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Global-e Reports Second Quarter 2023 Results

PETAH-TIKVA, Israel, Aug. 08, 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 second quarter of 2023.

“The results of the second quarter of 2023, together with the updated guidance for the remainder of the year, illustrate the continued strong momentum of our business, as evident from both top-line growth, improved profitability and new client launches,” said Amir Schlachet, Founder and CEO of Global-e. “We remain focused on executing across all fronts, as we continue to tap into the massive global opportunity presented by the direct-to-consumer cross-border e-commerce market.”

Q2 2023 Financial Results

  • GMV1 in the second quarter of 2023 was $825 million, an increase of 54% year over year
  • Revenue in the second quarter of 2023 was $133.3 million, an increase of 53% year over year, of which service fees revenue was $59.5 million and fulfillment services revenue was $73.8 million
  • Non-GAAP gross profit2 in the second quarter of 2023 was $57.7 million, an increase of 58% year over year. GAAP gross profit in the second quarter of 2023 was $54.9 million
  • Non-GAAP gross margin2 in the second quarter of 2023 was 43.3%, an increase of 140 basis points from 41.9% in the second quarter of 2022. GAAP gross margin in the second quarter of 2023 was 41.2%
  • Adjusted EBITDA3 in the second quarter of 2023 was $21.0 million compared to $11.1 million in the second quarter of 2022
  • Net loss in the second quarter of 2023 was $35.5 million

Recent Business Highlights

  • Continued to on-board many new merchants located all around the globe and trading in various verticals, including:
    • Renowned fashion brands such as LK Bennet and Club L London in the UK, Monday Swimwear and Pepper in the US, Tara Jarmon in France and Diesel in Italy
    • APAC-based brands such as Venroy, Rollie Nation, Lahana and Lilybod in Australia, Japanese brands including Hinoya, 45R, A-tude, Nubian and Anna Sui,
      and our first ever Korean brand - HYEIN SEO
  • Expanded within existing merchant groups, with notable examples being Orveda, which is part of the beauty and fragrance group COTY and Givenchy Beauty, which is part of the LVMH group of luxury brands
  • Continued accelerated growth of our US-outbound business with US outbound revenue up 99% in the second quarter of 2023
  • Strategic partnership with Shopify remains on track:
    • Continuing the migration process of all our legacy Shopify-based enterprise merchants onto the new native app
    • Working in close collaboration with Shopify towards the roll out of Shopify Markets Pro, currently in early access. General availability in the US expected later this year, to be followed by the UK

Q3 and Full Year Outlook

Global-e is introducing third quarter guidance and is raising the full year guidance as follows:

 Q3 2023 FY 2023 Previous FY 2023
(in millions)
GMV (1)$840 - $880 $3,480 - $3,640 $3,400 - $3,550
Revenue$136 - $142 $570 - $596 $562 - $590
Adjusted EBITDA (2)$17 - $21 $85 - $93 $70 - $77

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 Tuesday, August 8, 2023.
The call will be available, live, to interested parties by dialing:

United States/Canada Toll Free:                      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:

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:

