PETAH-TIKVA,
“The strong results of our first quarter of 2024, which we are reporting today, mark a great start for what we believe is set out to be another pivotal year for Global-e,” said
Q1 2024 Financial Results
- GMV1 in the first quarter of 2024 was
$930 million , an increase of 32% year over year - Revenue in the first quarter of 2024 was
$145.9 million , an increase of 24% year over year, of which service fees revenue was$68.3 million and fulfillment services revenue was$77.6 million - Non-GAAP gross profit2 in the first quarter of 2024 was
$66.1 million , an increase of 36% year over year. GAAP gross profit in the first quarter of 2024 was$63.3 million - Non-GAAP gross margin2 in the first quarter of 2024 was 45.3%, an increase of 390 basis points from 41.4% in the first quarter of 2023. GAAP gross margin in the first quarter of 2024 was 43.4%
- Adjusted EBITDA3 in the first quarter of 2024 was
$21.3 million compared to$14.5 million in the first quarter of 2023 - Net loss in the first quarter of 2024 was
$32.1 million compared to$43.1 million in the first quarter of 2023.
Recent Business Highlights
- Continued launching brands across geographies and verticals, including:
- Heydude by Crocs, Golf Wang,
Donna Karan andDKNY in the US - La Senza and L’intervalle in
Canada - Hobbs, TM Lewin, Antler, Dryrobe and the homeware brand Soho Home in the
UK Louise Misha ,Gérard Darel , Soeur, Caroll and Repetto inFrance Engelbert Strauss and Marc-Cain inGermany , Pacha inSpain , Costarellos inGreece and Rubato inSweden - Infamous Swim,
Carla Zampatti , Legoe, Bae the Label and Nakedvice inAustralia , Hi mu-mo by Avex and commmonsmart inJapan ,DIY Watch Club inHong Kong , and many others
- Heydude by Crocs, Golf Wang,
- Expanded business with existing brands and brand groups, including:
- Additional markets supported for brands like Adidas and Doen
- Infiniment, an additional brand from the COTY group
- Tap To Style, a new brand by Modes in
Italy - NNormal, a new Spanish brand from the Camper group
- Launched the brand
Imperial Workshop , our first US merchant on the Wix platform - Strategic partnership with Shopify on track:
- Last remaining Enterprise merchants are in the process of migrating to the new native integration
- Deployment of new Checkout Extensibility support progressing as planned
- Growth in Shopify Markets Pro on target, with constant stream of merchants onboarding and volumes continuing to ramp up
Q2 2024 and Full Year Outlook
Global-e is introducing second quarter guidance and is raising the full year guidance as follows:
Q2 2024 | FY 2024 | Previous FY 2024 | |||
(in millions) | |||||
GMV (1) | |||||
Revenue | |||||
Adjusted EBITDA (3) |
1 Gross Merchandise Value (GMV) is a key 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
The call will be available, live, to interested parties by dialing:
1-888-886-7786 | |
International Toll: | 1-416-764-8658 |
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.
The press release with the financial results will be accessible on the Company’s Investor Relations website prior to the conference call.
Non-GAAP Financial Measures and Key Operating Metrics
To supplement Global-e’s financial information presented in accordance with generally accepted accounting principles in
- 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.
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.
The aforementioned key performance indicators and non-GAAP financial measures are used, in conjunction with GAAP measures, by management and our board of directors to assess our performance, including the preparation of Global-e’s annual operating budget and quarterly forecasts, for financial and operational decision-making, to evaluate the effectiveness of Global-e’s business strategies, and as a means to evaluate period-to-period comparisons. These measures are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We believe that these non-GAAP financial measures are appropriate measures of operating performance because they remove the impact of certain items that we believe do not directly reflect our core operations, and permit investors to view performance using the same tools that we use to budget, forecast, make operating and strategic decisions, and evaluate historical performance.
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.
