Ran Shalev: Yes, sure. So when we’re looking at solutions, which comprises of tools that we’re giving to freight forwarders as well as data subscriptions that we sell to forwarders and to shippers as well, we are seeing nice growth coming from both. We’re not anticipating any slowdown there. We’re thinking that the growth and the momentum would continue. We just launched several months ago the terminal and the indexes. Therefore, we think that now, there’s a lot of traction there, and you should see our momentum of sales continue together with our SaaS tools that the team are managing to increase both the upsell of existing forwarder solutions we give, as well as new customers that are coming along all the time. As for the second question, as for G&A, for the three months that just passed, there was no one-time special expense as far as nothing else.
We were looking at the adjusted EBITDA from our perspective, which eliminates some one-time expenses such as share-based compensation or depreciation, amortization, or reorganization cost that we have had. When you’re taking all those and stripping them down, I think the data — the EBITDA shows improvement versus the previous quarter and continue to improve also next year.
Jason Helfstein: So probably what we’re seeing in our reported results is the impact from higher stock comp on G&A probably?
Ran Shalev: In G&A, correct.
Jason Helfstein: Yes. Okay, thank you.
Anat Earon-Heilborn: Okay. Thanks, Jason. George Sutton, Craig-Hallum.
George Sutton: Zvi, real quick on passenger volumes, in air, you mentioned that there would be a fairly significant increase there. Help us understand the impact on price and the impact on transactions as you see it. Obviously, one other function that we heard pretty loud and clear at FreighTech was smaller shipper shipping sizes. Help us understand through the model how that works for you.
Zvi Schreiber: Hi, George. It was great seeing you as well. Thanks for the event. Yes, I mean, the increased passenger travel in air creates increased capacity but doesn’t affect transactions one way or another. But it obviously puts downward pressure on the price because there’s more supply for the same demand. Fortunately, quite a lot of our booking — quite a lot of our transactional revenue is flattened transaction. Also, a big part of it is percentage, but at least part of it is flat, which doesn’t get affected when the rates are down. It’s only affected by transaction volumes. But when we’re tied to the price, then of course, we are affected by excess supply, which reduces the prices. For next year, of course, tricky to predict the future.
We’ve had quite a lot of turmoil this year in the industry. We see some signs that things are sort of bottoming out. We think next year will be — the prices will be low, but hopefully sort of stable as far as we can tell. So we’re planning based on the assumption that things stay the same, not assuming a recovery, but also not assuming any further reduction in rates.
George Sutton: A couple of things that I think were key points at FreighTech, one was all of the discussion around AI and different use cases. Can you just give us a sense of how you expect AI to play out within your solution? And then also, just give us a sense on the [One Stack] project and what the timeframe looks like for that to come out.
Zvi Schreiber: Yes, George. I mean, for sure, AI is a very important transformative technology in all industries, including us. I’m not ready to give details of the features that we’re releasing with AI. I hope we will be announcing some of those soon, but just to say that we are well on top of that. And our engineers are following closely the new technologies that are available, generative AI and other AI, and starting to put that to good use. I’m not expecting any big dramatic changes for us or for others. I think AI in our industry is more of an incremental tool. We think it will help us to innovate in our products, but we’re not expecting some huge change to our business anytime soon as result of AI. In terms of One Stack, that’s our project — we’ve still got development, still has a history of — we’ve made some acquisitions.
Years ago, we acquired WebCargo and more recently, 7LFreight. We do have different software stacks, a piece of that history of successful acquisitions, and we’re now getting quite serious about the project to bring this altogether. We already have integrations, so those products can really talk to each other. We have started a process, which internally, as you said correctly, internally is called One Stack to literally merge those technologies over the next year or so and really end up with one coherent platform.
George Sutton: One last thing, if I could. You had your first interline booking flight in the past quarter. Can you just give us a sense of the significance of that opportunity?
Zvi Schreiber: Interlining is very significant sooner in the medium term. Now we’re just at the beginning, just doing our signing up of the first airlines as buyers and the first airlines as sellers. Interlining is a bit like [codeshare] for those who are familiar. We’re getting our first transactions dealing with this, so very, very early-stage. In the — and even next year, the numbers will be small. But when you look two or three years ahead, I think there’s two important significances to interlining. One is that it’s incremental transactions and potential transactions with a higher take rate. And the second significance is that interlining allows us to create unique supply on our platform because by combining airlines, we create some routes or routes which other platforms simply don’t have.
And that’s always very important in terms of creating a moat to competition. You really want not just to have — we talked — and I talked in my comments earlier about being a one-stop shop, but we want not just a one-stop shop for all different airlines, but even beyond that, to create some unique combinations and create some routes that nobody else has.
