- Gross Booking Value ("GBV"): $155
million – up 137% year-over-year (159% in constant
currency).1
- Revenue: $5.2
million2 – up 30% year-over-year
(35% in constant currency).
- Number of Platform Transactions: 150k – up 163% year-over-year.
JERUSALEM, Aug. 9, 2022
/PRNewswire/ -- Freightos Limited, a leading global freight booking
and payment platform, today announced its results for the second
quarter of 2022.
Freightos' CEO Zvi Schreiber
said: "Freightos continues to demonstrate strong, predictable
growth that exceeded targets, despite macroeconomic volatility that
impacted consumer buying patterns, supply chains, and global
freight. We are seeing excellent momentum, with the number of
transactions growing 163% year-over-year, as well as 137% growth in
GBV. Growth in transactions was fueled on the supply side by major
airline rollouts, such as American Airlines Cargo, LATAM Cargo, and
Air Canada Cargo, as well as increased bookings with existing
carriers. On the demand side, we continue to add freight
forwarders, importers, and exporters on a daily basis. Despite
falling freight prices and the Euro declining against the U.S.
dollar, the number of platform transactions exceeded targets,
resulting in GBV of $155 million.
"Global shipping, and by extension, global trade, continues to
face significant challenges including intermittent lockdowns in
China, military conflict, labor
disputes, and increasingly extreme weather," said Schreiber. "This
emphasizes the need for a digital freight revolution that brings
the efficiency, agility and visibility that supply chains need to
navigate volatility."
As previously announced, Freightos has entered into a definitive
business combination agreement with Gesher I Acquisition Corp.
(NASDAQ: GIAC), a special purpose acquisition company, that is
expected to result in Freightos becoming a publicly listed company.
Freightos is preparing to confidentially submit a draft proxy
statement/prospectus to the U.S. Securities and Exchange
Commission, and the parties intend to close the transaction in late
2022 or early 2023.
Second Quarter 2022 Business Highlights
- GBV and Transactions: The number of transactions grew
strongly to 150k, resulting in GBV of
$155 million, ahead of the target
depicted in the presentation of May 31,
2022 in connection with announcing the business combination
with Gesher. Based on constant currency from the beginning of the
financial year, GBV would have been even higher at $163 million. While GBV growth was particularly
strong in airline eBookings, revenue growth lags GBV growth because
these transactions are not yet generating substantial revenue. Take
rate (revenue/GBV) is trending positively over time in each segment
as Freightos creates increasing value for both buyers and
sellers.
- Carriers: Number of air and ocean carriers receiving
direct eBookings (electronic bookings) on the Freightos platform
increased to 31.
- Airline Payments: Following a successful test period, an
integrated payment solution was rolled out for freight forwarders
to pay carriers after placing a booking.
- Carbon Footprint Calculator: Freightos launched an EN
16258 standards-compliant international freight greenhouse gas
emission estimations calculator. The tool helps supply chain
companies track and reduce emissions, with reporting to comply with
expected regulations requiring climate-related disclosures. The
tool is freely available as an embedded tool or via an API
integration to customers and non-customers.
Three
Months
Ended June
30
|
In millions, except
percentages
|
2021
|
2022
|
%
Change
|
%
Change
(Constant
Currency)
|
Gross Booking Value
(GBV)
|
$
65.7
|
$
155.3
|
137 %
|
159 %
|
Revenue
|
$ 4.0
|
$ 5.2
|
30 %
|
35 %
|
|
|
|
|
|
A significant proportion of GBV and revenue are derived in
currencies other than U.S. dollars. Constant currency growth rates
have been provided indicating what growth would have been if the
Euro and other currencies had not changed versus the dollar in the
past year.
Definitions
Carriers: Number of unique air and ocean carriers
who have been sellers of transactions. For airlines, we count the
booking carrier, which includes separate airlines within the same
carrier group. We do not count dozens of other airlines that
operate individual segments of air cargo transactions as we do not
have a direct booking relationship with them. Carriers include
ocean less-than-container load (LCL) consolidators.
