in advance to ir@freightos.com or via Zoom during the call. A replay of the webcast, as well as the conference call transcript, will be available on Freightos' Investor Relations website following the call. Forward-Looking Statements This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements, which include the financial outlook of Freightos, are based on various assumptions, whether or not identified in this press release, and on the current expectations of Freightos, and are not predictions of actual performance. These forward-looking statements are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circ*mstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circ*mstances are beyond the control of Freightos. These forward-looking statements are subject to a number of risks and uncertainties, including the ongoing military conflict in the Middle East; Freightos' ability to effectively execute its previously announced operational efficiency and cost reduction plan without undue disruption to its business; competition and the ability of Freightos to build and maintain relationships with carriers, freight forwarders and importers/exporters and retain its management and key employees; changes in applicable laws or regulations; any downturn or volatility in economic conditions whether related to inflation, armed conflict or otherwise; changes in the competitive environment affecting Freightos or its users, including Freightos' ability to introduce new products or technologies; risks to Freightos' ability to protect its intellectual property and avoid infringement by others, or claims of infringement against Freightos; and those additional factors discussed under the heading "Risk Factors" in Freightos' annual report on Form 20-F filed with the SEC on March 21, 2024, and any other risk factors Freightos includes in any subsequent reports of foreign private issuer on Form 6-K furnished to the SEC. If any of these risks materializes or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks of which Freightos is not aware presently or that Freightos currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Freightos' expectations, plans or forecasts of future events and views as of the date of this press release. Freightos anticipates that subsequent events and developments will cause Freightos' assessments to change. However, while Freightos may elect to update these forward-looking statements at some point in the future, Freightos specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Freightos' assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements. Financial Information; Non-IFRS Financial Measures While certain financial figures included in this press release have been computed in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board, this press release does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, "Interim Financial Reporting" nor a financial statement as defined by International Accounting Standards 1 "Presentation of Financial Statements". Not all of the financial information in this press release has been audited. This press release includes certain financial measures not presented in accordance with generally accepted accounting principles of the IFRS including, but not limited to, Adjusted EBITDA. These non-IFRS measures differ from the most directly comparable measures determined under IFRS. For the historical non-IFRS results included herein, we have provided tables at the end of this press release providing a reconciliation of those results to our results achieved under the most directly comparable IFRS measures. For the forward-looking non-IFRS data included under "Financial outlook", we have not included such a reconciliation, because the reconciliation of forward-looking data cannot be prepared without unreasonable effort. Our results and forecasts expressed as non-IFRS measures should not be considered in isolation or as an alternative to revenue, net income, cash flows from operations or other measures of profitability, liquidity or performance under IFRS. You should be aware that the presentation of these measures may not be comparable to similarly-titled measures used by other companies. Freightos believes that Adjusted EBITDA and other non-IFRS measures provide useful information to investors and others in understanding and evaluating Freightos' operating results because they provide supplemental measures of our core operating performance and offer consistency and comparability with both our own past financial performance and with corresponding financial information provided by peer companies. Certain monetary amounts, percentages and other figures included in this press release have been subject to rounding adjustments, and therefore may not sum due to rounding. Definitions About Freightos Freightos® (NASDAQ: CRGO) is the leading, vendor-neutral booking and payment platform for international freight, improving world trade. WebCargo® and 7LFreight by Freightos, form the largest global air cargo booking platform, connecting airlines and freight forwarders. Over ten thousand freight forwarder offices, including the top twenty global forwarders, place thousands of eBookings a day on the platform with over fifty airlines. These airlines represent about 2/3rds of global air cargo capacity. Alongside ebookings, freight forwarders use WebCargo and 7LFreight to automate rate management, procurement, pricing and sales of freight services, across all modes, resulting in more efficient and more transparent freight services. More information is available at freightos.com/investors. Contacts Media: Investors: CONSOLIDATED BALANCE SHEETS (In thousands) March 31, December 31, (unaudited) (audited) Assets Current Assets: Cash and cash equivalents $ 12,272 $ 20,165 User funds 4,353 3,553 Trade receivables, net 2,039 1,880 Short-term bank deposit 26,021 20,000 Short-term investments 11,520 11,520 Other receivables and prepaid expenses 1,515 2,598 57,720 59,716 Non-current Assets: Property and equipment, net 530 583 Right-of-use assets, net 1,409 1,577 Intangible assets, net 7,124 7,607 Goodwill 15,628 15,628 Deferred taxes 1,038 969 Other long-term assets 1,595 1,605 27,324 27,969 Total assets $ 85,044 $ 87,685 Liabilities and Equity Current liabilities: Trade payables 3,461 3,113 User accounts 4,353 3,553 Current maturity of lease liabilities 538 587 Warrants liabilities 1,201 1,485 Accrued expenses and other payables 4,931 4,931 14,484 13,669 Long Term Liabilities: Lease liabilities 588 712 Employee benefit liabilities, net 1,324 1,256 Other long-term liabilities 6 6 1,918 1,974 Equity: Share capital *) *) Share premium 257,410 256,194 Reserve from remeasurement of defined benefit plans 27 27 Accumulated deficit (188,795) (184,179) Total equity 68,642 72,042 Total liabilities and equity $ 85,044 $ 87,685 *) Represents an amount lower than $1. