Freightos (CRGO) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $6.2 million, up 21% year-over-year, with 339,060 transactions, marking the highest growth rate since going public and surpassing guidance.

• Integrated Shipsta, expanding the enterprise shipper customer base and strengthening the solutions portfolio.

• Gross margin improved to 65% (IFRS) and 72.7% (non-IFRS), reflecting operational efficiency and capital-efficient growth.

• Adjusted EBITDA loss narrowed to negative $2.8 million, showing progress toward profitability.

• CFO Ran Shalev announced departure at year-end, with a transition plan in place.

Financial highlights

• Q3 2024 revenue was $6.2 million, up 21% year-over-year, with platform revenue up 129% and solutions revenue up 17%.

• Gross Booking Value (GBV) reached $217.5 million, up 35% year-over-year and above guidance.

• IFRS gross margin improved to 65% from 54.9% last year; non-IFRS gross margin rose to 72.7% from 69.5%.

• Adjusted EBITDA margin improved to -45% from -81% in Q3 2023.

• Cash and short-term deposits at quarter-end: $41.3 million.

Outlook and guidance

• Q4 2024 guidance: 338.5k–348.5k transactions, $6.4–$6.5 million revenue, and $(3.2)–$(3.1) million adjusted EBITDA.

• FY 2024 guidance: 1.29M–1.3M transactions, $23.6M–$23.7M revenue, and $(12.7)M–$(12.6)M adjusted EBITDA.

• Management expects to achieve positive Adjusted EBITDA by end of 2026 on existing cash reserves.