Trade Window Holdings Limited Analysis

Overview

TradeWindow is a software company serving organisations working on the front line of global trade. TradeWindow provides digital solutions for exporters, importers, freight forwarders, and customs brokers to drive productivity, increase connectivity, and enhance visibility.

Performance

The following information was extracted from Trade Window Holdings Limited's half year results, released 23 April 2025:

I'm pleased to report that TradeWindow has delivered a strong finish to the financial year, with continued quarter-on-quarter growth in trading revenue. We have achieved 30% growth, to reach $8 million in trading revenue for the year, above the mid-point of our guidance range that we narrowed to $7.5 million to $8.3 million in October 2024.

Our financial and operational metrics (subject to audit) demonstrate continued cost-efficient growth:

• Trading revenue: $8.0 million, up 30% on the prior year.
• Annual Recurring Revenue (ARR): up 38% on 31 March 2024 to $8.7 million.
• Average Revenue Per Customer (ARPC) (per month): up for both shippers ($2,066) and freight forwarders ($914) at 21% and 43% respectively.
• Profitability: achieved monthly EBITDA break-even during March 2025.
• Customers: up 24 on the prior year to 554.
• Gross Margin: 61%, up seven percentage points on FY24.
• Customer Retention Rate: 87%, down six percentage points on FY24.

We will provide guidance for FY26 (1 April 2025 to 31 March 2026) when we announce our full year results before the end of May 2025.

REVENUE GROWTH

Delivering $8 million in trading revenue for the year is a record both in terms of absolute value and year-on-year organic growth rate. Revenue growth has largely been driven by two factors - the acquisition of new customers in Australia and cross-selling additional solutions to our existing customer base. The effectiveness of these strategies is evident in the robust growth of ARPC, with our shipper segment increasing by 21% to $2,066 per month and our freight forwarder segment by an impressive 43% to $914 per month. We continue to see a substantial opportunity for further expansion through these proven strategies.

Our ARR came in at $8.7 million representing 38% year-on-year growth. As is typical for our business model, ARR runs ahead of trading revenue as it captures anticipated growth from newly acquired customers, calculated by annualising revenues as of 31 March 2025.