Freightos (CRGO) H.C. Wainwright 27th Annual Global Investment Conference summary

Market overview and opportunity

• Global freight is a $600 billion market, with 90% of transactions still conducted offline, creating significant inefficiencies and opportunities for digital platforms.

• Only 10% of the market is transacted digitally, and just 2% of that is platformized, highlighting a large addressable market for digital solutions.

• The market is split between spot and contract transactions, with spot representing about $300 billion annually and being the primary focus for digital platforms.

• $33 trillion in goods move globally, mostly managed through outdated, manual processes like spreadsheets and faxes.

• Adoption of digital platforms is accelerating, driven by the need for efficiency and real-time responsiveness to market changes.

Platform strategy and differentiation

• The platform operates as a triple-sided network, connecting carriers, freight forwarders, and shippers in a double-sided marketplace.

• Provides mission-critical SaaS solutions for rate management, sales portals, procurement, and market intelligence, including the Freightos Baltic Index.

• Over 70% of global air capacity and a significant portion of ocean capacity are integrated via APIs, with more than 20,000 unique buyer users active daily.

• The platform is deeply embedded in client operations, offering daily quoting, booking, and tender management for major global forwarders and shippers.

• Differentiates from travel tech by unifying supply and demand layers into a single platform, increasing efficiency across the value chain.

Growth, adoption, and monetization

• Transaction volume has grown from hundreds per quarter in 2020 to over 1.3 million by the end of 2024, with continued growth projected for 2025.

• Freight forwarding cohorts grow 3x-5x in transactional volume over eight quarters, with similar growth for airlines integrating into the platform.

• Real-time data and AI models enable dynamic pricing and operational efficiency for clients.

• Monetization is split between SaaS/data subscriptions (two-thirds of revenue) and transaction fees (one-third), with transactions expected to overtake SaaS long-term.

• Margins are strong at 74% non-IFRS, with profitability targeted for Q4 2026 and over $30 million in cash on hand.