Global-E Reports Fourth Quarter and Full Year 2023 Results
Global-e Online Ltd. (GLBE) reports strong financial performance with record GMV, revenue growth, and Adjusted EBITDA in Q4 2023 and FY 2023. Despite market uncertainties, the company remains optimistic about long-term growth.
Positive
Record GMV of $1,189 million in Q4 2023, a 42% YoY increase
Revenue of $185.4 million in Q4 2023, a 33% YoY increase
Adjusted EBITDA of $35.2 million in Q4 2023, a 62% YoY increase
GMV for FY 2023 at $3,557 million, a 45% YoY increase
Revenue for FY 2023 at $569.9 million, a 39% YoY increase
Adjusted EBITDA for FY 2023 at $92.7 million, a 90% YoY increase
Strategic partnerships and new client acquisitions driving growth
Q1 2024 and FY 2024 outlook showing continued growth trajectory
The announcement from Global-e Online Ltd. highlights substantial year-over-year growth in key financial metrics such as Gross Merchandise Value (GMV), revenue and Adjusted EBITDA. The 45% increase in GMV and the 39% growth in revenue indicate a robust expansion in the company's core business operations. Moreover, the significant 90% growth in Adjusted EBITDA suggests improved operational efficiency and profitability. However, the reported net loss for the full year raises questions about the company's cost structure and investment activities. Despite these losses, the optimistic outlook for 2024, with projected increases in GMV and revenue, reflects confidence in the company's strategic direction and market positioning.
From a financial analysis perspective, the improved Non-GAAP gross margin, which expanded by 190 basis points for the full year, is indicative of better cost management and pricing strategies. Investors should consider the implications of these financial results on the company's valuation, liquidity position and future capital allocation. The strong customer retention and net dollar retention rates, alongside the expansion of partnerships and client base, are positive indicators of the company's competitive advantage and market share growth potential.
The e-commerce sector is experiencing a shift towards cross-border transactions and Global-e's performance reflects this trend. The company's strategic partnership with Shopify and the successful integration of their systems demonstrate the importance of technological innovation and platform compatibility in the e-commerce space. The adoption of Open-AI's ChatGPT technology for customer service automation is a forward-thinking move that could set a precedent for customer experience management in the industry.
Global-e's expansion in diverse geographic locations and the addition of prominent brands to their platform underscore the company's strategic focus on diversification and scalability. The outlook for 2024, with GMV expected to continue its upward trajectory, suggests that the company is capitalizing on the growing demand for cross-border e-commerce solutions. Stakeholders should monitor the company's ability to maintain high growth rates in a competitive environment and assess the sustainability of these trends in the long term.
The financial results from Global-e Online Ltd. must be contextualized within the broader macroeconomic environment, which has been characterized by volatility and consumer sentiment fluctuations in 2023. Despite these challenges, the company's performance indicates resilience and an ability to capitalize on the growing e-commerce sector. The macroeconomic uncertainties mentioned by the CEO for 2024, including potential consumer spending shifts and currency fluctuations, could impact cross-border transactions and, consequently, Global-e's operations.
It is essential to consider how changes in international trade policies, taxation and global economic conditions could influence Global-e's business model. The company's strategic investments and the use of advanced technologies may provide a buffer against macroeconomic headwinds. However, investors should remain cognizant of the potential impact of global economic trends on the company's future performance and the e-commerce industry as a whole.
02/21/2024 - 07:00 AM
PETAH-TIKVA, Israel, Feb. 21, 2024 (GLOBE NEWSWIRE) -- Global-e Online Ltd. (Nasdaq: GLBE) the global leader of Direct-To-Consumer cross border ecommerce enablement, today announced financial results for the fourth quarter of 2023 and full year 2023 as well as outlook for the first quarter and the full year 2024.
