George Sutton: Thank you very much.
Operator: Okay, so we have a number of questions that came in writing. The first one is from Greg Pendy from Chardan. Can you talk about the trucking market? And how should we expect you to roll out in the space?
Zvi Schreiber: Sure. So, look, trucking is not a primary market. We really focus on air and ocean and the domestic trucking on its own, you know, if someone is selling, for example, in the U.S. from zip code to zip code or someone’s trucking something from France to Italy, we don’t at this time consider that part of our market. And there are several other companies, who are creating platforms for that area. So that’s a more competitive space. It’s a little bit simpler than air and ocean. And so it’s not a focus for us. We focus on international shipping. We did — I mentioned in the comments, we definitely look at trucking when it’s part of the international. So if someone’s shipping something internationally by air or by ocean, we are interested in the first mile and the last mile, we’re interested in that whole trip end-to-end.
And that’s — but that’s part of the value added service around air and ocean. When it comes to trucking on its own, we do, as it happens, we have some, through our 7L subsidiary, we do have some database of less than truckload rates in the U.S., but that’s really secondary for us. You know, we picked that up through an acquisition, but we’re really competing in air and ocean and in the trucking in as much as it’s part of international freight and domestic trucking or trucking on its own is really a separate industry, an adjacent industry but not one that we’re addressing.
Operator: Okay the next question is for you Ran, I guess, why is EBITDA guidance lower for Q1 than it was in Q4?
Ran Shalev: Yes. So indeed Q4, we were able to close at $3.8 million adjusted EBITDA loss and we are guiding for $3.9 million to $4.2 million. Those are mainly seasonal expenses that are added at the beginning of the year. It’s mainly around some salary adjustments, some hirings in order to support the growth going forward, but those will balance out as we continue with the growth in revenues as per the guidance that we gave.
Operator: Okay. Another question. WiseTech has launched their new airline e-booking platform fully integrated with their TMS? Is the impact already taken into account in the revenue projections?
Zvi Schreiber: Well, in a way, yes, because it’s not new. I mean, WiseTech have got a big market share as an operational sort of transportation management system for freight forwarders. And they’ve been doing some form of e-booking for a few years. And now they’ve announced the more modern version of that. But it’s not news that they’re in that business. And also their market share, you know, so far has been very, very small. We’re much, much bigger than them in e-booking. We’ve also done, I think, a good job of making sure, you know, many of our, many of the freight forwarders who use WebCargo by Freightos are also using WiseTech as their operational system. So we play nice with them. And we think that our customers are happy to use the combination you use us for, what we could at, which is the e-booking, and they use WiseTech as the operational system.
So this is something which has been around for a while, it hasn’t slowed our growth in any way. The customers have been happy to use the combination of the two products. Again, I can’t say for sure what will happen in the future. You know, we don’t know exactly as they update their product if it will become more of an impact or not. But we can just go on what we’re seeing so far, which is that, you know, they’re a good, our products complement each other and they’re not directly taking market share from us in the e-booking.
Operator: Okay, and the last question that we will take is, can you increase your rates this year with existing contracts, carriers and freight forwarders to increase revenue?
Zvi Schreiber: To some extent, you know, we’re always looking every time contracts come up for renewal, we try to see if we can add more value, improve our product, improve our services, improve the richness of our platform, and then use that as a way to persuade the customer to pay a higher price. So that’s something we’re doing on a continuous basis. And again, we have to, you know, we have to earn the higher prices. We can’t just impose them. And I think we’re doing that quite well. We do see most often when booking contracts renew, when SaaS contracts renew, many times we’re able to justify price increase by improving the product. And that’s something we do on a continuous basis. And I think that’s built into the projections that we made for 2024.
Operator: Okay, that concludes today’s call. Thank you everyone for listening in. Have a good day.
