Global-e Online Ltd. (Nasdaq: GLBE) the company that makes
e-commerce Border Agnostic, today reported financial results for
the first quarter of 2021 as well as outlook for the second quarter
and full year 2021.
“We are excited to announce our first quarterly
results as a public company, continuing our rapid growth, with
Gross Merchandise Value (“GMV”) and revenue growing at 133% and
134% respectively, over the prior year. We continue to
capitalize and execute on the direct-to-consumer (“DTC”)
cross-border e-commerce revolution, as we delivered outstanding
results across the board, supported by continued execution of our
strategy, ” said Amir Schlachet, Founder and CEO of Global-e.
“Evidenced by our second quarter and full year guidance, Global-e’s
momentum remains strong as we continue to scale and rapidly grow
our business, supporting merchants in their journey to enhance DTC
cross-border e-commerce sales.”
Q1 2021 Financial Results
- GMV in the first quarter of 2021 was $267 million, an increase
of 133% year over year
- Revenue in the first quarter of 2021 was $46.2 million, an
increase of 134% year over year, of which service fees revenue was
$17.1 million, an increase of 146% and fulfillment services revenue
was $29.1 million, an increase of 128%
- Gross margin in the first quarter of 2021 was 33.3%, an
increase of 390 basis points from 29.4% in the first quarter of
2020
- Net loss in the first quarter of 2021 was ($1.7) million
compared to ($1.2) million in the first quarter of 2020
- Adjusted EBITDA1 in the first quarter of 2021 improved to $5.2
million compared to ($0.4) million in the first quarter of
2020
Q1 2021 Business Highlights
- Outperformance across the business lines
- Service fees and fulfilment revenues more than doubling year
over year with service fees revenue growing by 146% and its share
constitutes 37% of revenues
- Continued accelerated growth of US outbound
- Continuing the strong penetration to US market on the back of
high satisfaction of merchants from the results of their activities
on our platform. US outbound revenues up 257% year over
year
- New launches of strong brands and geographical expansion of
existing merchants:
- Pace of new merchant launches continues to be strong, including
Uniqlo (Fast Retailing) into LATAM and Skims (Kim Kardashian)
- Further expansions of existing merchants into new markets,
including Marks & Spencer into 47 new markets and Hugo Boss
into 12 new markets
- Enhancing our platform to increase value creation
- Launched an enhanced self-service merchant reporting
dashboards, allowing merchants to analyze data according to their
specific needs
- Developed the capability to support enterprise merchants with a
hybrid operational model across tax regions
- Expansion of our partnership with Shopify (signed after the
closing of the quarter)
- On April 12th, we entered into an exclusive Services and
Partnership Agreement with Shopify to cooperate in offering our
e-commerce cross-border solutions to Shopify merchants
Q2 and Full Year Outlook
|
Q2 2021 |
|
FY 2021 |
|
(in millions) |
GMV |
$273 - $285 |
|
$1,210 - $1,255 |
Revenue |
$46.8 – $48.8 |
|
$209.0 – $213.5 |
Adjusted EBITDA (1) |
$2.5 – $3.5 |
|
$16.2 - $18.2 |
Given the uncertainty of the ongoing impact and unprecedented
conditions surrounding COVID-19 pandemic on business globally, we
will provide investors with updated business trends as they
evolve.
1 Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP
Financial Measures” for additional information regarding this
metric
About Global-E Online Ltd.
Global-e’s mission is to make global e-commerce
“border-agnostic” – Go global. Be local. We have built the
world’s leading platform to enable and accelerate global,
direct-to-consumer (“D2C”) cross-border e-commerce. Our platform
was purpose-built for international shoppers to buy seamlessly
online and for merchants to sell from, and to, anywhere in the
world – in short, to “go global.” At the same time, to “be local”
reflects the localization of the shopper’s experience and our
effort to make international transactions as seamless as domestic
ones. We increase the conversion of international traffic into
sales by removing much of the complexity associated with
international e-commerce. We currently serve hundreds of leading
merchants and support cross-border e-commerce into over 200
destination markets. We localize the shoppers’ experience based on
the country from which they shop, we support local messaging in
over 25 languages, purchases in more than 100 currencies by over
150 payment methods and a multitude of competitively-priced
shipping options. Shoppers enjoy a fully-guaranteed landed price
quote, which includes shipping costs, import duties and tax
charges, as well as post-sale services, including multi-lingual
customer service and a managed returns service.
