Freight Technologies, Inc. Preliminary Q1 2023 Revenue 11% below Q1 2022

Freight Technologies, Inc. (Nasdaq: FRGT) (“Fr8Tech”), 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 reports first quarter 2023 revenue for the quarter ended March 31, 2023.

Fr8Tech reported preliminary revenue of $3.3 million for Q1 2023, down from a strong $5.3 million for Q1 prior year 2022. The Q1 year-over-year revenue decline was caused by a temporal decline in capacity available to the Fr8fleet during the first quarter in Mexico versus the prior year, the loss of a key cross-border account during the latter part of 2022 and the discontinuation of a strategic alliance in the US in favor of pursuing higher margin opportunities. As exemplified by a number of leading logistics companies results during the first quarter of 2023, the freight markets during the first quarter of 2023 tended to report lower margins and lower sales versus a year ago period in what is a very challenging market. While the market conditions in 2023 were more difficult than a year ago, and the company struggled with securing carrier capacity, management reiterated that it had its best month of new shipper client additions to its platform during the month of March 2023 and that the remainder of the year looks favorable in comparison to Q1 and to 2022.

Javier Selgas, CEO of Fr8Tech, said, “We had a very good Q1 a year ago. In contrast, this last quarter we had difficulty with securing capacity in a very tight carrier market during Q1 of this year and also suffered from some one-time client losses which makes year-over-year comparisons difficult. We also discontinued efforts to pursue some of our US domestic business in favor of focusing on higher margin and higher growth opportunities in other segments in which we operate which we are convinced is the appropriate tactical move for us at this stage. A selection of our routes in the US showed that rates were on average 25% lower than a year ago whereas our rates in Mexico and cross-border are faring much better. Our sales team has focused on successfully broadening our shipper base and we continue to work to increase our carrier base on Fr8App. Our Fr8Now project is only now starting to show some results and we are confident it will continue to grow throughout the year and into next. As previously announced, in spite of a challenging market so far this year, we are pleased with our record rate of signing up of new shippers in March, which gives us confidence in adjusting our 2023 revenue guidance for the year to $25-$30 million.”