Group 1 - Global-e Online Ltd. reported $189.88 million in revenue for the quarter ended March 2025, a year-over-year increase of 30.2% [1] - The company's EPS for the same period was -$0.11, an improvement from -$0.19 a year ago, with an EPS surprise of +15.38% compared to the consensus estimate of -$0.13 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $186.53 million, resulting in a surprise of +1.80% [1] Group 2 - Gross Merchandise Value for the quarter was $1.24 billion, slightly above the average estimate of $1.23 billion from three analysts [4] - Revenue from Fulfillment services was $105.90 million, surpassing the average estimate of $101.43 million from four analysts, reflecting a year-over-year change of +36.4% [4] - Revenue from Service fees was $83.98 million, compared to the average estimate of $85.10 million from four analysts, showing a year-over-year increase of +23% [4] Group 3 - Shares of Global-e Online have returned +30.6% over the past month, outperforming the Zacks S&P 500 composite's +9.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported a GMV of $1,240 million, representing a 34% year-over-year increase, and revenues of nearly $190 million, up 30% year-over-year [11][28] - Adjusted gross profit for Q1 was $86.3 million, a 31% increase from last year, with adjusted EBITDA of $31.6 million, up 48% year-over-year, resulting in a 16.6% margin [11][31] - The net loss for the quarter was $17.9 million, compared to a net loss of $32.1 million in the same period last year [32] Business Line Data and Key Metrics Changes - Service fees revenue increased by 23% to $84 million, while fulfillment services revenue rose by 36% to $105.9 million [28] - The growth in fulfillment revenue was positively impacted by GMV mix, while service fees were affected by the bankruptcy of Ted Baker UK [28] Market Data and Key Metrics Changes - The company noted that U.S. inbound GMV, which represents approximately 12% of overall GMV, may be negatively impacted by significant retail price increases due to high tariffs [13][88] - The company launched with several new brands across various markets, including luxury brands in Europe and sports brands in Asia Pacific [23][24][25] Company Strategy and Development Direction - The company signed a new three-year strategic partnership agreement with Shopify, transitioning from exclusivity to preferred provider status, which is expected to enhance commercial terms and streamline operations [18][20] - The company is focusing on developing new capabilities to help merchants navigate complex international trade dynamics, viewing current uncertainties as opportunities for growth [15][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining full-year guidance for 2025 despite geopolitical uncertainties, citing no clear directional impact from recent trade tariff changes [34][36] - The company expects to achieve GAAP profitability starting in Q2 2025, as the amortization of Shopify warrants will be completed [25] Other Important Information - The company ended the quarter with $445 million in cash and cash equivalents, with free cash flow used in Q1 amounting to $72.6 million [32][33] - The company is experiencing strong demand for its services, with dozens of brands going live during Q1 [23] Q&A Session Summary Question: Macroeconomic commentary and guidance adjustments - Management acknowledged greater uncertainty in the geopolitical environment but maintained full-year guidance, noting that same-store sales are slightly lower than the multi-year average [41][42] Question: Shopify partnership renewal and managed markets expansion - Management confirmed that the transition to preferred provider status allows for exclusive features and improved commercial terms, maintaining confidence in competitive positioning [44][45] Question: Trends in GMV and pricing changes - Management noted pockets of softness in certain merchants trading high shares of goods from China or Hong Kong but emphasized no clear directional impact overall [51] Question: NDR expectations and large enterprise merchant ramp-up - Management indicated that while same-store sales are slightly lower, large new merchants are ramping up positively, aligning with expectations [56][57] Question: Impact of FX and specific client issues - Management reported that while there were some changes in FX, the impact from the Marks and Spencer cyber attack was partial and not material for Q1 [60][61] Question: Managed markets and payment changes - Management confirmed that future releases will include changes to payment processing, which will impact revenue recognition but is expected to enhance overall adoption [64][66] Question: Margin trajectory and free cash flow expectations - Management expects gross margins to be slightly higher for the remainder of the year, with strong free cash flow conversion anticipated from adjusted EBITDA [70][71] Question: Interest in new offerings like 3B2C - Management reported high interest in the new 3B2C offering, with several merchants already in the project stage for upcoming launches [99][100]