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
This press release contains estimates and forward-looking statements within the meaning of the
About
Global-e (Nasdaq: GLBE) is the world's leading platform enabling and accelerating global, Direct-To-Consumer ecommerce. The chosen partner of over 1,000 brands and retailers across
Investor Contact:
Sapphire Investor Relations, LLC
IR@global-e.com
+1 617-542-6180
Press Contact:
Headline Media
Globale@headline.media
+1 786-233-7684
CONSOLIDATED BALANCE SHEETS (In thousands) | |||||||||
Period Ended | |||||||||
2023 | 2024 | ||||||||
(Audited) | (Unaudited) | ||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 200,081 | $ | 181,866 | |||||
Short-term deposits | 96,939 | 95,520 | |||||||
Accounts receivable, net | 27,841 | 19,423 | |||||||
Prepaid expenses and other current assets | 63,967 | 61,460 | |||||||
Marketable securities | 20,403 | 20,482 | |||||||
Funds receivable, including cash in banks | 111,232 | 80,374 | |||||||
Total current assets | 520,463 | 459,125 | |||||||
Property and equipment, net | 10,236 | 10,607 | |||||||
Operating lease right-of-use assets | 23,052 | 22,236 | |||||||
Long term deposits | 3,552 | 3,514 | |||||||
Deferred contract acquisition and fulfillment costs, noncurrent | 2,668 | 2,939 | |||||||
Other assets, noncurrent | 4,078 | 3,438 | |||||||
Commercial agreement asset | 192,721 | 164,295 | |||||||
367,566 | 367,566 | ||||||||
Intangible assets | 78,024 | 73,022 | |||||||
Total long-term assets | 681,897 | 647,617 | |||||||
Total assets | $ | 1,202,360 | $ | 1,106,742 | |||||
Liabilities and Shareholders’ Equity | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 50,943 | $ | 33,893 | |||||
Accrued expenses and other current liabilities | 107,306 | 77,094 | |||||||
Funds payable to Customers | 111,232 | 80,374 | |||||||
Short term operating lease liabilities | 4,031 | 4,003 | |||||||
Total current liabilities | 273,512 | 195,364 | |||||||
Long-term liabilities: | |||||||||
Deferred tax liabilities, net | 6,507 | 5,083 | |||||||
Long term operating lease liabilities | 19,291 | 18,375 | |||||||
Other long-term liabilities | 1,071 | 1,055 | |||||||
Total liabilities | $ | 300,381 | $ | 219,877 | |||||
Shareholders’ equity: | |||||||||
Share capital and additional paid-in capital | 1,360,250 | 1,377,072 | |||||||
Accumulated comprehensive income (loss) | (1,420 | ) | (1,305 | ) | |||||
Accumulated deficit | (456,851 | ) | (488,902 | ) | |||||
Total shareholders’ equity | 901,979 | 886,865 | |||||||
Total liabilities and shareholders’ equity | $ | 1,202,360 | $ | 1,106,742 | |||||
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) | ||||||||
Three Months Ended | ||||||||
2023 | 2024 | |||||||
(Unaudited) | ||||||||
Revenue | $ | 117,631 | $ | 145,873 | ||||
Cost of revenue | 71,755 | 82,587 | ||||||
Gross profit | 45,876 | 63,286 | ||||||
Operating expenses: | ||||||||
Research and development | 22,896 | 23,538 | ||||||
Sales and marketing | 51,848 | 56,955 | ||||||
General and administrative | 13,139 | 12,054 | ||||||
Total operating expenses | 87,883 | 92,547 | ||||||
Operating profit (loss) | (42,007 | ) | (29,261 | ) | ||||
Financial expenses, net | 2,400 | 3,510 | ||||||
Loss before income taxes | (44,407 | ) | (32,771 | ) | ||||
Income taxes | (1,324 | ) | (720 | ) | ||||
Net earnings (loss) attributable to ordinary shareholders | $ | (43,083 | ) | $ | (32,051 | ) | ||
Basic and diluted net loss per share attributable to ordinary shareholders | $ | (0.26 | ) | $ | (0.19 | ) | ||
Basic and diluted weighted average ordinary shares | 162,631,027 | 166,187,424 | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) | |||||||||
Three Months Ended | |||||||||
2023 | 2024 | ||||||||
(Unaudited) | |||||||||
Operating activities | |||||||||
Net loss | $ | (43,083 | ) | $ | (32,051 | ) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||
Depreciation and amortization | 427 | 512 | |||||||
Share-based compensation expense | 9,712 | 8,711 | |||||||
Commercial agreement asset amortization | 38,153 | 36,296 | |||||||
Intangible assets amortization | 5,160 | 5,002 | |||||||
Changes in accrued interest and exchange rate on short-term deposits | (527 | ) | 369 | ||||||
