Good morning and welcome to Freightos' Q4 2024 Earnings Conference Call. A press release with detailed financial results was released earlier today, and is available on the investor relations section of our website freightos.com/investors. My name is Anat Earon-Heilborn, and I'm joined today by Dr. Zvi Schreiber, the CEO of Freightos Limited Ordinary shares, Theresa Carreras, Director of FP&A in the finance team, and Pablo Pinos, incoming CFO. Following the prepared remarks, we will open the call for questions. We are sharing slides during the call, so we recommend using Zoom on a computer rather than dialing in by phone. The slides as well as the recording of this earnings call will be available on our website shortly after the call. Please be aware that today's discussion contains forward-looking statements which are subject to a number of risks and uncertainties. Actual results may differ materially due to various risk factors. Please refer to today's press release and our SEC filings for more information on risk factors and other factors which could impact forward-looking statements. Copies of these reports are available online. In discussing the results of our operations, we'll be providing and referring to certain non-IFRS financial measures. You can find reconciliations to the most directly comparable IFRS financial measures along with additional information regarding those non-IFRS financial measures, in the press release on our website at freightos.com/investors. The company undertakes no obligation to update any information discussed in this call at any time. Today's earnings call will begin with an overview of Q4 performance by Zvi. Next, Theresa will present the financial results and the guidance for Q1 and full year 2025. Theresa is stepping in as we are between CFOs. Then Pablo will introduce himself briefly ahead of his official start next Monday. We will conclude with Q&A. Questions can be submitted in writing during the call by using the Q&A feature in Zoom. Please go ahead.

Good morning, everyone, and thank you for joining us to discuss Freightos Limited Ordinary shares' fourth quarter and full year 2024 results. I'm pleased to report another quarter of strong performance, ending a fiscal year marked by significant transformation for us, driven by our commitment to innovation and operational excellence. We've continued to advance in capturing the massive market opportunity of digitalizing international freight, underscored by our robust revenue growth for the quarter. Before diving into the details, let me provide some high-level context of our achievements. In Q4, revenue growth of 25% year on year exceeded our expectations. We facilitated over 350,000 transactions, representing a 22% increase from last year, extending our streak of consecutive quarterly transaction records to five straight years. Most notably, we added twelve new carriers to our platform, marking the quarter with our strongest onboarding of new carriers in our history, and bringing our total to 67 carriers. While this is solid growth, I want to comment that we strive to grow even faster. We do expect that at some future point, this huge conservative industry will reach an inflection point on its digital journey. Then we should be able to accelerate growth much faster. We witnessed such inflection points in other industries as they went through a digital transformation. And, of course, we continue to invest in market education to encourage reaching that inflection point. Turning to market conditions, the air cargo market saw robust demand driven by e-commerce with Q4 volumes up 10% compared to the previous year. Air cargo rates reached year highs during peak season on many lanes, with a global average price as measured by our Freightos Air Index, FAX, essentially flat on Q4 2023 and up 5% from Q3. However, our platform focuses on mainstream air cargo, not e-commerce.…

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the third pillar of our growth is network. That is the network effects created within our customer base. Our cohorts analysis validates this flywheel effect. Freight forwarders and carriers who join our platform not only stay active, but also significantly increase their engagement and the transactions they place over time, reinforcing the buyer brings seller brings buyer effect and the long-term stickiness of our platform. Anecdotally, in a recent meeting with a leading European airline, the chief executive shared with me that they had projected a thousand bookings in their first year on the web platform but received seven thousand bookings, demonstrating how quickly airlines can scale digital bookings once they connect to our platform. Looking ahead to 2025, we remain focused on executing our strategy. While potential tariff changes create slight near-term uncertainty, we continue to scale our network, expand carrier adoption, and enhance our product and technology offerings, laying the foundations for sustained long-term growth in this vast industry, which is still at an early stage of digitalization. And now to walk us through our Q4 financial performance, I'll hand over to Theresa, our director of financial planning and analysis, who is covering while we're briefly between CFOs.

Thanks, Zvi. Our fourth quarter results reflected solid growth.

