Freightos Limited Q3 FY2024 earnings call

• Platform: Achieved 339,000 transactions, a 26% y-o-y increase, marking 19th consecutive quarter of record transactions. Unique buyer users rose to 19,700, a 14% y-o-y increase. Added carriers like Qantas and Air India. Integrated with e2open for Air Cargo pricing and booking in e2open's TMS. • Solutions: Subscription-based solutions revenue grew steadily, with integration of Shipsta (procurement/tender management platform) and introduction of new features like Freightos terminal with rates benchmarking and AI insights. • Network: High repeat usage from freight forwarders and carriers. Hosted FreighTech Conference to align industry vision for digitalizing freight. Ongoing network coverage expansion with daily airline supply launches/expansions.

Platform revenue in Q3 '24 was $2.3 million, a 29% year-over-year growth. Solutions revenue was $3.9 million, a 17% year-over-year increase. Gross booking value (GBV) for Q3 was $217.5 million, a 35% year-over-year growth. Platform revenue growth was driven by high transaction volumes, while solutions revenue growth was supported by the integration of Shipsta and expansion of SaaS offerings.

• Q4 '24 transactions expected: 338.5-348.5 (18-21% y-o-y growth). • GBV guidance: $257-265 million (37-41% y-o-y growth). • Revenue guidance: $6.4-6.5 million (21-24% y-o-y growth). • Adjusted EBITDA guidance: Negative $3.2 to -$3.1 million, improved from previous, driven by revenue growth, improved gross margins, and disciplined expense management.

• Forward-looking statements subject to various risk factors and uncertainties. • Previous IT challenges with carrier integrations that caused delays in some carrier onboarding.

Q: Why is EBITDA guidance down for Q4 over Q3 despite increased revenue?

A: Mainly due to consolidating Shipsta for a full quarter (closed mid-August, only half in Q3) and staffing/hiring to support 2025 growth.

Q: What does the Trump administration mean for the industry?

A: Uncertain, but previous experience with tariffs didn't dampen trade. Industry is early in digitization with huge growth room.

Q: Initial thoughts on next year's growth and margin?

A: Expect to grow faster in 2025 than 2024, trending towards breakeven by end of 2026.

Q: GBV up but revenue guidance unchanged?

A: Platform revenue has flat fees per transaction, so price increases in market only slightly impact platform revenue.

Q: Response to Shipsta cross-selling with existing customers?

A: Going well, but Shipsta integration is ongoing; cross-selling opportunities exist, but not breaking out revenue specifically.

Q: Impact of e2open integration on carrier pipeline?

A: e2open integration helps freight forwarders/shippers use Freightos product with their software, but airlines integration is progressing separately with new carriers added daily.