Global-e Reports Fourth Quarter and Full Year 2024 Results

PETAH-TIKVA, Israel, Feb. 19, 2025 (GLOBE NEWSWIRE) -- Global-e Online Ltd. (Nasdaq: GLBE) the platform powering global direct-to-consumer e-commerce, today reported financial results for the fourth quarter of 2024 and full year 2024. “2024 was yet another record-breaking year for Global-e, and it came to a great close with a fourth quarter which was our strongest quarter ever, as we continued to execute on our strategy and further solidify Global-e’s leadership position in the global e-commerce space,” said Amir Schlachet, Founder and CEO of Global-e. “In addition, we achieved two important financial milestones during the quarter. For the first time in our journey, we crossed the 20% Adjusted EBITDA Margin mark, which was the long-term target we set for ourselves at the IPO, and we reached GAAP profitability for the first time as a public company; a testament to our relentless focus on delivering fast yet durable growth.” “As we head into 2025, we remain as committed as ever to continue on our growth path, deliver more cutting-edge and market-leading solutions to our merchants and seize more and more of the great opportunities that lie ahead of us in the world of global e-commerce. In 2025, we also expect to achieve three additional key financial milestones: surpass the 20% Adjusted EBITDA Margin mark on a full year basis, achieve annual GAAP profitability, and most importantly, for the first time, cross an annual run-rate of $1 billion in Revenues.” Q4 2024 Financial Results GMV1 in the fourth quarter of 2024 was $1,713 million, an increase of 44% year over yearRevenue in the fourth quarter of 2024 was $262.9 million, an increase of 42% year over year, of which service fees revenue was $117.3 million and fulfillment services revenue was $145.6 millionNon-GAAP gross profit2 in the fourth quarter of 2024 was $120.9 million, an increase of 53% year over year. GAAP gross profit in the fourth quarter of 2024 was $118.7 millionNon-GAAP gross margin2 in the fourth quarter of 2024 was 46%, an increase of 330 basis points from 42.7% in the fourth quarter of 2023. GAAP gross margin in the fourth quarter of 2024 was 45.1%Adjusted EBITDA3 in the fourth quarter of 2024 was $57.1 million compared to $35.2 million in the fourth quarter of 2023, an increase of 62% year over yearNet profit in the fourth quarter of 2024 was $1.5 millionNet cash provided by operating activities in the fourth quarter of 2024 was $129.3 million, while capital expenditures totaled $0.5 million, leading to free cash flow of $128.8 million FY 2024 Financial Results GMV1 for the full year was $4,858 million, an increase of 37% year over yearRevenue for the full year was $752.8 million, an increase of 32% year over year, of which service fees revenue was $350.3 million and fulfillment services revenue was $402.5 millionNon-GAAP gross profit2 for the full year was $349.4 million, an increase of 43% year over year. GAAP gross profit for the full year was $339.4 millionNon-GAAP gross margin2 for the full year was 46.4%, an increase of 350 basis points from 42.9% in 2023. GAAP gross margin for the full year was 45.1%Adjusted EBITDA3 for the full year was $140.8 million compared to $92.7 million in 2023, an increase of 51.8% year over yearNet loss for the full year was $75.5 millionNet cash provided by operating activities in the full year was $169.4 million, while capital expenditures totaled $2.3 million, leading to free cash flow of $167.1 million Recent Business Highlights Throughout 2024, our existing merchant base continued to stay and grow with us, as reflected in our annual enterprise NDR rate of 119% and GDR rate of 93.5%. GDR and NDR were negatively impacted by the out of the ordinary bankruptcy of Ted Baker and by several Borderfree merchants that chose not to re-platform to the Global-e platform. NDR and GDR excluding the out of the ordinary churn for 2024 is close to 123% and 97%, respectivelyRecently launched with Logitech, one of the world’s largest and most innovative providers of computer peripherals and input devices, gaming accessories, audio and video gear and smart home deviceOn-boarded many additional new merchants located around the globe and trading in various verticals, including: North America - shapewear brand Spanx, Thursday Boots, and the web store of famous fashion designer Tom FordUK and Europe - Spanish brand Tous, Italian