PETAH-TIKVA,
“The results of the third quarter of 2023 once again demonstrate the robustness of our business model, as evident from the top-line growth, improved profitability and our healthy pipeline,” said
Q3 2023 Financial Results
- GMV1 in the third quarter of 2023 was
$839 million , an increase of 35% year over year - Revenue in the third quarter of 2023 was
$133.6 million , an increase of 27% year over year, of which service fees revenue was$62.4 million and fulfillment services revenue was$71.2 million - Non-GAAP gross profit2 in the third quarter of 2023 was
$59.3 million , an increase of 36% year over year. GAAP gross profit in the third quarter of 2023 was$56.5 million - Non-GAAP gross margin2 in the third quarter of 2023 was 44.4%, an increase of 290 basis points from 41.5% in the third quarter of 2022. GAAP gross margin in the third quarter of 2023 was 42.3%
- Adjusted EBITDA3 in the third quarter of 2023 was
$22.1 million compared to$12.5 million in the third quarter of 2022, an increase of 76% year over year - Net loss in the third quarter of 2023 was
$33.1 million
Recent Business Highlights
- Continued to on-board many new merchants located all around the globe and trading in various verticals, including:
- European based brands including
UK fashion brandTed Baker , French brand Lacoste+UNDW3, Spanish brand Polin et Moi and Italian luxury brand Paul & Shark - US based brands such as
Tory Burch , jewelry brandMoon Magic , Guess Watches, women-led fashion brand Frank and Eileen and AG Jeans - APAC based brands including the Australian brands Kotomi Swimwear and Hello Molly, Japanese brands Hobonichi and OAO and Korean brand Bsrabbit
- High-end consumer electronics brand Bang & Olufsen
- European based brands including
- Expanded activity with existing merchant groups, on-boarding:
- Three new LVMH maisons – Repossi,
Emilio Pucci , Patou - Purdey of the Richemont group
- Three new LVMH maisons – Repossi,
- Strategic partnership with Shopify continues to grow:
- Shopify Markets Pro went into general availability in the US in September with volumes starting to ramp up
- Migration process of all legacy Shopify-based enterprise merchants onto the new native solution isnearing completion.
- 3rd party partnership agreement renewed for another year
- Expanded our network of platform partners via a new integration into Wix Commerce
Q4 and Full Year Outlook
Global-e is introducing fourth quarter guidance and is updating the full year guidance as follows:
Q4 2023 | FY 2023 | Previous FY 2023 | |||
(in millions) | |||||
GMV (1) | |||||
Revenue | |||||
Adjusted EBITDA (2) |
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
The call will be available, live, to interested parties by dialing:
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
- 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
About
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
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 | ||||||||
2022 | 2023 | |||||||
(Audited) | (Unaudited) | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 165,033 | $ | 145,824 | ||||
Short-term deposits | 46,353 | 88,078 | ||||||
Accounts receivable, net | 16,424 | 13,451 | ||||||
Prepaid expenses and other current assets | 51,904 | 63,850 | ||||||
Marketable securities | 16,813 | 18,963 | ||||||
Funds receivable, including cash in banks | 78,125 | 70,415 | ||||||
Total current assets | 374,652 | 400,581 | ||||||
Property and equipment, net | 10,283 | 9,799 | ||||||
Operating lease right-of-use assets | 19,718 | 22,091 | ||||||
Long term deposits | 3,225 | 3,415 | ||||||
Deferred contract acquisition costs, noncurrent | 1,825 | 2,091 | ||||||
Deferred tax assets | 171 | - | ||||||
Other assets, noncurrent | 3,739 | 2,579 | ||||||
Commercial agreement asset | 282,963 | 227,231 | ||||||
466,024 | 450,681 | |||||||
Total long-term assets | 787,948 | 717,887 | ||||||
Total assets | $ | 1,162,600 | $ | 1,118,468 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 52,220 | $ | 32,505 | ||||
Accrued expenses and other current liabilities | 75,990 | 82,019 | ||||||
Funds payable to Customers | 78,125 | 70,415 | ||||||
Short term operating lease liabilities | 3,245 | 3,661 | ||||||
Total current liabilities | 209,580 | 188,600 | ||||||
