Afternoon. My name is Ian Arroyo, and I'm the Chief Strategy Officer for Freightos. In my role, I'm responsible for group strategy, M&A, executive relationships across our network, and I'm excited to be here today. So thank you for joining me. I first got my start, a little bit about me, I first got my start in logistics and supply chain in 2010. At that time, I was working in a startup that I co-founded for the U.S. military and the Department of Defense, where we were doing supply chain and logistics for nonstandard items for U.S. special operators downrange.
We built a platform to enable operators to be able to reach back, find the things that they needed, and actually track those things all the way down to theater. Fast forward, I helped build that and scale it and went into travel tech, where I was working with a company in Tel Aviv that was building infrastructure for the hotel space across names that you would know, like Booking.com and Expedia and others. We scaled that up and had the privilege of meeting Zvi Schreiber. Zvi is our founder and CEO over coffee.
Had the opportunity to join Freightos in 2019 and in 2021 joined the executive team. Haven't looked back since. It's been an incredible journey, and I'm excited to share that with you today. Zvi is a serial entrepreneur. He is a computer science PhD, exited quite a few companies, and back in 2010, he was the CEO of a hardware company called Lightech, and that company was shipping hardware out of China on an almost every day basis.
And what he found as a computer scientist and a technologist, right, it really shocked him that he couldn't actually manage freight or logistics online. Everything was offline. He was sending faxes to get a price. He was sending faxes to make a booking. And he at that moment said, "If and when I'm done with this, we're going to build something for the industry." And fast forward to 2012, he exited Lightech, and he started Freightos with the vision of becoming the Booking.com, if you will, for global freight. And so we're going to talk a little bit about that. Disclaimer, disclaimer.
Today, we continue to build the digital booking platform for global logistics. Think of us as a three-sided network or a double-sided marketplace where we not only focus on one segment of the industry, but we build solutions and interact and transact with the carrier community. What is a carrier, an asset owner, like an airline or a steamship line or a trucking line? We work with the freight forwarders and support the freight forwarders. What is a freight forwarder? Think of them like the orchestrators of global freight.
These are names like DSV, Kuehne + Nagel, DB Schenker before they were bought by DSV, UPS on the logistics side, not the parcel side, and then shippers, so shippers are the importers and exporters of the world. Anybody as small as, "Hey, I'm going to sell mugs on Amazon out of my grandma's basement," all the way to the Targets and Walmarts of the world, so again, three-sided network, double-sided marketplace for liquidity. Global freight is a $600 billion business today. That is the estimated worth in 2024. About $150 billion of that in air freight, $350 billion of that in ocean freight.
The crazy part is 90% of that is offline, completely offline, with about 10% of that $600 billion actually transacted digitally. We estimate that 2% of the 10% that's digital is actually platformized. That leaves a tremendous amount of opportunity for a digital platform like Freightos in an addressable market to capture the growth in digital bookings. The market can be broken into kind of two pieces. One is spot. The other is contract, where contract is typically procured on an annual basis by very, very large companies, and the other 40%-50% is spot.
Freightos has historically really focused on the spot market, which is approximately $300 billion a year. There's tremendous room for platforms in this industry. We are the digital backbone for global freight procurement. I want you guys to think about, as you look at this slide, right, think about the $33 trillion in goods that move globally across carriers, forwarders, and shippers in an offline world. You can imagine how cost-inefficient it is and how slow reactivity can be to what is happening in the market at any given time, especially if you look at your Twitter feeds these days.
So think about ocean carriers trying to sell to freight forwarders and shippers, all offline, Excel spreadsheets, phone calls, still fax machines, lots of emails. Air carriers trying to sell to freight forwarders so that freight forwarders can turn around and go sell to shippers, importers, and exporters, all, again, offline, manually, phone calls, and thousands of Excel spreadsheets. And shippers who just want to actually get their goods booked and moved and know that they're going to arrive on time.
This is where the opportunity for a platform across the industry really brings tremendous value because this offline world is incredibly inefficient and not able to respond to what's happening given the geopolitical environment of today in supply chain. Transaction growth is our leading indicator. In 2020, we were doing maybe a couple of hundred transactions a quarter, and fast forward to 2024, end of 2024, we did over 1.3 million. And if you look at our plans for 2025, you can see that that's growing.
That growth has been very steady, very forecastable, and you can see the stickiness of the platform as we engage across the carrier network, the forwarder network, and the shippers. As the industry and platforms bring the industry, like Freightos brings the industry online, think about that story, that offline inefficient story for $33 trillion in goods. All of a sudden, you can start to imagine how effective and efficient capital can be across the industry. So Freightos is not just a transaction-based platform.
