Freightos, a prominent Israeli digital marketplace specializing in international shipping, grappled with heightened financial challenges in the third quarter, revealing an increased operating loss of $9.2 million compared to $5.3 million in the same period last year. Despite implementing cost-saving measures post-summer, the company, operating as a neutral platform connecting importers, exporters, and forwarders, attributed its losses to the sustained downturn in the freight sector.
Compounding its difficulties, Freightos navigates operational disruptions due to the ongoing Israel-Hamas conflict. Employees, including a manager, and their family members in the army reserve have been mobilized, leading to disruptions and internal tensions among teams based in Jerusalem and those operating from offices in Ramallah and Nablus.
Freightos underscored a shift in its revenue mix due to efficiency measures, with platform revenue remaining constant YoY. Despite uncertainties, the company maintains a strategic balance, expressing confidence in progress toward profitability. With $80 million raised through a Nasdaq IPO in January and $55 million in current liquid assets, Freightos aims to navigate these challenges and reach profitability with its existing capital.