We appreciate your participation in today's virtual event. Up next, we are pleased to introduce Freightos. If you would like to ask a question during the webcast, you may click the Q&A icon button on the right side of your screen. Please type your question into the box and click Send to submit it. At this time, it is my pleasure to hand over the session to Zvi Schreiber, CEO at Freightos, who will lead the presentation. Sir, the floor is yours.
Okay, thank you. Good. Can you just, Pablo or Anat, can you just confirm if you can see my presentation okay?
Yep.
Okay, great. Okay, hi everyone. I'm Zvi Schreiber. I'm the founder and CEO of Freightos. I started the company 12 years ago. I'm a software entrepreneur, so I've got a lot of experience building software companies, but I also got some experience in shipping. For a couple of years, in 2010, 2011, I managed a company that was manufacturing power supplies and shipping regularly from China to the U.S., from China to Europe, by air and by ocean. As an importer and exporter, I was shocked to discover how old-fashioned this industry is. That gave me the idea to create Booking.com for international freight all those years ago. That's what we're doing. We're building the digital booking platform for one of the biggest industries in the world, international shipping, and one of the last industries that doesn't have a digital platform.
It's really a very unique opportunity to build the equivalent of Booking.com for one of the only huge industries that doesn't yet have such a platform. Okay, disclaimer, disclaimer. Because we're a platform, even before we talk about revenue and EBITDA, which are very important, but even before that, we like to talk about how many digital transactions we've enabled. This is a big industry, as I said. It's about, depending how you count, but about a $600 billion industry. That might not surprise you when you walk into a store in America or in Europe, 90% of the goods are imported, 90%. This is a huge part of how the world economy works.
Because we're trying to digitize it, the first thing we look at, even before every quarter, even before we report our financials, we report how many transactions are actually digitalized, how many shipping services were bought and sold on our platform every quarter. In the same way that Booking.com reports how many nights were booked or Uber reports how many rides were booked as a KPI for whether their liquidity is increasing as a platform. You can see the dramatic progress. We went from just 100,000 bookings a quarter three years ago to close to 400,000 in Q1. Progressing very quickly, and we're building quite the network. We've got 13,000 importers and exporters, 4,000 freight forwarders, and 71 carriers, mostly airlines, but also ocean liners. I'll explain more about those companies later. Quite a network.
You can see that we work with FedEx, who are also a strategic investor. We work with almost all of the big airlines, including Qatar, who are a strategic investor and the number one cargo airline in the world. We also work with Turkish and United and American, et cetera, et cetera. And with many of the biggest freight forwarders and many of the biggest importers and exporters. Some that we've got permission to mention the name, Puma, Electrolux, but many, many others who we do not necessarily have permission to mention by name. Okay, of course, financials are important as well. We are growing revenue every quarter as well. You can see the revenue growth here, including the estimate for this year. We were able to reaffirm in our last call, in our last call, we reaffirmed our guidance for the year.
Despite some of the uncertainty going on in the industry with tariffs, et cetera, we still felt comfortable as of our last earnings call to reassure, to reaffirm that. Our EBITDA is increasing every quarter. The only quarter where it did not is when we made an exciting acquisition and we consolidated there a small loss. You can see that EBITDA, other than that one-off event, has been increasing every single quarter and trending to break even. We are still not yet break even because this is a big opportunity. We have cash. We want to invest that cash in growth. We want to invest that cash in research and development, which we are doing. We are doing it in a responsible way. Our investment in operating expenses, including R&D, is basically flat. Our revenue grows every quarter.
Our gross profit margin is high and growing at 74% non-IFRS. We think we can get it to 80% over time. Our profit margin is high and growing. Most of that revenue growth goes straight to the bottom line. OpEx is close to flat. You just have to draw the line and see that by the end of 2026, we should break even with plenty of cash to spare. We are fully funded. We do not see any need to raise money before we break even. Obviously just a huge market opportunity, which is, I think, what makes it exciting for me to invest my time and money here and what makes it exciting for our shareholders. Okay, let me tell you a little bit about the market that we operate in. Some of you may know this, but let me go through it anyway.
There's basically three tiers in this industry. There's the actual carriers, ocean liners, airlines. They're the ones who actually transport the good. Trucking as well. Now, we're not so interested in domestic trucking within the U.S. or within Europe. That's a very important market. There are other players there like Uber Freight and others. That's not our market. We're very interested in trucking when it's part of an international shipment. It's the first mile to a port or airport or the last mile from a port or airport. That's within our wheelhouse. Then you've got the freight forwarders. The freight forwarders are the companies who organize the transportation. It's a big industry. There are 100,000 freight forwarders in the world. The biggest freight forwarders do tens of billions of dollars. You may not know all the names.