Long-term liabilities: | ||||||||
Deferred tax liabilities, net | 6,558 | 2,872 | ||||||
Long term operating lease liabilities | 16,579 | 17,814 | ||||||
Other long-term liabilities | 1,762 | 1,013 | ||||||
Total liabilities | $ | 234,479 | $ | 210,299 | ||||
Shareholders’ equity: | ||||||||
Share capital and additional paid-in capital | 1,253,093 | 1,344,904 | ||||||
Accumulated comprehensive income | (1,926 | ) | (1,982 | ) | ||||
Accumulated deficit | (323,046 | ) | (434,753 | ) | ||||
Total shareholders’ equity | 928,121 | 908,169 | ||||||
Total liabilities, convertible preferred shares and shareholders’ equity | $ | 1,162,600 | $ | 1,118,468 | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(In thousands, except share and per share data) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Revenue | $ | 105,556 | $ | 133,605 | $ | 269,184 | $ | 384,545 | ||||||||
Cost of revenue | 64,754 | 77,089 | 166,848 | 227,263 | ||||||||||||
Gross profit | 40,802 | 56,516 | 102,336 | 157,282 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 22,224 | 24,883 | 57,508 | 72,399 | ||||||||||||
Sales and marketing | 52,883 | 53,643 | 153,508 | 158,279 | ||||||||||||
General and administrative | 18,926 | 13,591 | 45,537 | 40,608 | ||||||||||||
Total operating expenses | 94,033 | 92,117 | 256,553 | 271,286 | ||||||||||||
Operating profit (loss) | (53,231 | ) | (35,601 | ) | (154,217 | ) | (114,004 | ) | ||||||||
Financial expenses, net | 10,890 | (3,405 | ) | 11,876 | (251 | ) | ||||||||||
Loss before income taxes | (64,121 | ) | (32,196 | ) | (166,093 | ) | (113,753 | ) | ||||||||
Income taxes | 430 | 895 | 841 | (2,046 | ) | |||||||||||
Net loss attributable to ordinary shareholders | $ | (64,551 | ) | $ | (33,091 | ) | $ | (166,934 | ) | $ | (111,707 | ) | ||||
Basic and diluted net loss per share attributable to ordinary shareholders | $ | (0.41 | ) | $ | (0.20 | ) | $ | (1.07 | ) | $ | (0.68 | ) | ||||
Basic and diluted weighted average ordinary shares | 158,792,119 | 164,904,339 | 156,700,221 | 163,924,915 | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Operating activities | ||||||||||||||||
Net profit (loss) | $ | (64,551 | ) | $ | (33,091 | ) | $ | (166,934 | ) | $ | (111,707 | ) | ||||
Adjustments to reconcile net profit (loss) to net cash provided by operating activities: | ||||||||||||||||
Depreciation | 421 | 412 | 1,015 | 1,299 | ||||||||||||
Share-based compensation expense | 9,025 | 11,716 | 29,797 | 32,780 | ||||||||||||
Commercial agreement asset | 37,432 | 37,433 | 111,615 | 113,018 | ||||||||||||
Amortization of intangible assets | 8,695 | 5,092 | 21,360 | 15,343 | ||||||||||||
Changes in accrued interest and exchange rate on short-term deposits | - | 221 | - | (488 | ) | |||||||||||
Changes in accrued interest and exchange rate on long-term deposits | (723 | ) | 89 | (717 | ) | (111 | ) | |||||||||
Unrealized loss (gain) on foreign currency | 3,715 | 1,850 | 11,294 | 1,110 | ||||||||||||
Accounts receivable | 2,672 | 644 | 7,393 | 2,973 | ||||||||||||
Prepaid expenses and other assets | 7,854 | (6,449 | ) | 3,128 | (11,796 | ) | ||||||||||
Funds receivable | (11,902 | ) | (4,592 | ) | 8,223 | (2,036 | ) | |||||||||
Long-term receivables | 455 | 680 | 455 | 1,160 | ||||||||||||
Funds payable to customers | 6,981 | 358 | 10,219 | (7,710 | ) | |||||||||||
Operating lease ROU assets | 677 | 736 | 2,132 | 2,444 | ||||||||||||
Deferred contract acquisition costs | (209 | ) | (52 | ) | (684 | ) | (435 | ) | ||||||||
Accounts payable | (3,488 | ) | 1,663 | (1,225 | ) | (19,715 | ) | |||||||||
Accrued expenses and other liabilities | 3,633 | 10,743 | (909 | ) | 5,280 | |||||||||||
Deferred taxes | (179 | ) | 268 | (179 | ) | (3,515 | ) | |||||||||
Operating lease liabilities | (1,005 | ) | (1,112 | ) | (3,990 | ) | (3,166 | ) | ||||||||
Impairment of marketable securities | - | - | 62 | - | ||||||||||||
Net cash provided by (used in) operating activities | (496 | ) | 26,609 | 32,055 | 14,728 | |||||||||||
Investing activities | ||||||||||||||||
Investment in marketable securities | (743 | ) | (1,598 | ) | (8,298 | ) | (2,877 | ) | ||||||||
Proceeds from marketable securities | - | 72 | 7,910 | 671 | ||||||||||||
Purchases of short-term investments | (60,472 | ) | (85,485 | ) | (91,967 | ) | (131,987 | ) | ||||||||
