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Global-e Reports Fourth Quarter and Full Year 2022 Results

PETAH-TIKVA, Israel, Feb. 22, 2023 (GLOBE NEWSWIRE) -- Global-e Online Ltd. (Nasdaq: GLBE) the global leader of Direct-To-Consumer cross border ecommerce enablement, today reported financial results for the fourth quarter of 2022 and full year 2022 as well as the outlook for the first quarter and the full year 2023.

“We are pleased with the strong results we are reporting to you today for the fourth quarter and full year of 2022, with 69% growth for the quarter and strong 67% growth in total revenues for the full year, with many new clients going live across multiple geographies, and with further deepening of the collaboration with our strategic partners,” said Amir Schlachet, CEO of Global-e. “Despite the volatile and challenging market headwinds we witnessed in 2022 and the ongoing uncertainties in macro conditions going into 2023, we remain extremely optimistic regarding the long-term growth prospects of our market and believe we are best positioned to continue our strong growth within it well into the future.”

Q4 2022 Financial Results

  • GMV1 in the fourth quarter of 2022 was $839 million, an increase of 66% year over year
  • Revenue in the fourth quarter of 2022 was $139.9 million, an increase of 69% year over year, of which service fees revenue was $62.8 million and fulfillment services revenue was $77 million
  • Non-GAAP gross profit2 in the fourth quarter of 2022 was $57.8 million, an increase of 77% year over year. GAAP gross profit in the fourth quarter of 2022 was $55.8 million
  • Non-GAAP gross margin2 in the fourth quarter of 2022 was 41.3%, an increase of 180 basis points from 39.5% in the fourth quarter of 2021. GAAP gross margin in the fourth quarter of 2022 was 39.9%
  • Adjusted EBITDA3 in the fourth quarter of 2022 was $21.8 million compared to $11.8 million in the fourth quarter of 2021
  • Net loss in the fourth quarter of 2022 was $28.5 million

FY 2022 Financial Results

  • GMV1 for the full year was $2,450 million, an increase of 69% year over year
  • Revenue for the full year was $409.0 million, an increase of 67% year over year, of which service fees revenue was $181.9 million and fulfillment services revenue was $227.1 million
  • Non-GAAP gross profit2 for the full year was $167.9 million, an increase of 84% year over year. GAAP gross profit for the full year was $158.2 million
  • Non-GAAP gross margin2 for the full year was 41.1%, an increase of 380 basis points from 37.3% in 2021. GAAP gross margin for the full year was 38.7%
  • Adjusted EBITDA3 for the full year was $48.7 million compared to $32.4 million in 2021
  • Net loss for the full year was $195.4 million

Recent Business Highlights

  • Throughout 2022, our existing merchant base continued to stay and grow with us, as reflected in our annual GDR rate of over 98% and NDR rate of 130%
  • Continued to launch with many more brands across geographies and verticals we operate in, including:
    • British luxury brand All Saints, French brand ba&sh, celebrity-led footwear brand of the singer Katy Perry, and fast-growing US apparel brands Dolls Kill and Cuts Clothing
    • Innovative footwear brand Ancient Greek Sandals, our first ever merchant based in Greece
    • Pure Hair and H2 Hub in Australia and Singapore, respectively, continuing our expansion in the APAC region
    • Three new LVMH maisons – BVLGARI, Chaumet and Moynat – continuing our expansion within the luxury vertical in general and within the LVMH group in particular
  • Went live with Disney EU after its launch was delayed from Q4, representing a major expansion of our relationship with Disney
  • Continued to strengthen the US-outbound market
    • US outbound sales were up 163% in the fourth quarter year over year, driven by our accelerated penetration into the US market as well as the high share of US outbound activity at Borderfree
  • Penetration efforts into new markets starting to show initial positive results
    • While still only 3% in share, APAC and the Middle East outbound revenues in the fourth quarter have grown almost 8X year-over-year
  • Strategic partnership with Shopify remains well on track
    • Direct (3P) - acceleration in merchants going live using the new native integration, as this is now the default integration for any new Shopify-based merchant
    • White-label (1P) - alpha trials successfully completed, with Shopify recently extending early access to another subset of relevant merchants
  • Post-merger integration process of Borderfree continues to progress as planned
  • Renewed global strategic partnership agreement with DP/DHL for an additional three-year period

Q1 2023 and Full Year Outlook

Global-e is introducing first quarter and full year guidance as follows:

  Q1 2023 FY 2023
  (in millions)
GMV(1)$645 - $675 $3,360 - $3,520
Revenue$108 - $114 $557 - $584
Adjusted EBITDA (3)$9.5 - $12.5 $66 - $74

Given the macro environment uncertainty, we will provide investors with updated business trends as they evolve.