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,  June 30, 
 2022  2023 
 (Audited)  (Unaudited) 
Current assets:       
Cash and cash equivalents$165,033  $151,020 
Short-term deposits 46,353   55,064 
Accounts receivable, net 16,424   14,095 
Prepaid expenses and other current assets 51,904   57,365 
Marketable securities 16,813   17,599 
Funds receivable, including cash in banks 78,125   70,057 
Total current assets 374,652   365,200 
Property and equipment, net 10,283   9,883 
Operating lease right-of-use assets 19,718   22,827 
Long term deposits 3,225   3,537 
Deferred contract acquisition costs, noncurrent 1,825   2,080 
Deferred tax assets 171   - 
Other assets, noncurrent 3,739   3,259 
Commercial agreement asset 282,963   261,741 
Goodwill and other intangible assets 466,024   455,773 
Total long-term assets 787,948   759,100 
Total assets$1,162,600  $1,124,300 
Liabilities and Shareholders Equity       
Current liabilities:       
Accounts payable$52,220  $30,842 
Accrued expenses and other current liabilities 75,990   71,252 
Funds payable to Customers 78,125   70,057 
Short term operating lease liabilities 3,245   3,591 
Total current liabilities 209,580   175,742 
Long-term liabilities:       
Deferred tax liabilities, net 6,558   2,604 
Long term operating lease liabilities 16,579   18,995 
Other long-term liabilities 1,762   1,036 
Total liabilities$234,479  $198,377 
Shareholders’ equity:       
Share capital and additional paid-in capital 1,253,093   1,329,405 
Accumulated comprehensive income (1,926)  (1,820)
Accumulated deficit (323,046)  (401,662)
Total shareholders’ equity 928,121   925,923 
Total liabilities, convertible preferred shares and shareholders’ equity$1,162,600  $1,124,300 

Global-E Online Ltd.
(In thousands, except share and per share data)
 Three Months Ended  Six Months Ended 
 June 30,  June 30, 
 2022  2023  2022  2023 
 (Unaudited)  (Unaudited) 
Revenue$87,305  $133,309  $163,628  $250,940 
Cost of revenue 52,954   78,419   102,094   150,174 
Gross profit 34,351   54,890   61,534   100,766 
Operating expenses:               
Research and development 17,597   24,620   35,284   47,516 
Sales and marketing 50,986   52,788   100,625   104,636 
General and administrative 15,071   13,878   26,611   27,017 
Total operating expenses 83,654   91,286   162,520   179,169 
Operating profit (loss) (49,303)  (36,396)  (100,986)  (78,403)
Financial expenses, net (680)  754   986   3,154 
Loss before income taxes (48,623)  (37,150)  (101,972)  (81,557)
Income taxes 174   (1,617)  411   (2,941)
Net loss attributable to ordinary shareholders$(48,797) $(35,533) $(102,383) $(78,616)
Basic and diluted net loss per share attributable to ordinary shareholders$(0.31) $(0.22) $(0.66) $(0.48)
Basic and diluted weighted average ordinary shares 156,891,201   164,214,398   155,636,936   163,427,086 

(In thousands)
 Three Months Ended  Six Months Ended 
 June 30,  June 30, 
 2022  2023  2022  2023 
 (Unaudited)  (Unaudited) 
Operating activities               
Net profit (loss)$(48,797) $(35,533) $(102,383) $(78,616)
Adjustments to reconcile net profit (loss) to net cash provided by operating activities:               
Depreciation 330   460   594   887 
Share-based compensation expense 12,843   11,352   20,772   21,064 
Commercial agreement asset 37,433   37,432   74,182   75,585 
Amortization of intangible assets 6,049   5,091   12,665   10,251 
Changes in accrued interest and exchange rate on short-term deposits -   (182)  -   (709)
Changes in accrued interest and exchange rate on long-term deposits (38)  (54)  6   (200)
Unrealized loss (gain) on foreign currency 5,913   (156)  7,579   (740)
Accounts receivable 728   (1,752)  4,721   2,329 
Prepaid expenses and other assets (1,334)  (11,185)  (4,725)  (5,347)
Funds receivable 960   (1,195)  20,125   2,556 
Long-term receivables -   94   -  480 
Funds payable to customers 18,175   7,902   3,238   (8,068)
Operating lease ROU assets 657   1,037   1,455   1,708 
Deferred contract acquisition costs (230)  (226)  (475)  (383)
Accounts payable 2,699   (3,169)  2,263   (21,378)
Accrued expenses and other liabilities 4,501   10,701   (4,543)  (5,463)
Deferred taxes -   (1,873)  -   (3,783)
Operating lease liabilities (2,128)  (1,098)  (2,985)  (2,054)
Impairment of marketable securities 48   -   62   - 
Net cash provided by (used in) operating activities 37,809   17,646   32,551   (11,881)
Investing activities               
Investment in marketable securities (357)  (829)  (7,555)  (1,279)
Proceeds from marketable securities752   200  7,910   599 
Purchases of short-term investments (197)  (37,250)  (31,495)  (46,502)
Purchases of long-term investments -   (15)  -   (112)
Proceeds from short-term investments 35,000   9,250   38,400   38,500 
Purchases of property and equipment (1,900)  (145)  (6,584)  (487)
Payments for business combinations, net of cash acquired (1,471)  -   (217,083)  - 
Net cash provided by (used in) investing activities 31,827   (28,789)  (216,407)  (9,281)
Financing activities               
Exercise of Warrants to ordinary shares 15  5   43  22 
Proceeds from issuance of Ordinary shares in IPO, net of issuance costs-   -  -   - 
Proceeds from exercise of share options 386   773   488   865 
Net cash provided by financing activities 401   778   531   887 
Exchange rate differences on balances of cash, cash equivalents and restricted cash (5,913)  156   (7,579)  740 
Net decrease in cash, cash equivalents, and restricted cash 64,124   (10,209)  (190,904)  (19,535)
Cash and cash equivalents and restricted cash—beginning of period 203,871   202,196   458,899   211,522 
Cash and cash equivalents and restricted cash—end of period$267,995  $191,987  $267,995  $191,987 