Cautionary Note Regarding Forward Looking
Statements
This announcement contains certain forward-looking statements
within the meaning of the federal securities laws, including
statements regarding Global-e’s operations, strategy and Global-e’s
projected revenue and other future financial and operational
results. These forward-looking statements generally are 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. 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, and potential
failures to develop or acquire new functionality or enhance
existing platform to meet the needs of current and future
merchants. The foregoing list of factors is not exhaustive. You
should carefully consider the foregoing factors and the other risks
and uncertainties described in Global-e’s prospectus filed with the
Securities and Exchange Commission (the "SEC") on May 13, 2021 and
other documents filed by Global-e from time to time with the SEC.
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.
Forward-looking statements speak only as of the date they are made.
Readers are cautioned not to put undue reliance on forward-looking
statements, and Global-e assumes no obligation and does not intend
to update or revise these forward-looking statements, whether as a
result of new information, future events, or otherwise. Global-e
gives no assurance that it will achieve its expectations.
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 that are not prepared in accordance with GAAP,
including Adjusted EBITDA. Global-e defines Adjusted EBITDA as
operating profit (loss) adjusted for depreciation and amortization,
and stock-based compensation expense. 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 Adjusted EBITDA 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. Adjusted EBITDA is
a measure used by our management to understand and evaluate our
operating performance and trends. Adjusted EBITDA is a key
performance measure that Global-e’s management uses to assess its
operating performance and the operating leverage in Global-e’s
business.
Global-e’s definition of Adjusted EBITDA may differ from the
definition used by other companies and therefore comparability may
be limited. In addition, other companies may not publish this
metric or similar metrics. Furthermore, this metric has certain
limitations in that it does not include the impact of certain
expenses that are reflected in our consolidated statement of
operations that are necessary to run our business. Thus, Adjusted
EBITDA 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.
Investor Contact: Erica Mannion or Mike
FunariSapphire Investor Relations, LLCIR@global-e.com +1
617-542-6180
Press Contact:Garrett KrivicichHeadline Media
Globale@headline.media +1 786-233-7684
Global-E Online Ltd. |
CONSOLIDATED BALANCE SHEETS |
(In thousands) |
|
|
|
|
|
|
|
Period Ended |
|
|
December 31, |
|
March 31, |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
(Audited) |
|
(Unaudited) |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
68,637 |
|
|
$ |
50,527 |
|
Short-term deposits |
|
|
6,457 |
|
|
|
14,010 |
|
Accounts receivable, net |
|
|
3,594 |
|
|
|
2,638 |
|
Prepaid expenses and other
current assets |
|
|
23,047 |
|
|
|
21,023 |
|
Marketable securities |
|
|
16,871 |
|
|
|
18,111 |
|
Funds receivable, including
cash in banks |
|
|
34,492 |