Constant Currency: Comparative information calculated by
translating Freightos' current period financial results using the
prior period's monthly exchange rates (or other applicable rates,
as indicated).
Gross Booking Value (GBV): Total value of transactions,
which is the monetary value of freight and related services
contracted between buyers and sellers on the Freightos platform,
plus related fees charged to buyers and sellers, and pass-through
payments such as duties. GBV is converted to U.S. dollars at the
time of each transaction. This metric may be similar to what others
call gross merchandise value (GMV) or gross services volume (GSV).
We believe that this metric reflects the scale of our platform and
our opportunities to generate platform revenue.
Transactions: Bookings for freight services, and
related services, placed by buyers across the Freightos platform
with third-party sellers and with Clearit. Beginning in the third
quarter of 2022, Transactions include trucking bookings, which were
added to the Freightos platform following the acquisition of
7LFreight. The number of new Transactions booked on the Freightos
platform in any given time period is net of transactions canceled
during the same time period.
About Freightos Limited
Freightos® operates a leading, vendor-neutral booking
and payment platform for international freight. Freightos' platform
supports supply chain efficiency and agility by enabling real-time
procurement of ocean and air shipping across more than ten thousand
importers/exporters, thousands of forwarders, and dozens of
airlines and ocean carriers.
Freightos.com is a premier digital international freight
marketplace for importers and exporters for instant pricing,
booking, and shipment management. Thousands of SMBs and enterprises
have sourced shipping services via Freightos across dozens of
logistics service providers.
WebCargo® by Freightos is a leading global freight
platform connecting carriers and forwarders. In particular, it is
the largest air cargo eBooking platform, enabling simple and
efficient freight pricing and booking between thousands of freight
forwarders, including the top twenty global freight forwarders, and
hundreds of airlines, ocean liners and trucking carriers. Airlines
on the platform represent over a third of global air cargo
capacity. WebCargo also offers software as a service for forwarders
to facilitate digital freight rate management, quoting, and online
sales.
Freightos Data calculates the Freightos Baltic Index, the
industry's key daily benchmark of container shipping prices, the
Freightos Air Index, as well as other market intelligence products
that improve supply chain decision-making, planning, and pricing
transparency.
Founded by serial entrepreneur Zvi
Schreiber in 2012, Freightos is a widely recognized
logistics technology leader with a worldwide presence and a broad
customer network.
Incorporated in the Cayman
Islands with offices around the world, Freightos plans to go
public on Nasdaq by combining with Gesher I Acquisition Corp.
(NASDAQ: GIAC). More information is available at
freightos.com/investors
Non-IFRS Financial Measures
While certain financial figures included in this press release
have been computed in accordance with International Financial
Reporting Standards ("IFRS") as issued by the International
Accounting Standards Board, this announcement does not contain
sufficient information to constitute an interim financial report as
defined in International Accounting Standards 34, "Interim
Financial Reporting" nor a financial statement as defined by
International Accounting Standards 1 "Presentation of Financial
Statements". The financial information in this press release has
not been audited.
In addition, this press release includes certain financial
measures not presented in accordance with IFRS, including revenue
on a constant currency basis. These non-IFRS financial
measures are not measures of financial performance in accordance
with IFRS and may exclude items that are significant in
understanding and assessing Freightos' financial results.
Therefore, these measures should not be considered in isolation or
as an alternative to net income, cash flows from operations or
other measures of profitability, liquidity or performance under
IFRS. You should be aware that the presentation of these measures
may not be comparable to similarly-titled measures used by other
companies.Freightos believes that revenue on a constant currency
basis provides useful information to investors and others in
understanding and evaluating Freightos' operating results because
they provide supplemental measures of our core operating
performance and offer consistency and comparability with both past
financial performance and with financial information of peer
companies. These non-IFRS financial measures are subject to
inherent limitations as they reflect the exercise of judgments by
management about which expense and income are excluded or included
in determining these non-IFRS financial measures. Certain monetary
amounts, percentages and other figures included in this press
release have been subject to rounding adjustments. Certain other
amounts that appear in this press release may not sum due to
rounding.
