Hello all. Welcome to Freightos' Q1 2023 earnings conference call. My name is Eytan Buchman, and I'm the Chief Marketing Officer at Freightos. A press release with detailed financial results for Q1 2023 was released earlier today and is available at freightos.com/investors. Today, I'm joined by Zvi Schreiber, the CEO of Freightos, and Ran Shalev, Freightos' CFO.
During the call today, Zvi will discuss key strategic and business achievements from Q1 2023. He will be followed by Ran, who will provide our Q1 2023 financial results. We will then return to Zvi for Q2 2023 guidance and for an overview on current market conditions, followed by a brief overview of a newly launched product connecting freight forwarders to multinational retailers and manufacturers from Ian Arroyo, Freightos.com's Chief Commercial Officer. Following the prepared remarks, we'll open the call to questions.
We are sharing slides during this call, we recommend using Zoom instead of dialing in by phone. 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 in the press release, along with additional information regarding these 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.
As I mentioned, we recommend using Zoom's desktop or mobile application to submit questions during the course of the call. If you are using the Zoom client, questions can be submitted in writing during the call by using the Q&A feature in Zoom. If you'd like to ask a live question during the Q&A portion of this webcast, please click Raise Your Hand. If you are dialing in from your phone and not using the Zoom app, you can raise your hand to request to speak by pressing star nine. With that, let me please introduce Dr. Zvi Schreiber, the CEO of Freightos.
Thank you, Eytan, and thank you all for joining. Our mission is to make the international flow of goods smoother by creating a vendor-neutral digital platform for procuring global freight. This mission made significant progress again in Q1, seeing yet another quarter of record transactions, more buyers, more carriers, and many other exciting developments. Crucially, all of our results beat or were in line with the high end of management's expectations. Our total transactions in Q1 grew to 229,000 transactions, double the number of transactions we handled in Q1 2022, and reached $168.7 million of Gross Booking Value. Our take rates in each individual platform segment continued to grow as well, with particularly strong growth on our air cargo booking platform, which remains our fastest growing segment.
Of course, this has all taken place in a contracting freight market, which creates some strong headwinds. I'll address this shortly. The transactions continue to exhibit a strong marketplace growth flywheel of buyers attract sellers attract buyers. Alongside industry-leading carriers available on our platform like Qatar Airways Cargo, Emirates SkyCargo, China Southern Airlines, Turkish Airlines, and LATAM Cargo, some of whom work with us exclusively, we also saw new types of carriers offer capacity on WebCargo by Freightos, such as JetBlue Cargo via AeroNex Cargo, which offers domestic U.S. cargo services, and multiple Chinese master loaders offering import bookings.
While ocean digitalization has lagged behind air cargo digitalization, this quarter also saw early growth of ocean carriers and consolidators offering bookings through our platform. Freightos' growing supply has attracted more buyers, as evidenced by the number of unique users buying on our platform.
In Q1 2023, over 16,000 individual users booked freight services on Freightos, a 29% year-over-year growth. We're also making some significant headway in extending our platform to multinational manufacturers and retailers. Just yesterday, we announced that we've partnered with Electrolux, a major global appliance manufacturer, to enable them to price and book air cargo in real time via their chosen freight forwarders.
This is a powerful example of the full scope of Freightos' platform. Instant tripartite bookings, communications between a supply chain company, their freight forwarders, and airlines. More on this later. On the demand side, another important development has been platform integrations, which mean that our digital infrastructure is getting baked into the industry.
Our air cargo pricing and booking capabilities are now embedded in a growing number of multinational and regional transportation management system, or TMSs, the operating systems that freight forwarders use on a day-to-day basis. For example, a freight forwarder using CargoSoft or DBH in Germany, Synergy in Turkey, Neurored via salesforce.com or others can seamlessly pull real-time rates from airlines and WebCargo and book them right inside of their existing platform.
As I mentioned earlier, this is a cyclical industry, and this year we are obviously facing some significant headwinds in the international shipping industry. For example, ocean freight rates from China to the United States, tracked by our bellwether FBX 01 index, are down more than 90% from their peak. Air rates, as tracked by our FAX Global Freightos Air Index, are down some 40% from their peak.
