Freight Technologies, Inc. Reports 30% Year-over-Year Revenue Growth and Strong Fr8Fleet Volumes for Q1 2024
30% Year-over-Year Total Revenue Growth and 278% Year-over-Year Volume Growth in Fr8Fleet
Freight Technologies, Inc. (Nasdaq: FRGT, “Fr8Tech” or the “Company”), a technology company offering its custom-developed Fr8App, an industry-leading freight-matching platform powered by AI and machine-learning that offers a real-time portal for B2B cross-border and domestic shipping within the USMCA region, today announces its preliminary financial results for Q1 2024, which concluded on March 31, 2024.
Fr8Tech achieved healthy revenue growth of 30% in Q1 2024 over the prior year with approximately $4.3 million in quarterly revenue. This included a 278% year-over-year volume growth within the Fr8Fleet business to approximately 3,400 completed shipments. Q1 is typically the slowest quarter of the year for freight activity, yet the Company was able to secure Fr8Fleet volume growth of 25% sequentially over Q4 2023.
The expansion of Fr8Fleet has required additional investment in the Company’s net working capital, notably with material increases in receivables with certain large, high-quality, enterprise customers. The Company is working closely with such customers to streamline and expedite its billing and collections process to limit future working capital needs. To fund working capital, further new customer acquisitions and continue advancements of Fr8App with additional enhancements and new functionalities this year, the Company is in the process of securing additional credit capacity on its primary revolving credit facility from $5M to $6M.
Don Quinby, CFO of Fr8Tech, noted: “The Company’s addition of its Fr8Fleet offering in 2022 was the right strategic response to the market dynamics of the Mexican domestic OTR freight industry. It has proven to be a highly valued service for large enterprise customers and is a key differentiator for Fr8Tech. The Company’s growth trajectory continues, not just with Fr8Fleet, but also with spot and cross-border shipments. We continue to deepen relationships with existing customers, add new customers, and build carrier capacity while enhancing the capabilities and efficiency of the platform. We are excited for the year ahead.”
With Q1 as a proof point, Fr8Tech remains confident in the current fiscal year. The Company is forecasting 2024 annual revenue of $25M to $30M. Javi Selgas, CEO of Fr8Tech commented, “Underlying economic activity in both Mexico and the US, coupled with ongoing near-shoring activity of US and foreign multinational companies, suggests continued growing demand for domestic and cross-border freight services. We are well positioned to take advantage of this market opportunity, and Fr8Tech team continues to innovate to make market share gains over the coming year.”