Financial Data and Key Metrics Changes - The company reported a GMV of $1,240 million, representing a 34% year-over-year increase, and revenues of nearly $190 million, up 30% year-over-year [10][28] - Adjusted gross profit for Q1 was $86.3 million, up 31% from last year, with an adjusted EBITDA of $31.6 million, reflecting a 48% increase compared to the same quarter last year, resulting in a 16.6% margin [10][31] - The net loss for the quarter was $17.9 million, an improvement from a net loss of $32.1 million in the previous year [32] Business Line Data and Key Metrics Changes - Service fees revenue increased by 23% to $84 million, while fulfillment services revenue rose by 36% to $105.9 million [28] - The growth in fulfillment revenue was positively impacted by GMV mix, while service fees were affected by the bankruptcy of Ted Baker UK and the GMV mix share of larger merchants [28] Market Data and Key Metrics Changes - The company noted that U.S. inbound GMV, which constitutes approximately 12% of overall GMV, may be negatively impacted by significant retail price increases due to high tariffs and the removal of the import de minimis [12][90] - The company launched with several new merchants across various regions, including Europe and Asia Pacific, indicating strong demand for services [23][24] Company Strategy and Development Direction - The company signed a new three-year strategic partnership agreement with Shopify, transitioning from exclusivity to preferred provider status, which is expected to enhance commercial terms and streamline operations [17][19] - The company is focusing on developing new capabilities to help merchants navigate the complexities of international trade, which is seen as an opportunity for growth [14][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth potential despite current uncertainties in the geopolitical and macroeconomic environment, reiterating full-year guidance for 2025 [16][34] - The company is closely monitoring the situation regarding trade tariffs and their potential impact on performance, but has not observed clear directional trends thus far [12][41] Other Important Information - The company expects to achieve GAAP profitability starting in Q2 2025, as the amortization of the majority of Shopify warrants will be completed [25] - The company has seen increased interest in its new 3B2C offering, which allows merchants to mitigate tariff impacts [21][100] Q&A Session Summary Question: Impact of macroeconomic conditions on guidance - Management acknowledged greater uncertainty in the geopolitical environment but maintained full-year guidance, noting that same-store sales are slightly lower than historical averages [41][42] Question: Changes in Shopify partnership and managed markets - Management confirmed that the transition to preferred provider status allows for exclusive features and improved commercial terms, maintaining confidence in competitive positioning [44][45] Question: Trends in GMV and pricing changes - Management noted pockets of softness in certain merchants trading high shares of goods from China or Hong Kong but emphasized no clear directional impact on overall GMV [52] Question: Expectations for NDR and large enterprise merchants - Management indicated that while same-store sales are slightly lower, there has been a positive ramp-up from large new merchants onboarded in the previous quarter [56][58] Question: Service fee take rate and GMV growth - Management explained that the first quarter's service fee take rate is expected to remain stable, influenced by the loss of Ted Baker and a higher share of larger merchants [86] Question: Interest in 3B2C offering - Management reported high interest in the 3B2C solution, with several merchants already in the project stage for launch [100]

Financial Data and Key Metrics Changes - The company reported a GMV of $1,240 million, up 34% year over year, and revenues of nearly $190 million, up 30% year over year [10][27] - Adjusted gross profit for Q1 was $86.3 million, up 31% from last year, with an adjusted EBITDA of $31.6 million, up 48% compared to the same quarter last year, resulting in a 16.6% margin [10][29] - The net loss for the quarter was $17.9 million, compared to a net loss of $32.1 million in the year-ago period, primarily driven by amortization expenses related to the Shopify warrant [30] Business Line Data and Key Metrics Changes - Service fees revenue increased by 23% to $84 million, while fulfillment services revenue rose by 36% to $105.9 million [27] - The growth of fulfillment revenue was positively impacted by GMV mix, while service fees were affected by the bankruptcy of Ted Baker UK and the GMV mix share of larger merchants [27] Market Data and Key Metrics Changes - The company noted that U.S. inbound GMV, which represents approximately 12% of overall GMV, may be negatively impacted by significant retail price increases due to high tariffs and the removal of the import de minimis [12][30] - The company has seen pockets of softness in trading, particularly with merchants trading high shares of goods from China or Hong Kong into the U.S. [48] Company Strategy and Development Direction - The company signed a new three-year strategic partnership agreement with Shopify, which replaces prior agreements and aims to streamline operations and enhance merchant experiences [16][19] - The company is focusing on developing new capabilities to help merchants navigate the complexities of international trade, including a new 3B2C offering to mitigate tariff impacts [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth potential despite current uncertainties in the geopolitical and macroeconomic environment, reiterating full-year guidance for 2025 [15][32] - The company expects to move to GAAP profitability starting in Q2, as the amortization of the majority of the Shopify warrants will be completed [24] Other Important Information - The company ended the quarter with $445 million in cash and cash equivalents, with free cash flow used in Q1 amounting to $72.6 million [30] - The company is maintaining its full-year guidance for 2025, expecting GMV in the range of $6.19 to $6.49 billion, representing a 30.5% annual growth rate at the midpoint [33] Q&A Session Summary Question: Impact of macroeconomic conditions on guidance - Management acknowledged greater uncertainty in the geopolitical and macro environment but maintained full-year guidance, noting no clear trends in trading patterns [38][76] Question: Changes in Shopify partnership and managed markets - The transition from exclusivity to preferred provider status with Shopify is expected to provide flexibility for merchants while maintaining competitive advantages [41][74] Question: Observations on GMV trends and pricing changes - Management noted pockets of influence but no clear directional impact on GMV trends, with some softness observed in certain merchants trading high shares of goods from China or Hong Kong [48][56] Question: Expectations for service fee take rates - Management indicated that the first quarter would serve as a good modeling benchmark for service fee take rates, impacted by the loss of Ted Baker and a higher share of larger merchants [82] Question: Interest in new 3B2C offering - There is significant interest in the 3B2C solution, with merchants already in project stages expected to launch soon [97]

