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Global-e Reports Third Quarter 2023 Results

PETAH-TIKVA, Israel, Nov. 15, 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 third quarter of 2023.

“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 Amir Schlachet, Founder and CEO of Global-e. “We are excited about Shopify Markets Pro going into general availability in the US and remain focused on executing across all our strategic vectors, as we continue to capture the immense greenfield opportunity ahead of us.”

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 brand Ted Baker, French brand Lacoste+UNDW3, Spanish brand Polin et Moi and Italian luxury brand Paul & Shark
    • US based brands such as Tory Burch, jewelry brand Moon 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

  • Expanded activity with existing merchant groups, on-boarding:

    • Three new LVMH maisons – Repossi, Emilio Pucci, Patou
    • Purdey of the Richemont group
  • 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)$1,125 - $1,175 $3,493 - $3,543 $3,480 - $3,640
Revenue$178 - $186 $563 - $571 $570 - $596
Adjusted EBITDA (2)$31.5 - $36.5 $89.1 - $94.1 $85 - $93

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, November 15, 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 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,   September 30,  
  2022   2023  
  (Audited)   (Unaudited)  
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 
Goodwill and other intangible assets  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 

Global-E Online Ltd. 
(In thousands, except share and per share data) 
  Three Months Ended  Nine Months Ended 
  September 30,  September 30, 
  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 


(In thousands) 
  Three Months Ended  Nine Months Ended 
  September 30,  September 30, 
  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 

Global-E Online Ltd. 
(In thousands) 
  Three Months Ended  Nine Months Ended 
  September 30,  September 30, 
  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                            
United States  48,005  46%  67,303  50%  109,867  41%  190,732  50%
United Kingdom  36,249  34%  40,876  31%  98,494  37%  118,622  31%
European Union  18,189  17%  20,980  16%  55,040  20%  63,145  16%
Israel  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

Global-E Online Ltd. 
(In thousands) 
  Three Months Ended  Nine Months Ended 
  September 30,  September 30, 
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 


Global-E Online Ltd. 
(In thousands) 
  Three Months Ended  Nine Months Ended 
  September 30,  September 30, 
  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 

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