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) Three Months Ended March 31, 2024 2023 (unaudited) (unaudited) Revenue $ 5,355 $ 4,823 Cost of revenue 2,005 2,013 Gross profit 3,350 2,810 Operating expenses: Research and development 2,466 2,997 Selling and marketing 3,562 3,620 General and administrative 2,806 3,733 Transaction-related costs 3,703 Share listing expense (1) 46,717 Total operating expenses 8,834 60,770 Operating loss (5,484) (57,960) Change in fair value of warrants 284 7,957 Finance income 638 852 Finance expenses (67) (133) Financing income, net 571 719 Loss before taxes on income (4,629) (49,284) Income taxes (tax benefit) (13) 3 Loss $ (4,616) $ (49,287) Basic and diluted loss per Ordinary share $ (0.10) $ (1.38) Weighted average number of shares outstanding used to compute basicand diluted 47,962,821 36,231,234 (1) Represents non-recurring, non-cash share-based listing expense incurred in connection with the business CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended March 31, 2024 2023 (unaudited) Cash flows from operating activities: Loss $ (4,616) $ (49,287) Adjustments to reconcile net loss to net cash used in operating activities: Adjustments to profit or loss items: Depreciation and amortization 704 643 Operating expense settled by issuance of shares 351 - Share listing expense 46,717 Change in fair value of warrants (284) (7,957) Changes in the fair value of contingent consideration (258) Share-based compensation 843 582 Finance income, net (571) (461) Income taxes (tax benefit) (13) 3 1,030 39,269 Changes in asset and liability items: Decrease (increase) in user funds (806) 26 Increase (decrease) in user accounts 806 (26) Decrease in other receivables and prepaid expenses 66 70 Increase in trade receivables (184) (452) Increase in trade payables 387 926 Increase (decrease) in accrued severance pay, net 70 (5) Decrease in accrued expenses and other payables (22) (3,244) 317 (2,705) Cash received (paid) during the year for: Interest received, net 1,540 359 Taxes paid, net (12) - 1,528 359 Net cash used in operating activities (1,741) (12,364) Cash flows from investing activities: Purchase of property and equipment (8) (46) Proceeds from sale of property and equipment 2 1 Proceeds from receivables for previous acquisition of a subsidiary - (136) Investment in long-term assets 8 (453) Investment in short-term bank deposit (6,000) (20,000) Net cash used in investing activities (5,998) (20,634) Cash flows from financing activities: Proceeds from the issuance of share capital and warrants net of - 76,044 Repayment of lease liabilities (150) (140) Repayment of short-term bank loan and credit (2,504) Exercise of options 22 19 Net cash provided by (used in) financing activities (128) 73,419 Exchange differences on balances of cash and cash equivalents (26) (135) Increase (decrease) in cash and cash equivalents (7,893) 40,286 Cash and cash equivalents at the beginning of the period 20,165 6,492 Cash and cash equivalents at the end of the period $ 12,272 $ 46,778 (a) Significant non-cash transactions: Issuance of shares for previous acquisition of a subsidiary - $ 113 RECONCILIATION OF IFRS TO NON-IFRS GROSS PROFIT AND GROSS MARGIN (in thousands, except gross margin data) Three Months Ended March 31, 2024 2023 (unaudited) (unaudited) IFRS gross profit $ 3,350 $ 2,810 Add: Share-based compensation 101 82 Depreciation & Amortization 311 242 Non-IFRS gross profit $ 3,762 $ 3,134 IFRS gross margin 62.6% 58.3% Non-IFRS gross margin 70.3% 65.0% RECONCILIATION OF IFRS OPERATING LOSS TO ADJUSTED EBITDA (in thousands) Three Months Ended March 31, 2024 2023 (unaudited) (unaudited) Operating loss $ (5,484) $ (57,960) Add: Share-based compensation 843 582 Depreciation & Amortization 704 643 Share listing expense 46,717 Non-recurring expenses 499 Transaction-related costs 3,703 Operating expense settled by issuance of shares 351 Adjusted EBITDA $ (3,586) $ (5,816) RECONCILIATION OF IFRS LOSS TO NON-IFRS LOSS AND LOSS PER SHARE (in thousands, except share and per share data) Three Months Ended March 31, 2024 2023 (unaudited) (unaudited) IFRS loss attributable to ordinary shareholders $ (4,616) $ (49,287) Add: Share-based compensation 843 582 Depreciation & Amortization 704 643 Share listing expense 46,717 Non-recurring expenses 499 Transaction-related costs 3,703 Changes in the fair value of contingent consideration (258) Operating expense settled by issuance of shares 351 Change in fair value of warrants (284) (7,957) Non IFRS loss $ (3,002) $ (5,358) Non IFRS basic and diluted loss per Ordinary share $ (0.06) $ (0.17) Weighted average number of shares outstanding used to compute 47,962,821 36,231,234 Logo - https://mma.prnewswire.com/media/2319256/Freightos_Logo.jpg SOURCE Freightos
This outlook assumes freight price levels and freight volumes as of May 1st, 2024
Earnings Webcast
Tali Aronsky
press@freightos.com
Anat Earon-Heilborn
ir@freightos.com
2024
2023
loss per share
combination with Gesher I Acquisition Corp.
transaction costs
basic and diluted loss per share
Freightos Reports First Quarter 2024 Results with Double-digit Revenue Growth (2024)
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