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Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Global-E Reports Second Quarter 2021 Results

August 16, 2021 GMT

PETAH-TIKVA, Israel, Aug. 16, 2021 (GLOBE NEWSWIRE) -- Global-e Online Ltd. (Nasdaq: GLBE) the company that makes global e-commerce border agnostic, today reported financial results for the second quarter of 2021 as well as outlook for the third quarter and full year 2021

“The record results we are publishing today for the second quarter of 2021, together with the updated guidance for the third quarter and full year, illustrate the continued momentum of our business, as evident from both Gross Merchandise Value (GMV) and revenues growing more than 90% year over year, improved profitability and several key clients we launched with this quarter”, said Amir Schlachet, Founder and CEO of Global-e. “In parallel, we remain focused on executing across all our strategic vectors, from geographical expansion, to adding additional features and innovative capabilities, to expanding the network of strategic partners in our ecosystem.”

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Q2 2021 Financial Results

  • GMV in the second quarter of 2021 was $326 million, an increase of 95% year over year
  • Revenue in the second quarter of 2021 was $57.3 million, an increase of 92% year over year, of which Service fees was $21.1 million and Fulfillment services revenue was $36.2 million
  • Gross margin in the second quarter of 2021 was 36.0%, an increase of 360 basis points from 32.4% in the second quarter of 2020
  • Adjusted EBITDA1 in the second quarter of 2021 improved to $7.6 million compared to $3.1 million in the second quarter of 2020
  • Net loss was ($22.2) million, compared to a net loss of ($0.4) million in the year-ago period. Net profit excluding the Shopify warrants related amortization expense of $25.5 million was $3.3 million

Q2 2021 Business Highlights

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  • Outperformance across the business lines
    • Service fees revenue grew by 104% and its share constituted 37% of revenues; Fulfillment fees grew by 86%

  • Continued accelerated growth of US-outbound
    • Continuing the strong penetration to the US market, US outbound revenues were up 131% year over year

  • Continued to launch new merchants across our main geographies, including both new merchants and continued ‘land and expand’ efforts. Notable examples include:
    • During Q2 we launched Tag Heuer, Sephora and Rimowa which are all part of the LVMH group, adding to our portfolio of LVMH brands
    • In the months following the launch, Tag Heuer added many more destination markets to our platform

  • The lingerie brand La Perla, which went live with us during the first quarter of 2021, added many more destination markets during the second quarter and also went live with La Perla Beauty, its sister brand

  • Continued progress on our expansion plans to new geographies, with emphasis on Asia Pacific.
    • Launched our first APAC-based merchant, Theory Hong Kong which is part of the Fast Retailing group
    • Opened a new office in Tokyo

  • We continue to build capabilities and broaden our range of value added services, with emphasis on capabilities that further enhance our level of support for larger merchants and new verticals, such as consumer electronics, which often require an elaborate multi-local approach in order to optimize conversion rates in key markets

  • On track with the rollout of our newly established exclusive strategic partnership with Shopify
    • Continue signing up and going live with Shopify-based merchants on an on-going basis
    • Working together with Shopify on a new and deeper integration of Global-e’s offering into the Shopify platform and checkout, which is expected to be finalized later this year

Q3 and Full Year Outlook

Global-e is introducing third quarter guidance and raising previously issued guidance for the fiscal year as follows:

 Q3 2021 Prior FY 21 Updated FY 2021
 (in millions)
GMV$328 - $338 $1,210 - $1,255 $1,350 - $1,370
Revenue$54.3 – $56.3 $209.0 – $213.5 $227.0 – $231.0
Adjusted EBITDA (1)$2.8 – $3.8 $16.2 - $18.2 $22.0 - $24.0

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, 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.

Conference Call Information:

Global-e will host a conference call at 4:30 p.m. ET on Monday, August 16, 2021.
The call will be available, live, to interested parties by dialing:

United States/Canada Toll Free:877-705-6003
International Toll:+1-201-493-6725
Conference ID:13722014

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

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.