Changes in accrued interest and exchange rate on long-term deposits | (146 | ) | 68 | ||||||
Unrealized loss (gain) on foreign currency | (584 | ) | 2,726 | ||||||
Accounts receivable | 4,081 | 8,418 | |||||||
Prepaid expenses and other assets | 5,838 | 2,685 | |||||||
Funds receivable | 3,751 | (7,688 | ) | ||||||
Long-term receivables | 386 | 640 | |||||||
Funds payable to customers | (15,970 | ) | (30,857 | ) | |||||
Operating lease ROU assets | 671 | 817 | |||||||
Deferred contract acquisition and fulfillment costs | (157 | ) | (268 | ||||||
Accounts payable | (18,209 | ) | (17,049 | ) | |||||
Accrued expenses and other liabilities | (16,164 | ) | (30,228 | ) | |||||
Deferred tax liabilities | (1,910 | ) | (1,424 | ) | |||||
Operating lease liabilities | (956 | ) | (944 | ) | |||||
Net cash (used in) provided by operating activities | (29,527 | ) | (54,265 | ) | |||||
Investing activities | |||||||||
Investment in marketable securities | (450 | ) | (1,042 | ) | |||||
Proceeds from marketable securities | 399 | 1,012 | |||||||
Investment in short-term investments and deposits | (9,252 | ) | (56,949 | ) | |||||
Proceeds from short-term investments | 29,250 | 58,000 | |||||||
Investment in long-term deposits | (97 | ) | (31 | ) | |||||
Purchases of property and equipment | (342 | ) | (882 | ) | |||||
Net cash (used in) provided by investing activities | 19,508 | 108 | |||||||
Financing activities | |||||||||
Proceeds from exercise of warrants to ordinary shares | 17 | - | |||||||
Proceeds from exercise of share options | 92 | 120 | |||||||
Net cash provided by financing activities | 109 | 120 | |||||||
Exchange rate differences on balances of cash, cash equivalents and restricted cash | 584 | (2,726 | ) | ||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | (9,326 | ) | (56,763 | ) | |||||
Cash and cash equivalents and restricted cash—beginning of period | 211,522 | 268,597 | |||||||
Cash and cash equivalents and restricted cash—end of period | $ | 202,196 | $ | 211,834 | |||||
SELECTED OTHER DATA (In thousands) | |||||||||||||||
Three Months Ended | |||||||||||||||
2023 | 2024 | ||||||||||||||
(Unaudited) | |||||||||||||||
Key performance metrics | |||||||||||||||
Gross Merchandise Value | 703,895 | 929,510 | |||||||||||||
Adjusted EBITDA (a) | 14,485 | 21,260 | |||||||||||||
Revenue by Category | |||||||||||||||
Service fees | 50,353 | 43 | % | 68,258 | 47 | % | |||||||||
Fulfillment services | 67,278 | 57 | % | 77,615 | 53 | % | |||||||||
Total revenue | $ | 117,631 | 100 | % | $ | 145,873 | 100 | % | |||||||
Revenue by merchant outbound region | |||||||||||||||
55,913 | 48 | % | 72,112 | 49 | % | ||||||||||
37,732 | 32 | % | 41,276 | 28 | % | ||||||||||
21,076 | 18 | % | 26,343 | 18 | % | ||||||||||
225 | 0 | % | 316 | 0 | % | ||||||||||
Other | 2,685 | 2 | % | 5,826 | 4 | % | |||||||||
Total revenue | $ | 117,631 | 100 | % | $ | 145,873 | 100 | % | |||||||
(a) See reconciliation to adjusted EBITDA table | |||||||||||||||
RECONCILIATION TO Non-GAAP GROSS PROFIT (In thousands) | ||||||||||
Three Months Ended | ||||||||||
2023 | 2024 | |||||||||
(Unaudited) | ||||||||||
Gross profit | 45,876 | 63,286 | ||||||||
Amortization of acquired intangibles included in cost of revenue | 2,796 | 2,796 | ||||||||
Non-GAAP gross profit | 48,672 | 66,082 | ||||||||
RECONCILIATION TO ADJUSTED EBITDA (In thousands) | |||||||||||
Three Months Ended | |||||||||||
2023 | 2024 | ||||||||||
(Unaudited) | |||||||||||
Operating profit (loss) | (42,007 | ) | (29,261 | ) | |||||||
(1) Stock-based compensation: | |||||||||||
Cost of revenue | 113 | 180 | |||||||||
Research and development | 6,058 | 3,468 | |||||||||
Selling and marketing | 875 | 1,282 | |||||||||
General and administrative | 2,666 | 3,781 | |||||||||
Total stock-based compensation | 9,712 | 8,711 | |||||||||
(2) Depreciation and amortization | 427 | 512 | |||||||||
(3) Commercial agreement asset amortization | 38,153 | 36,296 | |||||||||
(4) Amortization of acquired intangibles | 5,160 | 5,002 | |||||||||
(5) Merger related contingent consideration | 3,040 | - | |||||||||
Adjusted EBITDA | 14,485 | 21,260 |
Source:
2024 GlobeNewswire, Inc., source