- Freightos reported strong growth and the acquisition of Shipsta in the second quarter of 2024, helping expand its presence in the global freight market.
- The company achieved an 11% increase in revenue and improved gross margins while managing its expenses carefully to reduce expected losses.
- Freightos remains on track to reach positive Adjusted EBITDA by 2026, with a focus on innovation, growth, and profitability
Freightos Limited announced its financial results for the second quarter of 2024, following the announcement of its acquisition of Shipsta. CEO Zvi Schreiber emphasized the growing adoption of their digital booking and payment platform in the international freight market, reports AJOT.
Second Quarter Performance
“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.”
Strategic Expansion
Freightos’ CFO, Ran Shalev, highlighted strong financial performance across key metrics despite global challenges such as Europe’s economic conditions and the Red Sea crisis.
“Our second quarter results highlight robust performance across all key metrics,” said Ran Shalev. “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
Freightos achieved revenue of $5.7 million in Q2 2024, an 11% increase from $5.1 million in Q2 2023. The company’s IFRS gross margin rose to 64.9%, up from 57.3%, and its non-IFRS gross margin increased to 72.0%, up from 65.0%.
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Source:AJOT