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 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; 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; our expectations regarding the use of proceeds from our initial public offering; 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; 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 with or furnished by Global-e from time to time with 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’s mission is to make global e-commerce “border-agnostic.” Global-e is the world’s leading platform to enable and accelerate global, direct-to-consumer cross-border e-commerce. The chosen partner of more than 500 global brands and retailers across the United States, Europe and Asia, Global-e makes selling internationally as simple as selling domestically. Founded in 2013 by Amir Schlachet, Shahar Tamari and Nir Debbi, the company enables e-commerce retailers 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 e-commerce 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 from, and to, anywhere in the world.

Investor Contact:
Erica Mannion or Mike Funari
Sapphire Investor Relations, LLC
IR@global-e.com   
+1 617-542-6180

Press Contact:
Headline Media
Garrett Krivicich
Globale@headline.media   
+1 786-233-7684 

 
 
Global-E Online Ltd.
CONSOLIDATED BALANCE SHEETS
(In thousands)
    
  Period Ended 
   December 31,
  June 30,
   2020
  2021
  (Audited)  (Unaudited) 
Assets        
Current assets:        
Cash and cash equivalents $68,637  $391,008 
Short-term deposits  6,457   78,370 
Accounts receivable, net  3,594   4,167 
Prepaid expenses and other current assets  23,047   28,651 
Marketable securities  16,871   18,550 
Funds receivable, including cash in banks  34,492   30,992 
Total current assets  153,098   551,738 
Property and equipment, net  717   849 
Operating lease right-of-use assets  4,160   3,570 
Long term deposits  2,223   2,272 
Deferred contract acquisition costs, noncurrent  729   1,001 
Other assets, noncurrent  368   191 
Commercial agreement asset -   184,234 
Total long-term assets  8,197   192,117 
Total assets $161,295  $743,855 
Liabilities, Convertible Preferred Shares and Shareholders’ (Deficit) Equity        
Current liabilities:        
Accounts payable $19,057  $19,051 
Accrued expenses and other current liabilities  29,432   25,026 
Funds payable to Customers  34,492   30,992 
Short term operating lease liabilities  915   909 
Total current liabilities  83,896   75,978 
Long-term liabilities:        
Deferred tax liabilities, net  105   124 
Warrants liabilities to preferred shares  5,738  - 
Long term operating lease liabilities  3,513   2,891 
Total liabilities $93,252  $78,993 
Commitments and contingencies        
Convertible preferred shares  112,553  - 
Shareholders’ deficit:        
Share capital and additional paid-in capital  8,087   741,594 
Accumulated comprehensive income  111   (51)
Accumulated deficit  (52,708)  (76,681)
Total shareholders’ (deficit) equity  (44,510)  664,862 
Total liabilities, convertible preferred shares and shareholders’ (deficit) equity $161,295  $743,855 
         
Global-E Online Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
       
  Three Months Ended  Six Months Ended 
  June 30,  June 30, 
  2020  2021  2020  2021 
  (Unaudited)  (Unaudited) 
Revenue $29,787  $57,287  $49,476  $103,438 
Cost of revenue  20,122   36,687   34,029   67,471 
Gross profit  9,665   20,600   15,447   35,967 
                 
Operating expenses:                
Research and development  3,606   5,739   6,821   11,182 
Sales and marketing  1,924   30,017   3,776   33,117 
General and administrative  2,683   4,337   3,960   7,051 
Total operating expenses  8,214   40,093   14,557   51,350 
Operating profit (loss)  1,451   (19,493)  890   (15,383)
Financial expenses, net  1,847   2,420   2,549   8,129 
Loss before income taxes  (396)  (21,913)  (1,659)  (23,512)
Income taxes  5   311   9   461 
Net loss attributable to ordinary shareholders $(401) $(22,224) $(1,668) $(23,973)
Basic and diluted net loss per share attributable to ordinary shareholders $(0.02) $(0.25) $(0.08) $(0.44)
Basic and diluted weighted average ordinary shares  21,208,147   87,308,647   20,686,427   54,750,595 
                 
