Freightos witnesses 1.2% decline year on year in Q3 2023
Freightos – owners of WebCargo – reported a loss in the second quarter of the year as revenues narrowed slightly.
The digital software company saw its second quarter revenues decline 1.2% year on year to $5.1m, its operating loss worsened by 0.7% to $5.9m and its loss improved by 5% to $5.7m.
Transactions on the platform increased by 59% year on year to 239,000 and the number of airlines offering their capacity is up 19% year on year at 37 airlines, although no further airlines were added in the second quarter compared with the first.
The company said that while overall revenues had declined, there was an improvement on the booking side of the business.
“The Freightos Platform facilitated record Transaction numbers, and earned slightly increased Platform Revenue during the second quarter of 2023, with our growth successfully overcoming depressed international freight rates and reduced industry volumes,” said Zvi Schreiber, founder and chief executive of Freightos.
“Growth and innovation on the carrier supply side, as well as a 10% year over year growth in Unique Buyer Users, has fueled an increase in our market share that emphasizes the continued adoption of digital bookings.”
He added that he was encouraged by improving freight rates, especially in transpacific ocean shipping, and expected improvements generated by its operational efficiency plan which was implemented in July.
Schreiber said this would help improve profit performance and enable the company to reach profitability with existing funds.
Ran Shalev, chief financial officer of Freightos, added: “Despite difficult industry conditions, the company remains on track to improve Adjusted ebitda in Q3 and after.
“The results of the operational efficiency plan implemented in early Q3 are anticipated to be reflected in the Company’s financials as early as this quarter and are not expected to compromise underlying growth.”
The company is predicting an adjusted ebitda loss of between $21.5m and $19.8m for the full year.