Release Date: November 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Why is EBITDA guidance down for Q4 over Q3 despite increased revenue? A: Unidentified_3 (CFO): This is mainly due to two factors. First, we are consolidating Shipa for the entire quarter for the first time, which was only half a quarter in Q3. Shipa is still burning some cash, but we expect it to break even in 2025. Second, we are hiring to support expected growth in 2025, particularly in sales and marketing, which slightly increases EBITDA in Q4.
Q: What does the Trump administration mean for the industry? A: Unidentified_2 (CEO): During the first Trump administration, tariffs did not reduce trade with China or elsewhere. While we can't predict future policies, our focus is on digitizing the industry, which remains largely offline. Even if trade fluctuates, our growth potential remains significant due to the industry's digital transformation needs.
Q: Why is there an increase in gross booking value (GBV) guidance but not in revenue guidance? A: Unidentified_2 (CEO): The increase in GBV is due to strong transaction performance and higher market prices, partly because of the Suez Canal situation and e-commerce demand. However, a significant portion of our platform revenue comes from flat fees per transaction, which aren't directly tied to market prices, limiting the impact on revenue.
Q: Can you provide more information on the early takeaways from the Shipa acquisition? A: Unidentified_2 (CEO): Although it's early, Shipa has closed several purchase orders since the acquisition, and we've initiated cross-selling discussions. These enterprise deals take time, but the integration is progressing well, and customers see the value in the combined offerings.
Q: How might the reopening of the Suez Canal impact next year? A: Unidentified_2 (CEO): Reopening the canal would likely lower ocean prices, which could have a small negative effect. However, it might also increase industry volumes and normalize air cargo patterns, potentially resulting in a slight net positive impact for us.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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