“We are pleased with the record fourth quarter and full year results, delivering 45% annual growth in GMV, 39% growth in revenues, and 90% growth in Adjusted EBITDA, as well as crossing for the first time the milestone of $1B GMV in a single quarter. In addition, we continued to onboard many new clients across dozens of geographies and made major advances along all our strategic pillars,” said Amir Schlachet, CEO of Global-e. “Despite the volatility in consumer sentiment we witnessed in 2023 and the prevailing uncertainties in macro conditions entering 2024, we remain extremely optimistic regarding our long-term growth prospects and believe we are well positioned to continue on our path of durable and profitable growth in the coming years.”
Q4 2023 Financial Results
GMV1 in the fourth quarter of 2023 was $1,189 million , an increase of 42% year over year Revenue in the fourth quarter of 2023 was $185.4 million , an increase of 33% year over year, of which service fees revenue was $89.9 million and fulfillment services revenue was $95.5 million Non-GAAP gross profit2 in the fourth quarter of 2023 was $79.1 million , an increase of 37% year over year. GAAP gross profit in the fourth quarter of 2023 was $76.3 million Non-GAAP gross margin2 in the fourth quarter of 2023 was 42.7% , an increase of 140 basis points from 41.3% in the fourth quarter of 2022. GAAP gross margin in the fourth quarter of 2023 was 41.2% Adjusted EBITDA3 in the fourth quarter of 2023 was $35.2 million compared to $21.8 million in the fourth quarter of 2022, an increase of 62% year over year Net loss in the fourth quarter of 2023 was $22.1 million FY 2023 Financial Results
GMV1 for the full year was $3,557 million , an increase of 45% year over year Revenue for the full year was $569.9 million , an increase of 39% year over year, of which service fees revenue was $262.2 million and fulfillment services revenue was $307.7 million Non-GAAP gross profit2 for the full year was $244.8 million , an increase of 46% year over year. GAAP gross profit for the full year was $233.6 million Non-GAAP gross margin2 for the full year was 42.9% , an increase of 190 basis points from 41.1% in 2022. GAAP gross margin for the full year was 41.0% Adjusted EBITDA3 for the full year was $92.7 million compared to $48.7 million in 2022, an increase of 90% year over year Net loss for the full year was $133.8 million Recent Business Highlights
Throughout 2023 our existing merchant base continued to stay and grow with us, as reflected in our annual GDR rate of over 97% and NDR rate of 127% Continued to launch with many more brands across geographies and verticals we operate in, including: Glossier , EleVen by Venus Williams and Perfect Moment in the USWhistles and the Harry Potter store by Warner Brothers in the UKMugler, a L’Oreal brand, Jean-Paul Gaultier and Ledger , a leading crypto wallet brand, in FranceZanerobe in Australia, Salt Murphy and Avec Amour in Hong Kong and Retouch in JapanLaunched the Swedish brand - Stellar Equipment, and our first Polish brand - God Save Queens Continued to expand the scope of our business with existing merchants and merchant groups, including adidas, Nobull and The Kooples which added markets to be operated through Global-e, and Kylie Jenner who went live with another one of her brands - KHY Introduced into production our new automated Customer Service Chatbot, based on Open-AI’s ChatGPT technology; automatically handled a significant portion of customer service workload over recent peak trading period Strategic partnership with Shopify remains well on track, post Q4 agreement renewal: Direct (3P) – migration of all our legacy install base onto the new native integration nearing completion; support for Shopify’s new Checkout Extensibility has gone into general availability since January 2024 Shopify Markets Pro (1P) - continue to see encouraging adoption rate post September launch in the US Q1 2024 and Full Year Outlook
Global-e is introducing first quarter and full year guidance as follows:
Q1 2024 FY 2024 (in millions) GMV(1) $875 - $915 $4,590 - $4,830 Revenue $138.5 - $145 $731 - $771 Adjusted EBITDA (3) $16 - $20 $121 - $137
1 Gross Merchandise Value (GMV) is a non-GAAP operating metric. See “Non-GAAP Financial Measures and Key Operating Metrics” for additional information regarding this metric.