One of the key differentiators between Freightos and some of the other players in the industry is that we provide mission-critical SaaS solutions to carriers, to freight forwarders, and to shippers across rate management, sales portals. We built United Cargo's sales portal and back end for distribution, tender management, procurement management, and market intelligence like the Freightos Baltic Index, which is publicly traded for container hedging in the industry today. Think about a freight forwarder. We work with 19 of the top 20 global multi-billion-dollar freight forwarders.
They use us to quote on a daily basis to their customers directly in platform, to book, to rate, to tender to their customers. And on the shipper side, names that you would know, like Puma or British American Tobacco, who are using us to manage their tender relationships, their procurement relationships across the industry, in addition to the market intelligence and benchmarking. It's a tremendous opportunity for us to embed into our customers' daily operations, not just be a transactional-based platform. What's unique about this triple-sided network or double-sided marketplace is let's think about travel for a second, which is very akin to logistics and freight.
However, a box doesn't walk itself on a cargo plane and walk itself through customs like you and I do or check in and out of their hotel room. And so if you think about travel for a second, and on the supply side, you have Amadeus and Sabre as kind of the historical supply side distribution capabilities and Booking.com and Expedia on the demand side. What's unique about Freightos is we're different from travel in that we take those two layers and unify them into a single platform to ensure that there's effectiveness and efficiency across the players in the industry and not keeping those things separated.
Okay. Freightos is ingrained across the value chain. Today, the carriers that are on platform fully integrated via APIs for digital distribution represent over 70% of global capacity in the air world and a significant portion of ocean capacity. All of that capacity may not be currently bookable, but you can see the adoption and the engagement just by the sheer volume of carriers that are represented on platform. We talked about that offline picture for $33 trillion of goods moving in an offline Excel spreadsheet fax-based manner.
Today, as the adoption has ramped up of the Freightos platform, you can see how many forwarders and shippers are using the platform on an every day basis, not just for transactions, but also to manage their operations. That represents over 20,000 unique buyer users on platform every single day buying and selling freight and growing, and our focus continues to be on building that liquidity out, right, so we are continuing to bring more carriers on in the ocean space, in the airline space, in the trucking space, more freight forwarders across the globe, and more unique buyers on the shipper side, both SMB all the way to enterprise, one of the key lagging indicators is adoption of the platform on the freight forwarding side, so what you see on the bottom left-hand side is the beginning of eight different cohorts.
These cohorts go back to Q2 of 2022 and then extend out to Q2 of 2025. What I want you to pay attention to here is that over eight quarters, the freight forwarding cohorts grow between 3x-5x in their transactional volume over eight quarters and then continue growing after that. So you can see that as a forwarder comes on, they start to recognize the efficiencies gained, the direct cost reduction and savings, and the ability to go after their direct portfolio and indirect portfolio in near real-time or real-time instead of the old way of doing business, which today, for many freight forwarders and carriers, a quote can take three days, four days, not a couple of hours, not even a couple of minutes.
All freight forwarders in this chart, it's all freight forwarders that started transacting on platform and using the platform in that quarter. Potentially, but it depends on, you have to look at the limitation factors of the industry as a whole, right? So that's something we can discuss afterwards. On the airline side, as airlines integrate into the platform, they also see tremendous quarter-on-quarter growth, with some airlines experiencing up to 10x growth over the course of eight quarters as well.
Why? Because as the airlines go online with their capacity, they're getting real-time visibility back and feedback back from the market on their pricing, their coverage, their product offering. And they can make adjustments in near real-time or real-time to that to begin to adjust to what is happening in the market, which also allows them to grow their share of wallet. As I mentioned earlier, continuing to build the liquidity, what does that mean? Right? We're focused on increasing the types of transactions in the platform. So what types of transactions would that be?
Bringing on less than truckload, also known as LTL. Why would we do that? There's plenty of that, especially in the US market from a marketplace perspective. It's so that airlines can actually offer a door-to-door service instead of just an airport-to-airport service. They can actually offer first mile and last mile. Interlining. What is interlining? Where a carrier like British buys from Caribbean Airlines for a Miami to Curaçao route so that British can actually offer to their clients, their core clients in the UK, a London to Curaçao route instead of just a London to Miami route, and so this is going online.
This is the first time ever in the industry that something like that has gone from teams of people in the back office making phone calls and sending emails to fully virtual between them. Combinations of buyers and sellers increasing that. Forwarder delegation. What does that mean? Forwarders operate in agency networks. I'm a forwarder. I have five or six offices, but I work globally. So I have agents, trusted agents that I work with. And typically, in an offline world, I would pick up the phone and send lots of emails and ask them to book on my behalf or make decisions on my behalf.
Now, I can allow them to work inside of my ecosystem and never pick up the phone, and I see everything that's happening in real time. And then deeper integrations with the millions of transactions that are going through the platform today. We're able to build AI models for dynamic pricing for our freight forwarding and our airline and ocean liner customers, which allows us to become even stickier to our clients. Let's talk about monetization for a second. Our monetization is broken into two key segments: solutions, which is our SaaS and data subscriptions.
