Freightos’ 20th Consecutive Quarter of Record Transactions Shows Freight’s Digital Appetite

Global freight is an industry where knowledge is power. That makes digital transformation a key advantage, something that Freightos executives stressed to company investors on Monday’s (Feb. 24) fourth-quarter 2024 earnings call.

“Freightos continues to lead the digital transformation of global freight, delivering in the fourth quarter our highest revenue growth rate since going public, our strongest carrier expansion ever, and record gross profit margin. In an industry that is still in the early stages of digital adoption, our platform is proving vitally important — connecting more carriers, freight forwarders, and importers/exporters than ever before,” said Zvi Schreiber, CEO of Freightos.

“We have ambitious plans for product launches, and aggressive adoption of AI this year, setting the stage for growth to breakeven by the end of 2026,” Schreiber added.

For the most recent quarter, Freightos reported significant growth in revenue and transactions. Per its financials, the company achieved a record 350,400 transactions in the fourth quarter of 2024, up 22% year over year. For the full year of 2024, Freightos facilitated approximately 1.3 million transactions, up 27% from 2023 and marking Freightos’ 20th consecutive quarter of record transactions.

The number of unique buyer users digitally booking freight services across the platform grew by 14% compared to the fourth quarter of 2023, reaching 20,100.

Still, outside of the good news, the company’s losses for the fourth quarter were greater than analyst expectations — sending Freightos shares down by around 10% as of reporting. Over the 2024 fiscal year, Freightos surpassed Wall Street consensus EPS twice.

Freightos beat analyst expectations on revenue for the quarter.

Read more: Platforms Speed Freight Industry’s Digital Journey Toward Modernization

Digital Transformation Continues in Traditional Industries

The global freight industry is undergoing a digital transformation, with increasing recognition of the need for efficient, transparent and connected logistics solutions.

By fusing technology with logistics, Freightos is working to dismantle the traditional complexities of global trade. The company’s digital marketplace claims to offer competitive pricing, operational flexibility, and a neutral platform that enforces high service standards, connecting importers, exporters and freight providers with just a few clicks.

The Freightos platform’s gross booking value (GBV) surged 50% in Q4 to $280.7 million, with the full-year GBV reaching $894.0 million, a 33% increase from the previous year. This growth was driven by airline portals and early adoption of ground transportation transactions.

The number of carriers on the platform expanded from 55 in Q3 to 67 in Q4 2024, including the addition of CMA CGM AIR CARGO. Post-quarter, Norwegian Cargo and WestJet Cargo also joined the platform. Unique buyer users grew by 14% year-over-year, reaching 20,100 in Q4 2024.

Freightos is focusing on AI implementation and new product launches in 2025 to accelerate digital adoption in the freight industry. The company aims to achieve breakeven by the end of 2026. Additionally, the company announced the appointment of Pablo Pinillos as the new CFO, effective next week, to lead its financial strategy.

For Q1 2025, Freightos anticipates processing between 362,000 and 370,000 transactions, representing a 22% to 25% year-over-year growth. The projected GBV for the quarter is between $272 million and $280 million, a 41% to 45% increase from Q1 2024. Revenue is expected to range from $6.7 million to $6.8 million, reflecting a 25% to 27% growth. The company forecasts an adjusted EBITDA of negative $3.2 million to negative $3.0 million for the quarter.

Read also: Freightos Adds Index Linking Tool to Freight Booking Platform

The transportation, logistics and shipping business has undergone a foundational shift to become increasingly digital, with companies moving away from Excel spreadsheets to online platforms, according to the PYMNTS Intelligence report “Accounts Payable Automation: Transportation Companies Innovate to Drive Growth.”

Freightos said in August that it acquired freight-tender procurement platform Shipsta to provide its importer, exporter, forwarder and carrier customers with comprehensive solutions beyond spot freight bookings and sales. PYMNTS reported last week (Feb. 18) that Freightos expanded the capabilities of its digital freight booking and payment platform by adding a tool that enables dynamic contract pricing that automatically adjusts to market fluctuations.

“I do feel that with AI opportunities we’re experiencing today, you’re going to see a major push over the next five years that will exceed the past 10,” Auto Hauler Exchange CEO Royce Neubauer told PYMNTS in a separate conversation about his company’s own digital logistics platform.

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