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 22, 2023. 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:

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

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 excluding amortization of acquired intangibles. Non-GAAP gross margin is calculated 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, 2021, filed with the SEC on March 28, 2022 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 hundreds of 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:

Investor Contact:
Erica Mannion or Mike Funari
Sapphire Investor Relations, LLC
+1 617-542-6180

Press Contact:
Headline Media
Garrett Krivicich 
+1 786-233-7684

Global-E Online Ltd.
(In thousands)
  Period Ended 
  December 31,  December 31, 
  2021  2022 
  (Audited) (Unaudited)
Current assets:        
Cash and cash equivalents $448,623  $165,033 
Short-term deposits  41,985   46,353 
Accounts receivable, net  9,185   16,424 
Prepaid expenses and other current assets  46,568   51,904 
Marketable securities  18,464   16,813 
Funds receivable, including cash in banks  57,635   78,125 
Total current assets  622,460   374,652 
Property and equipment, net  3,269   10,283 
Operating lease right-of-use assets  20,108   19,718 
Long term deposits  2,219   3,225 
Deferred contract acquisition costs, noncurrent  1,314   1,825 
Deferred tax assets  -   171 
Other assets, noncurrent  213   3,739 
Commercial agreement asset 196,544   282,963 
Goodwill and other intangible assets  -   466,024 
Total long-term assets  223,667   787,948 
Total assets $846,127  $1,162,600 
Liabilities and Shareholders Equity        
Current liabilities:        
Accounts payable $24,064  $52,220 
Accrued expenses and other current liabilities  47,358   75,990 
Funds payable to Customers  57,635   78,125 
Short term operating lease liabilities  2,517   3,245 
Total current liabilities  131,574   209,580 
Long-term liabilities:        
Deferred tax liabilities  -   6,558 
Long term operating lease liabilities  18,803   16,579 
Other long-term liabilities  -   1,762 
Total liabilities $150,377  $234,479 
Shareholders’ deficit:        
Share capital and additional paid-in capital  823,550   1,253,093 
Accumulated comprehensive income  (159)  (1,926)
Accumulated deficit  (127,641)  (323,046)
Total shareholders’ (deficit) equity  695,750   928,121 
Total liabilities and shareholders’ equity $846,127  $1,162,600 

Global-E Online Ltd.
(In thousands, except share and per share data)
  Three Months Ended  Year Ended 
  December 31,  December 31, 
  2021  2022  2021  2022 
  (Unaudited) (Unaudited)
Revenue $82,717   139,865  $245,274   409,049 
Cost of revenue  50,062   84,023   153,841   250,871 
Gross profit  32,655   55,842   91,433   158,178 
Operating expenses:                
Research and development  10,298   23,698   29,761   81,206 
Sales and marketing  36,717   52,592   104,687   206,100 
General and administrative  7,830   14,659   22,643   60,196 
Total operating expenses, net  54,845   90,949   157,091   347,502 
Operating profit (loss)  (22,190)  (35,107)  (65,658)  (189,324)
Financial expenses (income), net  658   217   8,570   12,093 
Loss before income taxes  (22,848)  (35,324)  (74,228)  (201,417)
Income tax (benefit) expenses  (357)  (6,853)  705   (6,012)
Net loss attributable to ordinary shareholders $(22,491)  (28,471) $(74,933)  (195,405)
Basic and diluted net loss per share attributable to ordinary shareholders $(0.15)  (0.18) $(0.74)  (1.24)
Basic and diluted weighted average ordinary shares  149,283,090   160,589,413   101,737,026   157,691,173 