2 Non-GAAP Gross profit and Non-GAAP gross margin are non-GAAP financial measures. See “Non-GAAP Financial Measures and Key Operating Metrics” for additional information regarding this metric.
3 Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” for additional information regarding this metric, including the reconciliations to Operating Profit (Loss), its most directly comparable GAAP financial measure. The Company is unable to provide a reconciliation of Adjusted EBITDA to Operating Profit (Loss), its most directly comparable GAAP financial measure, on a forward-looking basis without unreasonable effort because items that impact this GAAP financial measure are not within the Company’s control and/or cannot be reasonably predicted. These items may include, but are not limited to, share-based compensation expenses. Such information may have a significant, and potentially unpredictable impact on the Company’s future financial results.
Conference Call Information
Global-e will host a conference call at 8:00 a.m. ET on Wednesday, February 21, 2024. The call will be available, live, to interested parties by dialing:
United States/Canada Toll Free: 1-877-704-4453 International Toll: 1-201-389-0920
A live webcast will also be available in the Investor Relations section of Global-E’s website at: https://investors.global-e.com/news-events/events-presentations
Approximately two hours after completion of the live call, an archived version of the webcast will be available on the Investor Relations section of the Company’s web site and will remain available for approximately 30 calendar days.
Non-GAAP Financial Measures and Key Operating Metrics
To supplement Global-e’s financial information presented in accordance with generally accepted accounting principles in the United States of America, or GAAP, Global-e considers certain financial measures and key performance metrics that are not prepared in accordance with GAAP including:
Non-GAAP gross profit, which Global-e defines as gross profit adjusted for amortization of acquired intangibles. Non-GAAP gross margin is calculated as Non-GAAP gross profit divided by revenues Adjusted EBITDA, which Global-e defines as operating profit (loss) adjusted for stock-based compensation expenses, depreciation and amortization, commercial agreements amortization, amortization of acquired intangibles, merger related contingent consideration and acquisition related expenses. Adjusted EBITDA is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate directly to the performance of the underlying business. Global-e uses the Non-GAAP measures in conjunction with GAAP measures as part of Global-e’s overall assessment of its performance, including the preparation of Global-e’s annual operating budget and quarterly forecasts, to evaluate the effectiveness of Global-e’s business strategies, and to communicate with Global-e’s board of directors concerning its financial performance. The Non-GAAP measures are used by our management to understand and evaluate our operating performance and trends.
Global-e’s definition of Non-GAAP measures may differ from the definition used by other companies and therefore comparability may be limited. In addition, other companies may not publish these metrics or similar metrics. Furthermore, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Thus, Non -GAAP measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.
Global-e also uses Gross Merchandise Value (GMV) as a key operating metric. Gross Merchandise Value or GMV is defined as the combined amount we collect from the shopper and the merchant for all components of a given transaction, including products, duties and taxes and shipping.
For more information on the non-GAAP financial measures, please see the reconciliation tables provided below. The accompanying reconciliation tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.
Cautionary Note Regarding Forward Looking Statements
Certain statements in this press release may constitute “forward-looking” statements and information, within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including statements or information regarding Global-e’s expectations, operations, strategy and Global-e’s projected revenue and other future financial and operational results or other characterizations of future events or circumstances, including any underlying assumptions. These forward-looking statements may be identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Global-e believes there is a reasonable basis for its expectations and beliefs, but they are inherently uncertain. Many factors could cause actual future events to differ materially from the forward-looking statements in this announcement, including but not limited to, the ability to retain merchants or the GMV generated by such merchants; the ability to attract new merchants; our expectations regarding our revenue, expenses and operations; anticipated trends and challenges in our business and the markets in which we operate; our ability to compete in our industry; our ability to anticipate merchant needs or develop or acquire new functionality or enhance our existing platform to meet those needs; our ability to manage our growth and manage expansion into additional markets; our ability to establish and protect intellectual property rights; our ability to hire and retain key personnel; costs related to being a public company; our ability to adapt to emerging or evolving regulatory developments, technological changes, and cybersecurity needs; our anticipated cash needs and our estimates regarding our capital requirements and our needs for additional financing; impacts from the COVID-19 pandemic, including variants, and related vaccination roll out efforts; and the other risks and uncertainties described in Global-e’s Annual Report on Form 20-F for the year ended December 31, 2022, filed with the SEC on March 31, 2023 and other documents filed with or furnished by Global-e from time to time with the Securities and Exchange Commission (the “SEC”). The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
About Global-e Online Ltd.
