Freightos Is Burning $6M Per Quarter

Freightos Limited, a leader in digital freight booking, reported positive strides in its third-quarter earnings for 2023. Despite the freight industry's downturn, Freightos marked its 15th consecutive quarter of transaction growth, signaling a stronger value proposition. Key highlights include:

• Revenue of $5.1 million, a 9% year-over-year increase.
• A notable jump to 269,000 transactions in Q3, a 40% rise.
• Unique buyer users grew by 16%, reaching 17,312.

However, the path isn't all smooth. According to FreightWaves' CEO, Craig Fuller, Freightos is burning about $6 million per quarter, higher than its revenue. With $55 million in cash reserves, it stands relatively stronger than others in the freight tech space, many of whom are facing tighter cash constraints after COVID-era expansions.

Market experts like 10xLogisticsExperts express concerns about Freightos's reliance on volume growth for profitability, emphasizing the importance of a realistic path to financial sustainability.

With the rate of closures, particularly the recent shutdown of Convoy, Freightos highlights the complexities of digital transformation challenges in freight and logistics.

Sources: PR Newswire