Transfix Reports Record Third Quarter 2021 Results

Total Revenue increased 76% to $81 million from the third quarter of 2020

Transfix, Inc. (“Transfix”), a leading next-generation digital freight platform, today announced financial results for the three and nine months ended September 30, 2021.

Third Quarter 2021 Financial Results:

• Total Revenue increased 76% to $81 million from the third quarter of 2020.
• Gross Profit increased 160% to $3.9 million from the third quarter of 2020.
• Adjusted Gross Profit ¹ increased 172% to $4.3 million from the third quarter of 2020.
• Gross Profit margin was 4.7%, 150 bps higher than the third quarter of 2020.
• Adjusted Gross Profit margin ¹ was 5.3%, 190 bps higher than the third quarter of 2020.

⁽¹⁾  Adjusted Gross Profit and Adjusted Gross Profit margin are Non-GAAP financial measures, please see “Non-GAAP Financial Measures” below.

2021 Year-to-Date Financial Results:

• Total Revenue increased 73% to $208 million from the same period in 2020.
• Gross Profit increased 173% to $11.8 million from the same period in 2020.
• Adjusted Gross Profit ² increased 187% to $12.9 million from the same period in 2020.
• Gross Profit margin was 5.7%, 210 bps higher than the same period in 2020.
• Adjusted Gross Profit margin ² was 6.2%, 250 bps higher than the same period in 2020.

⁽²⁾  Adjusted Gross Profit and Adjusted Gross Profit margin are Non-GAAP financial measures, please see “Non-GAAP Financial Measures” below.

Recent Highlights:

• Transfix announced its intention to go public through a business combination with G Squared Ascend I Inc. (“G Squared Ascend I”), a special purpose acquisition company sponsored by affiliates of G Squared, a growth-stage venture capital fund manager focused on the technology sector.
• Transfix expanded and strengthened its leadership team with key hires including Sophie Dabbs as Chief Commercial Officer, Rachel Meranus as Chief Marketing Officer, and Nicholas Smolansky as General Counsel and Corporate Secretary.
• Transfix expanded its footprint with an office in Atlanta, a burgeoning hub for technology and logistics, and an epicenter for the movement and distribution of freight.
• Transfix was named to FreightWaves’ FreightTech Top 100, which highlights innovation and disruption in the freight industry, for the fourth consecutive year.
• Transfix earned a “Great Place to Work Certification™”, an honor based on the experiences of current Transfix employees.

Comments on the News:

“Despite continued disruption in global shipping markets, Transfix stayed focused on delivering superior value to shippers and carriers to keep critical supply chains moving. In the third quarter of 2021, we delivered record revenue and volume, while also delivering against many of our core initiatives related to automation and product expansion. These results highlight the positive momentum at Transfix as we continue to focus on sustainable growth while empowering shippers and carriers to move freight as efficiently as possible,” said Lily Shen, President & Chief Executive Officer at Transfix.

“Our solid third quarter results are a testament to the strategic, mission-critical nature of our solutions and the resiliency of our business,” said Christian Lee, Chief Financial Officer of Transfix. “We are excited about the continued momentum in the business and the opportunities for continued investment in future growth.”

Public Listing Process Update:

Transfix’s planned business combination with G Squared Ascend I (NYSE: GSQD), a special purpose acquisition company, continues to progress and is expected to close in the first quarter of 2022.

Transfix Holdings, Inc. filed an initial registration statement on Form S-4 with the U.S. Securities and Exchange Commission (“SEC”) on November 12, 2021. Further updates will be provided to the market as amendments to the Form S-4 are filed, and when the Form S-4 is declared effective by the SEC.

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