The following is a summary of the Freightos Limited (CRGO) Q2 2024 Earnings Call Transcript:
Financial Performance:
Freightos Limited reported Q2 2024 revenue of $5.7 million, up 11% compared to Q2 of 2023.
Gross booking value reached $203.4 million, a 31% increase year-over-year.
Non-IFRS gross margins rose to 72%, up 7 percentage points from last year, driven by economies of scale and process automation.Adjusted EBITDA loss improved by over $2 million from the previous year.
Business Progress:
Freightos successfully acquired Shipsta, a company specializing in managing tender bidding and negotiation for long-term freight procurement.
Expanded the sell-side of the platform network to 51 carriers and grew unique buyer users by 16%.
Launched new features for recurring bookings and insurance on freight bookings.
Making progress in U.S. trucking bookings via 7LFreight and expanding in key markets like Asia despite temporary challenges such as the Red Sea crisis.
Opportunities:
The acquisition of Shipsta opens significant cross-sell opportunities and a potential to integrate spot and contract rate procurement, addressing a large portion of the freight market.
Continuing to expand into Asian markets with new airline partners and adapting services to align with market demands like the handling of dangerous goods and temperature-controlled shipments.
Growing the platform's capabilities and reach in the U.S. trucking sector complementing air freight services.
Risks:
Delays in new airlines rolling out services due to internal IT projects pose a temporary challenge to transaction growth.
Softening market prices and ongoing disruptions in Asia due to the Red Sea crisis complicate freight operations and might affect future transaction volumes.
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