The biggest freight forwarders in the world are DSV, Kuehne + Nagel. The biggest ones in the U.S. are Expeditors, C.H. Robinson, who are also a trucking company and also a big freight forwarder. UPS and FedEx also have big freight forwarding divisions separate to their small parcel division. Small parcel goes in their own trucks and planes, but freight does not. You have the actual importers and exporters, and there are millions of them. They are the end customer from our perspective. We do not do any consumer. We are not doing e-commerce to the door. Our customer, our end buyer, is the importing company or the exporting company. Most transactions would involve at least one freight forwarder, but typically two freight forwarders at least, one at the origin, one at the destination. Sometimes there are extra levels. There are a lot of intermediaries.
These dash lines represent the fact that there's emails and phone calls going back and forth in every single transaction. Very old-fashioned in that respect. You can think of the freight forwarders, if you're not familiar, you can think about them a little bit like travel agents. It is more complicated than travel agents because when you buy a ticket, an airline ticket as a passenger from a travel agent or direct, you walk yourself on the plane, you walk yourself off the plane. Cargo doesn't do that. The freight forwarder has to arrange the first mile, they have to arrange the last mile, they have to arrange the customs brokerage and the insurance. That's why it's a more complicated service.
As a result of the fact that you've got all these intermediaries and they're communicating by emails back and forth, you get some of the problems you might expect, although it's kind of surprising to see this nowadays. In our industry, it's still common. We've started to change this. We've started to digitalize. Still, the vast majority of transactions, even today, are offline, which is what gives us big growth opportunities. It's still very common to wait two or three days for a price quote, even like for shipping goods from China to the U.S., which is a major trade lane, thousands of shipments a day. You can still wait two or three days for a price quote. The price quotes are opaque and inconsistent, and they're non-binding. There's always an asterisk saying the invoice in the end basically doesn't match the price quote.
There's underutilization. Whereas passenger planes got very good at selling their seats in the last minute, the lower deck, where they've got the cargo below your feet or dedicated freighter planes as well, are often 50% empty on average. A lot of time going into each shipment, a lot of wasted capacity and therefore also wasted carbon emissions. Okay, let me take a step back and go to 100,000 feet for a second and talk about strategically where we fit into the whole sort of e-commerce mega trend of the last 20, 30 years. I like to say that the first decade of the century, even starting a little bit in the 1990s, was about B2C e-commerce, business to consumer. There were many specific vendors.
Amazon was the most famous, Zappos, many others who made a lot of business and do a lot of business selling online. The biggest winners were the platforms. Amazon themselves pivoted from being a retailer to being a platform. Today, most sales on Amazon are by third-party sellers. They are more of a platform than a retailer in many ways. Booking.com makes a lot more money than the hotels who sell online. Uber makes a lot more money than taxi companies who sell online, et cetera. In the second decade, we then got the domestic B2B going online, many companies like Dell selling online. Some of the biggest winners were the platforms, Magento, Ariba, who got acquired by SAP. Amazon themselves have a small footprint in business to business e-commerce as well. Now, this decade, the 2020s, finally we are seeing global business to business going online.
It's a lot more complicated. It's all about the shipping is the biggest issue, but also customs brokerage and payments and currencies. We're positioning ourselves to be the platform for this third major wave of e-commerce. Okay, what does the product look like? There's a little bit of complexity because there has to be. I like to say that we have two segments. First of all, when you look at our revenue, you'll see just two segments of revenue, platform and solutions. Platform means transactional revenue, where we're matching the buyers and sellers and getting a fee related to the platform. Our platform actually divides into two. For historic reasons, we call one part WebCargo or WebCargo by Freightos. Eventually, we'll call it just Freightos. That brand has a lot of recognition with the freight forwarders, with the airlines.
That connects the airlines and ocean liners to the freight forwarders. I say ocean liners, but most of our volume by far is so far with airlines. The ocean, it took long enough to get the airlines to connect to us digitally, but they did in the last five years very well. We now have most of the big airlines, but the ocean liners are just starting their digital journey, but that will come as well. The second platform, Freightos, connects the freight forwarders to the importers and exporters. That one's a public site. Any importer and exporter can go onto the website and look at it. If you know a little bit about passenger travel, then WebCargo is actually parallel to Sabre or Amadeus. If you're not familiar with those companies, those are big companies, especially Amadeus going back to the 1980s, Sabre even further.