Purchases of long-term investments | - | 34 | - | (78 | ) | |||||||||||
Proceeds from short-term investments | 28,000 | 52,250 | 66,400 | 90,750 | ||||||||||||
Purchases of property and equipment | (1,398 | ) | (328 | ) | (7,982 | ) | (815 | ) | ||||||||
Payments for business combinations, net of cash acquired | (92,881 | ) | - | (309,964 | ) | - | ||||||||||
Net cash provided by (used in) investing activities | (127,494 | ) | (35,055 | ) | (343,901 | ) | (44,336 | ) | ||||||||
Financing activities | ||||||||||||||||
Exercise of Warrants to ordinary shares | 15 | - | 58 | 22 | ||||||||||||
Proceeds from exercise of share options | 551 | 860 | 1,039 | 1,725 | ||||||||||||
Net cash provided by financing activities | 566 | 860 | 1,097 | 1,747 | ||||||||||||
Exchange rate differences on balances of cash, cash equivalents and restricted cash | (3,715 | ) | (1,850 | ) | (11,294 | ) | (1,110 | ) | ||||||||
Net decrease in cash, cash equivalents, and restricted cash | (131,139 | ) | (9,436 | ) | (322,043 | ) | (28,971 | ) | ||||||||
Cash and cash equivalents and restricted cash—beginning of period | 267,995 | 191,987 | 458,899 | 211,522 | ||||||||||||
Cash and cash equivalents and restricted cash—end of period | $ | 136,856 | $ | 182,551 | $ | 136,856 | $ | 182,551 | ||||||||
SELECTED OTHER DATA | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||||||
Key performance metrics | ||||||||||||||||||||||||||||
Gross Merchandise Value | 621,011 | 839,056 | 1,610,763 | 2,367,976 | ||||||||||||||||||||||||
Adjusted EBITDA (a) | 12,537 | 22,093 | 26,949 | 57,557 | ||||||||||||||||||||||||
Revenue by Category | ||||||||||||||||||||||||||||
Service fees | 47,782 | 45 | % | 62,433 | 47 | % | 119,054 | 44 | % | 172,318 | 45 | % | ||||||||||||||||
Fulfillment services | 57,774 | 55 | % | 71,172 | 53 | % | 150,130 | 56 | % | 212,227 | 55 | % | ||||||||||||||||
Total revenue | $ | 105,556 | 100 | % | $ | 133,605 | 100 | % | $ | 269,184 | 100 | % | $ | 384,545 | 100 | % | ||||||||||||
Revenue by merchant outbound region | ||||||||||||||||||||||||||||
48,005 | 46 | % | 67,303 | 50 | % | 109,867 | 41 | % | 190,732 | 50 | % | |||||||||||||||||
36,249 | 34 | % | 40,876 | 31 | % | 98,494 | 37 | % | 118,622 | 31 | % | |||||||||||||||||
18,189 | 17 | % | 20,980 | 16 | % | 55,040 | 20 | % | 63,145 | 16 | % | |||||||||||||||||
271 | 0 | % | 571 | 0 | % | 899 | 0 | % | 1,327 | 0 | % | |||||||||||||||||
Other | 2,842 | 3 | % | 3,874 | 3 | % | 4,844 | 2 | % | 10,719 | 3 | % | ||||||||||||||||
Total revenue | $ | 105,556 | 100 | % | $ | 133,605 | 100 | % | $ | 269,184 | 100 | % | $ | 384,545 | 100 | % | ||||||||||||
(a) See reconciliation to adjusted EBITDA table
RECONCILIATION TO Non-GAAP GROSS PROFIT | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||||||
(Unaudited) | ||||||||||||||||
Gross Profit | 40,802 | 56,516 | 102,336 | 157,282 | ||||||||||||
Amortization of acquired intangibles included in cost of revenue | 2,951 | 2,796 | 7,826 | 8,387 | ||||||||||||
Non-GAAP gross profit | 43,753 | 59,312 | 110,162 | 165,669 | ||||||||||||
RECONCILIATION TO ADJUSTED EBITDA | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2022 | 2023 | 2022 | 2023 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Operating profit (loss) | (53,231 | ) | (35,601 | ) | (154,217 | ) | (114,004 | ) | ||||||||
(1) Stock-based compensation: | ||||||||||||||||
Cost of revenue | 79 | 180 | 167 | 453 | ||||||||||||
Research and development | 5,667 | 6,673 | 16,115 | 19,304 | ||||||||||||
Selling and marketing | 747 | 1,057 | 3,212 | 3,021 | ||||||||||||
General and administrative | 2,532 | 3,806 | 10,303 | 10,002 | ||||||||||||
Total stock-based compensation | 9,025 | 11,716 | 29,797 | 32,780 | ||||||||||||
(2) Depreciation and amortization | 421 | 412 | 1,015 | 1,299 | ||||||||||||
(3) Commercial agreement asset amortization | 37,432 | 37,433 | 111,615 | 113,018 | ||||||||||||
(4) Amortization of acquired intangibles | 8,695 | 5,092 | 21,360 | 15,343 | ||||||||||||
(5) Merger related contingent consideration | 3,027 | 3,041 | 9,013 | 9,121 | ||||||||||||
(6) Acquisition related costs | 7,168 | - | 8,366 | - | ||||||||||||
Adjusted EBITDA | 12,537 | 22,093 | 26,949 | 57,557 | ||||||||||||
Source:
2023 GlobeNewswire, Inc., source