We're continuing to ensure that Freightos is well positioned to contend with any market condition. Despite these headwinds, we exceeded our guidance for revenue and adjusted EBITDA, posting a 9.9% increase in revenue year-over-year. One other way we're increasing our revenue is our data business, which is part of our solutions segment. In a recent survey we conducted across 200 carriers, freight forwarders, and importers, we found that over 90% of them expect to be as engaged or more with supply chain market intelligence in the wake of the COVID supply chain crisis.
To address this growing need, we've launched Freightos Terminal, which includes unique lane-level pricing and transit time data, access to our air and ocean freight indexes, the Freightos Baltic Index, FBX, and the Freightos Air Index, FAX, and a push feed of market-moving events.
We've seen strong demand for this and already count top-tier organizations like Amazon, Mitsubishi, UPS, and many others as customers. From a revenue perspective, this product is a high profit margin product that nicely augments our platform offering. It has always been our goal to build a capital-efficient business with sustainable profitability, and I believe we're on track to do that. Our market share in the cargo booking space, continued rapid growth of transactions, and current cash on hand, together with our positive unit economics, are positioning us well to execute on this vision. I do believe that the public markets will come to appreciate our positive trajectory and huge total addressable market. Of course, let me reassure you that we will continue to monitor both our burn and our growth carefully, much like we always have, and transparently share progress with you.
With that, let me hand over to our CFO, Ran, after which I will be back to talk about our Q2 guidance and current freight market conditions using our own Freightos Terminal data. Ran?
Thanks, Zvi, thank you to everyone who joined. Here's a brief overview of our Q1 2023 quarterly results. Revenues for Q1 2023 was $4.8 million, an increase of 90.1% compared to Q1 2022, and 11.3% on a constant currency basis. Freightos had an IFRS gross margins of 58.3% compared to 61.7% in Q1 2022, and non-IFRS adjusted gross margins of 65% compared to 66.5% in Q1 of 2022. Note that Freightos had an exceptional high IFRS operating loss of $58 million in the quarter compared to an operating loss of $4.2 million in Q1 of 2022.
This is primarily due to a one-time 46.7 million share listing expense and $3.7 million transaction-related costs related to the SPAC business combination transaction we closed in January. Adjusted EBITDA in Q1 2023 was negative $5.8 million compared to a negative $3.3 million in Q1 2022 due to the cost of being a public company and increased investment in growth. The majority of this investment is in ongoing R&D as well as customer acquisition. On the customer acquisition front, our platform continues to have very strong retention rates on both our platform and solution business and is complemented by both our growing data sales and increased take rates. I want to assure you that we are managing our expenses very carefully with the aim of reaching breakeven with the cash on hand.
To that end, we've already made significant cuts in our hiring plans and expect our cash burn to decline as our revenues increase. Let me hand back to Zvi to give some context for our Q2 2023 guidance.
As I mentioned before, the freight industry has slowed down over the past year. Volumes are down, shipping prices have crashed. Despite the slowdown, we were able to achieve our high end of quarterly guidance. In terms of Q2, we expect to continue to grow the total transactions across our platform, reaching between 239,500 and 244,500 total transactions. This would represent a year-over-year growth rate of approximately 110%. This outstanding growth rate in transactions with only modest capital investment is again a function of a strong marketplace dynamic in which buyers bring sellers bring buyers, and of strong retention due to our excellent value proposition.
We expect to break past the $5 million mark in quarterly revenue with adjusted EBITDA losses of $5.7 million-$6 million for the quarter. As mentioned above, despite market conditions, we reaffirm our expectation for 2023's revenue, adjusted EBITDA, and total number of transactions. That said, given lower freight price levels, we are adjusting our annual guidance for the total GBV, which is the value of those transactions, to between $659 million-$739 million. One of the reason the revenue expectations remain unchanged is that today the majority of our transactions have a fixed fee. As long as our transactions continue to grow as expected, we will be able to meet our financial guidance.
Now is a good time to take a quick look at what the industry looks like today, using our newly launched Freightos Terminal as a window into the sector. We can start with our FBX data and see that rates have fallen significantly since a year ago, with rates to the West Coast now at about $1,400 per 40 ft container, which is known as FEU, and to the East Coast at $2,400 per FEU, both more than 85% lower than last May. In March, West Coast rates dipped to an FBX all-time record low of less than $1,000 per FEU to the West Coast. In April, we could see carriers were able to push rates up to about $1,700 per FEU.
