Freightos Limited · NASDAQ:CRGO
Freightos — Investor Presentation (April 2024)
38 slides from Freightos's investor presentation, April 2024
Slide 1: Investor Presentation
Investor Presentation Nasdaq: CRGO April 2024
Slide 2: Disclaimer
Disclaimer About this Presentation This presentation does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any security. Please see our SEC filings for the most up to date information. The information contained herein does not purport to be all-inclusi
Slide 3: Disclaimer
Disclaimer This presentation includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecas
Slide 4: The global freight booking and payment platform - highlights
The global freight booking and payment platform - highlights Market size 2026E 1 18K $1.6T Importers, exporters, forwarders and carriers 2023 #Transactions #Transactions 3yr CAGR “The Booking.com of > 1 million 124% international freight” Gross Margin (non-IFRS)* S&M expenses of GBV 70% Q4 23 2.1% 2
Slide 5: The Market and the Opportunity
The Market and the Opportunity 5
Slide 6: International Freight one of last remaining offline industries
International Freight one of last remaining offline industries Layers of intermediaries communicating manually Ocean Liners Freight Importers Freight Forwarders Freight /Exporters Airlines Forwarders Forwarders ~100,000 worldwide Millions Trucking For air and ocean 6
Slide 7: The global logistics market will reach $1.6T by 2026
The global logistics market will reach $1.6T by 20261 with global freight playing a key role Market size (GBV) $506bn2 Ocean Liners Freight Market size Importers Freight Forwarders Freight (GBV) $208B4 /Exporters Market size Forwarders Airlines (GBV) $134B3 Forwarders ~100,000 worldwide Millions Tru
Slide 8: Resulting in extra cost, delay, unpredictability, inflexibility and emissions
…Resulting in extra cost, delay, unpredictability, inflexibility and emissions for every single import/export Under 50% air capacity utilization 2-3 day quoting 1 2 Opaque pricing spread of 30-100% 2 hours to manage each Non-binding prices shipment 4 subject to changes Driving 7% of global carbon emi
Slide 9: Platform businesses unlock massive value
Platform businesses unlock massive value. Siloed Digitalization Platformification Single Company Digitization Vendor-neutral connectivity B2C Marketplace 1995-2010 (eg Zappos) Domestic B2B 2010-2020 (eg Dell) Global B2B 2020 - Now (eg K+N, Flexport) 9
Slide 10: Freightos: The end-to-end vendor-neutral freight booking platform
Freightos: The end-to-end vendor-neutral freight booking platform supporting efficient and agile supply chains Ocean WebCargo by Freightos Importers / Freightos Forwarders Platform Exporters Airlines Platform Hypergrowth Freightos SaaS + Data Solutions Passenger travel analogous platforms: 10
Slide 11: Product Portfolio and Industry Traction
Product Portfolio and Industry Traction 11
Slide 12: Strong consistent transactions growth reflects marketplace network effect
Strong consistent transactions growth reflects marketplace network effect 124% CAGR 12
Slide 13: WebCargo: Increasing capacity utilization and booking efficiency
WebCargo: Increasing capacity utilization and booking efficiency for carriers and forwarders Direct capacity access Quote Management Dynamic quoting All-in pricing WebCargo Overview Platform and solution for real-time pricing, booking and payments between forwarders and Integrated Sample Data carriers
Slide 14: Freightos.com: Delivering importer/exporter efficiency and agility
Freightos.com: Delivering importer/exporter efficiency and agility Real time pricing, CO2 and transit Unified tracking time Documentation and communication Carrier specific management actual capacity Freightos.com Overview Platform for real-time comparison, booking and management of global freight for i
Slide 15: Freightos Terminal: Real-time market intelligence
Freightos Terminal: Real-time market intelligence for improved freight decision making Broad trade lane data. Also available for Curated feed of index-linking and market-moving events hedging. In-depth transit time and congestion reports Lane-specific Freightos Terminal real-time Market intelligence
Slide 16: Freightos platform has gained significant industry traction
Freightos platform has gained significant industry traction Airlines Freight Importers Forwarders /Exporters 3,500+ forwarders 13,000+ cumulative SMB Ocean Liners 19/20 top forwarders importers and exporters and Adding forwarders daily our first enterprises Airlines representing 60%+ of air cargo capa
Slide 17: Airline eBooking growth shows high retention and cohort growth
Airline eBooking growth shows high retention of customers and cohort transaction growth Total #Transactions of forwarder cohort as % of bookings placed in first quarter 17
Slide 18: Airline eBooking growth shows high value for participating airlines
Airline eBooking growth shows high value for participating airlines Total #Transactions of carrier cohort as % of bookings placed in first month 18
Slide 19: Strong sustainable growth through network effects of a double marketplace flywheel
Strong sustainable growth through the network effects of a double marketplace flywheel Buyers attracts sellers Carriers Freight forwarders Import/exporters Seller attracts buyers Amplified by... More types More combinations More connectivity More aspects of transactions of buyer/seller to data / system
Slide 20: Financial Overview
Financial Overview fi FREIGHTOS @@e@e0oo >>> 20
Slide 21: Platform traction flywheel: buyers-bring-sellers-bring-buyers
Platform traction flywheel: buyers-bring-sellers-bring-buyers KPIs Q1 22PF Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 #Transactions 114,846 150,244 192,330 210,765 229,211 239,427 269,175 286,938 295,604 $GBV ($k) $126,225 $155,343 $159,230 $169,967 $168,701 $154,809 $160,658 $187,538 $192,438 U
Slide 22: Monetizing the network value: SaaS-enabled marketplace flywheel
Monetizing the network value: SaaS-enabled marketplace flywheel Solutions revenue is primarily recurring subscriptions for SaaS or data Platform revenue = fees associated with specific freight-service transactions booked between Buyers and Sellers on our Platform 22
Slide 23: Highly capital-efficient growth
Highly capital-efficient growth Gross Margin Evolution Sales & Marketing expenses as % of GBV 2023 23
Slide 24: On track to profitability with cash at hand
On track to profitability with cash at hand Adjusted EBITDA ($K) Cash, ST Deposits and Investments ($M) -73% -81% -104% -121%
Slide 25: Q1 & FY 2024 Guidance
Q1 & FY 2024 Guidance As given on 26 February 2024 Management Expectations Q1 2024 FY 2024 # Transactions 280,500 - 288,000 1,286,500 - 1,376,000 Year over Year Growth 22% - 26% 26% - 34% GBV ($m) $ 168.0 - $ 172.5 $ 788.9 - $ 844.1 Year over Year Growth (0)% - 2% 17% - 26% Revenue ($m) $ 5.2 - $ 5.