Forward Looking Statements
This press release 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," "forecast," "intend," "will,"
"expect," "anticipate," "believe," "seek," "target" or other
similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. These
statements include, but are not limited to, statements regarding
our future financial and operating performance, including our
outlook. These statements are based on various assumptions, whether
or not identified in this press release, and on the current
expectations of Freightos management and are not predictions of
actual performance. These forward-looking statements are provided
for illustrative purposes only and are not intended to serve as,
and must not be relied on by any investor as, a guarantee, an
assurance, a prediction or a definitive statement of fact or
probability. Actual events and circumstances are difficult or
impossible to predict and will differ from assumptions. Many actual
events and circumstances are beyond the control of Freightos. These
forward-looking statements are subject to a number of risks and
uncertainties, including the occurrence of any event, change or
other circumstances that could give rise to the termination of the
proposed business combination; the outcome of any legal proceedings
that may be instituted against Freightos or Gesher, the combined
company or others in connection with the proposed business
combination; the inability to complete the proposed business
combination due to the failure to obtain approval of the
shareholders of Freightos or Gesher or to satisfy other conditions
to closing; changes to the proposed structure of the proposed
business combination that may be required or appropriate as a
result of applicable laws or regulations or as a condition to
obtaining regulatory approval of the proposed business combination;
the ability to meet stock exchange listing standards following the
consummation of the proposed business combination; the risk that
the proposed business combination disrupts current plans and
operations of Freightos as a result of the announcement and
consummation of the proposed business combination; the ability to
recognize the anticipated benefits of the proposed business
combination, which may be affected by, among other things,
competition and the ability of the combined company to build and
maintain relationships with carriers, freight forwarders and
importers/exporters and retain its management and key employees;
costs related to the proposed business combination; changes in
applicable laws or regulations; Freightos' estimates of expenses
and underlying assumptions with respect to shareholder redemptions
and purchase price and other adjustments; any downturn or
volatility in economic conditions; the effects of COVID-19 or other
pandemics or epidemics; changes in the competitive environment
affecting Freightos or its users, including Freightos' inability to
introduce new products or technologies; risks to Freightos' ability
to protect its intellectual property and avoid infringement by
others, or claims of infringement against Freightos; the
possibility that Freightos or Gesher may be adversely affected by
other economic, business and/or competitive factors; Freightos'
estimates of its financial performance; risks related to the fact
that Freightos is incorporated in the Cayman Islands and governed by the laws of the
Cayman Islands; and those factors
discussed in Gesher's Annual Report on Form 10-K for the fiscal
year ended September 30, 2021 and
Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, in each case, under the heading
"Risk Factors," and other documents of Gesher and Freightos filed,
or to be filed, with the SEC. If any of these risks materialize or
our assumptions prove incorrect, actual results could differ
materially from the results implied by these forward-looking
statements. There may be additional risks that Freightos presently
does not know or that Freightos currently believes are immaterial
that could also cause actual results to differ from those contained
in the forward-looking statements. In addition, forward-looking
statements reflect Freightos' expectations, plans or forecasts of
future events and views as of the date of this communication.
Freightos anticipates that subsequent events and developments will
cause Freightos' assessments to change. However, while Freightos
may elect to update these forward-looking statements at some point
in the future, Freightos specifically disclaims any obligation to
do so. These forward-looking statements should not be relied upon
as representing Freightos' assessments as of any date subsequent to
the date of this press release. Accordingly, undue reliance should
not be placed upon the forward-looking statements.