A rebound in demand will likely come when inventories run down and if consumer spending holds up, and as we get closer to peak season. More supply is also coming with new ships, creating a risk for rates. On the Asia to North Europe trade, where importers are likewise dealing with inventory surpluses and falling demand, ocean rates have fallen 87% since a year ago and have been stable at about $1,400 per FEU since mid-March. Transatlantic demand and rates, as seen in purple here, and alongside transpacific rates for comparison proved more resilient. Although they declined to $2,200 per FEU, 78% lower than a year ago, these rates are still about 10% higher than 2019.
In air cargo, the combination of decreased demand and increased capacity as passenger travel recovers and passenger planes get in the air, are both pushing rates down. There is not a lot of optimism for a rebound in demand, at least until peak season in the fourth quarter. The latest IATA volume data from March shows global volumes of shipping continued their long slide and decreased 8% year-on-year and are still 8% lower than back in 2019. Air cargo rates have fallen too, but are still above pre-pandemic levels, probably because of higher fuel costs and labor costs. The Freightos Air Index shows Asia to Europe rates 50% lower than a year ago. Asia to North America rates more than 70% lower than last year, and transatlantic prices 40% lower than last May.
As I said, despite these market conditions, we continue to execute successfully on 1 of the biggest business opportunities in today's world, becoming the digital platform for international freight. I look forward to sharing more progress with you next quarter. I want to touch on one other recent Freightos development. As I mentioned above, yesterday, we announced an industry-first public rollout of an air cargo procurement platform connecting carriers to forwarders and those forwarders to a retailer or manufacturer. We announced that with the launch of Electrolux's air cargo procurement platform. This is a revolutionary offering that connects a full ecosystem for improved efficiency in air cargo procurement.
Of course, we maintain our position as a vendor-neutral platform, and we're doing the same with other freight forwarders who were not in the press release but are working with us, both in the shape of private portals and in forwarder-specific portals. I'm proud that we continue to innovate and expand our technology. Before I turn this call over for questions, let me share a quick video walkthrough of our new Freightos Enterprise offering from Ian Arroyo, who heads up freightos.com.
I wanted to take two minutes to walk you through Freightos Enterprise, our digital global freight procurement platform geared towards multinational importers, exporters, manufacturers, and retailers. As pricing volatility continues and more attention is paid towards both controlling costs and internal governance, the importance of centralized procurement is more important than ever. Combined with carrier and forwarder digitization, it's also something that can be dramatically improved today.
Freightos Enterprise helps global supply chain organizations instantly price and book their door-to-door air cargo via their existing logistics providers, who in turn leverage our platform to access and book with carriers in real time. Using Freightos Enterprise, procurement teams connect directly to their global logistics providers who access real-time airfreight rates and capacity from over 35 global airlines, which collectively represents well over half of global air cargo capacity.
The result is instant door-to-door comparison and booking of all in-shipping options, spanning both contract and spot rates across a company's existing logistics providers. Once they find the right option, they can book in seconds with unprecedented confidence in available capacity, transit times, and pricing. This is backed by powerful governance functionality, workflow management, analytics, and market data. We've seen Freightos Enterprise save multinational organizations significantly on their global air procurement, and we're looking forward to doing the same with other organizations. If you're interested in learning more about how Freightos Enterprise's procurement platform and market intelligence solutions can help improve your supply chain, head to freightos.com/enterprise.
All right. We'll now open the floor for questions. As I mentioned in the beginning, if you are using the Zoom client, please click raise your hand to ask a question. If you're dialing in from a cell phone or telephone, you can press star nine to raise your hand, and when you are given the floor, you can press star six in order to unmute yourself. For those that prefer to submit a question in writing, you can enter it using the Q&A feature on Zoom. If you are participating via dial-in, you can email ir@freightos.com. Our first question comes from Jason Helfstein from Oppenheimer. Jason, your line is open.
There we go. Thanks. Can you hear me?
Yep, we got you.
