NEW
YORK, May 6, 2022 /PRNewswire/ -- Transfix, Inc.
("Transfix" or the "Company"), the Intelligent Freight Platform™,
today announced record financial results for the first quarter of
2022.
First Quarter 2022 Financial
Highlights:
- Total Revenue increased 50% from the first quarter of 2021, to
$90 million.
- Gross Profit increased 28% from the first quarter of 2021, to
$6.0 million.
- Adjusted Gross Profit1 increased 34% from the first
quarter of 2021, to $6.6
million.
(1)
|
Adjusted Gross
Profit is a non-GAAP financial measure. See "Use of Non-GAAP
Financial Measures" below for discussion of this non-GAAP financial
measure.
|
President and CEO Lily Shen said,
"The first quarter of 2022 was another strong quarter for Transfix.
In addition to our strong financial and operating results, we are
continuing to invest meaningfully into our team, brand, and
products, which are deepening our relationships with customers and
carriers. Our platform offers shippers and carriers the flexibility
to navigate today's volatile supply chain environment, and we are
excited about the future as we continue to increase the efficiency
of the freight industry."
Chief Financial Officer Christian
Lee added, "Q1 2022 represents a new quarterly record for
both revenue and adjusted gross profit. These results, and our
continued growth with shippers and carriers, give us continued
momentum going into the remainder of 2022."
Q1 2022
Highlights:
Sets Company Record for Quarterly Revenue and Adjusted Gross
Profit – Transfix sets Company records for quarterly revenue of
$90 million and adjusted gross profit
of $6.6 million.
Brand Launch Illuminates Company's Performance, Service, and
Data-Driven Solutions– Unveiled an enhanced corporate mission,
new website experience, updated brand logo, and more, showcasing
Transfix's leadership and momentum in the new logistics era. It
articulates the Company's dedication to bringing its tech-enabled,
data-powered insights, and passionate experts to empower shippers
and carriers to make smarter, more efficient, and more profitable
decisions at every point. With The Transfix Intelligent Freight
Platform™, the Company's proprietary platform brings together
comprehensive and advanced data modeling, machine-learning
algorithms, intuitive software, and best-in-class freight
experts.
Key Transportation Software & Services Executive,
Matt Butler, Joins Executive
Team– Matt Butler joined
Transfix as the VP of New Business focused on building out
Transfix's software and services as well as identifying new
opportunities for revenue growth. With 20+ years in the supply
chain industry, Butler most recently served as co-founder of an
advisory firm focused on investment strategies for supply chain
technology and previously as the global solutions leader at supply
chain technology company, Blue Yonder. Butler is a recognized
thought leader and digital strategist as well as an experienced
operator and software/service ecosystem expert.
Jeffrey Immelt Joins the Transfix
Board of Directors:
As previously announced, former General Electric Chairman and
CEO Jeffrey Immelt has joined the
Transfix Board of Directors. Immelt has decades of experience
as an executive and director of public companies, and
currently, as a venture partner with NEA, serves on the Board of
Directors of Twilio Inc. ("Twilio"), Bloom Energy Corporation, and
Bright Health Group, Inc. ("Bright Health"), among others. He is
also a member of the Compensation Committees of the board of
directors of Twilio and Bright Health.
Public Company
Update:
As previously announced on September 21,
2021, Transfix has entered into a definitive business
combination agreement with G Squared Ascend I Inc. ("G Squared
Ascend I") (NYSE: GSQD), a special purpose acquisition company
sponsored by affiliates of G Squared, that is expected to result in
Transfix becoming a publicly listed company. Completion of the
business combination is subject to customary closing
conditions.
