Freightos Q22024 revenue up 11% on higher air cargo bookings

Freightos reported a 11 percent increase in revenue at $5.7 million for the second quarter of 2024 compared to $5.1 million in Q22023 on strong growth of air cargo digital bookings and revenue from SaaS solutions.

"Total platform revenue in the second quarter was $2 million, up 11 percent from the second quarter of 2023, and solutions revenue was $3.6 million, up 11 percent year over year," says an official release.

"The number of carriers selling on the platform, primarily on WebCargo, increased to 51 for the second quarter of 2024. Among the recent carrier additions is Singapore Airlines, the addition of which was announced in May. Freightos also recently announced the addition of Coyne Airways and Thai Airways to its platform."

Operating loss for the quarter declined to $4.6 million from $5.9 million in Q22023, the release added. Cash and cash equivalents and short-term bank deposit amounted to $47.4 million at the end of June 2024.

“Our robust second quarter performance underscores the growing strength and adoption of our platform in the international freight market," says Zvi Schreiber, CEO, Freightos. "The acquisition of Shipsta marks a significant milestone in our journey to digitalise freight booking and procurement, by expanding our footprint in global freight tenders. Building on our first quarter momentum, we've continued to focus on high-value initiatives and strategic expansion. As we move forward, we remain committed to driving innovation and capturing the vast opportunities in the air and ocean freight markets, positioning us for sustained growth and value creation in this hugely important industry.”

Ran Shalev, CFO, Freightos adds: "Our second quarter results highlight robust performance across all key metrics. We're adjusting our 2024 guidance within our original range to reflect caution with respect to conditions in Europe and the disruption to shipping patterns in Asia due to the Red Sea crisis. The acquisition of Shipsta is expected to add a small loss but due to strong execution and tight management of expenses, we are pleased to guide for a lower EBITDA loss than previously expected for the full year. This execution, combined with the strategic acquisition of Shipsta, reinforces our market position and keeps us on track to achieve positive adjusted EBITDA by the end of 2026 as well as our long-term goals of growth, enhanced profitability and cash generation.”

Q2 highlights
Freightos reported 316,500 transactions in the second quarter of 2024, up 32 percent year over year.

Gross Booking Value (GBV) was $203.4 million in the second quarter, up 31 percent compared to the second quarter of 2023, "and significantly above management’s expectations. This outperformance stems mostly from the sustained high freight rates that continue to be driven by the Red Sea crisis."

Unique buyer users across the Freightos platform increased 16 percent compared to the second quarter of 2023, reaching 19,100.

Outlook
Freightos is expecting revenue of $5.9-6 million for the third quarter of 2024 - a YoY growth of 16-18 percent. For FY2024, revenue is likely to be $23.4-23.7 million, a growth of 15-17 percent with transactions at 1.28-1.3 million, an increase of 25-27 percent.