Exceeding our guidance in transactions and revenue and meeting the high end of our adjusted EBITDA guidance. These results show our continued focus on scaling our platform efficiently while maintaining financial discipline and progressing toward profitability. Revenue for Q4 2024 was $6.6 million reflecting a 25% year-over-year increase, which is the highest quarterly growth rate since going public. Growth was driven by strength across both transactional and subscription revenue. Platform revenue grew 21% year over year to $2.3 million supported by steady transaction growth. Solution revenue increased 28% year over year to $4.3 million benefiting from SaaS expansion and inclusion of Shipster. Gross margins improved once again with IFRS gross margin reaching 68% up from 62% in Q4 2023. And non-IFRS gross margin rising to 74% compared to 70% last year. These gains result from scale and from ongoing cost efficiencies, positioning us well for further margin expansion. For the full year, non-IFRS gross margin was 72% increasing by five percentage points from 2023, demonstrating consistent efficiency gains. Adjusted EBITDA for Q4 2024 was negative $3.1 million within our guidance range. Excluding the impact of Shipster's first full quarter of consolidation, adjusted EBITDA loss would have been lower at approximately $2.7 million. For the full year of 2024, adjusted EBITDA was negative $12.6 million significantly improved from negative $19 million in 2023. As we move through 2025, we expect continued improvements in adjusted EBITDA, reflecting revenue growth and ongoing operational efficiencies on track for breakeven by the end of 2026. Cash and cash equivalents stood at $37.3 million at the end of the quarter, giving us all the resources we need to execute our strategy while maintaining financial discipline. I'm pleased to present you with our Q1 outlook and introduce the full year 2025 guidance, which underscores our expectations of…

Thank you, Theresa, and thank you, Zvi. I'm thrilled to be joining Freightos Limited Ordinary shares at such an exciting time for the company. Freightos Limited Ordinary shares has built a category-defining platform that is transforming how global freight is booked and managed. Having spent my career helping high-growth technology companies to scale efficiently, I've worked across finance, strategy, and operations to support companies through rapid expansion, IPOs, and acquisitions. My experience in driving financial disciplines while enabling growth aligns well with Freightos Limited Ordinary shares' mission as we continue to expand and digitalize this vast industry. As Freightos Limited Ordinary shares is a truly global company, I'm excited to be based in Spain within easy access to Freightos Limited Ordinary shares' Barcelona headquarters. I look forward to engaging with investors and analysts on future quarterly calls and throughout the year, virtually or in person, as we execute on our strategy, drive operational efficiencies, and work toward long-term profitability.

Thank you, Pablo, and welcome. We will now open the call for questions. The first question will come from Jason Helfstein.

Hey. Good morning. Good afternoon. Everyone, depending on where you are. Two questions. So I mean, one, the financial outlook looks pretty, basically, you know, in line with what we're expecting kind of solid growth. And things should continue, I guess, at that level. So, Zvi, I mean, you talked about, like, the key thing is really, like, you know, the industry hitting some kind of inflection point with understanding, you know, the need to embrace digital products. So I guess maybe as we look about going into 2025, versus going to 2024, I mean, is there anything you can call out, like, you know, maybe examples where you think, you know, the industry's closer to that inflection point? And if investors were to, you know, look out a few years, how they should think about it. Because to your point, you know, this is really about kind of, you know, like, the secular trends really are progressing as expected, but what does it take to really get the industry to the next level? Thank you.

I think Yeah. Thanks, Jason. I've sort of commented before that, you know, we're mainly looking at air and ocean and they're in different situations. Air is already well along the trend, but ocean, which is the bigger part of the industry, is really at the very beginning. So I think one of the key things I'm hoping to see this year is the ocean liners finally create APIs, you know, digital connections like the airlines did already five years ago in many cases. So that's one major sort of milestone that we're looking for is having ocean API connectivity. Even within air, of course, there are parts which are, you know, Europe's on the way to digitalization, but Asia is at a very early stage. As I think more air bookings out of Asia would be a key trend. And then that's all sort of between freight forwarders and carriers. Then when you get to the end customer, what we call the shippers or the importers and exporters, there was still at the very early stage. So, you know, as you know, freightos.com hasn't been we haven't been growing it aggressively the last eighteen months. We plan to, I hope, again next year. But so seeing activity on that, but also seeing even not just on Freightos Limited Ordinary shares but seeing more freight forwarders selling online, more freight forwarders quoting online, more self-service, more self-service, more freight forwarders selling online, more freight forwarders quoting online, more self-service, more self-service, by importers and exporters would be a very important sign that the end customer is adopting digital techniques. And we are seeing some progress in all of that. Everything's going in the right direction. But we're still looking whether it's this year or next year or the following year. Sometime I do believe there's gonna be a tipping point where it all gets adopted much faster.

And then just the second question. So with the rebound in the stock price, I you know, do you do you how do you think about potentially using the stock for strategic M&A now that the stock is, you know, meaningfully higher than it was for a while. Is that something you're thinking more about or it's really more just about, you know, kinda heads down in day-to-day business.

Yeah. I mean, that's a great question. Look. As you know, some of our biggest investors paid ten dollars a share. So they're still gonna be quite reluctant for us to use our stock even if it's at four bucks, which is a lot better than one. So we're not actively planning any acquisitions using our stock. But you're right. It does give us more options. So if something opportunistic comes up, and the price is very attractive, so much so that we're willing to use our stock at this price. It's not impossible. But we don't have any we're not dependent on any acquisitions for our growth plan. And so we're not planning any acquisitions. But if a bit like happened with Shipster a few months ago, if another opportunity like that comes about and the price is great, then keep an open mind for sure.

