Freightos Limited · NASDAQ:CRGO
Freightos — Q3 2023 Earnings Presentation
34 slides from Freightos's earnings presentation, Nov 21, 2023
Slide 1: Investor Presentation
Investor Presentation Nasdaq: CRGO November 2023
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 15K $1.6T Importers, exporters, forwarders and carriers 2023E #Transactions #Transactions 3yr CAGR “The Booking.com of ~ 1 million 208% international freight” Gross Margin (non-IFRS)* S&M expenses of GBV 69% Q3 23 2% 20
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 Carriers Freight Importers Freight Forwarders Freight Forwarders /Exporters Forwarders ~350 airlines ~100,000 worldwide Millions ~100 ocean liners 100,000s trucking companies Sources: Company
Slide 7: Resulting in extra cost, delay, unpredictability, inflexibility and emissions
…Resulting in extra cost, delay, unpredictability, inflexibility and emissions for every single import/export Capacity utilization Slow quoting ~50% of air cargo holds empty 2-3 days average quote pre-COVID 2 turnaround 1 Complex coordination Opaque pricing ~30 actors involved in each ocean 30-100%+
Slide 8: The international freight market is massive
The international freight market is massive Service Layer Carriers Ocean container Opportunity Spotlight: freight $207B $500B (2022) 4 Freight $1.6T forwarding $192B (2021) 2 Air cargo Non-digitized Global freight $207B (2022) 5 industry by 20261 <5% Digitized on carrier sites 7 Customs Trucking bro
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: 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 Carriers Forwarders Importers/exporters WebCargo by Freightos Freightos.com Connects service providers Marketplace serving end-customers Similar to: Similar to: 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 208% 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 Real-time comparison, booking and management of global freight for importers and exporters with a Sample Data private ma
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 Real-time pricing and booking between forwarders and carriers Used by 10k forward
Slide 15: Freightos Data: Real-time market intelligence
Freightos Data: 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 port
Slide 16: Freightos platform has gained significant industry traction
Freightos platform has gained significant industry traction Carriers Freight Importers Forwarders /Exporters Airlines representing 50%+ of 3,500+ forwarders 13,000+ cumulative SMB air cargo capacity 19/20 top forwarders importers and exporters Ocean liners just starting Adding forwarders daily and ou
Slide 17: Airline eBooking growth shows high retention of customers
Airline eBooking growth shows high retention of customers and net transaction growth Total #Transactions of Q3 2021 forwarder cohort as % of bookings placed in first quarter Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 17
Slide 18: Financial Overview
Financial Overview fi FREIGHTOS @@e@e0oo >>> 18
Slide 19: Platform traction flywheel: buyers-bring-sellers-bring-buyers
Platform traction flywheel: buyers-bring-sellers-bring-buyers KPIs Q3 21PF Q4 21PF Q1 22PF Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 #Transactions 76,141 96,863 114,846 150,244 192,330 210,765 229,211 239,427 269,175 $GBV ($k) $84,038 $112,584 $126,225 $155,343 $159,230 $169,967 $168,701 $154,809 $160,658
Slide 20: Monetizing the network value: SaaS-enabled marketplace flywheel
Monetizing the network value: SaaS-enabled marketplace flywheel Solutions revenue is primarily recurring subscriptions for SaaS or data Platform revenue = fees associated with specific freight-service transactions booked between Buyers and Sellers on our Platform 20
Slide 21: Highly capital-efficient growth
Highly capital-efficient growth Gross Margin Evolution Sales & Marketing expenses as % of GBV LTM Sep-23 21
Slide 22: On track to profitability with cash at hand
On track to profitability with cash at hand Adjusted EBITDA ($K) Cash, ST Deposits and Investments ($M)
Slide 23: Guidance for Q4 and FY 2023
Guidance for Q4 and FY 2023 As given on 21 November 2023 Management Expectations as of November 2023 Q4 2023 FY 2023 # Transactions 273,000 - 284,000 1,010,500 - 1,021,500 Year over Year Growth 30% - 35% 51% - 53% GBV (M) $ 163.5 - $ 175.0 $ 647.5 - $ 659.0 Year over Year Growth (4)% - 3% 6% - 8% Re
Slide 24: Capital structure as of October 2023
Capital structure as of 31 October 2023 Shares Total Company Shares Outstanding 47.7M Including Strategic Shareholders Freightos ESOP Allocated 6.0M Public Warrants (CRGOW) @ $11.5 14.9M 24
Slide 25: Making global trade frictionless.
Making global trade frictionless. Huge TAM | Fully Funded | Sustainable, Capital-Efficient Growth Strong Network Effects | Dominant Industry Platform freightos.com/investors | Nasdaq:CRGO 25
Slide 26: Thanks!
Thanks! Learn more at freightos.com/investors
Slide 27: Appendix
Appendix Supplementary materials 27
Slide 28: Summary financials Q3 YTD 2023
Summary financials Q3 YTD 2023 Q1 23 Q2 23 Q3 23 ($K) (unaudited) Revenue $4,823 $5,093 $5,107 Cost of revenue 2,013 2,175 2,305 Gross profit 2,810 2,918 2,802 Operating expenses: Research and development 2,997 3,017 2,992 Selling and marketing 3,620 3,461 3,944 General and administrative 3,733 2,346
Slide 29: Summary financials - reconciliation
Summary financials - reconciliation Q1 23 Q2 23 Q3 23 ($K) (unaudited) IFRS Operating loss -$57,960 -$5,906 -$9,292 Add: Share-based compensation 582 546 3,375 Depreciation & Amortization 643 719 719 Share listing expense 46,717 - - Non-recurring expenses 499 - - Transaction-related costs 3,703 - - C
Slide 30: Summary financials - reconciliation
Summary financials - reconciliation Q1 23 Q2 23 Q3 23 ($K) (unaudited) IFRS gross profit $2,810 $2,918 $2,802 Add: Share-based compensation 82 77 432 Depreciation & Amortization 242 314 315 Non-IFRS gross profit $3,134 $3,309 $3,549 IFRS gross margin 58% 57% 55% Non-IFRS gross margin 65% 65% 69% 30
Slide 31: Summary financials FY 2020-2022
Summary financials FY 2020-2022 Year Ended December 31, ($K) 2020 2021 2022 Revenue $8,509 $11,117 $19,085 Gross Profit 4,236 6,521 11,226 Gross Margin 49.8% 58.7% 58.8% R&D Expenses 6,910 7,822 10,217 S&M Expenses 5,807 8,774 12,749 G&A Expenses 4,562 6,273 9,645 Reorganization 891 - - Transaction-re
Slide 32: Summary financials - reconciliation
Summary financials - reconciliation Year Ended December 31, ($K) 2020 2021 2022 IFRS gross profit $4,236 $6,521 $11,226 Add: Share-based compensation 95 97 290 Depreciation & Amortization 164 107 920 Non-IFRS gross profit $4,495 $6,725 $12,436 IFRS gross margin 50% 59% 59% Non-IFRS gross margin 53% 60%
Slide 33: Summary financials - reconciliation
Summary financials - reconciliation Year Ended December 31, ($K) 2020 2021 2022 IFRS operating loss ($13,934) ($16,348) ($24,272) Add: Share-based compensation 822 935 1,906 Depreciation & Amortization 1,271 1,098 2,413 Reorganization expenses 891 - - Changes in the fair value of - - (935) contingent
Slide 34: 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 #Transactions (PF) party sellers or with Clearit ("Sellers"), minus canceled transactions. Includes transactions