They created the piping and infrastructure for the industry. If you look at, if you're not familiar with Amadeus, but you search through your inbox for Sabre or Amadeus, I bet you'll find that you've got airline tickets if you fly, which were actually in the small print. They were actually issued by the infrastructure of Sabre or Amadeus. You've got Booking.com and Expedia, which I'm sure is familiar to everyone. In our industry, when I started Freightos, we realized as we got going that there is no Sabre or Amadeus. When Expedia started, they plugged into Sabre, I think it was, and they had access to all the airlines. They had the supply online. In our industry, that infrastructure didn't exist.
If you're wondering why it took us quite a few years to build Freightos to even this scale, and it will take more years to become a multi-billion dollar company, part of that is because there was no infrastructure for digital connections. We had to build that ourselves. It took many years to get the airlines and even more years to get the ocean liners to connect. We're finally getting there. On the negative side, it took a lot longer and a lot more capital to build all of this. On the positive side, we have a bigger opportunity even and a bigger moat, a deeper moat, more barriers to competition than Booking.com or Expedia. If you want to connect to Expedia, you can just connect to Amadeus and you have the supply. Then you're still going to get the demand.
In our industry, there isn't a Sabre or Amadeus. We have that in-house. I think that gives us a very unique opportunity to connect end to end. The second segment that we have is called solutions. Solutions means subscriptions, software and data, software subscriptions and data subscriptions. We sell software mainly to the freight forwarders, but also to the importers and exporters and also a little bit to the airlines. Data is a smaller part of our solutions, but it's growing. All of this is very high margin. Just to emphasize, although there's some complexity here, there are different segments and subsegments, it all fits together. It's the same freight forwarders who are buying on WebCargo, selling some of them on Freightos. It's typically the same freight forwarders who are buying our software.
The reason why this will make sense is all these platforms and solutions work together and we sell them in many, many cases to the same customers. Okay, let me tell you a bit about our product portfolio. Again, we're very proud of our transaction growth. That's really the first, if you invest in Freightos, and I hope you do, the first thing you should look at each quarter, even before the financials, is are the transactions growing. We give you some more KPIs, how many buyers, how many sellers. The headline is how many transactions are we succeeding in digitalizing this industry. This is growing fast, but it's still just a small percentage of the world market. There's huge upside left here. Okay, our star performer is the WebCargo for Airlines platform.
This is the one, you know, it kind of looks like what we've had for passengers. You've had websites for 20-something years where you can go and see all of the flights and choose one. In our industry, we are the leading platform. We're not the only, but we're by far the leading platform where freight forwarders can come and do a search and see all of the airline supply in a nice matrix and the different prices and book. This has gone before COVID. This was like zero, very close to zero transactions a day. Now it's thousands of transactions every day, well over a million transactions a year. This is certainly not our only success, but our most obvious success where we've really digitalized air cargo bookings and we keep adding to this the whole time.
We add pretty much every month we're adding an airline and every day we're adding freight forwarders, small freight forwarders every day and big freight forwarders, you know, at least hopefully at least once a quarter or so. Okay, the second thing we do is the second platform. So that's Freightos.com, where we provide, which is a public site. It's, again, it's a place where you can search and book freight. It's air and ocean, but it's also fully multimodal door-to-door. You can book all the way from the factory in China to the door in the United States or from the factory in Bangladesh to the door in Paris with the first mile and the last mile and the customs brokerage and the insurance. Fully digitalized door-to-door. Here we make, we're not growing this as fast as WebCargo intentionally.
Right now, we're putting our resources into growing WebCargo, but we do get a much higher take rate. So we've got further in monetizing this part of the platform. And then there's data. So interesting data came out. We have a lot of exhaust data from our, because we're the biggest booking platform, we see the prices every day. And we started first publishing those prices as a marketing tool. So if you search for our FBX, the Freightos Baltic Index, FBX, you'll see it quoted in the press regularly in the business press. We get a lot of free publicity out of it, but now it's become also something that we monetize and we're getting some growing revenue from it, very high margin revenue.