Thank you. Appreciate it. Thanks, Jason.

Okay. The next question will come from George Sutton. George, you can unmute.

Thank you. Zvi, I wondered if you could walk through just to make sure we're clear, the potential tariff impacts that you see. My sense is in the short term, it could be a positive because you see some accelerated shipping to avoid the tariffs, but then there's a midterm question mark. So just could you walk through what we should anticipate there?

Yeah. Thanks, George. I'm very hard to anticipate as you as you know from the news, this has been evolving very rapidly even in the first few weeks of the current administration. And, yeah, as you said, the front loading is very short term, so we're not, you know, we're not banking on that. It's true that when tariffs are expected in a few weeks, some people quickly ship some stuff. But that's a very, very short-term trend. And not one that we welcome. Beyond that, sort of mentioned briefly in my remarks that I think there's

two possible effects, a negative effect and a positive effect. The negative effect of course, is that tariffs could dampen world trade. We don't expect to have a major impact on world trade. World trade is very robust. We saw in the first Trump administration that there were tariffs and they didn't reduce trade with China or world trade at all. Maybe this time, the tariffs will be more aggressive. We don't know. It's changing. But, you know, supply chains are very resilient because you can't just, you know, you can't just move electronic manufacturing out of China because they've got the whole supply chain. They have thousands of components. So in most cases, if there's a tariff, then the you know, then people pay the tariff, and it gets paid passed on to the consumer. So prices go up. It normally doesn't have a major impact on world trade, but it will have some. So we can you know, that's we've been also a little more cautious with some of our projections for this year because there could be some headwinds from tariffs. There's another respect there which I think will actually be good for us. One of the more aggressive threatened things, I mentioned it briefly in my remarks, is canceling the de minimis. This exemption to bring in goods under eight hundred dollars and it was canceled and it was reinstated. Probably, it will get canceled again once the customs authorities are ready for it. That actually would only impact e-commerce. It wouldn't impact the sort of commercial import. It would impact Tenmore and Shein and AliExpress who sends small parcels direct to see what? And we don't we don't we don't see that business. So that business goes down, it will actually create more capacity for the conventional air cargo, which is on our platform. So we actually think it could significantly help our volumes out of Asia if the de minimis is canceled and there's a clampdown on the sort of e-commerce. So that may actually project that would be good for us. Now having said that overall, there is uncertainty and, world trade isn't going anywhere, but it could go down a few percent. And so we have taken that into account in our projections.

Great. And just and by the way, I meant to say welcome to Pablo, so welcome to Pablo. But I did want to ask the question on AI. So you did mention in your prepared comments that you know, there was gonna be an aggressive adoption of AI. You talked about this test that you had that resulted in a 70% increase. Can you walk through kind of the timing that you would anticipate the rollout of the AI opportunity?

Yeah. I mean, AI is something we deal with. We look at every day. It's obviously a very fast-evolving and very powerful technology. And so we're looking up obviously in two levels. One for adoption by our own team and just to make us more efficient, and we did quite a bit of that in 2024, but I think it was still marginal. I don't think we saw a real productivity increase in 2024. This year, we're rolling out AI tools to all our developers. We're rolling out really, encouraging every single member of our team to be using it in different ways. And I think it will start to have an impact on it should start to have a measurable impact on productivity during the year, I think. For internal use. And then in our products, we've already got some at least two major features sort of live. One of them is really a product and so the one that's the two that I mentioned, one of which is what you said, one is within our Freightos Limited Ordinary shares terminal, which is a data product, we now have an AI report generator so that logistics manager at Walmart can go in and say, I need to report to my management on the impact of the Trump administration tariffs or the Red crisis. And it prepares an intelligence report based on the style that they want based on current data from Freightos Limited Ordinary shares data, based on third-party data. So that's a tool which is already I mean, it's quite new, but we're already seeing or feature a feature which is getting some nice use by our customers. And the other one which you referenced is called Skyrate, which is our quite new it's still in pilot stage,…

Perfect. That's it for me. Thank you.

Thank you, George.

If anyone else wants to ask a question, please, you can either raise your hand or you can chat in the Q&A feature in Zoom. We'll give it maybe a few more seconds. Okay. So I'll hand it over to Zvi to close the call.

Thank you all.

Alright. Thanks, everyone, for joining. Look forward to seeing you in a quarter's time when I'll be joined by Pablo not just as an introduction, but as an onboarded CFO by then. Thank you all for joining. Goodbye.