BARCELONA, Spain , Aug. 19, 2024 /PRNewswire/ -- Freightos Limited (NASDAQ: CRGO), a leading vendor-neutral digital booking and payment platform for the international freight industry, today reported financial results for the quarter ended June 30, 2024 , which report followed the announcement of the acquisition of Shipsta. "Our robust second quarter performance underscores the growing strength and adoption of our platform in the international freight market.
The acquisition of Shipsta, announced earlier today, marks a significant milestone in our journey to digitalize freight booking and procurement, by expanding our footprint in global freight tenders," said Zvi Schreiber , CEO of Freightos. "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.
" "Our second quarter results highlight robust performance across all key metrics," said Ran Shalev, CFO of Freightos. "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." Second Quarter 2024 Financial Highlights Recent Business Highlights Financial Outlook Management Expectations Q3 2024 FY 2024 Transactions 323,500 - 332,500 1,280,000 - 1,300,000 Year over Year Growth 20% - 24% 25% - 27% GBV ($m) $ 198.0 - $ 203.
5 $ 804.0 - $ 816.5 Year over Year Growth 23% - 27% 20% - 22% Revenue ($m) $ 5.
9 - $ 6.0 $ 23.4 - $ 23.
7 Year over Year Growth 16% - 18% 15% - 17% Adjusted EBITDA ($m) $ (3.4) - $ (3.3) $ (13.
6) - $ (13.4) This outlook assumes freight price levels and freight volumes as of August 1st, 2024 , and includes the consolidation of Shipsta as of August 16, 2024 Earnings Webcast Freightos' management will host a webcast and conference call to discuss the results today, August 19, 2024 at 8:30 a.m.
EST . Christian Wilhelm , founder and CEO of Shipsta, will join management to present Shipsta's business. To participate in the call, please register at the following link: https://freightos.
zoom.us/webinar/register/WN_9pLPTFSkSQ2euHunGhX1gw Following registration, you will be sent the link to the conference call which is accessible either via the Zoom app, or alternatively from a dial-in telephone number. Questions may be submitted in advance to ir@freightos.
com or via Zoom during the call. A replay of the webcast, as well as the conference call transcript, will be available on Freightos' Investor Relations website following the call. Forward-Looking Statements This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements, which include the financial outlook of Freightos, are based on various assumptions, whether or not identified in this press release, and on the current expectations of Freightos, and are not predictions of actual performance. These forward-looking statements are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability.
Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Freightos. These forward-looking statements are subject to a number of risks and uncertainties, including Freightos' ability to successfully integrate the Shipsta business without disruption to its business; the ongoing military conflict in the Middle East ; Freightos' ability to effectively execute its previously announced operational efficiency and cost reduction plan without undue disruption to its business; competition and the ability of Freightos to build and maintain relationships with carriers, freight forwarders and importers/exporters and retain its management and key employees; changes in applicable laws or regulations; any downturn or volatility in economic conditions whether related to inflation, armed conflict or otherwise; changes in the competitive environment affecting Freightos or its users, including Freightos' ability to introduce new products or technologies; risks to Freightos' ability to protect its intellectual property and avoid infringement by others, or claims of infringement against Freightos; and those additional factors discussed under the heading "Risk Factors" in Freightos' annual report on Form 20-F filed with the SEC on March 21, 2024 , and any other risk factors Freightos includes in any subsequent reports of foreign private issuer on Form 6-K furnished to the SEC.
If any of these risks materializes or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks of which Freightos is not aware presently or that Freightos currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Freightos' expectations, plans or forecasts of future events and views as of the date of this press release.
Freightos anticipates that subsequent events and developments will cause Freightos' assessments to change. However, while Freightos may elect to update these forward-looking statements at some point in the future, Freightos specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Freightos' assessments as of any date subsequent to the date of this press release.
Accordingly, undue reliance should not be placed upon the forward-looking statements. Financial Information; Non-IFRS Financial Measures While certain financial figures included in this press release have been computed in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board, this press release does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, "Interim Financial Reporting" nor a financial statement as defined by International Accounting Standards 1 "Presentation of Financial Statements". This press release includes certain financial measures not presented in accordance with generally accepted accounting principles of the IFRS including, but not limited to, Adjusted EBITDA.
These non-IFRS measures differ from the most directly comparable measures determined under IFRS. For the historical non-IFRS results included herein, we have provided tables at the end of this press release providing a reconciliation of those results to our results achieved under the most directly comparable IFRS measures. For the forward-looking non-IFRS data included under "Financial outlook", we have not included such a reconciliation, because the reconciliation of forward-looking data cannot be prepared without unreasonable effort.
Our results and forecasts expressed as non-IFRS measures should not be considered in isolation or as an alternative to revenue, net income, cash flows from operations or other measures of profitability, liquidity or performance under IFRS. You should be aware that the presentation of these measures may not be comparable to similarly-titled measures used by other companies. Freightos believes that Adjusted EBITDA and other non-IFRS measures provide useful information to investors and others in understanding and evaluating Freightos' operating results because they provide supplemental measures of our core operating performance and offer consistency and comparability with both our own past financial performance and with corresponding financial information provided by peer companies.