fashion brand Slowear, UK footwear brand Phoebe Philo, German brand IvyOak, Swiss running gear brand Compressport, famous Austrian lingerie brand Triumph, French brands ZAPA and MOLLI, and the Finish brand HURTTAAPAC - Japanese brands Komehyo, one of Japan’s largest retailers of second-hand goods, Kyoto-based wristwatch brand Kuoe, novelty brands Mofusand and Taito, and the tailored shirt brand Kamakura Shirts, as well as the renowned Korean cosmetics brand Depology, and Australian fashion brands Zoe Kratzmann and SECONDLEFT Expanded to new lanes with existing merchants - added Romania and Croatia to the markets we operate for Adidas, went live with a new outlet site for John Smedley, and added Strellson, the third brand to go live with us out of the Swiss Holy Fashion GroupShopify Managed Markets – continued joint work with Shopify to add new features and functionalities to the Managed Markets offering, aimed at making it applicable to a wider range of merchants on the Shopify platform Q1 2025 and Full Year Outlook Global-e is introducing first quarter and full year guidance as follows: Q12025 FY 2025 (in millions)GMV(1)$1,210 - $1,250 $6,190 - $6,490Revenue$184.5 - $191.5 $917 - $967Adjusted EBITDA(3)$29.5 - $33.5 $179 - $199 1 Gross Merchandise Value (GMV) is a key 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, February 19, 2025. The call will be available, live, to interested parties by dialing: United States/Canada Toll Free: 1-800-717-1738International Toll:1-646-307-1865 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 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 revenuesAdjusted 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 and merger related contingent consideration.Free cash flow, which Global-e defines as net cash provided by operating activities less purchase of property and equipment. 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. The aforementioned key performance indicators and non-GAAP financial measures are used, in conjunction with GAAP measures, by management and our board of directors to assess our performance, including the preparation of Global-e’s annual operating budget and quarterly forecasts, for financial and operational decision-making, to evaluate the effectiveness of Global-e’s business strategies, and as a means to evaluate period-to-period comparisons. These measures are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We believe that these non-GAAP financial measures are appropriate measures of operating performance because they remove the impact of certain items that we believe do not directly reflect our core operations, and permit investors to view performance using the same tools that we use to budget, forecast, make operating and strategic decisions, and evaluate historical performance. 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. 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 This press release contains estimates and forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our future strategy and projected revenue, GMV, Adjusted EBITDA and other future financial and operational results, growth strategy and plans and objectives of management for future operations, including, among others, expansion in new and existing markets, the launch of large enterprise merchants, and our ongoing partnership with Shopify, are forward-looking statements. As the words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “target,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible” or the negative of these terms or other similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or 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, our rapid growth and growth rates in recent periods may not be indicative of future growth; the ability to retain merchants or the GMV generated by such merchants; the ability to retain existing, and attract new merchants; our business acquisitions and ability to effectively integrate acquired businesses; our ability to anticipate merchant needs or develop or acquire new functionality or enhance our existing platforms to meet those needs; our ability to implement and use artificial intelligence and machine learning technologies successfully; our ability to compete in our industry; our reliance on third-parties, including our ability to realize the benefits of any strategic alliances, joint ventures, or partnership arrangements and to integrate our