Those are priced annually, and that represents two-thirds of our revenue today. And then platform revenue, which is transactions. Transactions is growing. It's a third of our revenue. We expect long-term that transactions will far overtake our SaaS revenue. Then we are on track to hitting profitability in Q4 of 2026, over $30 million cash in hand today. You can see that our adjusted EBITDA loss is declining, and we're fully funded to hit break-even in Q4 of next year. To recap, $600 billion market, almost completely offline, more than 90% of it offline, and only 2% of what's digital platformized.
Freightos is a unique triple-sided network, double-sided marketplace operating across the industry. We've created a core competitive advantage of a network that has been built over a decade across the carriers and the forwarders and the shippers, and that cannot be easily replicated. You can see that we're very sticky and integrated into the day-to-day operations of our clients. We're not just a transaction-based platform.
Our clients are using us across the globe every single day to ensure that their operations are on time, effective, and efficient, and you can see that as transactions have grown over time and the cohort growth has grown over time, that each transaction is adding additional liquidity. Each product type that goes into the platform adds additional liquidity. This, from an investment perspective, gives you guys the ability to say, "Okay, this is not just something that can be switched out very easily transaction to transaction. This is an embedded platform inside of the global logistics market." Thank you very much for your time. Yes, questions. We have three minutes.
Just a quick question. So when you talk about transaction growth, how does that relate to revenue growth? Is it one-for-one? Do you get leverage? And then how does it impact your margins as your transactions grow?
Yeah, great question. I missed that on one of the slides, so apologies. The transaction, the way our transactions are set up, right, is there are different transaction types for carriers, for forwarders, and for shippers. So the transaction could be a flat fixed fee, right, small amount.
So then as transactions go up, then it's absolutely not one-for-one because it's fixed. Then it can go all the way up to the high single-digit percentage points in transaction fee depending on what type of booking it is, who's doing that booking, volume, those kinds of things. So it's not one-for-one. It depends on where those transactions are coming from.
And then impact margin?
Margins. So margins, our last reports were at 74% non-IFRS margins, and that trend, we expect that trend to continue to go up. Yes, sir.
What percent, like you showed your cohort charts there, how much of your client's business, their volumes are going through your platform? Like, is it 10% of what they're doing is going through the platform? I'm just trying to get a sense of where you are in growing in that existing within those cohorts.
So it's a great question. Remember, I mentioned the difference between contract and spot. Today, the vast majority of capacity that's sold digitally is not contract volume. It's spot volume. And that has to do with the business models of the airlines and the ocean liners. And that's something that we expect will begin to come online and has begun to come online, but will really begin to come online over the course of the next 12 to 24 months. So when we talk about what percentage is going through the platform from a transaction base, it's almost 100% spot. So it doesn't touch necessarily any of the contract volume.
Spot or a percentage of the?
Percentage. It's a percentage. It depends on where we are in the world. So in some markets like Spain and Europe, we have a very high concentration and significant percentages in the high teens, whereas in other markets, we have less because they haven't fully gone digital.
Last one.
Last minute. Yes, sir.
You are currently classified as a foreign filer. Do you have any intentions of filing as a U.S. filer?
No, not at this time.
Where are you listed? Cayman.
We're listed here, but we're in Cayman. We're listed on the Nasdaq CRGO.
Why in Cayman?
It was a decision that was made based on we were originally in Israel. And so that was a decision that was made at the time. 10 seconds.
The freight forwarders, most of your business is freight forwarders, right? What's the biggest single sort of obstacle to greater adoption going from 10% to 11% to 12%? Is it that you don't do the whole value chain? You don't do customs, you don't do pickup and deliveries? What do you think?
The limfac is how much capacity is available and how much of the differentiated products is available from the actual providers, the actual asset owners like the airlines and the ocean liners. So today, right, dangerous goods, high-value goods, most of the contract capacity, right, is not available on platform because they're also, as they're digitizing, they're also pulling their business model along, their historical business model along with them, which is a very distributed and decentralized business model.
And so as they're pulling those different pieces out from a country level or a region level back into headquarters and into these new distribution systems and they open that up, that continues the growth. So it's not that the forwarders are not willing to continue to grow. They're asking for contract. They're asking for dangerous goods. They're asking for all of those things. And they're going to their airline counterparts and saying, "This is something you need to do." And product types, yes. Coverage, capacity, product types.
And that's what we're working very closely with the airlines on to help them bring that from the old business model of decentralized local to an online centralized distribution. And then you mostly have very good results. We are growing the ocean side as the ocean liners are coming online. So as each ocean liner comes online, we're bringing them fully into the platform as well. Cool.
Thank you guys so much. I'm happy to hang out for a couple of minutes if anybody has any questions, but thank you very much for your time.