Freight Technologies, Inc. Reports Financial Results for Fiscal Year 2023

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 financial results for the full year 2023, which concluded on Dec. 31, 2023.

Fr8Tech recorded annual revenue for fiscal 2023 of $17.1 million vs. annual revenue of $25.9 million in 2022, a year-over-year decline of 34%. Despite the year-over-year decline in total revenue, the Company was able to increase its cash flow from operations by $2.7 million by improving its working capital requirements and limiting operating expenses. The Company was also able to grow its Fr8Fleet dedicated services by 48% to $3.6 million for the year. The service line secures dedicated carrier capacity for large enterprise companies and it has continued to grow through the first quarter of 2024.

Javi Selgas, CEO of Fr8Tech, commented: “As we’ve discussed before, 2023 was a challenging year for many across the freight industry as participants struggled to find a balance between supply and demand after the COVID-19 pandemic spurred significant disruptions to global supply chains. We weathered the storm by focusing on our core markets and our competitive strength as a data-driven networking solution for the freight industry, and by being selective with our relationships with top-tier customers and carriers. We also continued to invest in Fr8App to make it more intuitive and powerful for our users and extend its capabilities. To that end and to better serve our customers and the industry, we will be announcing additional offerings to bring more end-to-end, process-improving solutions to the freight transportation market. Stay tuned.”

The Company is also reaffirming its 2024 revenue guidance of $25 million to $30 million. With strong underlying economic conditions, most notably increasing near-shoring activity and trade between the U.S. and Mexico, increasing demand for dedicated carrier services, ongoing improvements to Fr8App and new product offerings, the Company is well positioned to achieve its 2024 revenue forecast.

CFO of Fr8Tech, Don Quinby, noted: “While 2023 was a challenging year for our topline, there are some notable highlights. We saw meaningful quarter-over-quarter growth in 2023 since the bottom in Q1, and we’ve now seen two quarters of year-over-year growth in Q4 2023 and Q1 2024, which has been helped by the success of our Fr8Fleet dedicated offering. We also saw improved working capital and operational efficiencies within the business, demonstrated by a $2.7 million increase in our cash flow from operations. We believe we have made significant strides in improving the foundations of the business and are on the right path to achieve robust revenue growth and improve profitability in 2024.”

For more information, please see our most recent 20-F, which includes our audited financial statements for fiscal years 2023 and 2022, recently filed with the SEC.