|
|
|
24,870 |
|
Total current assets |
|
|
153,098 |
|
|
|
131,179 |
|
Property and equipment,
net |
|
|
717 |
|
|
|
769 |
|
Operating lease right-of-use
assets |
|
|
4,160 |
|
|
|
3,778 |
|
Long term deposits |
|
|
2,223 |
|
|
|
2,241 |
|
Deferred contract acquisition
costs, noncurrent |
|
|
729 |
|
|
|
867 |
|
Other assets, noncurrent |
|
|
368 |
|
|
|
1,318 |
|
Total long-term assets |
|
|
8,197 |
|
|
|
8,973 |
|
Total assets |
|
$ |
161,295 |
|
|
$ |
140,152 |
|
Liabilities,
Convertible Preferred Shares and Shareholders’ (Deficit)
Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
19,057 |
|
|
$ |
16,194 |
|
Accrued expenses and other
current liabilities |
|
|
29,432 |
|
|
|
17,863 |
|
Funds payable to
Customers |
|
|
34,492 |
|
|
|
24,870 |
|
Short term operating lease
liabilities |
|
|
915 |
|
|
|
889 |
|
Total current liabilities |
|
|
83,896 |
|
|
|
59,816 |
|
Long-term liabilities: |
|
|
|
|
Deferred tax liabilities,
net |
|
|
105 |
|
|
|
116 |
|
Warrants liabilities to
preferred shares |
|
|
5,738 |
|
|
|
9,985 |
|
Long term operating lease
liabilities |
|
|
3,513 |
|
|
|
3,074 |
|
Total liabilities |
|
$ |
93,252 |
|
|
$ |
72,991 |
|
Commitments and
contingencies |
|
|
|
|
Convertible preferred shares |
|
|
112,553 |
|
|
|
112,553 |
|
Shareholders’ deficit: |
|
|
|
|
Share capital and additional
paid-in capital |
|
|
8,087 |
|
|
|
9,307 |
|
Accumulated comprehensive
income |
|
|
111 |
|
|
|
(242 |
) |
Accumulated deficit |
|
|
(52,708 |
) |
|
|
(54,457 |
) |
Total shareholders’ (deficit)
equity |
|
|
(44,510 |
) |
|
|
(45,392 |
) |
Total liabilities, convertible
preferred shares and shareholders’ (deficit) equity |
|
$ |
161,295 |
|
|
$ |
140,152 |
|
Global-E Online Ltd. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(In thousands, except share and per share
data) |
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
Revenue |
|
$ |
19,689 |
|
|
$ |
46,151 |
|
Cost of revenue |
|
|
13,907 |
|
|
|
30,784 |
|
Gross profit |
|
|
5,782 |
|
|
|
15,367 |
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
Research and development |
|
|
3,215 |
|
|
|
5,444 |
|
Sales and marketing |
|
|
1,851 |
|
|
|
3,099 |
|
General and
administrative |
|
|
1,277 |
|
|
|
2,714 |
|
Total operating expenses |
|
|
6,343 |
|
|
|
11,257 |
|
Operating profit (loss) |
|
|
(561 |
) |
|
|
4,110 |
|
Financial expenses, net |
|
|
702 |
|
|
|
5,709 |
|
Loss before income taxes |
|
|
(1,263 |
) |
|
|
(1,599 |
) |
Income taxes |
|
|
4 |
|
|
|
150 |
|
Net loss attributable to ordinary
shareholders |
|
$ |
(1,267 |
) |
|
$ |
(1,749 |
) |
Basic and diluted net loss per
share attributable to ordinary shareholders |
|
$ |
(0.06 |
) |
|
$ |
(0.08 |
) |
Basic and diluted weighted
average ordinary shares |
|
|
20,164,708 |
|
|
|
21,830,024 |
|
|
|
|
|
|
Global-E Online Ltd. |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(In thousands) |
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
Operating
activities |
|
|
|
|
Net profit (loss) |
|
$ |
(1,267 |
) |
|
$ |
(1,749 |
) |
Adjustments to reconcile net
profit (loss) to net cash provided by operating activities: |
|
|
|
|
Depreciation and amortization |
|
|
52 |
|
|
|
62 |
|
Share-based compensation expense |
|
|
86 |
|
|
|
1,067 |
|
Accounts receivable |
|
|
351 |
|
|
|
956 |
|
Prepaid expenses and other assets |
|
|
(87 |
) |
|
|
2,129 |