Certain monetary amounts, percentages and other figures included in this press release have been subject to rounding adjustments, and therefore may not sum due to rounding. Glossary We have provided below a glossary of certain terms used in this press release: About Freightos Freightos® (NASDAQ: CRGO) is the leading vendor-neutral global freight booking platform. Airlines, ocean carriers, thousands of freight forwarders, and well over ten thousand importers and exporters connect on Freightos, making world trade faster, more efficient and more resilient.
The Freightos platform digitizes the trillion dollar international freight industry, supported by a suite of software solutions that span pricing, quoting, booking, shipment management, and payments for global businesses of all shapes and sizes. Products include the Freightos Marketplace, WebCargo, WebCargo for Airlines, Shipsta by Freightos, 7LFreight by WebCargo, and Clearit. Freightos is a leading provider of real-time industry data via Freightos Terminal, which includes the world's leading spot pricing indexes, Freightos Air Index (FAX) for air cargo and Freightos Baltic Index (FBX) for container shipping.
More information is available at freightos.com/investors . CONSOLIDATED BALANCE SHEETS (In thousands) June 30, 2024 December 31, 2023 (unaudited) (audited) Assets Current Assets: Cash and cash equivalents $ 21,001 $ 20,165 User funds 3,845 3,553 Trade receivables, net 2,336 1,880 Short-term bank deposit 26,395 20,000 Short-term investments - 11,520 Other receivables and prepaid expenses 1,868 2,598 55,445 59,716 Non-current Assets: Property and equipment, net 475 583 Right-of-use assets, net 1,247 1,577 Intangible assets, net 6,643 7,607 Goodwill 15,628 15,628 Deferred taxes 1,112 969 Other long-term assets 1,602 1,605 26,707 27,969 Total assets $ 82,152 $ 87,685 Liabilities and Equity Current liabilities: Current maturity of lease liabilities 492 587 Trade payables 3,549 3,113 User accounts 3,845 3,553 Warrants liabilities 2,525 1,485 Accrued expenses and other payables 5,570 4,931 15,981 13,669 Long Term Liabilities: Lease liabilities 471 712 Employee benefit liabilities, net 1,395 1,256 Other long-term liabilities - 6 1,866 1,974 Equity: Share capital *) *) Share premium 258,387 256,194 Reserve from remeasurement of defined benefit plans 27 27 Accumulated deficit (194,109) (184,179) Total equity 64,305 72,042 Total liabilities and equity $ 82,152 $ 87,685 *) Represents an amount lower than $1.
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (unaudited) (unaudited) Revenue $ 5,658 $ 5,093 $ 11,013 $ 9,916 Cost of revenue 1,984 2,175 3,989 4,188 Gross profit 3,674 2,918 7,024 5,728 Operating expenses: Research and development 2,435 3,017 4,901 6,014 Selling and marketing 3,267 3,461 6,829 7,081 General and administrative 2,536 2,346 5,342 6,079 Share listing expense (1) - - - 46,717 Transaction-related costs - - - 3,703 Total operating expenses 8,238 8,824 17,072 69,594 Operating loss (4,564) (5,906) (10,048) (63,866) Change in fair value of warrants (1,324) (553) (1,040) 7,404 Finance income 637 838 1,275 1,690 Finance expenses (70) (90) (137) (223) Financing income, net 567 748 1,138 1,467 Loss before taxes on income (5,321) (5,711) (9,950) (54,995) Income taxes (tax benefit), net (7) - (20) 3 Loss $ (5,314) $ (5,711) $ (9,930) $ (54,998) Basic and diluted loss per Ordinary share $ (0.11) $ (0.12) $ (0.