Interestingly, you can actually trade, still the volumes are tiny, but you can trade futures of our index, of our shipping index on both the CME in Chicago and SGX, the two biggest derivatives exchanges in the world. We have the software for freight forwarders, which is a little bit complicated. I won't go through that. We have the enterprise shipper suite, which is based on an acquisition that we made, which is now called Procure, plus our own booking, plus our own data. This three-legged solution is sold to many of the world's biggest shippers. I'll mention a few of the names on this slide. You can see Electrolux uses it, Louis Vuitton, ABB, Puma, several other very famous names who I don't necessarily have permission to mention. Freight forwarders, we work with 4,000 freight forwarders across 10,000 offices.
Nineteen of the top, there are like twenty forwarders who do a billion dollars and up, roughly. Nineteen of them are customers. And we work with almost all the big airlines in the world. We're missing a couple in Asia, but we work with almost all of them. Very excited by our retention. Each line here is a cohort of freight forwarders who start booking in one particular calendar quarter. We follow, we say, what happens to them the next quarter? Do they book? Do we have attrition? Do we lose them? The answer is not only do we retain virtually all of them, but they book more and more and more. If you go out eight quarters, they're booking 300%, sometimes 500% more. Very healthy. You know, we just have the customer acquisition cost once.
This is ideal behavior for a platform where you bring customers online and they book more and more and more. Same with the airlines. Once the airlines start selling online, they sell more and more and more. Given the time, I want to leave a bit of time for Q&A if possible. Let me hand over to Pablo to say a few words on our financials. Pablo is our CFO, relatively new, joined about four or five months ago. I have pleasure in handing over to him.
Thank you, Zvi. Hi everyone. Just to leave some time for Q&A later. As you can see here, Zvi mentioned the KPIs that we as a platform usually publish every quarter. You see the number of transactions, meaning how many bookings happen in our platform. We are already over 1.3 million at the end of 2024.
How much dollar value goes through our platform, the gross booking value, you know? And we are close to $1 billion already. How many unique buyer users do we have regularly doing bookings in our platform with 20,000? And how many carriers, meaning supply, how airlines and ocean liners that are in our platform, helping us to increase and improve the flywheel, you know, and get the traction? You can move a bit. Looking at how we monetize and the revenue side, you can see the revenues growth that we are getting historically and what we set, what is our guidance for this year, $29.0 million -$30.6 million. That is in line with our long-term model that we put in the market to grow revenues by 25%-30% year on year.
The breakdowns of those revenues, as Zvi mentioned before, the two main lines of product solutions revenue, the SaaS and the data revenue and the platform revenue. The SaaS and solution revenue representing two-thirds of our revenue right now and the platform revenue fee, which is the fees associated to every single transaction. That is the one that in the long term as a marketplace will expand faster and grow faster. Looking at how we monetize our platform, we look at the take rate and growth rate, the two platforms, Freightos.com, which we have a very healthy take rate, and we need to continue to grow the transactions happening in that one. And WebCargo, really well known in the market for the carriers, the airlines, which we have a lower take rate, but a really, really huge growth rate, a really, really fast growth rate.
We need to start improving the take rate in that area. Those are strategic initiatives. Looking at capital efficiency, gross margin evolution, you can see, as we mentioned, we have been over the 74% at the end of Q1 and getting close, and we are planned to get close to 80%. With the way we manage the expenses from a sales and marketing comparing to other platforms with the percentage of GBV, very, very efficient, as you can see on the right side. Really on track from a profitability perspective, we are reducing a bit that quarter over quarter, except the Q4 with the acquisition of SHIPSTAR, as we said. As we said to the market, with the growth trajectory that we have and the investments that we are doing from an OpEx perspective, we are really on track to be cash positive in Q4 2026.
With $36 million on the bank at the end of the quarter. At least they'll be EBITDA positive, right? And then cash positive shortly after, yeah. And $36 million on the bank at the end of the quarter. This is our guidance that we put to the market a few weeks ago. As you can see, we maintain the same guidance for the full year that we did in Q1. We see a very, we see the solid response of the market to our product, you know, even if the difficulties of the market at this stage and growing transactions to 20%-24% for the quarter, year on year growth of GBV of 37%-40% for the quarter, revenues in the lines of 23%-25% and adjusted EBITDA negative 2.9 to negative 2.8.
As I said before, we put a long-term growth model for the years 2025 to 2030, which means that we believe that we're going to be growing 20%-30% per year, the number of transactions and the GBV that goes in our platform, our revenues by 25%-30% year on year, gross profit getting between 70%-80% in a non-IFRS perspective, and the adjusted EBITDA margin, improving 8-12 percentage points per year and turning positive during 2026.
Okay. Good. I think at this stage we can take questions.
