Freight Technologies Reports Strong Preliminary 2024 Mid-Year Results and Announces Exciting Advances in its Product Offerings
Revenue Growth, Enhanced Profit Margins, and Strategic Software Innovations Highlight Mid-Year Performance
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Freight Technologies, Inc. (Nasdaq: FRGT, “Fr8Tech” or the “Company”), a logistics management innovation company, offering a diverse portfolio of technology-driven solutions that address distinct challenges within the supply chain ecosystem, today announced its preliminary financial results for the first half of 2024, which concluded on June 30, 2024, as well as provided an update on the advancement of its software offerings.
Fr8Tech achieved a notable revenue increase of 6.6% year-over-year, reaching approximately $8.1 million for the first half of 2024. Further, revenue from the Fr8Fleet business grew over 100% compared to the previous year, driven by an 82% jump in shipments. The Company also achieved improved gross profits, which grew 40% year-over-year to $1.0 million, with gross margin percentage climbing 280 basis points to 11.8%.
Looking ahead to the second half of the year, Fr8Tech has revised its full year 2024 revenue forecast, now projected to be in the range of $15 million to $20 million. Javi Selgas, CEO of Fr8Tech, stated, “The strength of economic activity and trade within Mexico, the US, and cross-border regions continues to fuel a dynamic freight market. We are capitalizing on this healthy trading environment by focusing on high-quality, margin-enhancing customers for our core business while also investing heavily in our software solutions. We anticipate these innovations will drive significant value to our customers and improve the Company’s short- and long-term profitability.”
The Company’s portfolio of solutions includes the Fr8App platform for seamless B2B cross-border shipping across the USMCA region; Fr8Now, a specialized service for less-than-truckload (LTL) shipping; Fr8Fleet, a dedicated capacity service for enterprise clients in Mexico; and Waavely, a digital platform for efficient ocean freight booking and management of container shipments between North America and ports worldwide.
Each product is interconnected within a unified platform that centralizes and leverages data across these services, continuously improving our AI models to uncover synergies, further automate processes, and drive greater efficiency and innovation across the supply chain. To that same end, the Company is excited to announce the commercialization of its Transportation Management System (TMS) solution to stakeholders across the industry. It is a major milestone in the Company’s progression as a logistics management innovator and buildout of its suite of offerings.
Fr8Tech’s CFO, Don Quinby, commented, “Fr8Fleet remains a key asset, delivering exceptional value to large enterprises in the competitive Mexican over-the-road (OTR) market. Our commitment to automating and refining our processes since 2021 has bolstered customer retention and contributed to the advancement of our TMS solution, which are designed to help businesses plan, execute, and manage their shipping and logistics operations. These solutions are currently being tested and marketed to several major enterprise clients.”
Fr8Tech’s TMS will serve as a comprehensive digital command center, enabling logistics teams to oversee and optimize the movement of goods with enhanced precision. It will allow companies to track shipments in real-time, select the most suitable carriers, administer delivery routes, communicate with drivers, manage documentation, and integrate with both inventory and billing systems. By automating these processes and delivering actionable insights, our TMS can significantly reduce costs and risks, improve decision-making and operational efficiency, and elevate overall supply chain management performance.
Emphasizing the Company’s strategic visions, Selgas commented, “Our TMS offering is set to deliver the same ease and efficiency that defines the Fr8App platform. With real-time data on carrier capacity, cutting-edge AI pricing tools, premier tracking technology, and seamless API integration with existing systems, we are confident that Fr8Tech’s TMS software will become an indispensable tool for logistics professionals and drive industry-wide innovation.”
Selgas added, “Our TMS development leverages seven years of hands-on experience in the USMCA freight market. Our learnings from encountering and resolving countless challenges, has propelled the creation of a tailored solution that addresses the unique needs of cross-border and Mexico-based logistics. Additionally, the gross margin for selling our TMS as a SaaS solution ranges between 50% and 80%, reflecting the high-value and cost-efficiency of our technology. We are thrilled to have several enterprise customers actively interested in our software, underscoring the growing demand and confidence in our innovative solutions. We look forward to providing further details and ongoing updates on the commercial success of our TMS software in the weeks and months ahead.”