Freightos expects to attain profitability through an operational efficiency plan after posting two consecutive quarterly losses since becoming a listed company.
The container freight booking and payments platform, which merged with special purpose acquisition company Gesher I Acquisition Corp in late January to garner a listing on New York’s Nasdaq stock market, posted $5.71m in net loss for the second quarter.
That is up from a $5.89m net loss that it recorded during the second quarter of 2022, when it was a privately held company.
These results caused a $0.12 loss per share for the quarter, up from a $1.03 loss per share posted a year earlier.
Revenue totalled $5.09m for the quarter, down from $5.16m in revenue collected a year ago.
“Looking ahead, we are encouraged to observe that global freight rates in the third quarter appear to be recovering slightly as we approach peak season, including a 35% gain on the bellwether FBX01 (China-to-US West Coast) index since the beginning of the year,” chief executive Zvi Schreiber said in a statement.
“Furthermore, In July we announced and implemented an operational efficiency plan which we believe will further improve our profitability from the third quarter onwards and enable us to reach profitability with existing funds.”
TradeWinds reported in July that the operational efficiency plan involved cutting 50 employees in an effort to add $5.6m per year in Ebitda.
Freightos, which also tracks air cargo, registered 239,000 transactions worth $155m in the second quarter to surpass the year-ago result by 59% and mark its 14th consecutive quarter in record transaction volume.
For the first half of 2023, Hong Kong-based Freightos posted a net loss of $55m, down from a $10.2m net loss recorded during the same period in 2022.
Revenue for the second quarter came in at $9.22m, down from $9.55m from a year earlier.
Looking ahead, Freightos forecasts revenue to range from $5.1m to $5.3m for the third quarter and fall between $2m and $21.2m for the full-year 2023.
The company expects transaction volume to come in between 243,500 deals and 259,500 deals for the third quarter, and it predicted 973,000 transactions to 1.04m deals for the full year.
As a result, Freightos foresees adjusted Ebitda to land as a loss between $4.5m and $5.1m for the second quarter and as a loss ranging from $19.8m to $21.5m for 2023.