Okay. The first question is from Chris. Okay. First of all, ranking.
Go ahead. Who asked the questions? Oh, I see Q&A. Yeah, yeah, yeah. I got it. Sorry. Yes. Thanks. Also, can you comment on insider ownership as well as how much earned by strategic shareholders?
Another question from Chris as well. Yeah, Chris, sure. I'm not going to say exact numbers. You can look them up in our 20F for the year. We have some significant strategic investors who, as of the last report, had been all holding their shares. M&G, which is the largest, I think, fund in the U.K., was known as Prudential U.K., was the biggest investor when we went public through a DSPAC. They remain a big investor and they're on the board of directors and very supportive. Qatar Airways as a strategic investor from the industry. FedEx as an investor, as far as I know, as far as last time we reported, they've been all holding their positions. SGX, actually, the Singapore Stock Exchange, are a major investor. Those are some of the big ones. Me and the team have a significant amount.
I think, if I remember correctly, if you add up all of those sort of major strategic investors, it comes to roughly 50%, but do not quote me on that. You can look it up. There is still a significant amount of the company held by long-term strategic investors. Okay, okay, if I remember coming on, Jalen, we are going to represent a GMV. It is not a great way to compare anything. What matters is revenue profit. There is a percent of revenue estimate as well over 50%. Can you talk about that? Look at what we are spending on sales for a product that should benefit from a flywheel. Yeah, okay. Fair question, Chris. Chris is asking if we have a flywheel effect, why are we spending a lot on sales and marketing?
First of all, I mean, you know, I think that's fairly flat at the moment, even as we're growing. We're not increasing the sales and marketing. There are still always sales and marketing costs. Yes, there is some organic growth. It's quite true, Chris, that if we turned off, if we spent nothing on sales and marketing, the number of transactions might still continue growing based on that cohort chart. You know, we've got to work with the airlines. Those are enterprises. The big freight forwarders are enterprises. They expect visits and relationships. You know, it's not something which you can take for granted. Remember, the sales and marketing, I think, includes a lot of the account management and the ongoing relationship with these big enterprises. Selling to the small shippers, the cohorts there work differently because small shippers come and go.
They sort of, there's much less retention by the nature of the fact that these are small businesses. They go out of business. They pivot. That requires advertising. We spend significant money on Google Ads and other expenses. Yes, some parts of our business actually have a very natural growth, but other parts do require investment. The good news, I still think it's relatively efficient sales and marketing, and we're keeping it pretty flat even as the revenue grows. I hope that answered your questions, Chris. Another question that we're getting asked a lot nowadays is, of course, the impact of, oh, yeah, good. Thanks, Chris. Another question we get asked a lot, of course, is the impact of tariffs, which have been in the news nonstop for the last four months. A few things on that.
First of all, and I think some of the marketers maybe misread this as a big threat to us, and it's not. It has some impact on us for sure. First of all, it does not impact the overall investor thesis. World trade is not going anywhere. Whether it goes up or down a few percent or it shifts from China to Vietnam, still a massive opportunity. The big trend here is digitalization of a massive industry. Tariffs do not change the overall investor thesis or the overall opportunity for us, I would say. In the short term, they do impact us, and they impact us both positively and negatively. On the one hand, you know, there was a time where there was a 145% tariff on China-U.S. just for three weeks, I think, but that reduced volume for everyone on that trade lane.
On the other hand, China U.S. is a relatively small part of our overall platform. And whenever, you know, when China US. is hit, then people are looking for alternatives. So the tariffs can also be a tailwind for us as well as a headwind because people are looking for alternatives. People are looking for data. And so people, you know, a platform benefits in some way whenever there's instability because people are looking for alternatives. So, you know, tariffs can be a headwind and a tailwind, but overall, does not change the, you know, in our opinion, does not change the overall opportunity for us or for our investors. All right, good. I think that brings us to time. So thank you very much. Pleasure talking to you all. If you have any follow-up questions, Anat will be happy to receive your questions. ir@freightos.com, simply ir@freightos.com. Thanks, everyone. Thank you.
Thank you for your beautiful, wonderful presentation. I have learned a lot about the business, you know, especially for the tariffs. So thank you very much, Zvi Schreiber, and Pablo and Anat. Thank you so much.
Pleasure. Bye.
Bye, thanks. Bye.
That concludes Freightos' presentation. You may now disconnect. For details on upcoming presentations, please refer to the conference agenda. Thank you for your participation, and we look forward to welcoming you to the next session.