platforms with third-party platforms; our ability to develop or maintain the functionality of our platforms, including real or perceived errors, failures, vulnerabilities, or bugs in our platforms; our history of net losses; our ability to manage our growth and manage expansion into additional markets; increased attention to ESG matters and our ability to manage such matters; our ability to accommodate increased volumes during peak seasons and events; our ability to effectively expand our marketing and sales capabilities; our expectations regarding our revenue, expenses and operations; our ability to operate internationally; our reliance on third-party services, including third-party providers of cross-docking services and third-party data centers, in our platforms and services and harm to our reputation by our merchants’ or third-party service providers’ unethical business practices; our ability to adapt to changes in mobile devices, systems, applications, or web browsers that may degrade the functionality of our platforms; our operation as a merchant of record for sales conducted using our platform; regulatory requirements and additional fees related to payment transactions through our e-commerce platforms could be costly and difficult to comply with; compliance and third-party risks related to anti-money laundering, anti-corruption, anti-bribery, regulations, economic sanctions and export control laws and import regulations and restrictions; our business’s reliance on the personal importation model; our ability to securely store personal information of merchants and shoppers; increases in shipping rates; fluctuations in the exchange rate of foreign currencies has impacted and could continue to impact our results of operations; our ability to offer high quality support; our ability to expand the number of merchants using our platforms and increase our GMV and to enhance our reputation and awareness of our platforms; our dependency on the continued use of the internet for commerce; our ability to adapt to emerging or evolving regulatory developments, changing laws, regulations, standards and technological changes related to privacy, data protection, data security and machine learning technology and generative artificial intelligence evolves; the effect of the situation in Ukraine on our business, financial condition and results of operations; our role in the fulfilment chain of the merchants, which may cause third parties to confuse us with the merchants; our ability to establish and protect intellectual property rights; and our use of open-source software which may pose particular risks to our proprietary software technologies; our dependency on our executive officers and other key employees and our ability to hire and retain skilled key personnel, including our ability to enforce non-compete agreements we enter into with our employees; litigation for a variety of claims which we may be subject to; the adoption by merchants of a direct to consumer model; our anticipated cash needs and our estimates regarding our capital requirements and our needs for additional financing; our ability to maintain our corporate culture; our ability to maintain an effective system of disclosure controls and internal control over financial reporting; our ability to accurately estimate judgments relating to our critical accounting policies; changes in tax laws or regulations to which we are subject, including the enactment of legislation implementing changes in taxation of international business activities and the adoption of other corporate tax reform policies; requirements to collect sales or other taxes relating to the use of our platforms and services in jurisdictions where we have not historically done so; global events such as war, health pandemics, climate change, macroeconomic events and the recent economic slowdown; risks relating to our ordinary shares, including our share price, the concentration of our share ownership with insiders, our status as a foreign private issuer, provisions of Israeli law and our amended and restated articles of association and actions of activist shareholders; risks related to our incorporation and location in Israel, including risks related to the ongoing war and related hostilities; and the other risks and uncertainties described in Global-e’s Annual Report on Form 20-F for the year ended December 31, 2023, filed with the SEC on March 28, 2024 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. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. About Global-E Online Ltd. Global-e (Nasdaq: GLBE) is the world's leading platform enabling and accelerating global, Direct-To-Consumer e-commerce. The chosen partner of over 1,000 brands and retailers across the United States, EMEA and APAC, 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 e-commerce solutions combine best-in-class localization capabilities, big-data best-practice business intelligence models, streamlined international logistics and vast global e-commerce experience, enabling international shoppers to buy seamlessly online and retailers to sell to, and from, anywhere in the world. For more information, please visit: www.global-e.com. Investor Contact: Erica Mannion or Mike Funari Sapphire Investor Relations, LLC IR@global-e.com +1 617-542-6180 Global-E Online Ltd.CONSOLIDATED BALANCE SHEETS(In thousands) Period Ended December 31, December 31, 2023 2024 (Unaudited) Assets Current assets: Cash and cash equivalents $200,081 $250,773 Short-term deposits 96,939 187,322 Accounts receivable, net 27,841 41,171 Prepaid expenses and other current assets 63,967 84,613 Marketable securities 20,403 36,345 Funds receivable, including cash in banks 111,232 122,984 Total current assets 520,463 723,208 Property and equipment, net 10,236 10,440 Operating lease right-of-use assets 23,052 24,429 Long term deposits 3,552 3,786 Deferred contract acquisition costs, noncurrent 2,668 3,787 Other assets, noncurrent 4,078 4,527 Commercial agreement asset 192,721 66,527 Goodwill 367,566 367,566 Intangible assets 78,024 59,212 Total long-term assets 681,897 540,274 Total assets $1,202,360 $1,263,482 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $50,943 $79,559 Accrued expenses and other current liabilities 107,306 141,551 Funds payable to Customers 111,232 122,984 Short term operating lease liabilities 4,031 4,347 Total current liabilities 273,512 348,441 Long-term liabilities: Deferred tax liabilities 6,507 - Long term operating lease liabilities 19,291 20,510 Other long-term liabilities 1,071 1,098 Total liabilities $300,381 $370,049 Shareholders’ deficit: Share capital and additional paid-in capital 1,360,250 1,425,317 Accumulated comprehensive income (1,420) 515 Accumulated deficit (456,851) (532,399)Total shareholders’ (deficit) equity 901,979 893,433 Total liabilities and shareholders’ equity $1,202,360 $1,263,482 Global-E Online Ltd.CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except share and per share data) Three Months Ended Year Ended December 31, December 31, 2023 2024 2023 2024 (Unaudited) (Unaudited) Revenue $185,401 $262,912 $569,946 $752,764 Cost of revenue 109,080 144,253 336,343 413,331 Gross profit 76,321 118,659 233,603 339,433 Operating expenses: Research and development 25,169 28,284 97,568 105,487 Sales and marketing 58,756 70,936 217,035 250,661 General and administrative 15,451 14,257 56,059 51,213 Total operating expenses, net 99,376 113,477 370,662 407,361 Operating profit (loss) (23,055) 5,182 (137,059) (67,928)Financial expenses (income), net (5,010) 6,073 (5,262) 11,465 Loss before income taxes (18,045) (891) (131,797) (79,393)Income tax (benefit) expenses 4,055 (2,400) 2,008 (3,845)Net profit (loss) attributable to ordinary shareholders $(22,100) $1,509 $(133,805) $(75,548)Net profit (loss) per share attributable to ordinary shareholders, basic $(0.13) $0.01 $(0.81) $(0.45)Net profit (loss) per share attributable to ordinary shareholders, diluted $(0.13) $0.01 $(0.81) $(0.45)Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic 165,626,904 168,419,800 164,353,909 167,323,350 Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, diluted 165,626,904 175,674,929 164,353,909 167,323,350 Global-E Online Ltd. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Three Months Ended Year Ended December 31, December 31, 2023 2024 2023 2024 (Unaudited) (Unaudited) Operating activities Net profit (loss) $(22,100) $1,509 $(133,805) $(75,548)Adjustments to reconcile net profit (loss) to net cash provided by operating activities: Depreciation and amortization 489 547 1,788 2,131 Share-based compensation expenses 12,180 9,538 44,960 39,158 Commercial agreement asset 37,433 37,433 150,451 148,594 Amortization of intangible assets 5,091 4,402 20,434 18,812 Unrealized loss (gain) on foreign currency (3,011) 3,554 (1,901) 4,468 Changes in accrued interest and exchange rate on short-term deposits 72 (1,373) (416) (1,329)Changes in accrued interest and exchange rate on long-term deposits (144) 364 (255) 200 Accounts receivable (14,390) 15,925 (11,417) (13,330)Prepaid expenses and other assets 61 (24,164) (11,736) (18,019)Funds receivable (9,038) 8,726 (11,074) (3,205)Long-term receivables (1,497) 51 (339) 551 Funds payable to customers 40,817 2,564 33,107 11,752 Operating lease ROU assets 786 991 3,230 3,691 Deferred contract acquisition costs (772) (322) (1,207) (1,382)Accounts payable 18,438 37,176 (1,277) 28,617 Accrued expenses and other liabilities 25,345 35,945 30,625 34,272 Deferred taxes 3,635 (2,592) 120 (6,507)Operating lease liabilities 99 (987) (3,067) (3,533)Net cash provided by operating activities 93,494 129,287 108,222 169,393 Investing activities Investment in marketable securities (851) (18,331) (3,728) (21,128)Proceeds from marketable securities - 2,028 671 4,988 Investment in short-term deposits (43,250) (77,848) (175,237) (269,601)Proceeds from short-term deposits 34,318 22,298 125,068 180,548 Purchases of long-term investments (4) (307) (82) (1,459)Proceeds from long-term deposits 10 24 10 24 Purchases of property and equipment (926) (482) (1,741) (2,335)Net cash used in investing activities (10,703) (72,618) (55,039) (108,963)Financing activities Proceeds from exercise of Warrants to ordinary shares - 3 22 5 Proceeds from exercise of share options 244 1,632 1,969 3,271 Net cash provided by financing activities 244 1,635 1,991 3,276 Exchange rate differences on balances of cash, cash equivalents and restricted cash 3,011 (3,554) 1,901 (4,468)Net Increase in cash, cash equivalents, and restricted cash 86,046 54,750 57,075 59,238 Cash and cash equivalents and restricted cash—beginning of period 182,551 273,086 211,522 268,597 Cash and cash equivalents and restricted cash—end of period $268,597 $327,835 $268,597 $327,835 Global-E Online Ltd.SELECTED OTHER DATA(In thousands) Three Months Ended Year Ended December 31, December 31, 2023 2024 2023 2024 (Unaudited) (Unaudited) Key performance metrics Gross Merchandise Value 1,189,467 1,712,903 3,557,444 4,857,970 Adjusted EBITDA (a) 35,178 57,102 92,735 140,767 Revenue by Category Service fees 89,936 49% 117,268 45% 262,255 46% 350,311 47%Fulfillment services 95,465 51% 145,644 55% 307,692 54% 402,453 53%Total revenue $185,401 100% $262,912 100% $569,946 100% $752,764 100% Revenue by merchant outbound region United States 94,887 51% 146,250 56% 285,619 50% 399,596 53%United Kingdom 54,962 30% 55,807 21% 173,584 30% 182,904 24%European Union 29,421 16% 44,469 17% 92,566 16% 125,547 17%Israel 479 0% 1,671 1% 1,806 0% 2,746 0%Other 5,652 3% 14,715 5% 16,371 3% 41,971 6%Total revenue $185,401 100% $262,912 100% $569,946 100% $752,764 100% (a) See reconciliation to adjusted EBITDA table Global-E Online Ltd.RECONCILIATION TO Non-GAAP GROSS PROFIT(In thousands) Three Months Ended Year Ended December 31, December 31, 2023 2024 2023 2024 (Unaudited)Gross Profit 76,321 118,659 233,603 339,433 Amortization of acquired intangibles included in cost of revenue 2,796 2,198 11,183 9,994 Non-GAAP gross profit 79,117 120,857 244,786 349,427 Global-E Online Ltd.RECONCILIATION TO ADJUSTED EBITDA(In thousands) Three Months Ended Year Ended December 31, December 31, 2023 2024 2023 2024 (Unaudited) Operating profit (loss) (23,055) 5,182 (137,059) (67,928) (1) Stock-based compensation: Cost of revenue 186 275 639 929 Research and development 6,962 4,153 26,266 17,291 Selling and marketing 1,238 1,528 4,259 5,836 General and administrative 3,794 3,582 13,796 15,102 Total stock-based compensation 12,180 9,538 44,960 39,158 (2) Depreciation and amortization 489 547 1,788 2,131 (3) Commercial agreement asset amortization 37,433 37,433 150,451 148,594 (4) Amortization of acquired intangibles 5,091 4,402 20,434 18,812 (5) Merger related contingent consideration 3,040 - 12,161 - Adjusted EBITDA 35,178 57,102 92,735 140,767 Global-E Online Ltd.RECONCILIATION TO FREE CASH FLOW(In thousands) Three Months Ended Year Ended December 31, December 31, 2023 2024 2023 2024 (Unaudited)Net cash provided by operating activities 93,434 129,287 108,222 169,393 Less: Purchase of property and equipment (926) (482) (1,741) (2,335)Free cash flow 92,508 128,805 106,481 167,058

Global-e Reports Fourth Quarter and Full Year 2024 Results

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