Financial
Results(1): ($ in
thousands)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
2021
|
Revenue
|
|
$89,602
|
$59,908
|
Purchased
Transportation
|
|
$82,990
|
$54,957
|
Internal Use Software
Amortization(2)
|
|
$643
|
$270
|
Gross Profit
|
|
$5,969
|
$4,681
|
Gross Profit
Margin
|
|
6.7%
|
7.8%
|
Add: Internal Use
Software Amortization
|
|
$643
|
$270
|
Adjusted Gross
Profit
|
|
$6,612
|
$4,951
|
Adjusted Gross
Profit Margin
|
|
7.4%
|
8.3%
|
|
|
(1)
|
See the "Use of Non-GAAP Financial Measures" section
of this release for the definition and a discussion of each
non-GAAP financial measure.
|
(2)
|
Internal use software amortization is included as a
component of technology expense in the statement of
operations
|
Use of Non-GAAP Financial
Measures
This release includes the following non-GAAP financial measures:
adjusted gross profit and adjusted gross profit margin. Adjusted
gross profit and adjusted gross profit margin are non-GAAP
financial measures that management uses in its financial and
operational decision-making and evaluation of operating
performance. Adjusted gross profit is calculated as gross profit
excluding the amortization of internal-use software costs. It is
also calculated as revenue less purchased transportation costs.
Adjusted gross profit margin is calculated as adjusted gross profit
divided by total revenue. Management believes these measures are
important profitability measurements and are useful measures of
Transfix's ability to source and sell services that are provided by
third parties.
Non-GAAP metrics are not calculated in accordance with GAAP and
should not be considered an alternative to any measures of
financial performance calculated and presented in accordance with
GAAP. Other companies may calculate these non-GAAP metrics
differently.
For a reconciliation of each non-GAAP financial measure to the
nearest comparable GAAP financial measure, see "Financial Results"
included above.
About Transfix
Transfix drives modern supply chain impact at scale with its
Intelligent Freight Platform™. By combining enterprise-grade,
machine-learning technology with intuitive software and dedicated
supply chain experts, Transfix is enabling organizations to deliver
with high performance and high reliability, drive long-term
strategy and capacity planning, take empty miles off the road, and
optimize their networks, at scale. Today, Transfix connects
shippers to 28,000+ carriers with real-time, many-to-many freight
matching and the visibility they need to make their supply chains
more efficient and environmentally responsible. Learn more at
Transfix.io.
Investor Relations Contacts:
investors@transfix.io
Media Contact:
Chelsea Horn
Carve Communications
chelsea@carvecomms.com
Important Information and Where to
Find It
In connection with the proposed business combination involving G
Squared Ascend I Inc. ("G Squared Ascend I") and Transfix, Inc.
("Transfix"), Transfix Holdings, Inc. ("Transfix Holdings") has
filed a registration statement on Form S-4, as amended (the
"Registration Statement") with the Securities and Exchange
Commission (the "SEC"). The Registration Statement includes a proxy
statement of G Squared Ascend I and a prospectus of Transfix
Holdings. Additionally, G Squared Ascend I and Transfix Holdings
will file other relevant materials with the SEC in connection with
the business combination. Copies may be obtained free of charge at
the SEC's website at www.sec.gov. Security holders of G Squared
Ascend I are urged to read the proxy statement/prospectus and the
other relevant materials when they become available before making
any voting decision with respect to the proposed business
combination because they will contain important information about
the business combination and the parties to the business
combination and related matters. The information contained on, or
that may be accessed through, the websites referenced in this
communication is not incorporated by reference into, and is not a
part of, this communication.
Participants in the
Solicitation
G Squared Ascend I and its directors and officers may be deemed
participants in the solicitation of proxies of G Squared Ascend I's
stockholders in connection with the proposed business combination.
Transfix and its officers and directors may also be deemed
participants in such solicitation. Security holders may obtain more
detailed information regarding the names, affiliations and
interests of certain of G Squared Ascend I's executive officers and
directors in the solicitation by reading G Squared Ascend I's
Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on
April 13, 2022, and the proxy
statement/prospectus and other relevant materials filed with the
SEC in connection with the business combination when they become
available. Information concerning the interests of G Squared Ascend
I's participants in the solicitation, which may, in some cases, be
different than those of their stockholders generally, will be set
forth in the proxy statement/prospectus relating to the business
combination when it becomes available.
