- Fr8Tech CEO recently wrote a letter to shareholders summarizing the company’s financial milestones and operational successes
- CEO Javier Selgas discussed the company’s robust revenue growth in Q2 2023 as well as the 93% year-over-year increase in its gross margins during the first half of the year
- The company’s commitment to innovation has led to the launch of an LTL offering and the establishment of an AI department
- Fr8Tech has successfully expanded into new markets, completed a number of strategic integrations with third-party solutions, and grown its customer base
Freight Technologies (NASDAQ: FRGT) (“Fr8Tech”), a technology company whose lead product is Fr8App, an industry-leading freight-matching platform powered by artificial intelligence (“AI”) and machine learning, is making substantial strides in the realization of its objectives. In a letter to shareholders, CEO Javier Selgas summarized the company’s recent financial milestones and operational successes that underscore its commitment to achieving continued growth (https://ibn.fm/21HPi).
This growth is reflected in Fr8Tech’s financial results for the second quarter of 2023, which ended June 30, 2023. The company, Selgas wrote, “achieved robust revenue growth, marking a substantial 29% increase compared to the preceding quarter.” Selgas observed the growth attests to Fr8Tech’s “strong market positioning and effective execution of our business strategy.” The company expects to achieve at least an 8% quarter-over-quarter improvement (32% annualized) in revenue for the third quarter of 2023. Remarkably, the Q2 2023 revenue growth came at a time when average freight rates in the U.S. during the first half of calendar 2023 were between 15% and 25% lower than periods in 2022, according to Selgas.
Fr8Tech also reported a 93% year-over-year increase in its gross margin during the first six months of the 2023 fiscal year. “This improvement reflects our successful implementation of sound cost management practices and operational efficiencies, including our decision to discontinue unprofitable segments in various lines,” explained Selgas.
To further bolster its growth prospects, the company has doubled down on innovation, birthing products like the Less-Than-Truckload (“LTL”) shipping offering. According to a July 25 news release, the expansion of Fr8App’s capabilities to include support for LTL shipping was aimed at catering to the growing demands of Fr8App clients importing from Asia (https://ibn.fm/Dj84q). The LTL offering, Selgas highlighted, has garnered a positive response from customers and industry experts alike. “This is a seed that we have planted that we expect to nurture and grow over time and is a line of business that we expect will generate higher margins relative to sales than some of our legacy products,” Selgas continued.
Moreover, in line with its commitment to innovation, Fr8Tech established a dedicated AI department. Led by a team of seasoned experts in the field of AI – including Dr. Umberto León-Domínguez, a specialist in the field of neuroscience research and in innovation and development of digital business and the current Director of AI at Fr8Tech (https://ibn.fm/5Ar8s) – the department is poised to revolutionize how the company approaches supply chain management.
“By harnessing the power of AI, we aim to develop cutting-edge functionalities and tools that will enhance efficiency and internal control, optimize logistics, and unlock unprecedented insights within the supply chain industry,” explained Selgas. “We believe that this strategic initiative will not only solidify our position as industry leaders but also deliver long-term benefits to our stakeholders by streamlining operations, improving our internal control environment, reducing costs, and ensuring our supply chain remains agile in the face of ever-evolving challenges.”
The quest for continued growth has also seen the company successfully expand into new markets, creating additional revenue streams and diversifying its customer base. For instance, the company expanded operations to El Paso, Texas, the second busiest U.S.-Mexico land port, representing about 10% of the total U.S.-Mexico cross-border freight market in the 12 months to August 2021 (https://ibn.fm/bKpAL). In addition, Fr8Tech increased the number of lanes to transport goods to or from Canada.
Fr8Tech has completed numerous strategic integrations with GPS providers, leading tech logistics companies, and numerous other industry partners. For instance, in September, the company announced a new integration with Geotab’s Open API, which is set to provide real-time visibility and improve efficiency for shippers and carriers (https://ibn.fm/Jv9zl).
This followed the May integration with Trucker Tools, one of the most utilized carrier relationship management platforms in the U.S. (https://ibn.fm/7J7Ne), and the June integration with Samsara that enables Fr8App customers to benefit from real-time GPS tracking, streamlined compliance management, and advanced diagnostic reporting (https://ibn.fm/RmEme). These collaborations, Selgas explained, enable Fr8Tech to offer real-time tracking, predictive analytics, and streamlined logistics solutions, solidifying its position as the go-to choice for cross-border shipping needs.
Other notable operational successes Selgas discussed are the company’s move to join the Mexican Association of Cargo Agents (“AMACARGA”) and the expansion of its customer base, which now includes Samsung, Whirlpool, Beat Box, Kimberly Clark, and more.
NOTE TO INVESTORS: The latest news and updates relating to FRGT are available in the company’s newsroom at https://ibn.fm/FRGT
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