Important Information About the Proposed Transaction and
Where to Find It
The proposed business combination will be submitted to
shareholders of Gesher for their consideration. Freightos intends
to file a registration statement on Form F-4 (the "Registration
Statement") with the United States Securities and Exchange
Commission (the "SEC") which will include a preliminary proxy
statement to be distributed to Gesher's shareholders in connection
with Gesher's solicitation for proxies for the vote by Gesher's
shareholders in connection with the proposed business combination
and other matters as described in the Registration Statement, as
well as the prospectus relating to the offer of the securities to
be issued to Gesher's shareholders in connection with the
completion of the proposed business combination. After the
Registration Statement has been filed and declared effective,
Gesher will mail a definitive proxy statement and other relevant
documents to its shareholders as of the record date established for
voting on the proposed business combination. GESHER'S SHAREHOLDERS
AND OTHER INTERESTED PERSONS ARE URGED TO READ, ONCE AVAILABLE, THE
REGISTRATION STATEMENT, THE PRELIMINARY PROXY STATEMENT /
PROSPECTUS AND ANY AMENDMENTS THERETO AND, ONCE AVAILABLE, THE
DEFINITIVE PROXY STATEMENT / PROSPECTUS, IN CONNECTION WITH
GESHER'S SOLICITATION OF PROXIES FOR ITS SPECIAL MEETING OF
SHAREHOLDERS TO BE HELD TO APPROVE, AMONG OTHER THINGS, THE
PROPOSED BUSINESS COMBINATION, BECAUSE THESE DOCUMENTS WILL CONTAIN
IMPORTANT INFORMATION ABOUT GESHER, FREIGHTOS AND THE PROPOSED
BUSINESS COMBINATION.
Shareholders may also obtain a copy of the preliminary or
definitive proxy statement, once available, as well as other
documents filed with the SEC regarding the proposed business
combination and other documents filed with the SEC by Gesher,
without charge, at the SEC's website located at www.sec.gov or by
directing a request to Gesher I Acquisition Corp., Hagag Towers, North Tower, Floor 24, Haarba 28,
Tel Aviv, Israel.
INVESTMENT IN ANY SECURITIES DESCRIBED HEREIN HAS NOT BEEN
APPROVED OR DISAPPROVED BY THE SEC OR ANY OTHER REGULATORY
AUTHORITY NOR HAS ANY AUTHORITY PASSED UPON OR ENDORSED THE MERITS
OF THE PROPOSED TRANSACTION PURSUANT TO WHICH ANY SECURITIES ARE TO
BE OFFERED OR THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED
HEREIN. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
No Offer or Solicitation
This communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities, or a solicitation
of any vote or approval, nor shall there be any sale of securities
in any jurisdiction in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. No offering of securities
shall be made except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933, as
amended.
Participants in Solicitation
Gesher, Freightos and certain of their respective directors,
executive officers and other members of management and employees
may, under SEC rules, be deemed to be participants in the
solicitations of proxies from Gesher's shareholders in connection
with the proposed business combination. Information regarding the
persons who may, under SEC rules, be deemed participants in the
solicitation of Gesher's shareholders in connection with the
proposed business combination will be set forth in the Registration
Statement when it is filed with the SEC. You can find more
information about Gesher's directors and executive officers in
Gesher's Annual Report on Form 10-K for the fiscal year ended
September 30, 2021. Additional
information regarding the participants in the proxy solicitation
and a description of their direct and indirect interests will be
included in the Registration Statement when it becomes available.
Shareholders, potential investors and other interested persons
should read the Registration Statement and other relevant materials
to be filed with the SEC regarding the proposed business
combination carefully when they become available before making any
voting or investment decisions. You may obtain free copies of these
documents from the sources indicated above.
Contacts
Freightos
Dafna
Farkas
Dafna@Freightos.com
1 All year-over-year comparisons in
this press release are presented on a pro forma basis reflecting
acquisitions as if they had been completed at the beginning of the
prior period.
2 Financial and non-financial data in
this press release have not been audited or reviewed by Freightos'
external auditor and are subject to change.
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SOURCE Freightos