Freightos Ltd. Q4 FY2024 earnings call

• Q4 2024 saw revenue growth of 25% year on year, with over 350,000 transactions, a 22% increase from the previous year. - Added twelve new carriers in Q4, bringing the total to 67 carriers. Unique buyer users increased 14% year over year, breaking the 20,000 mark. - On the platform side, carrier adoption was notable with new carriers added, and the airline sales portal solution contributed to transaction growth. - In the solutions segment, SaaS revenue grew with the inclusion of Shipster, and AI - driven solutions like Skyway showed promise with a 70% revenue increase in a test. The integration of Shipster is progressing, and data capabilities have expanded with the acquisition of Shipster. - Network effects are driving growth with unique buyer users increasing and more carriers being added, reinforcing the platform's scalability.

In Q4 2024, revenue was $6.6 million, a 25% year - on - year increase. Platform revenue grew 21% year over year to $2.3 million. Solution revenue increased 28% year over year to $4.3 million. IFRS gross margin reached 68% in Q4 2024, up from 62% in Q4 2023, and non - IFRS gross margin rose to 74% compared to 70% last year. For the full year of 2024, non - IFRS gross margin was 72%, increasing by five percentage points from 2023. Adjusted EBITDA for Q4 2024 was negative $3.1 million within the guidance range, and for the full year of 2024, adjusted EBITDA was negative $12.6 million, significantly improved from negative $19 million in 2023.

• Q1 transactions expected between 362,000 and 370,000, year - on - year growth of 22% to 25%. - Q1 GBV expected between $272 million and $280 million, year - on - year growth of 41% to 45%. - Q1 revenue expected between $6.7 million and $6.8 million, a 25% to 27% increase compared to Q1 2024. - Full - year revenue expected between $29 million and $30.6 million, growing 22% to 29% year over year. - Q1 adjusted EBITDA between negative $3 million and negative $3.2 million. - Full - year adjusted EBITDA projected between negative $10.9 million and negative $10.2 million.

• Tariff changes create uncertainty. Potential tariff increases could dampen international trade volumes. The de minimis exemption change affecting e - commerce could impact freight volumes, but might also increase capacity for conventional air cargo on the platform, introducing uncertainty in trade impact on the business.

Q: What are your thoughts on the industry hitting an inflection point for digitalization and using stock for strategic M&A?

A: Zvi Schreiber said that air is further along in digitalization but ocean is at the very beginning. Looking for ocean liners to create APIs and more self - service by end customers as inflection points. On M&A, not actively planning to use stock but open to opportunistic opportunities if price is attractive.

Q: What should we anticipate regarding tariff impacts and the rollout of AI?

A: George Sutton asked about tariff impacts and AI rollout. Zvi Schreiber said tariffs could have short - term front - loading and mid - term uncertainty, but de minimis cancellation could help conventional air cargo on the platform. Christian Wilhelm mentioned AI is fast - evolving, Skyway had a 70% revenue increase in pilot, with AI tools to be rolled out internally and in products, with some in pilot stage but more to come