Great. Okay. Three questions. First, just broadly, how should we think about the consolidated take rate improving over time? I think the full year guide implies it's basically flat with, you know, last year. Just broadly talk about, you know, how you move that up over time. That's the first question. Second question, can you give us some color between platform versus solutions? I think the last time we got that update was the first half of last year. I think platform was about 31% of revenue. Maybe let us know if the mix has changed meaningfully. Lastly, are there any one-time OpEx to call out that, you know, will not be kind of replicated in the second quarter and the rest of the quarters for the year? Thank you.
Okay. Thanks, Jason. We had the take rate, and the solutions versus platform. Just making a note. The OpEx. Jason, in terms of take rate, there's a slightly complicated group of slightly strange dynamic here, and that is that the mix keeps changing. In actual fact, we have two main parts of our platform, freightos.com, which is door-to-door for the shippers, and WebCargo, which is for mostly air cargo for the professional freight forwarders booking. freightos.com already enjoys a high take rate. We don't break out the details, but freightos.com already has enjoyed a high take rate for a while. WebCargo has an improving take rate, but it's still a lot lower. WebCargo is also growing very fast.
The mix, the one with the no take rate keeps becoming a higher proportion because it's growing so strongly, and that brings down the average. You're right. Overall, I mean, this quarter there was an uptick. Overall for the year, we're not expecting a big change in the take rate. That actually belies the fact that although the overall take rate hasn't changed, in each individual business unit, the take rate is good and improving. It's one of those strange situations where it's improving in both business units, but you put them together, and you don't see that improvement because the mix keeps changing in favor of the faster-growing, area of bookings. Does that answer your first question?
If you wanna talk broadly about how you think take rate changing maybe over the next five years.
Well, upwards. You know, what's happening nicely. You know, eventually that mix will even itself out. You know, it's growing in WebCargo, where the take rate is lower because it's a much newer platform. The take rate is growing the whole time in a nice direction. It's grown in that business unit tens of percent from a year ago, it's growing nicely in the right direction. We see the take rate constantly improving because as we expand, we become an important channel for the airlines, and the airlines are willing to, you know, to pay for the valuable distribution that we provide them. You know, when we first started, it was only four years ago, the airlines really.
They kind of saw us as replacing a. They didn't see us as a sales channel. They saw us as a way to replace phone calls and a slight efficiency thing, but there was a limit to how much they were willing to pay for that. Now we've got quite some volume in some where we disclosed that in a few European countries we're already well over 10% of the entire market. We're like 70%, 80% of the digital market and 10% of the entire air cargo market, and that's growing every quarter. You see that in the numbers. You know, we're becoming an important distribution channel for the airlines, and that makes it easier for us to negotiate a fair fee.
Going in the right direction for sure. Regarding solutions versus platform, I think I need to go to Ran-
Sure
With that one. Ran, when do we disclose the breakdown of the revenue into the two segments?
We do it on a yearly basis. Jason, to answer your question, we are seeing a nice trend of moving between solutions to more of a platform, revenues that are seeing as part of our overall revenue.
You're definitely gonna see platform growing faster because that's just the nature of the business. It's got the marketplace flywheel, and we'll disclose the exact breakdown on an annual basis. Regarding the last question, Ran, you correct me if I'm wrong, but I'm not aware of any real OpEx which is we're not expecting any big one-time cost. There was, of course, the cost of going public, but which is now behind us. There was a huge charge for going public, but that's not a cash cost. That's a charge for-
Right
-for taking the-
As we went public in January, obviously our Q1 financials did include some one-time, you know, non-recurring expenses that hit the P&L. You can see them as part of the P&L report that we have provided as well as the adjusted EBITDA tables that we have there. They sum up to about $4 million of one-time expenses relating to the stock transactions, which we would not see in the future.
Thank you.
Okay. Thanks, Jason. Our next question comes from George Sutton at Craig-Hallum. I'm bringing your line now, George.
Is George open?
Yeah. George,
George, you there?
There you are.
I should be there.
Oh, yeah.
Hear that.
I can hear you.
... fourth. Congrats on the Electrolux deal. I wondered if you could just walk us through the pilot process, what they learned, and then just give us a picture into your pipeline of similar type opportunities.
Yeah. Sure. Thanks, George. Yeah, it's interesting. You know, if you're not from the industry, you wouldn't, you wouldn't believe how old-fashioned the process of buying air cargo is. Up to now, when a company like Electrolux wanted to ship something by air, which they, which they do often, they would call or email their freight forwarder. It would wait for a human being to look at it. That human being would then either phone up the airlines, or preferably they'd use you know, our WebCargo platform. They might call back to Electrolux, and it could take a day or two, and say, "Okay.
