Freightos (CRGO) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered record performance in transactions, GBV, revenue, and Adjusted EBITDA, all surpassing management expectations and reflecting strong network effects and high retention.

• Acquisition of Shipsta, a digital transport management platform, was completed, expanding platform capabilities in contract freight procurement and accelerating revenue growth.

• Platform adoption and high-value initiatives continue to drive growth in air and ocean freight markets, with the company on track to reach breakeven by end of 2026.

Financial highlights

• Q2 2024 revenue reached $5.7M, up 11% year-over-year and exceeding guidance, with both Platform and Solutions segments growing 11%.

• IFRS gross margin improved to 65% (from 57% in Q2 2023), and non-IFRS gross margin hit a record 72% (from 65%).

• Adjusted EBITDA loss improved to -$3.1M from -$5.3M year-over-year, better than guidance.

• Cash and short-term deposits stood at $47.4M at quarter-end.

Outlook and guidance

• Q3 2024 guidance: 323,500–332,500 transactions (20–24% growth), revenue $5.9–$6.0M, Adjusted EBITDA loss $3.4–$3.3M.

• FY 2024 guidance: 1.28–1.3M transactions (25–27% growth), revenue $23.4–$23.7M, Adjusted EBITDA loss $13.6–$13.4M.

• Shipsta's contribution will be reflected mainly in Q4, with $800,000 in revenue and a small loss.

• Guidance reflects caution due to European conditions, Red Sea crisis, and macroeconomic uncertainty.

• Targeting positive Adjusted EBITDA by end of 2026.