Slide 26: Long-term Growth Model
Long-term Growth Model Building a valuable and durable platform: 2025-2030 #Transactions & GBV Revenue Growth of 20%-30% per year Growth of 25-30% per year Adjusted EBITDA margin Gross Profit Margin Up 8-12 percentage point per year, 70-80% (non-IFRS) turning positive during 2026
Slide 27: Capital structure as of December 2023
Capital structure as of 31 December 2023 Shares Total Company Shares Outstanding 47.9M Including Strategic Shareholders Employee shares and options allocated 5.8M Public Warrants (CRGOW) @ $11.5 14.9M 27
Slide 28: Making global trade frictionless.
Making global trade frictionless. Huge TAM | Fully Funded | Sustainable, Capital-Efficient Growth Strong Network Effects | Dominant Industry Platform freightos.com/investors | Nasdaq:CRGO 28
Slide 29: Thanks!
Thanks! Learn more at freightos.com/investors
Slide 30: Appendix
Appendix Supplementary materials 30
Slide 31: Summary financials Q4 2023
Summary financials Q4 2023 Q1 23 Q2 23 Q3 23 Q4 23 ($K) (unaudited) Revenue $4,823 $5,093 $5,107 $5,258 Cost of revenue 2,013 2,175 2,305 1,986 Gross profit 2,810 2,918 2,802 3,272 Operating expenses: Research and development 2,997 3,017 2,992 2,501 Selling and marketing 3,620 3,461 3,944 3,359 Genera
Slide 32: Summary financials - reconciliation
Summary financials - reconciliation Q1 23 Q2 23 Q3 23 Q4 23 ($K) (unaudited) IFRS gross profit $2,810 $2,918 $2,802 $3,272 Add: Share-based compensation 82 77 432 101 Depreciation & Amortization 242 314 315 309 Non-IFRS gross profit $3,134 $3,309 $3,549 $3,682 IFRS gross margin 58% 57% 55% 62% Non-IFRS
Slide 33: Summary financials - reconciliation
Summary financials - reconciliation Q1 23 Q2 23 Q3 23 Q4 23 ($K) (unaudited) IFRS Operating loss ($57,960) ($5,906) ($9,292) ($4,642) Add: Share-based compensation 582 546 3,375 923 Depreciation & Amortization 643 719 719 710 Share listing expense 46,717 - - - Non-recurring expenses 499 - - - Transac
Slide 34: Summary financials FY 2020-2023
Summary financials FY 2020-2023 Year Ended December 31, ($K) 2020 2021 2022 2023 Revenue $8,509 $11,117 $19,085 $20,281 Gross Profit 4,236 6,521 11,226 11,802 Gross Margin 49.8% 58.7% 58.8% 58.2% R&D Expenses 6,910 7,822 10,217 11,507 S&M Expenses 5,807 8,774 12,749 14,384 G&A Expenses 4,562 6,273 9,6
Slide 35: Summary financials - reconciliation
Summary financials - reconciliation Year Ended December 31, ($K) 2020 2021 2022 2023 IFRS gross profit $4,236 $6,521 $11,226 $11,802 Add: Share-based 95 97 290 692 compensation Depreciation & 164 107 920 1,180 Amortization Non-IFRS gross profit $4,495 $6,725 $12,436 $13,674 IFRS gross margin 50% 59% 59
Slide 36: Summary financials - reconciliation
Summary financials - reconciliation Year Ended December 31, ($K) 2020 2021 2022 2023 IFRS operating loss ($13,934) ($16,348) ($24,272) ($77,800) Add: Share-based compensation 822 935 1,906 5,426 Depreciation & Amortization 1,271 1,098 2,413 2,791 Share listing expenses - - - 46,717 Non-recurring expe
Slide 37: Glossary
Glossary Platform Volume KPIs Description Transactional bookings for freight and related services placed by Buyers across Freightos Platforms (WebCargo, Freightos.com, ClearIt) with third party sellers or with #Transactions (PF) Clearit ("Sellers"), minus canceled transactions. Includes transactions
Slide 38: Our growth strategy for the marketplace flywheel
Our growth strategy for the marketplace flywheel The fundamental buyer-seller network effects, amplified by… Platform Impact Example in 2024 More types of More transactions Temp. controlled goods, transactions and trucking More aspects of More GBV Payments, insurance, and each transaction Higher take r