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.”
About Freight Technologies Inc.
Freight Technologies (Nasdaq: FRGT) (“Fr8Tech") is a technology
company developing solutions to optimize and automate the supply
chain process. Its wholly owned subsidiary, Freight App, Inc.
(Fr8App Inc.), is a B2B cross-border shipping marketplace in the
USMCA region powered by AI and machine learning. Focused on making
shipping transparent and efficient, Fr8App provides carriers with
increased growth opportunities and shippers with flexibility,
visibility and simplicity for the once-complex process of
international over-the-road (OTR) shipping. Fr8App uses its
proprietary technology platform to connect carriers and shippers
and significantly improve matching and operation efficiency via
innovative technologies such as live pricing and real-time
tracking, digital freight marketplace, broker, transportation
management, fleet management, and committed capacity solutions. The
company is headquartered in Houston, Texas. For more information,
please visit fr8technologies.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. Fr8Tech’s and
Fr8App Inc.’s actual results may differ from their expectations,
estimates and projections and, consequently, readers should not
rely on these forward-looking statements as predictions of future
events. Words such as “expect,” “estimate,” “project,” “budget,”
“forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,”
“should,” “believes,” “predicts,” “potential,” “continue” and
similar expressions (or the negative versions of such words or
expressions) are intended to identify such forward-looking
statements.
These forward-looking statements involve significant risks and
uncertainties that could cause the actual results to differ
materially from those discussed in the forward-looking statements.
Most of these factors are outside Fr8Tech’s and Fr8App Inc.’s
control and are difficult to predict. Factors that may cause such
differences include, but are not limited to: (1) the inability to
obtain or maintain the listing of Fr8Tech’s ordinary shares on
Nasdaq; (2) changes in applicable laws or regulations; (3) the
possibility that Fr8Tech or Fr8App Inc. may be adversely affected
by other economic, business and/or competitive factors; (4) risks
relating to the uncertainty of the projected financial information
with respect to Fr8App Inc.; (5) risks related to the organic and
inorganic growth of Fr8App Inc.’s business and the timing of
expected business milestones; and (6) other risks and uncertainties
identified, including those under “Risk Factors,” to be filed in
Fr8Tech’s other filings with the Securities Exchange
Commission.
Fr8Tech cautions that the foregoing list of factors is not
exclusive. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those indicated or
anticipated by such forward-looking statements. Fr8Tech and Fr8App
Inc. caution readers not to place undue reliance upon any
forward-looking statements, which speak only as of the date made.
Fr8Tech and Fr8App Inc. do not undertake or accept any obligation
or undertaking to release publicly any updates or revisions to any
forward-looking statements to reflect any change in their
expectations or any change in events, conditions or circumstances
on which any such statement is based.
Fr8Tech Contact:
Jason Finkelstein
Ignition Investor Relations
investors@fr8technologies.com
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