PETAH-TIKVA,
“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
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 byVenus Williams and Perfect Moment in the US- Whistles and the
Harry Potter store by Warner Brothers in theUK - Mugler, a L’Oreal brand,
Jean-Paul Gaultier and Ledger, a leading crypto wallet brand, inFrance - Zanerobe in
Australia , Salt Murphy andAvec Amour inHong Kong and Retouch inJapan - Launched 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, andKylie 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
- 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
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) | ||||
Revenue | ||||
Adjusted EBITDA (3) |
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 | $ | 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 | ||||||
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 | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) | ||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||
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 | ||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) | |||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||
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 | |||||||||||||
SELECTED OTHER DATA (In thousands) | ||||||||||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
64,100 | 46 | % | 94,887 | 51 | % | 173,967 | 43 | % | 285,619 | 50 | % | |||||||||||||||||||||
48,069 | 34 | % | 54,962 | 30 | % | 146,562 | 36 | % | 173,584 | 30 | % | |||||||||||||||||||||
23,453 | 17 | % | 29,421 | 16 | % | 78,491 | 19 | % | 92,566 | 16 | % | |||||||||||||||||||||
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
RECONCILIATION TO Non-GAAP GROSS PROFIT (In thousands) | |||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||
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 | |||||||||||||
RECONCILIATION TO ADJUSTED EBITDA (In thousands) | |||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||
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 |
Source:
2024 GlobeNewswire, Inc., source