Global-e (Nasdaq: GLBE) is the world's leading platform enabling and accelerating global, Direct-To-Consumer cross-border ecommerce. The chosen partner of over 1,000 brands and retailers across the United States, Europe and Asia, Global-e makes selling internationally as simple as selling domestically. The company enables merchants to increase the conversion of international traffic into sales by offering online shoppers in over 200 destinations worldwide a seamless, localized shopping experience. Global-e's end-to-end ecommerce solutions combine best-in-class localization capabilities, big-data best-practice business intelligence models, streamlined international logistics and vast cross-border experience, enabling international shoppers to buy seamlessly online and retailers to sell to, and from, anywhere in the world. For more information, please visit: www.global-e.com .
Investor Contact: Erica Mannion or Mike Funari Sapphire Investor Relations, LLCIR@global-e.com +1 617-542-6180
Press Contact: Headline Media Garrett Krivicich Globale@headline.media +1 786-233-7684
Global-E Online Ltd. CONSOLIDATED BALANCE SHEETS (In thousands) Period Ended December 31, December 31, 2022 2023 (Audited) (Unaudited) Assets Current assets: Cash and cash equivalents $ 165,033 $ 200,081 Short-term deposits 46,353 96,939 Accounts receivable, net 16,424 27,841 Prepaid expenses and other current assets 51,904 63,967 Marketable securities 16,813 20,403 Funds receivable, including cash in banks 78,125 111,232 Total current assets 374,652 520,463 Property and equipment, net 10,283 10,236 Operating lease right-of-use assets 19,718 23,052 Long term deposits 3,225 3,552 Deferred contract acquisition costs, noncurrent 1,825 2,668 Deferred tax assets 171 - Other assets, noncurrent 3,739 4,078 Commercial agreement asset 282,963 192,721 Goodwill and other intangible assets 466,024 445,590 Total long-term assets 787,948 681,897 Total assets $ 1,162,600 $ 1,202,360 Liabilities and Shareholders ’ Equity Current liabilities: Accounts payable $ 52,220 $ 50,943 Accrued expenses and other current liabilities 75,990 107,306 Funds payable to Customers 78,125 111,232 Short term operating lease liabilities 3,245 4,031 Total current liabilities 209,580 273,512 Long-term liabilities: Deferred tax liabilities 6,558 6,507 Long term operating lease liabilities 16,579 19,291 Other long-term liabilities 1,762 1,071 Total liabilities $ 234,479 $ 300,381 Shareholders’ deficit: Share capital and additional paid-in capital 1,253,093 1,360,250 Accumulated comprehensive income (1,926 ) (1,420 ) Accumulated deficit (323,046 ) (456,851 ) Total shareholders’ (deficit) equity 928,121 901,979 Total liabilities and shareholders’ equity $ 1,162,600 $ 1,202,360
Global-E Online Ltd. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) Three Months Ended Year Ended December 31, December 31, 2022 2023 2022 2023 (Unaudited) (Audited) (Unaudited) Revenue $ 139,865 $ 185,401 $ 409,049 $ 569,946 Cost of revenue 84,023 109,080 250,871 336,343 Gross profit 55,842 76,321 158,178 233,603 Operating expenses: Research and development 23,698 25,169 81,206 97,568 Sales and marketing 52,592 58,756 206,100 217,035 General and administrative 14,659 15,451 60,196 56,059 Total operating expenses, net 90,949 99,376 347,502 370,662 Operating profit (loss) (35,107 ) (23,055 ) (189,324 ) (137,059 ) Financial expenses (income), net 217 (5,010 ) 12,093 (5,262 ) Loss before income taxes (35,324 ) (18,045 ) (201,417 ) (131,797 ) Income tax (benefit) expenses (6,853 ) 4,055 (6,012 ) 2,008 Net loss attributable to ordinary shareholders $ (28,471 ) $ (22,100 ) $ (195,405 ) $ (133,805 ) Basic and diluted net loss per share attributable to ordinary shareholders $ (0.18 ) $ (0.13 ) $ (1.24 ) $ (0.81 ) Basic and diluted weighted average ordinary shares 160,589,413 165,626,904 157,691,173 164,353,909
Global-E Online Ltd. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Three Months Ended Year Ended December 31, December 31, 2022 2023 2022 2023 (Unaudited) (Audited) (Unaudited) Operating activities Net profit (loss) $ (28,471 ) $ (22,100 ) $ (195,405 ) $ (133,805 ) Adjustments to reconcile net profit (loss) to net cash provided by operating activities: Depreciation and amortization 570 489 1,585 1,788 Share-based compensation expense 9,112 12,180 38,909 44,960 Commercial agreement asset 37,433 37,433 149,047 150,451 Amortization of intangible assets 6,473 5,091 27,833 20,434 Unrealized loss (gain) on foreign currency (3,451 ) (3,011 ) 7,843 (1,901 ) Changes in accrued interest and exchange rate on short-term deposits (291 ) 72 (291 ) (416 ) Changes in accrued interest and exchange rate on long-term deposits (214 ) (144 ) (931 ) (255 ) Accounts receivable (4,731 ) (14,390 ) 2,662 (11,417 ) Prepaid expenses and other assets (5,813 ) 61 (2,685 ) (11,736 ) Funds receivable 8,874 (9,038 ) 17,097 (11,074 ) Long-term receivables (1,734 ) (1,497 ) (1,279 ) (339 ) Funds payable to customers 7,517 40,817 17,736 33,107 Operating lease ROU assets 1,121 786 3,253 3,230 Deferred contract acquisition costs (77 ) (772 ) (761 ) (1,207 ) Accounts payable 17,873 18,438 16,648 (1,277 ) Accrued expenses and other liabilities 21,440 25,345 20,531 30,625 Deferred taxes (7,999 ) 3,635 (8,178 ) 120 Operating lease liabilities (369 ) 99 (4,359 ) (3,067 ) Impairment of marketable securities 11 - 73 - Net cash generated by (used in) operating activities 57,273 93,494 89,328 108,222 Investing activities Investment in marketable securities - (851 ) (8,298 ) (3,728 ) Proceeds from marketable securities 200 - 8,110 671 Short-term investments, net 21,489 (8,932 ) (4,078 ) (50,169 ) Purchases of long-term investments - (4 ) - (82 ) Proceeds from long-term deposits - 10 - 10 Purchases of property and equipment (370 ) (926 ) (8,352 ) (1,741 ) Payments for business combinations, net of cash acquired (7,519 ) - (317,483 ) - Net cash used in investing activities 13,800 (10,703 ) (330,101 ) (55,039 ) Financing activities Proceeds from exercise of Warrants to ordinary shares 15 - 73 22 Proceeds from exercise of share options 127 244 1,166 1,969 Net cash provided by financing activities 142 244 1,239 1,991 Exchange rate differences on balances of cash, cash equivalents and restricted cash 3,451 3,011 (7,843 ) 1,901 Net Increase (decrease) in cash, cash equivalents, and restricted cash 74,666 86,046 (247,377 ) 57,075 Cash and cash equivalents and restricted cash—beginning of period 136,856 182,551 458,899 211,522 Cash and cash equivalents and restricted cash—end of period $ 211,522 $ 268,597 $ 211,522 $ 268,597