Global-E Online Ltd.
(In thousands)
  Three Months Ended  Year Ended 
  December 31,  December 31, 
  2021  2022  2021  2022 
  (Unaudited) (Unaudited)
Operating activities                
Net profit (loss) $(22,491) $(28,471) $(74,933) $(195,405)
Adjustments to reconcile net profit (loss) to net cash provided by operating activities:                
Depreciation and amortization  121   570   331   1,585 
Share-based compensation expense  3,919   9,112   12,001   38,909 
Commercial agreement asset  29,406   37,433   84,298   149,047 
Amortization of intangible assets  -   6,473   -   27,833 
Short term deposit revaluation  -   (291)  -   (291)
Long term deposit revaluation  24   (214)  24   (931)
Accounts receivable  (5,301)  (4,731)  (5,591)  2,662 
Prepaid expenses and other assets  (11,054)  (5,813)  (23,239)  (2,685)
Funds receivable  (15,661)  8,874   (29,272)  17,097 
Long-term receivables  -   (1,734)  -  (1,279)
Funds payable to customers  21,201   7,517   23,143   17,736 
Operating lease ROU assets  599   1,121   1,382   3,253 
Deferred contract acquisition costs  (149)  (77)  (814)  (761)
Accounts payable  6,402   17,873   5,007   16,648 
Accrued expenses and other liabilities  16,475   21,440   17,926   20,531 
Deferred tax liabilities  (138)  (7,999)  (90)  (8,178)
Operating lease liabilities  478   (369)  (437)  (4,359)
Impairment of marketable securities  140   11   140   73 
Warrants liabilities to preferred shares  -   -   5,872   - 
Net cash generated by (used in) operating activities  23,971   60,724   15,748   81,485 
Investing activities                
Investment in marketable securities  (652)  -   (2,806)  (8,298)
Proceeds from marketable securities 491   200  748   8,110 
Purchases of short-term investments  (191)  -   (117,185)  (91,967)
Purchases of long-term investments  (86)  -   (20)  - 
Proceeds from short-term investments  41,257   21,489   81,657   87,889 
Purchases of property and equipment  (2,259)  (370)  (2,883)  (8,352)
Payments for business combinations, net of cash acquired  -   (7,519)  -   (317,483)
Net cash used in investing activities  38,560   13,800   (40,489)  (330,101)
Financing activities                
Proceeds from exercise of Warrants to ordinary shares  15  15   529  73 
Proceeds from issuance of Ordinary shares in IPO, net of issuance costs -   -  396,494   - 
Proceeds from exercise of share options  598   127   1,584   1,166 
Net cash provided by financing activities  613   142   398,607   1,239 
Net Increase (decrease) in cash, cash equivalents, and restricted cash  63,144   74,666   373,866   (247,377)
Cash and cash equivalents and restricted cash—beginning of period  395,755   136,856   85,033   458,899 
Cash and cash equivalents and restricted cash—end of period $458,899  $211,522  $458,899  $211,522 

Global-E Online Ltd.
(In thousands)
  Three Months Ended  Year Ended 
  December 31,  December 31, 
  2021  2022  2021  2022 
  (Unaudited) (Unaudited)
Key performance metrics      
Gross Merchandise Value  504,919       839,460       1,449,299       2,450,224     
Adjusted EBITDA (a)  11,829       21,755       32,424       48,703     
Revenue by Category                                
Service fees  35,499   43%  62,835   45%  96,659   39%  181,887   44%
Fulfillment services  47,218   57%  77,030   55%  148,615   61%  227,162   56%
Total revenue $82,717   100% $139,865   100% $245,274   100% $409,049   100%
Revenue by merchant outbound region                                
United Kingdom  37,443   45%  48,069   34%  113,835   47%  146,562   36%
United States  24,373   29%  64,100   46%  71,095   29%  173,967   43%
European Union  20,019   24%  23,453   17%  58,177   23%  78,491   19%
Israel  405   0%  458   0%  1,052   0%  1,357   0%
Other 477  1%  3,785   3% 1,115  0%  8,672   2%
Total revenue $82,717   100% $139,865   100% $245,274   100% $409,049   100%

      (a)       See reconciliation to adjusted EBITDA table

Global-E Online Ltd.
(In thousands)
  Three Months Ended  Year Ended 
  December 31,  December 31, 
  2021  2022  2021  2022 
Gross Profit  32,655   55,842   91,433   158,178 
Amortization of acquired intangibles included in cost of revenue  -   1,917   -   9,743 
Non-GAAP gross profit  32,655   57,759   91,433   167,921 

Global-E Online Ltd.
(In thousands)
  Three Months Ended  Year Ended 
  December 31,  December 31, 
  2021  2022  2021  2022 
  (Unaudited) (Unaudited)
Operating profit (loss)  (22,190)  (35,107)  (65,658)  (189,324)
(1) Stock-based compensation:                
    Cost of revenue  26   95   85   262 
    Research and development  1,873   5,855   4,192   21,970 
    Selling and marketing  580   665   1,287   3,877 
    General and administrative  1,440   2,497   6,437   12,800 
Total stock-based compensation  3,919   9,112   12,001   38,909 
(2) Depreciation and amortization  121   570   331   1,585 
(3) Commercial agreement asset amortization 29,406   37,433  84,298   149,047 
(4) Amortization of acquired intangibles -   6,473  -   27,833 
(5) Secondary Offering Costs -   -  879   - 
(6) Merger related contingent consideration -   3,148  -   12,161 
(7) Merger and acquisition related costs 573   126  573   8,492 
Adjusted EBITDA  11,829   21,755   32,424   48,703 

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