Why Freight Technologies (FRGT) Shares Are Tumbling Today - Freight Technologies (NASDAQ:FRGT)

Transportation logistics company Freight Technologies Inc FRGT reported Q1 2023 preliminary revenue of $3.3 million, down from $5.3 million a year ago.
Revenues decline reflects a temporal reduction in available capacity to the Fr8fleet in Mexico, the loss of a key cross-border account in 2022, and the termination of a strategic alliance in the U.S. for pursuing higher margin opportunities.
Also, the company stated that the freight market is reporting lower margins and lower sales Y/Y due to challenging market conditions. Consequently, the company reduced the 2023 revenue guidance to $25 million-$30 million from $36 million earlier.
Javier Selgas, CEO, commented, "We had a very good Q1 a year ago. In contrast, this last quarter we had difficulty with securing capacity in a very tight carrier market during Q1 of this year and also suffered from some one-time client losses which makes year-over-year comparisons difficult.....Our sales team has focused on successfully broadening our shipper base and we continue to work to increase our carrier base on Fr8App. Our Fr8Now project is only now starting to show some results and we are confident it will continue to grow throughout the year and into next."
Price Action: FRGT Shares are trading lower by 22.2% at $1.55 on the last check Friday.

Why Freight Technologies Shares Are Tumbling Today