Freight Technologies Inc. (FRGT) Reports Highest Monthly Increase in New Clients Since Fr8App Platform Inception
Freight Technologies, Inc. (Nasdaq: FRGT) (“Fr8Tech”), a technology company offering its custom-developed Fr8App, an industry-leading freight-matching platform that offers a B2B cloud-base solution for cross-border and domestic shipping within the USMCA region, reports a record increase in the number of new shipper clients added during the month of March 2023.
Following a challenging first quarter of the year “We have onboarded new clients in a variety of sectors including automotive, beverage, motorcycles and consumer goods that we had been working on for some time.,” said Harry Martin, Sales Director for Freight Technologies. “The new shipper clients represent a potential for significant recurring traffic on our platform and include leading first tier automotive clients, renowned motorcycle brands, and cocktail drinks – most of whom are household names. We expect a recurring monthly stream from new accounts to our platform during the month of March of more than $1 million per month, starting to ramp in April.”
Mr. Martin continued, “On the Mexico domestic market, we had confirmations of existing clients for our Fr8fleet business to continue growing through the rest of 2023, and requests for new services from existing shipper clients in the domestic Mexican markets equivalent to almost the entire Fr8fleet 2022 revenue. We have been tirelessly working on getting these key large shipper clients on our platform and we are pleased to announce the signing of a number of key accounts which will help attract carrier activity onto our platform as well. We announced the Kimberly Clark de Mexico multi-year contract earlier this year and anticipate a number of additional announcements in the next 90 days.”
On March 7, Fr8Tech announced the company reached $4.4 million in quarterly revenue for Q4 2022 with YTD 2022 revenue at an impressive $25.9 million, up 20.6% from the prior year. Fr8Tech management also shared its 2023 revenue guidance of $36 million, representing a nearly 40% growth from Fr8App’s 2022 full-year revenue.
Because Fr8Tech did not qualify for a six-month extension to comply with Nasdaq share price requirements, Fr8Tech ordinary shares underwent a 10 to 1 reverse share split to regain Nasdaq compliance with trading post-split beginning as of market open on March 24, 2023. The number of outstanding ordinary shares immediately following the reverse split was 3,271,386. The adjusted capital value of the company, based on shares outstanding following the reverse split and the share price as of close of market on March 31, 2023 of $1.560, was approximately $5.1 million, a 92.2% discount to independent analyst’s target price for the company’s ordinary shares of $20 per share on a split-adjusted basis. This implies a potential upside of over 11X on the closing price of March 28, 2023 of $1.560. The adjusted capital value of the company based on the closing price on March 31, 2023 of $5.1 million amounts to approximately 20.7% of TTM revenues for the year-ended December 31, 2022 of $25.9 million, and is 14.2% of company guidance of $36 million for total 2023 revenues. Both discount percentages are figures that the company believes to be significant discounts to market comparable shares.
The company’s mission is to revolutionize cross-border shipping by providing carriers with increased growth opportunities and shippers with flexibility, visibility and simplicity for the once-complex process of international over-the-road shipping. Fr8Tech anticipates another successful revenue year in 2023 with continued growth of the Fr8App brand, additional revenue sources from complementary brands, along with a boost in the number of shipper client partners across multiple industry sectors.