Global-E Online Ltd.
(In thousands)
  Three Months Ended  Six Months Ended 
  June 30,  June 30, 
  2022  2023  2022  2023 
  (Unaudited)  (Unaudited) 
Key performance metrics      
Gross Merchandise Value  534,459       825,026       989,752       1,528,921     
Adjusted EBITDA (a)  11,128       20,979       14,410       35,464     
Revenue by Category                                
Service fees  39,324   45%  59,532   45%  71,272   44%  109,885   44%
Fulfillment services  47,981   55%  73,777   55%  92,356   56%  141,055   56%
Total revenue $87,305   100% $133,309   100% $163,628   100% $250,940   100%
Revenue by merchant outbound region                                
United States  33,944   39%  67,516   51%  61,865   38%  123,429   49%
United Kingdom  33,963   39%  40,014   30%  62,244   38%  77,746   31%
European Union  17,798   20%  21,088   16%  36,852   23%  42,164   17%
Israel  263   0%  531   0%  628   0%  756   0%
Other 1,337  2%  4,160   3% 2,039  1%  6,845   3%
Total revenue $87,305   100% $133,309   100% $163,628   100% $250,940   100%
(a) See reconciliation to adjusted EBITDA table

Global-E Online Ltd.
(In thousands)
 Three Months Ended  Six Months Ended  
 June 30,  June 30,  
 2022  2023  2022  2023  
Gross Profit 34,351   54,890   61,534   100,766  
Amortization of acquired intangibles included in cost of revenue 2,198   2,796   4,874   5,592  
Non-GAAP gross profit 36,549   57,686   66,408   106,358  

Global-E Online Ltd.
(In thousands)
 Three Months Ended  Six Months Ended 
 June 30,  June 30, 
 2022  2023  2022  2023 
 (Unaudited)  (Unaudited) 
Operating profit (loss) (49,303)  (36,396)  (100,986)  (78,403)
(1)  Stock-based compensation:               
   Cost of revenue 52   161   88   274 
   Research and development 5,296   6,572   10,448   12,630 
   Selling and marketing 1,706   1,089   2,465   1,964 
   General and administrative 5,788   3,530   7,771   6,196 
Total stock-based compensation 12,842   11,352   20,772   21,064 
(2)  Depreciation and amortization 330   460   594   887 
(3)  Commercial agreement asset amortization37,433   37,432  74,182   75,585 
(4)  Amortization of acquired intangibles6,049   5,091  12,665   10,251 
(5)  Merger related contingent consideration3,026   3,040  5,985   6,080 
(6)  Acquisition related costs751   -  1,198   - 
Adjusted EBITDA 11,128   20,979   14,410   35,464 

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