No Offer or Solicitation
This communication is for informational purposes only and is not
intended to and shall not constitute a proxy statement or the
solicitation of a proxy, consent or authorization with respect to
any securities in respect of the proposed business combination and
shall not constitute an offer to sell or the solicitation of an
offer to buy any securities or constitute a solicitation of any
vote or approval, nor shall there be any sale, issuance or transfer
of securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction.
Forward Looking
Statements
The information in this communication may contain statements
that are not historical facts but are "forward-looking statements''
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and within the meaning of "safe harbor" provisions under
the United States Private Securities Litigation Reform Act of 1995.
All statements, other than statements of present or historical fact
included in this communication, regarding G Squared Ascend I's
proposed business combination with Transfix, G Squared Ascend I's
ability to consummate the transaction, the benefits of the
transaction and the combined company's future financial
performance, as well as the combined company's strategy, future
operations, estimated financial position, estimated revenues and
losses, projected costs, prospects, plans and objectives of
management are forward-looking statements. When used in this
communication, the words "could," "should," "will," "may,"
"believe," "anticipate," "intend," "estimate," "expect," "project,"
the negative of such terms and other similar expressions are
intended to identify forward-looking statements, although not all
forward-looking statements contain such identifying words. These
forward-looking statements are based on management's current
expectations and assumptions about future events and are based on
currently available information as to the outcome and timing of
future events. Except as otherwise required by applicable law, G
Squared Ascend I and Transfix disclaim any duty to update any
forward-looking statements, all of which are expressly qualified by
the statements in this section, to reflect events or circumstances
after the date of this communication. G Squared Ascend I and
Transfix caution you that these forward-looking statements are
subject to numerous risks and uncertainties, most of which are
difficult to predict and many of which are beyond the control of
either G Squared Ascend I or Transfix. In addition, G Squared
Ascend I and Transfix caution you that the forward-looking
statements contained in this communication are subject to the
following factors: (i) the occurrence of any event, change or other
circumstances that could delay the business combination or give
rise to the termination of the agreements related thereto; (ii) the
outcome of any legal proceedings that may be instituted against G
Squared Ascend I or Transfix following announcement of the
transactions; (iii) the inability to complete the business
combination due to the failure to obtain approval of the
shareholders of G Squared Ascend I, or other conditions to closing
in the transaction agreement; (iv) the risk that the proposed
business combination disrupts G Squared Ascend I's or Transfix's
current plans and operations as a result of the announcement of the
transactions; (v) Transfix's ability to realize the anticipated
benefits of the business combination, which may be affected by,
among other things, competition and the ability of Transfix to grow
and manage growth profitably following the business combination;
(vi) costs related to the business combination; (vii) changes in
applicable laws or regulations; (viii) rollout of Transfix's
business and the timing of expected business milestones, (ix) the
effects of competition on Transfix's business, (x) supply shortages
in the materials necessary for the production of Transfix's
products, (xi) risks related to original equipment manufacturers
and other partners being unable or unwilling to initiate or
continue business partnerships on favorable terms, (xii) the
termination or reduction of government clean energy and electric
vehicle incentives, (xiii) delays in the construction and operation
of production facilities, (xiv) the amount of redemption requests
made by G Squared Ascend I's public stockholders, (xv) changes in
domestic and foreign business, market, financial, political and
legal conditions, and (xvi) the possibility that Transfix may be
adversely affected by other economic, business, and/or competitive
factors. Should one or more of the risks or uncertainties described
in this communication, or should underlying assumptions prove
incorrect, actual results and plans could differ materially from
those expressed in any forward-looking statements. You should
carefully consider the risks and uncertainties described in the
"Risk Factors" section of G Squared Ascend I's final prospectus
filed on February 8, 2021, and its
Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on
April 13, 2022 and other documents of
G Squared Ascend I filed, or to be filed, including the proxy
statement/prospectus, with the SEC. Additional information
concerning these and other factors that may impact the operations
and projections discussed herein can be found in G Squared Ascend I
's filings with the SEC. G Squared Ascend I's SEC filings are
available publicly on the SEC's website at www.sec.gov.
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SOURCE Transfix