A software vendor splits itself in two
project44, the Chicago-based supply chain visibility company, used its first-half fiscal year 2027 results, announced 12 August 2026, to reveal something more structurally interesting than a growth number: it has spun out a separate company, LSP44, dedicated entirely to selling AI (artificial intelligence) agents and API (application programming interface) infrastructure to third-party logistics providers (3PLs), freight forwarders and brokers. project44 says LSP44 launched profitable from day one and already runs on nine of the world's ten largest logistics service providers.
Splitting out a business unit the moment it becomes profitable is an unusual sequence. Companies more often bundle a new product into the parent brand until it proves itself, then spin it out once it needs its own sales motion or funding story. Here, project44 is framing the split as a deliberate bet that freight brokers and forwarders, the middlemen who arrange shipping on behalf of others, need purpose-built AI tooling distinct from what shippers, the companies moving their own goods, need from project44's core platform.
The growth numbers behind the split
The results themselves were strong enough to justify the spinoff on their own. project44 reported 34 percent year-over-year growth in new annual recurring revenue (ARR) and a 67 percent increase in new logo ARR, meaning revenue from newly signed customers rather than renewals. Net revenue retention, a measure of how much existing customers expand their spending over time, improved by 654 basis points year over year in the quarter. Average contract value for net new customers grew 145 percent year over year to an all-time high, a jump the company attributes partly to two seven-figure deals and its first customer to reach $5 million in annual recurring revenue.
What the AI products actually do
Beyond the top-line figures, project44 detailed specific products built into its platform. An AI analyst called Mo is built to reason over a customer's own shipment data and business rules. In project44's own internal testing, Mo answered operational questions 86 percent faster than a person doing the equivalent work by manually exporting and filtering the same data with the help of Claude Opus 4.8, and project44 says Mo was also more accurate, catching cases where the manual, model-assisted process got a late-rate calculation off by nearly 18 points or badly overstated how many shipments were missing location updates. That is project44's own benchmark of its own product, not an independently audited comparison, but it credits Mo with helping one customer avoid $6 million in detention and demurrage exposure, the fees shippers pay when containers or trailers sit idle too long. An Agentic Workflow Manager is said to cut freight spend by 4 percent and manual coordination work by 70 percent for customers using it. An internal build pipeline the company calls its Agent Factory has reportedly cut the time to deliver a new AI agent workflow from days to hours, with more than 54 agents now deployed across the platform. project44 also pointed to a theft-prevention capability aimed at the estimated $35 billion the industry loses to cargo theft in the United States each year, and said it shipped 72 customer-facing product changes in the quarter that were built using AI-generated code.
Separately, project44 announced that its Real-Time Multi-Modal Visibility Data product has been certified as an SAP Endorsed App and is now sold directly through the SAP Store, feeding live carrier data, positions, predictive arrival times and port conditions into SAP's own Business Network for Logistics. project44 says that data draws on more than 259,000 pre-connected carriers across 186 countries and processes over 700 million carrier events daily. SAP's endorsed-app status is invitation-only and follows a certification process covering security, integration depth and performance, according to project44.
Customers on the record
project44 published named customer quotes alongside the results rather than only company-authored claims. Josh Moss, process lead for global supply chain at Eastman Chemical, said of the platform: "What sets it apart is how configurable the platform is." Doug Cantriel, head of North America transportation at Ford Motor Company, said of the Mo AI analyst: "Mo will help us get there, putting accurate, data-grounded answers directly in the hands of the people who need them." Joel Clum, president of Worldwide Express, described the platform as "the difference between software you adopt and infrastructure you build on." project44 founder and chief executive Jett McCandless said the results "are proof that customers are betting bigger on project44."
What it means in practice
All of these figures come from project44 itself, a private company that does not publish audited financials the way a public company would, so the growth percentages should be read as the company's own characterization of its business rather than independently verified results. That caveat aside, the SAP Endorsed App certification and the named enterprise customers, Eastman Chemical, Ford and Worldwide Express among them, are independently checkable signals that the platform has real deployment beyond a press release. For supply chain and logistics teams evaluating visibility software, the more consequential development may be the LSP44 split itself: it signals that project44 sees freight brokers and 3PLs as a distinct enough buyer, with different enough needs, to warrant a separate product company rather than a feature bolted onto the existing platform. Anyone already evaluating project44 or a competitor for a brokerage or forwarding business should ask specifically about LSP44's roadmap rather than assuming it is covered by project44's existing shipper-facing contracts.
