Ruthie Amaru:
So, the capability to combine both static rates from non- digitized players side by side with digital players is a key
part of our competitive edge, and it allows us to create a extensive network of carriers, forwarders, importers, and exporters, and thats Freightos.
Eytan Buchman:
Okay. Our final question today, why is your GBV
so much higher than revenue? Are you actually ready to go public with a projected $20 million in gap revenue? Zvi, I think thats a good one for you to take.
Zvi Schreiber:
Okay, well, some quick background. There are
actually two main ways for a marketplace business to account for its revenues, gross and net. The traditional freight forwarders, and indeed the newer digital freight forwarders and digital brokers, they take responsibility for providing the
service, and so they book the revenue gross. In other words, they recognize as revenue, even the revenue that they pass through to the carriers. Now, Freightos has a strategy of being a vendor- agnostic platform, and in most cases, we do not take
responsibility for the logistics services. Were a platform where the buyers and sellers meet and transact, but we are not responsible for providing the service in any way. Because of that strategy, we also take a conservative view and we
dont recognize any pass-through revenue, even if the payment is handled by a platform. As a result of that policy, our revenue is certainly lower, but our margins are of course, much higher.
Zvi Schreiber:
In order to allow comparison of apples to apples
for our own management and for the market, we do provide some non-gap measures of the size of our marketplace, and most importantly, gross booking value or GBV. Some marketplaces call that GMV, which is the
total value of all the transactions consummated on a platform between, most of it is between third-party buyers and third-party sellers. We also publish gross revenue, which is all the revenue that we collect on our platform, including the
pass-through payments. Overall, we think that GBV is the best measure of the scale of our marketplace, and as GBV scales, inevitably, revenue does follow from that as well.
Zvi Schreiber:
Our GBV is growing fast. We project almost
670 million GBV this year, and over 1.6 billion for next year. Okay. So, I think thats the end of todays presentation. Just to say the Freightos team is very excited to continue to realize our vision of digitalizing
international freight and improving global trade, and to do so soon in public markets. We will continue to apparently communicate with the market at Freightos.com/investors.
Eytan Buchman:
Thank you very much. That concludes the call for
today.
Question received online:
Does Freightos have any
debt?
No, Freightos does not have any bank debt or outstanding loans. We do have bank guarantees to support some of our operating obligations, but
those are not debt. And, like most sophisticated multinational businesses, we hedge currency from time-to-time. We do have an agreement with a bank that will allow
us to borrow up to US$6 million should we choose do so but do not anticipate needing to make any borrowings under that facility.