Core Insights - Global-e Online Ltd. and Shopify have renewed their strategic partnership for three years, focusing on enhancing international direct-to-consumer e-commerce solutions [1][2][3] - The partnership aims to improve the merchant experience by integrating Shopify Payments and other Shopify services into the Managed Markets solution [3] - Global-e will remain the exclusive provider of Merchant of Record (MoR) services for Shopify's Managed Markets, while also allowing additional MoR providers for the 3P solution [4] Company Overview - Global-e is a leading platform for enabling global Direct-To-Consumer e-commerce, partnering with over 1,000 brands and retailers across the US, EMEA, and APAC [6][7] - Shopify provides essential internet infrastructure for commerce, supporting millions of businesses in over 175 countries with a focus on speed, customization, and security [8]

Core Viewpoint - Wall Street analysts predict that Global-e Online Ltd. (GLBE) will report a quarterly loss of $0.13 per share, reflecting a year-over-year increase of 31.6%, with revenues expected to reach $186.53 million, a 27.9% increase compared to the previous year [1]. Earnings Estimates - Over the last 30 days, there has been a significant downward revision of 58.3% in the consensus EPS estimate for the quarter, indicating a collective reassessment by analysts of their initial forecasts [2]. - Changes in earnings estimates are crucial for predicting potential investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Revenue Projections - Analysts estimate that 'Revenue by Category - Fulfillment services' will be $101.43 million, representing a year-over-year change of +30.7% [5]. - The forecast for 'Revenue by Category - Service fees' is $85.10 million, indicating a change of +24.7% from the year-ago quarter [5]. - The average prediction for 'Gross Merchandise Value' stands at $1.23 billion, compared to the year-ago value of $929.51 million [5]. Stock Performance - Over the past month, Global-e Online shares have recorded a return of +9.7%, while the Zacks S&P 500 composite has changed by +13.7% [6]. - Based on its Zacks Rank 3 (Hold), GLBE is expected to perform in line with the overall market in the upcoming period [6].

Core Viewpoint - Global-e Online Ltd. is set to report its financial results for Q1 2025 on May 14, 2025, before market opening, indicating ongoing transparency and engagement with investors [1]. Group 1: Financial Reporting - The financial results for the first quarter ended March 31, 2025, will be announced before market open on May 14, 2025 [1]. - A conference call will be hosted by Global-e management to review the financial results and outlook [1]. Group 2: Conference Call Details - The conference call is scheduled for 8:00 AM ET on May 14, 2025 [2]. - Participants are encouraged to join the call 5-10 minutes early to ensure timely connection [2]. - A live webcast will be available on Global-e's Investor Relations website, with a replay accessible approximately two hours after the call [2]. Group 3: Company Overview - Global-e Online Ltd. is recognized as the leading platform for global Direct-To-Consumer e-commerce, partnering with over 1,400 brands and retailers [3]. - The company facilitates international sales by providing a localized shopping experience for online shoppers in over 200 destinations [3]. - Global-e's solutions include localization capabilities, business intelligence models, and streamlined logistics, enhancing the international shopping experience [3].

