Freightos Limited Q4 FY2024 earnings call

• Q4 revenue growth of 25% year on year, with over 350,000 transactions, a 22% increase from last year, and twelve new carriers added, bringing the total to 67 carriers.
• Platform: Unique buyer users increased 14% year over year, breaking the 20,000 mark; continued to add carriers after the quarter, including WestJet Cargo and Norwegian Cargo; portal business has higher GBV per transaction but lower take rates.
• Solutions: SaaS solution subsegment generated highest quarterly revenue ever in Q4, supported by Shipster acquisition; launched Fusion initiative to unify software; AI - driven solutions like Skyway showed promise, with one airline seeing a 70% revenue increase in a test; data capabilities expanded to freight contract rates with the announcement of index linking toolkit.
• Network: Cohorts analysis validates flywheel effect, with freight forwarders and carriers increasing engagement and transactions over time.

In Q4 2024, revenue was $6.6 million, reflecting a 25% year - on - year increase. Platform revenue grew 21% year over year to $2.3 million, and 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, and for the full year of 2024, adjusted EBITDA was negative $12.6 million, significantly improved from negative $19 million in 2023.

• Q1 expected transactions between 362,000 and 370,000, year - over - year growth of 22% to 25%; Q1 GBV between $272 million and $280 million, year - over - year growth of 41% to 45%; Q1 revenue between $6.7 million and $6.8 million, 25% to 27% increase compared to Q1 2024.
• Full - year 2025 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, showing gradual improvement in profitability.

• Tariff changes: US - centric tariff changes could dampen broader international trade volumes; however, long - term digitalization of freight is the most powerful driver, and impact on the business is expected to be limited. The de minimis exemption change could lead to reduced e - commerce volumes, creating more capacity for mainstream air cargo on the platform, but overall uncertainty exists due to tariff changes.

Q: Jason Helfstein asked about the industry inflection point and potential use of stock for strategic M&A.

A: Zvi Schreiber said air is well along the digitalization trend, ocean is at early stage; looking for ocean liners to create APIs, and end - customer adoption of digital techniques; not actively planning acquisitions using stock but open to opportunistic ones if price is attractive.

Q: George Sutton asked about potential tariff impacts and AI rollout.

A: Zvi Schreiber and Christian Wilhelm said tariffs could have negative impact on world trade but positive for platform if de minimis is canceled; AI is used in internal processes and products, with Skyway in pilot stage showing positive revenue impact in proof of concept and AI report generator already in use by customers