You know, do you wanna pay more to get it on Tuesday's flight, or do you wanna on Lufthansa, or do you wanna send it on American Airlines on Thursday. They might give them some options. There was some human back and forth for a day or two or sometimes three for every single shipment, and that's still how air cargo is done, believe it or not. It's particularly crazy 'cause air cargo is an expensive product. When people are shipping something by air, it's because it's urgent. I always say in ocean also there's time wasted, but you're anyway gonna wait, you know, weeks for ocean shipping. You waste another couple of days, it's bad. In air cargo it's critical.
This is really a very serious fault in the way the industry has been working, and I think we've finally shown that we can change it. You know, Electrolux with their freight forwarders that they chose, and particularly the one who's chosen to be public about it is FedEx Logistics, but we work with other freight forwarders as well. We're completely neutral in that respect. Those freight forwarders have used our technology to give Electrolux visibility, where they can see the flights and the rates, and they can book it themselves onto, you know, whatever it is, Delta's flight on Friday. Still it's going through the freight forwarder, so there's still a freight forwarder involved, but there's not a freight forwarder involved, there's no freight forwarder human involved in the booking.
The booking is fully end to end from the shipper, as we call it, from the importer or exporter to the freight forwarder to the airline, all instantaneously on our platform. It's really an exciting change. During the pilots, Electrolux found that they saved time and they saved money, and they saved uncertainty. You know, they knew exactly which flight it's gonna be on and when it's gonna take off, when it's land. They got more visibility. Also more agility if they needed to change flight. If they had to make a change, they could do that in seconds. They didn't have to wait for a human being to get back to them. That was great. Yes, there's a nice pipeline now.
I'm not in a position to give any details except to say that we're speaking to a number of other enterprises. We hope the fact that Electrolux very kindly, they've been a good partner for us together with their freight forwarders, particularly FedEx Logistics in this case, they've been willing to go public with the benefit they're getting and we very much appreciate their partnership with that. We hope that them going public yesterday will give a push to several other opportunities which are in our pipeline.
Great. Then, you mentioned early growth in ocean. Could you just give us some more specifics there?
No. I But I want to be careful not to overstate that. I mean, it's still very small numbers. It reminds me of where air was in sort of 2019. You know, back in 2019, which isn't that long ago, we had three airlines. We had, I don't know, you know, we counted the bookings like per week. Now we have thousands of bookings every day, but at that point it was a few dozen per month or something, or I don't remember exactly. But it's that order of magnitude, so it's a nice, you know, it's a nice proof of concept with the ocean. But and it's showing some signs of life. But it's still very small, and it will still take a while.
Honestly, it could take a year or two till that becomes financially significant. Obviously in the long term, it's a huge opportunity. In the long term, it's a bigger opportunity than air, to be honest.
Got you. Finally, you mentioned cuts in hiring plans. I'm just curious if you can give us a sense of any changes that might impact in terms of your strategic and tactical opportunities you're pursuing.
Yeah. You know, we're gonna be there. That's a great question. You know, we have a good sized team. We have about 400 people. There were a few areas which we planned to double down on hire this year. We've decided not to out of, you know, sort of a fiscal caution to make sure that our cash reserves last. The impact will be marginal. You know, we do have a good team. We do have the team that we need to execute. In some areas, we hope to accelerate. Particularly, you know, in development, we hope to put a few more software engineers. Of course there will be some impact. We believe it will not be a major impact.
You know, we'll still do all the things we want to do. Some of them will take a little longer.
All right. Thank you for the time.
Yeah. Thank you, George.
All right. Our next question comes from Brian Dobson of Chardan. Brian, your line is open. Brian, can you hear us? You might need to unmute.
Apologies about that. Thanks for taking my question this morning. Again, congratulations on the Electrolux agreement. That's very exciting. You know, you've covered it here in the Q&A, but I guess one more question would be, what's the feedback been like from that agreement with your air shippers? Are they keen for more of the same?