21) $ (1.33) Weighted average number of shares outstanding used to compute basic and diluted loss per share 48,151,487 47,481,609 48,057,015 41,802,993 (1) Represents non-recurring, non-cash share-based listing expense incurred in connection with the business combination with Gesher I Acquisition Corp. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended Six months Ended June 30 June 30 2024 2023 2024 2023 (unaudited) (unaudited) Cash flows from operating activities: Loss $ (5,314) $ (5,711) $ (9,930) $ (54,998) Adjustments to reconcile net loss to net cash used in operating activities: Adjustments to profit or loss items: Depreciation and amortization 706 719 1,410 1,362 Share listing expense - - - 46,717 Change in fair value of warrants 1,324 553 1,040 (7,404) Changes in the fair value of contingent consideration (6) (645) (6) (903) Share-based compensation 751 546 1,594 1,128 Operating expense settled by issuance of shares - - 351 - Finance income, net (561) (745) (1,132) (1,206) Income taxes (tax benefit), net (7) - (20) 3 2,207 428 3,237 39,697 Changes in asset and liability items: Decrease (increase) in user funds 508 (215) (298) (189) Increase (decrease) in user accounts (508) 215 298 189 Increase in other receivables and prepaid expenses (844) (1,155) (778) (1,085) Decrease (increase) in trade receivables (311) 213 (495) (239) Increase (decrease) in trade payables 94 (617) 481 309 Increase (decrease) in accrued severance pay, net 44 (7) 114 (12) Increase (decrease) in accrued expenses and other payables 718 342 696 (2,902) (299) (1,224) 18 (3,929) Cash received (paid) during the year for: Interest received, net 816 116 2,356 475 Taxes paid, net (174) (54) (186) (54) 642 62 2,170 421 Net cash used in operating activities (2,764) (6,445) (4,505) (18,809) Cash flows from investing activities: Purchase of property and equipment (9) (22) (17) (68) Proceeds from sale of property and equipment - - 2 1 Payment of payables for previous acquisition of a subsidiary - - - (136) Investment in long-term assets (30) - (30) (347) Withdrawal of a deposit 25 106 33 - Withdrawal of (investment in) short term investments, net 11,520 (30,920) 11,520 (30,920) Investment in short-term bank deposit, net - - (6,000) (20,000) Net cash provided by (used in) investing activities 11,506 (30,836) 5,508 (51,470) Cash flows from financing activities: Proceeds from the issuance of share capital and warrants net of transaction costs - - - 76,044 Repayment of lease liabilities (155) (147) (305) (287) Repayment of short-term bank loan and credit - - - (2,504) Exercise of options 175 - 197 19 Net cash provided by (used in) financing activities 20 (147) (108) 73,272 Exchange differences on balances of cash and cash equivalents (33) (56) (59) (191) Increase (decrease) in cash and cash equivalents 8,729 (37,484) 836 2,802 Cash and cash equivalents at the beginning of the period 12,272 46,778 20,165 6,492 Cash and cash equivalents at the end of the period $ 21,001 $ 9,294 $ 21,001 $ 9,294 (a) Significant non-cash transactions: Right-of-use asset recognized with corresponding lease liability $ - $ 161 $ - $ 161 Issuance of shares for previous acquisition of a subsidiary $ - $ - $ - $ 113 Receivables on account of exercise of options $ 51 $ - $ 51 $ - RECONCILIATION OF IFRS TO NON-IFRS GROSS PROFIT AND GROSS MARGIN (in thousands, except gross margin data) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (unaudited) (unaudited) IFRS gross profit $ 3,674 $ 2,918 $ 7,024 $ 5,728 Add: Share-based compensation 89 77 190 159 Depreciation and amortization 312 314 623 556 Non-IFRS gross profit $ 4,075 $ 3,309 $ 7,837 $ 6,443 IFRS gross margin 64.
9 % 57.3 % 63.8 % 57.
8 % Non-IFRS gross margin 72.0 % 65.0 % 71.
2 % 65.0 % RECONCILIATION OF IFRS OPERATING LOSS TO ADJUSTED EBITDA (in thousands) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (unaudited) (unaudited) Operating loss $ (4,564) $ (5,906) $ (10,048) $ (63,866) Add: Share-based compensation 751 546 1,594 1,128 Depreciation and amortization 706 719 1,410 1,362 Share listing expense - - - 46,717 Non-recurring expenses - - - 499 Transaction-related costs - - - 3,703 Changes in the fair value of contingent consideration - (642) - (642) Operating expense settled by issuance of shares - - 351 - Adjusted EBITDA $ (3,107) $ (5,283) $ (6,693) $ (11,099) Adjusted EBITDA margins -55 % -104 % -61 % -112 % RECONCILIATION OF IFRS LOSS TO NON-IFRS LOSS AND LOSS PER SHARE (in thousands, except share and per share data) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (unaudited) (unaudited) IFRS loss attributable to ordinary shareholders $ (5,314) $ (5,711) $ (9,930) $ (54,998) Add: Share-based compensation 751 546 1,594 1,128 Depreciation and amortization 706 719 1,410 1,362 Share listing expense - - - 46,717 Non-recurring expenses - - - 499 Transaction-related costs - - - 3,703 Changes in the fair value of contingent consideration (6) (645) (6) (903) Operating expense settled by issuance of shares - - 351 - Change in fair value of warrants 1,324 553 1,040 (7,404) Non IFRS loss $ (2,539) $ (4,538) $ (5,541) $ (9,896) Non IFRS basic and diluted loss per Ordinary share $ (0.05) $ (0.
10) $ (0.12) $ (0.25) Weighted average number of shares outstanding used to compute basic and diluted loss per share 48,151,487 47,481,609 48,057,015 41,802,993 Logo: https://mma.
prnewswire.com/media/2319256/4496202/Freightos_Logo.jpg Contacts Media: Tali Aronsky press@freightos.
com Investors: Anat Earon-Heilborn [email protected] View original content: https://www.prnewswire.
com/news-releases/freightos-reports-second-quarter-2024-results-with-record-performance-across-kpis-302225154.html SOURCE Freightos.
