Key growth drivers include the doubling of both the number and the value of transactions, in addition to successful strategic acquisitions. Annual revenue increased by 72%. Raised $82 million, in excess of the expected cash needed to reach positive free cash flow

Freightos Limited (Nasdaq: CRGO), a leading, vendor-neutral booking and payment platform for the international freight industry, today reported financial results for the year ended December 31, 2022.
“The final quarter of 2022 set yet another record in the number of transactions and Gross Booking Value. This transaction growth, which exceeded targets, continued despite a softening global freight market,” said Zvi Schreiber, founder and CEO. “With nearly 670,000 annual transactions, fueled by a steady growth of both buyers and sellers, including three new top-ten airlines during the course of the year, our global freight booking platform is demonstrating sustainable marketplace growth dynamics. We enjoy a high and increasing gross profit margin and our unit economics are improving. Our sustained growth in Gross Booking Value leads directly to sustained growth in revenue and gross profit, which at scale is expected to generate a healthy net profit.”
“Freightos’ revenue growth resulted from strong retention rates of buyers and sellers on the Platform, and increased Solutions subscription sales, as well the integration of two small acquisitions, all aligned with our long-term strategy,” shared Ran Shalev, CFO. “Healthy gross profits keep us on track to reach cash flow positive with the cash we have on hand.”
“We look forward to our first year as a publicly traded company,” continued Zvi Schreiber, ”as we leverage the capital that we raised to continue to build a fast-growing and highly defensible platform business in one of the world’s biggest and most important industries.”

FY 2022 and Q4 2022 financial highlights

  • Revenue was $19.1 million for FY 2022, an increase of 71.7% year-over-year, or 76.2% on a constant currency basis. Q4 2022 revenue was $4.8 million, a 54% improvement compared to Q4 2021 and a 56% improvement on a constant currency basis.
  • IFRS Gross Margin of 58.8%, compared to 58.7% in 2021. Non-IFRS Gross Margin of 65.2%, compared to 60.5% in 2021.
  • IFRS operating loss of $24.3 million, compared to a loss of $16.3 million in fiscal 2021, reflecting increased investment in growth as well as the cost of going public.
  • IFRS basic and diluted loss per share of $4.25, compared to IFRS basic and diluted loss per share of $3.94 in FY 2021. Non-IFRS basic and diluted loss per share of $3.05, compared to Non-IFRS basic and diluted loss per share of $3.30 in FY 2021.
  • Net cash used in operating activities was $14.9 million, compared to net cash used by operating activities of $17.3 million in FY 2021.
  • Adjusted EBITDA in 2022 of negative $14.6 million, compared to negative $12.4 million in 2021. Adjusted EBITDA margin was negative 77% in 2022, an improvement from negative 111% in 2021.

Recent business highlights

  • Transaction Growth: Freightos saw a record 668,185 Transactions, up 154%, and record GBV (Gross Booking Value) of $611 million, a 102% growth rate, and a 121% growth rate in constant currency. Despite a cooling global freight market towards the end of 2022, Q4 saw a record 211 thousand Transactions, up 117% from 97 thousand Transactions in Q4 2021. This represents the 12th consecutive quarter of strong growth in Platform usage.
  • Unique Buyer Users: In addition to increased supply, the Platform enjoyed a strong 37% year-on-year growth in pro forma unique buyer users, growing from 11,412 in Q4 2021 to 15,646 in Q4 2022.
  • Retention: In addition to attracting new buyers, the Platform is showing extraordinary same-buyer growth. The cohort of freight forwarders who start using the Platform for airline eBookings in a given month is typically executing approximately four times more bookings a year later.
  • Carrier Growth: Air and ocean carriers available on the platform reached 35, up 25% from Q4 2021. Carrier coverage in the Americas began to catch up with Freightos’ outstanding coverage in Europe while significant progress was also made in Asia, which remains a large growth opportunity. Some carriers selected Freightos as the only eBooking platform on which they are available, including Emirates SkyCargo and China Southern Airline, the largest airline in China. Other new carriers included major North American airlines such as American Airlines, Air Canada Cargo, and Caribbean Airlines Cargo.
  • Monetization and Payments: Steady progress is being made on Transaction monetization without compromising on top-line growth. This included the beta launch of airline payments in key regions. Freightos has already facilitated the processing of millions of dollars of payments. Payments are a key part of Freightos’ long-term monetization strategy.
  • Solutions Revenue: Freightos Solutions revenue grew 26.7%, excluding the revenues coming from recent acquisitions. This was a result of high Solutions retention rates, particularly a retention rate of over 90% amongst forwarders using the company’s SaaS solutions. Organic revenue growth was also a function of expanded Freightos Data sales which has attracted notable customers such as, Mitsubishi, UPS, and others.
  • Acquisitions: The Company completed the successful integration of two acquisitions that began in 2021: 7LFreight, a US-based freight rate management SaaS business, and Clearit, a digital customs brokerage in the US and Canada. Both have been integrated into the Platform and experienced continued growth and continued to innovate. For example, 7LFreight launched eBookings for North American less-than-truckload trucking, while Clearit launched a white-label digital customs brokerage for forwarders and digital platforms.
  • Carbon Emissions Calculator: Freightos launched a European-standard compliant carbon emissions calculator on the Platform, together with an optional ability to offset carbon emissions following bookings. The same technology was made available for free via API for other platforms.
  • Nasdaq Listing: The Company completed its listing on the Nasdaq via a business combination. Many significant shareholders and management have entered into lock-up agreements that we believe reflects their confidence in the long term business. We expect the cash raised in connection with the listing to be in excess of the expected cash needed to reach positive free cash flow.