Freightos Limited Q4 FY2023 earnings call

• Platform Growth: 16th consecutive quarter of record transactions; buyers and sellers growing; introduced new transactions like ULDs and trucking estimates; launched interlining; Freightos Terminal launched for market intelligence; One Stack initiative to unify technology platforms.
• Solutions Business: Closed largest SaaS deal ever; solutions help customers digitalize; expanding third-party services in platform and rolling out payments for more countries.

Platform Segment: Q4 2023 was the 16th consecutive quarter of record transactions with 287,000 transactions, up 53% year-on-year. Full-year 2023 had over a million transactions processed. Number of buyers saw a 12% year-over-year increase to approximately 17,600 unique buyer users. Unique carrier sellers increased from 39 in Q3 to 45 in Q4. Solutions Segment: Q4 2023 solution revenue was $3.4 million, up 13% from Q4 2022. Full-year 2023 platform and solution revenues both increased 6% from 2022. Non-IFRS gross margin was 70% in Q4 2023 and 67.4% for the full year.

• Q1 2024: Mid-20% growth in transactions (280,500 - 288,000), revenues $5.2M - $5.3M. Full-Year 2024: 30% year-on-year transaction growth, revenues $22.4M - $24M. Long-Term: Aim to grow transactions 20%-30% annually, revenue growth 25%-30% YoY, non-IFRS gross margins approaching 80%, adjusted EBITDA to become profitable by end of 2026.

• Market cyclicality affecting freight rates.
• Red Sea crisis temporarily spiking rates but overall price pressure due to increased capacity.
• Competition in adjacent trucking markets which are less of a focus.

Q: About Q1 revenue growth, product initiatives impact, and EBITDA guidance A: Revenue growth due to solutions business; product initiatives will have modest impact in 2024, significant impact later; balance between growth and expenses to manage EBITDA.

Q: About largest SaaS deal, take rates, and trucking market A: Largest SaaS deal was over a million dollars, take rate progressing though mix effects; focus on international air and ocean shipping, trucking not a primary focus but considered in international freight end-to-end.

Q: About trucking market rollout A: Focus on international shipping, trucking as part of international freight is secondary, with 7L subsidiary having some trucking database but not a primary focus.

Q: Why is EBITDA guidance lower for Q1 than Q4 A: Mainly seasonal expenses like salary adjustments at the start of the year.

Q: About WiseTech impact and rate increases A: WiseTech's platform doesn't impact growth as products complement each other; rate increases through adding value to contracts during renewal.