I think, you know, the feedback's been excellent. I mean, it is a sort of a change, so it's been an adjustment. It's adjustment for the freight forwarders 'cause they're used to having a human being check each shipment before it's passed through to the airline, for example. You know, we went through some iterations. We've been working on this for a while, and there were many lessons learned. For example, you know, we've gotta be careful that, let's say Electrolux or another shipper, you know, who we're piloting with, doesn't go in and book something for tomorrow morning's flight, and maybe the freight forwarder doesn't have enough time to get it to the airport.
We've had to put various checks and balances to make sure now that the forwarder is trusting the shipper to book blindly in some if they want to. They also want us to put in some checks and, you know, some sort of checks to make sure the shipper doesn't book something which isn't feasible on an airline they don't work with or an airport which they think is, e t cetera, et cetera. We've been adding various business rules. You know, we've had to mature this through experience, and that's why we took some time on the pilots. Having said that, once we're done with that, the feedback is excellent across the board. I mean, the shipper, as we call it, the importer or exporter, gets more visibility. They can choose exactly the flight they want.
They can optimize the time or optimize the price. They save time and money, and they get visibility. The freight forwarder, now it's an adjustment for the freight forwarder, but actually once they get experience, they find that they're saving cost because the whole booking process is much more automated, and they're spending less back office costs on human beings, you know, talking to the shipper, talking to the airlines. All of that is automated. It works very well for the forwarder, and it allows the forwarder to provide a differentiated service. There are many freight forwarders out there, and the ones who can offer the shippers this kind of digital air cargo are differentiating themselves by giving a superior service.
The airlines like it as well because they always kind of regretted that the end customer doesn't actually see which doesn't get to choose which carrier it's on. Now there's a lot more visibility. If Electrolux develop a preference for one airline over the other, I'm not saying they do, but if they do, they have that visibility, and they can make that choice. The airlines like the fact that they have more visibility as well. I think, you know, this is a win for everyone. It's taken a long time for the air cargo industry to get there. I think we're gonna see a lot of excitement and expansion around that.
Yeah, certainly exciting. We, you know, we look forward to seeing, I guess the next evolution of this process. Your transaction growth has been impressive. Can you give us an idea of penetration rates within some of the marquee air shipping partners, that you have on the platform?
Yes. That varies. I can give you a vague idea for sure. It varies quite a lot because some of the airlines have given us all the countries and all the products. Some airlines don't give us their are not yet able to digitalize pharma or are not able to digitalize certain countries, or are not able to digitalize weights above 1 ton or 3 tons. There are various limitations. In fact, none of the airlines give us all their capacity. There's always some limitations, but some more than others. That makes the question that you asked a little bit complicated, Brian.
To give you an idea, Western Europe is our best market, the U.S. and Canada are catching up, Asia is still at a much earlier stage. I would think that in some of our best countries like Spain and Germany maybe, we account for up to 30%-40% of bookings for a given airline in the best cases. In our best countries with the best airlines, we may be like 30%-40% of all their bookings. In one or two occasions more. Again, that's the best case. If you go to other countries where we have less, where we're less strong so far, or some of the airlines have given us less capacity, it could be much less than that.
That's just to give you a flavor. The good news is, at least in some countries with some airlines, we've become a very significant, you know, partner and channel. Again, those numbers are just a rough indication, order of magnitude. I'm not reading that. It's not a specific statistic, but it's, I think it's the right order of magnitude.
Yeah. Excellent. Thank you very much.
Thanks, Brian.
Okay. I will move on to some of the questions we had submitted by email or by chat and combine some where it makes sense. I think, Zvi, this first one will be for you. What went better and what went worse with the flotation from your perspective?
Do we know who's asking that or did they not ask them?
That's it. Came from...
They're not asking.
That one's from Michael Stern.
Michael, what went better and worse in the IPO or the de-SPAC process? Look, firstly, we did it. That's not many companies did this year, right? That's a big compliment to our partner, Gesher, Ezra as the CEO and the team at Gesher, and to our, you know, investment bank and our lawyers and we got it done. In some ways, we thought we'd get it done, but I can't tell you how many people told us, you know, "When are you gonna announce the cancellation?" Right? To be perfectly honest, because many SPAC deals were canceled in the last month. Firstly, we did expect it, but it was great to see we got it done.