Global-E Online Ltd. SELECTED OTHER DATA (In thousands) Three Months Ended Year Ended December 31, December 31, 2022 2023 2022 2023 (Unaudited) (Unaudited) Key performance metrics Gross Merchandise Value 839,460 1,189,467 2,450,224 3,557,444 Adjusted EBITDA (a) 21,755 35,178 48,703 92,735 Revenue by Category Service fees 62,835 45 % 89,936 49 % 181,887 44 % 262,255 46 % Fulfillment services 77,030 55 % 95,465 51 % 227,162 56 % 307,692 54 % Total revenue $ 139,865 100 % $ 185,401 100 % $ 409,049 100 % $ 569,946 100 % Revenue by merchant outbound region United States 64,100 46 % 94,887 51 % 173,967 43 % 285,619 50 % United Kingdom 48,069 34 % 54,962 30 % 146,562 36 % 173,584 30 % European Union 23,453 17 % 29,421 16 % 78,491 19 % 92,566 16 % Israel 458 0 % 479 0 % 1,357 0 % 1,806 0 % Other 3,785 3 % 5,652 3 % 8,672 2 % 16,371 3 % Total revenue $ 139,865 100 % $ 185,401 100 % $ 409,049 100 % $ 569,946 100 %
(a) See reconciliation to adjusted EBITDA table
Global-E Online Ltd. RECONCILIATION TO Non-GAAP GROSS PROFIT (In thousands) Three Months Ended Year Ended December 31, December 31, 2022 2023 2022 2023 (Unaudited) Gross Profit 55,842 76,321 158,178 233,603 Amortization of acquired intangibles included in cost of revenue 1,917 2,796 9,743 11,183 Non-GAAP gross profit 57,759 79,117 167,921 244,786
Global-E Online Ltd.RECONCILIATION TO ADJUSTED EBITDA (In thousands) Three Months Ended Year Ended December 31, December 31, 2022 2023 2022 2023 (Unaudited) (Unaudited) Operating profit (loss) (35,107 ) (23,055 ) (189,324 ) (137,059 ) (1) Stock-based compensation: Cost of revenue 95 186 262 639 Research and development 5,855 6,962 21,970 26,266 Selling and marketing 665 1,238 3,877 4,259 General and administrative 2,497 3,794 12,800 13,796 Total stock-based compensation 9,112 12,180 38,909 44,960 (2) Depreciation and amortization 570 489 1,585 1,788 (3) Commercial agreement asset amortization 37,433 37,433 149,047 150,451 (4) Amortization of acquired intangibles 6,473 5,091 27,833 20,434 (5) Merger related contingent consideration 3,148 3,040 12,161 12,161 (6) Merger and acquisition related costs 126 - 8,492 - Adjusted EBITDA 21,755 35,178 48,703 92,735
What was Global-e Online Ltd.'s ticker symbol mentioned in the press release?
Global-e Online Ltd.'s ticker symbol mentioned in the press release is GLBE.
What was the GMV for the fourth quarter of 2023?
The GMV for the fourth quarter of 2023 was $1,189 million, representing a 42% year-over-year increase.
What was the revenue for the full year 2023?
The revenue for the full year 2023 was $569.9 million, reflecting a 39% year-over-year increase.
What was the Adjusted EBITDA for the full year 2023?
The Adjusted EBITDA for the full year 2023 was $92.7 million, showing a 90% year-over-year increase.
What are some of the recent business highlights mentioned in the press release?
Recent business highlights include continued merchant growth, expansion with new brands globally, and strategic partnerships like Shopify.
What is Global-e's outlook for Q1 2024 in terms of GMV?
Global-e's outlook for Q1 2024 projects a GMV of $875 - $915 million.