Global-E Online Ltd.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
       
  Three Months Ended  Six Months Ended 
  June 30,  June 30, 
  2020  2021  2020  2021 
  (Unaudited)  (Unaudited) 
Operating activities                
Net profit (loss) $(401) $(22,224) $(1,668) $(23,973)
Adjustments to reconcile net profit (loss) to net cash provided by operating activities:                
Depreciation and amortization  57   69   109   131 
Share-based compensation expense  1,600   1,551   1,686   2,618 
Accounts receivable  (578)  (1,530)  (227)  (573)
Prepaid expenses and other assets  (3,114)  (7,561)  (3,201)  (5,432)
Funds receivable  (3,732)  (7,452)  (2,359)  (9,520)
Long-term receivables  -   957   -  - 
Funds payable to customers  5,101   6,122   (2,841)  (3,500)
Operating lease ROU assets  251   208   (3,200)  590 
Deferred contract acquisition costs  (107)  (184)  (181)  (374)
Accounts payable  3,902   2,857   351   (6)
Accrued expenses and other liabilities  5,252   7,163   3,088   (4,406)
Deferred tax liabilities  -   8   -   19 
Operating lease liabilities  (207)  (163)  3,020   (628)
Warrants liabilities to preferred shares  2,252   1,625   2,261   5,872 
Commercial agreement asset -   25,486  -   25,486 
Net cash used in operating activities  10,276   6,932   (3,162)  (13,696)
Investing activities                
Investment in long-term marketable securities  -   (508)  -   (2,154)
Proceeds from marketable securities -   257  -   257 
Purchases of short-term investments  (2)  (64,360)  (52)  (71,913)
Purchases of long-term investments  9   (31)  (198)  (49)
Purchases of property and equipment  (53)  (149)  (209)  (263)
Net cash used in investing activities  (46)  (64,791)  (459)  (74,122)
Financing activities                
Proceeds from issuance of convertible preferred shares, net of issuance costs  58,821  -   58,821  - 
Proceeds from issuance of Ordinary shares in IPO, net of issuance costs -   396,983  -   396,983 
Proceeds from exercise of share options  282   20   440   173 
Net cash provided by financing activities  59,103   397,003   59,261   397,156 
                 
Net decrease in cash, cash equivalents, and restricted cash  69,333   339,144   55,640   309,338 
Cash and cash equivalents and restricted cash—beginning of period  6,676   55,227   20,369   85,033 
Cash and cash equivalents and restricted cash—end of period $76,009  $394,371  $76,009  $394,371 
                 
Global-E Online Ltd.
SELECTED OTHER DATA
(In thousands)
       
  Three Months Ended  Six Months Ended 
  June 30,  June 30, 
  2020  2021  2020  2021 
  (Unaudited)  (Unaudited) 
Key performance metrics      
Gross Merchandise Value  167,008       326,231       281,447       592,786     
Adjusted EBITDA (a)  3,108       7,613       2,685       12,852     
                                 
Revenue by Category                                
Service fees  10,345   35%  21,106   37%  17,299   35%  38,202   37%
Fulfillment services  19,442   65%  36,181   63%  32,177   65%  65,236   63%
Total revenue $29,787   100% $57,287   100% $49,476   100% $103,438   100%
                                 
Revenue by merchant outbound region                                
United Kingdom  18,393   62%  27,706   48%  31,260   63%  49,250   48%
United States  7,218   24%  16,638   29%  10,919   22%  29,845   29%
European Union  3,913   13%  12,433   22%  6,899   14%  23,581   23%
Israel  263   1%  243   0%  398   1%  494   0%
Other -  -   267   0% -  -   268   0%
Total revenue $29,787   100% $57,287   100% $49,476   100% $103,438   100%
                                 
   (a)   See reconciliation to adjusted EBITDA table
Global-E Online Ltd.
RECONCILIATION TO ADJUSTED EBITDA
(In thousands)
       
  Three Months Ended  Six Months Ended 
  June 30,  June 30, 
  2020  2021  2020  2021 
  (Unaudited)  (Unaudited) 
Operating profit (loss)  1,451   (19,493)  890   (15,383)
(1)    Stock-based compensation:                
      Cost of revenue  3   19   4   39 
      Research and development  171   222   205   444 
      Selling and marketing  98   223   117   444 
      General and administrative  1,328   1,087   1,360   1,691 
   Total stock-based compensation  1,600   1,551   1,686   2,618 
                 
(2)   Depreciation and amortization  57   69   109   131 
                 
(3)   Commercial agreement asset amortization -   25,486  -   25,486 
Adjusted EBITDA  3,108   7,613   2,685   12,852