We got it done at a reasonable cost. We spent, you know, I mean, look, the legal and accounting costs of these deals are very high. We produced a prospectus of hundreds of pages. You know that that's heavy. Relative to other SPACs, you know, de-SPAC transactions, we got it done cheaply. We got it done well. We haven't had any, you know, litigation or anything like that. It's gone well. It got done. Most importantly, the quality of the investors. You know, we had an excellent long-term investment from M&G, which is the biggest or second biggest, you know, financial institution in the U.K.. We got some more strategic investment from Qatar Airways, the biggest airco.
We got, you know, quality investors who are gonna be with us for a long time. That was also really good. Again, all of that in a tough market. Overall, it's been a very successful transaction. The negative side, I don't need to tell you. We found ourselves in the public markets, which are cynical. It's still gonna take us time. I mean, you've seen our share performance. It's not what we hoped. Again, we're focused on the long term, so it doesn't affect us in the short term. We hoped for better, we need to keep telling the story and keep people understanding there's fast growth here.
There's a massive, total, you know, TAM, massive addressable market. We've got real momentum. Even in this cynical market, you know, we need to find, and we are to some extent, and we need to find more investors who care about the long term and care about huge opportunities which are gonna take a few years. I believe we're gonna keep performing consistently and keep telling the story. I believe we'll find the investors. Even in today's cynical markets, we'll find the investors who still believe in a fantastic growth story with huge long-term potential.
Okay. Our next question, I'm gonna combine a couple right here, I think, Ran, this is best for you. What is your current total of cash and money market deposits next to any borrowing? What are our approximate annual public company costs?
Sure. As you all know, and also what was written in the F-4 and the 20-F later on, we have raised slightly above $82 million, which was just what we wanted to raise, even a bit higher according to our business plans. That would be sufficient for us to get to break-even point, not more, not less. We're in good shape there. We had some IPO or, sorry, de-SPAC expenses relating to that, and we've also repaid a small loan that we had with an Israeli bank of $2.5 million. That all brings us to around $60 million of free cash right now.
We don't have any borrowings. This is the current cash that we are at hand right now between money markets and deposits and cash, you know, sitting in the commercial accounts. As for, you know, being public, and that's not cheap as well, as we had mentioned. You know, some of the expenses we've had while going public, but also being public is not cheap between lawyers and accounting and the, you know, insurance which also, you know, was much more than what we had as a, as a, you know, as a not a publicly traded company. All in all, it would be between the $3 million-$3.5 million a year.
Okay. Thanks, Ran. Zvi, this next question-
Thanks, Michael, for those questions.
Yeah. This next question also from Michael. Zvi, given the trend of shippers to acquire or integrate forwarders into their operations with the implication that they're providing door-to-door services, solely using their own operations, does this provide a threat to your effective addressable market?
Interesting question. I'm not sure I would call it a trend that there have been a few cases of big shippers, you know, big retailers or manufacturers who've brought their, brought the logistics in-house. A few well-publicized case, but it's still a teeny proportion. I mean, the vast majority of manufacturers and retailers are using third-party logistics. I don't know if it's a trend or not, but there have been a few cases, a nd you know, honestly, we're agnostic to that. We're happy to work with logistics companies which are in-house. For many years, we've worked with the logistics arm of Inditex's Zara. They've done that in-house for many years, and they've been a customer of ours for many years. I think we're actually indifferent whether the logistics is third-party logistics or in-house.
They still need a booking platform. They still need some of our technology for doing door-to-door pricing. I think either way is great for us.
Okay. Well, seeing that there's no more questions, let me just turn this over quickly to Zvi for some closing comments. Before that, just wanna thank everybody here and remind you that a recording of this webcast will be available on our website at freightos.com/investors. Zvi, over to you.
Well, yeah, just to say thank you all for your time. Thank you for those of you who are investors or taking the time to research and analyze Freightos. Yeah, rest assured that we're working hard to keep growing, even in a tough market. Remember, this industry is cyclical, you know. We've had that. We've been around for long enough. We know there are tougher years. We work hard to grow even during the tough years. Then, you know, next year or the year after, we'll suddenly have a fantastic tailwind as the market goes through an upswing. The, the good news is we're working hard to keep growing through both parts of the cycle. Thank you all.
Thank you, everybody. This concludes, this call.