Freightos (CRGO, Financial) reported first-quarter revenue totaling $6.95 million, a notable increase from $5.36 million in the same period last year. The company's CEO, Zvi Schreiber, highlighted the strong quarterly performance as Freightos continues to lead the digital transformation within global freight.
A significant advancement for the company is the introduction of the Freightos Enterprise Suite. This comprehensive platform streamlines shipping procurement, booking, and execution for large importers and exporters using proprietary and acquired software. Despite recent tariff developments introducing some uncertainty in global trade, Freightos' vendor-neutral platform remains crucial. It supports clients in navigating the complexities of the market through enhanced digitalization, which offers improved visibility and flexibility.
Furthermore, the airline eBookings segment, the largest part of their platform, is largely insulated from the China-US trade dynamics. As most international freight transactions still occur offline, the growing demand for Freightos' digital solutions indicates a substantial opportunity, independent of short-term trade policy shifts.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Freightos Ltd (CRGO, Financial) is $4.17 with a high estimate of $5.00 and a low estimate of $3.50. The average target implies an upside of 86.85% from the current price of $2.23. More detailed estimate data can be found on the Freightos Ltd (CRGO) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Freightos Ltd's (CRGO, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
CRGO Key Business Developments
Release Date: February 24, 2025
- Revenue: $6.6 million in Q4 2024, a 25% year-over-year increase.
- Platform Revenue: $2.3 million, up 21% year over year.
- Solution Revenue: $4.3 million, a 28% increase year over year.
- Gross Margin: IFRS gross margin at 68%, up from 62% in Q4 2023; non-IFRS gross margin at 74%, up from 70% last year.
- Adjusted EBITDA: Negative $3.1 million for Q4 2024.
- Cash and Cash Equivalents: $37.3 million at the end of the quarter.
- Transactions: Over 350,000 transactions in Q4, a 22% increase from last year.
- Carrier Onboarding: Added 12 new carriers, bringing the total to 67.
- Unique Buyer Users: Increased 14% year over year, surpassing 20,000 unique users.
- Q1 2025 Revenue Guidance: Expected between $6.7 million and $6.8 million, a 25% to 27% increase year over year.
- Full-Year 2025 Revenue Guidance: Expected between $29 million and $30.6 million, growing 22% to 29% year over year.
- Q1 2025 Adjusted EBITDA Guidance: Expected between negative $3 million and negative $3.2 million.
- Full-Year 2025 Adjusted EBITDA Guidance: Projected between negative $10.9 million and negative $10.2 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Freightos Ltd (CRGO, Financial) reported a 25% year-over-year revenue growth in Q4 2024, exceeding expectations.
- The company facilitated over 350,000 transactions, marking a 22% increase from the previous year.
- Freightos Ltd (CRGO) added 12 new carriers to its platform, the strongest onboarding in its history, bringing the total to 67 carriers.
- Gross margins improved significantly, with IFRS gross margin reaching 68%, up from 62% in Q4 2023.
- The integration of Shipsta is progressing well, contributing to the highest quarterly revenue for the SaaS Solutions subsegment.
Negative Points
- Freightos Ltd (CRGO) reported an adjusted EBITDA loss of $3.1 million for Q4 2024.
- Potential tariff changes create uncertainty, which could dampen international trade volumes.
- The company remains cautious about global trade dynamics, which could impact future growth.
- Freightos Ltd (CRGO) is still in the early stages of digitalization in the ocean freight sector, which is a larger part of the industry.
- The company is not actively planning any acquisitions using its stock, despite a rebound in stock price, limiting potential strategic M&A opportunities.
