Freight Technologies, Inc. Reports Financial Results for Fiscal Year 2023
HOUSTON, May 09, 2024 (GLOBE NEWSWIRE) -- 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.
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 impact of the COVID-19 pandemic on Fr8App Inc.'s business, if it should recur; (2) the inability to obtain or maintain the listing of Fr8Tech's ordinary shares on Nasdaq; (3) changes in applicable laws or regulations; (4) the possibility that Fr8Tech or Fr8App Inc. may be adversely affected by other economic, business and/or competitive factors; (5) risks relating to the uncertainty of the projected financial information with respect to Fr8App Inc.; (6) risks related to the organic and inorganic growth of Fr8App Inc.'s business and the timing of expected business milestones; and (7) other risks and uncertainties identified, including those under "Risk Factors," to be filed in Fr8Tech's other filings with the SEC. 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: [email protected] Corporate Communications IBN (InvestorBrandNetwork) Los Angeles, California www.InvestorBrandNetwork.com 310.299.1717 Office [email protected]