|
Funds receivable |
|
|
1,372 |
|
|
|
(2,067 |
) |
Long-term receivables |
|
|
- |
|
|
|
(957 |
) |
Funds payable to customers |
|
|
(7,942 |
) |
|
|
(9,622 |
) |
Operating lease ROU assets |
|
|
(3,451 |
) |
|
|
382 |
|
Deferred contract acquisition costs |
|
|
(74 |
) |
|
|
(190 |
) |
Accounts payable |
|
|
(3,550 |
) |
|
|
(2,863 |
) |
Accrued expenses and other liabilities |
|
|
(2,164 |
) |
|
|
(11,569 |
) |
Deferred tax liabilities |
|
|
- |
|
|
|
11 |
|
Operating lease liabilities |
|
|
3,227 |
|
|
|
(465 |
) |
Warrants liabilities to preferred shares |
|
|
9 |
|
|
|
4,247 |
|
Net cash used in operating activities |
|
|
(13,438 |
) |
|
|
(20,628 |
) |
Investing
activities |
|
|
|
|
Investment in long-term marketable securities |
|
|
- |
|
|
|
(1,646 |
) |
Purchases of short-term investments |
|
|
(50 |
) |
|
|
(7,553 |
) |
Purchases of long-term investments |
|
|
(207 |
) |
|
|
(18 |
) |
Purchases of property and equipment |
|
|
(156 |
) |
|
|
(114 |
) |
Net cash used in investing activities |
|
|
(413 |
) |
|
|
(9,331 |
) |
Financing
activities |
|
|
|
|
Proceeds from exercise of share options |
|
|
158 |
|
|
|
153 |
|
Net cash provided by financing activities |
|
|
158 |
|
|
|
153 |
|
|
|
|
|
|
Net decrease in cash, cash
equivalents, and restricted cash |
|
|
(13,693 |
) |
|
|
(29,806 |
) |
Cash and cash equivalents and
restricted cash—beginning of period |
|
|
20,369 |
|
|
|
85,033 |
|
Cash and cash equivalents and
restricted cash—end of period |
|
$ |
6,676 |
|
|
$ |
55,227 |
|
|
|
|
|
|
Global-E Online Ltd. |
SELECTED OTHER DATA |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2020 |
|
2021 |
|
|
|
|
|
Key performance
metrics |
|
(Unaudited) |
Gross Merchandise Value |
|
|
114,439 |
|
|
|
|
|
266,555 |
|
|
|
Adjusted EBITDA (a) |
|
|
(423 |
) |
|
|
|
|
5,239 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by
Category |
|
|
|
|
|
|
Service fees |
|
|
6,955 |
|
|
35 |
% |
|
|
17,096 |
|
|
37 |
% |
Fulfillment services |
|
|
12,734 |
|
|
65 |
% |
|
|
29,055 |
|
|
63 |
% |
Total revenue |
|
$ |
19,689 |
|
|
100 |
% |
|
$ |
46,151 |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
Revenue by merchant
outbound region |
|
|
|
|
|
|
United Kingdom |
|
|
12,868 |
|
|
65 |
% |
|
|
21,544 |
|
|
46 |
% |
United States |
|
|
3,700 |
|
|
19 |
% |
|
|
13,207 |
|
|
29 |
% |
European Union |
|
|
2,986 |
|
|
15 |
% |
|
|
11,149 |
|
|
24 |
% |
Israel |
|
|
135 |
|
|
1 |
% |
|
|
251 |
|
|
1 |
% |
Total revenue |
|
$ |
19,689 |
|
|
100 |
% |
|
$ |
46,151 |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
(a) See reconciliation to
adjusted EBITA table |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global-E Online Ltd. |
RECONCILIATION TO ADJUSTED EBITDA |
(In thousands) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
|
2020 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
Operating profit
(loss) |
|
(561 |
) |
|
4,110 |
|
(1) Stock-based compensation: |
|
|
|
|
|
|
Cost of revenue |
|
2 |
|
|
19 |
|
|
Research and development |
|
34 |
|
|
223 |
|
|
Selling and marketing |
|
18 |
|
|
221 |
|
|
General and administrative |
|
32 |
|
|
604 |
|
Total stock-based compensation |
|
86 |
|
|
1,067 |
|
|
|
|
|
|
|
|
(2) Depreciation and amortization |
|
52 |
|
|
62 |
|
Adjusted EBITDA |
|
(423 |
) |
|
5,239 |
|
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