Core Insights - Global-e Online Ltd. filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the SEC [1] - The company is a leading platform for global direct-to-consumer e-commerce, partnering with over 1,400 brands and retailers [3] Company Overview - Global-e enables international sales by providing a seamless, localized shopping experience for online shoppers in over 200 destinations [3] - The company offers end-to-end e-commerce solutions that include localization capabilities, business intelligence models, and international logistics [3] Investor Relations - Shareholders can request a hard copy of the annual report containing audited financial statements free of charge [2] - Contact information for investor relations is provided for further inquiries [4]

Revenue and Growth - Revenue for the fiscal years ended December 31, 2022, 2023, and 2024 was $409.0 million, $569.9 million, and $752.8 million, representing annual growth rates of 66.8%, 39.3%, and 32.1% respectively[49]. - Gross Merchandise Value (GMV) processed through the platforms for the same years was $2,450 million, $3,557 million, and $4,858 million, with annual growth rates of 69.1%, 45.2%, and 36.6% respectively[49]. - The company anticipates challenges in sustaining revenue or GMV growth consistent with recent history in future periods[49]. - Future revenue growth is expected to be partially driven by increases in GMV generated by existing merchants, which is closely correlated with overall revenue[52]. - The platforms generated a total Gross Merchandise Volume (GMV) of $4,858 million for the year ended December 31, 2024, representing a 36.6% increase compared to the previous year[89]. Financial Performance and Losses - The company has experienced a history of net losses, which may impact future operations and growth[41]. - The company incurred net losses of $133.8 million and $75.5 million for the years ended December 31, 2023 and 2024, respectively[88]. - The company anticipates increasing operating expenses due to hiring additional personnel, expanding into new geographies, and enhancing platform features[88]. - The company expects revenue and operating results to be adversely affected by disruptions in processing and shipping orders, especially during peak seasons[100]. Market and Competitive Environment - The company operates in a competitive environment and faces risks related to rapid growth, merchant retention, and technological integration[40]. - The company faces competition in the global e-commerce market, which could lead to a decrease in GMV processed through its platforms and negatively impact revenue or margins[77]. - High-quality support is critical for retaining and attracting merchants, and the company expects to incur additional costs to meet support requirements as it expands[141]. - The company emphasizes the importance of brand awareness and reputation in attracting new merchants and increasing gross merchandise volume (GMV)[142]. Regulatory and Compliance Risks - The company is subject to various regulatory requirements that could impose additional costs and operational challenges[41]. - The company’s ability to adapt to emerging regulatory developments and technological changes is critical for its future success[41]. - The company is subject to increasing scrutiny regarding environmental, social, and governance (ESG) practices, which may lead to higher compliance costs[91]. - The company expects to incur significant additional costs to comply with evolving ESG regulations, particularly in the U.S. and EU[93]. - Compliance with payment card network operating rules, including PCI DSS, is mandatory, and violations could lead to additional costs and operational changes[117]. Operational Risks - The company relies on third-party services and partnerships, which may affect its operational efficiency and reputation[41]. - The reliance on third-party services for shipping and payment processing poses risks that could disrupt operations and affect financial results[109][111]. - The company relies on a single third-party cloud services provider for its operations, which poses risks of service disruption and data loss due to various potential events[135]. - Interruptions in services provided by third-party data centers could impair the company's operations, affecting overall business performance[134]. Economic and Market Conditions - Economic uncertainties, including inflation and recessionary pressures, may lead to decreased consumer spending, negatively impacting merchants and the company's results[194]. - Smaller merchants may be more vulnerable to economic conditions, potentially leading to increased refunds and chargebacks, affecting overall business performance[195]. - Changes in personal importation rules by countries could adversely affect the cross-border e-commerce market and reduce demand for the company's services[128]. Intellectual Property and Legal Risks - Failure to protect intellectual property rights could result in reduced revenue and costly litigation[159]. - The use of open source software poses risks of litigation and could require re-engineering of platforms if licenses are breached[165]. - The company may face increased vulnerability to intellectual property infringement claims as competition grows in the industry[163]. - Significant resources may be required to monitor and protect intellectual property rights, with potential litigation costs impacting business operations[162]. Shareholder and Corporate Governance - The concentration of share ownership among insiders (approximately 47.69%) may limit the influence of other shareholders on corporate matters[201]. - The company's share price has been volatile, influenced by various factors including market conditions and analyst expectations[200]. - The company has never declared or paid any dividends on its ordinary shares and does not anticipate paying any in the foreseeable future[214]. - The board of directors has sole discretion over dividend payments, which will depend on future operations, earnings, and other factors[215].

Group 1 - Global-e will host its 2025 Investor Day on March 11, 2025, at 9:30 a.m. ET [1] - A live webcast of the event will be available on Global-e's Investor Relations website, with a replay accessible after the event [1] Group 2 - Global-e is the leading platform for global Direct-To-Consumer e-commerce, partnering with over 1,000 brands and retailers [2] - The company facilitates international sales by providing a seamless, localized shopping experience for online shoppers in over 200 destinations [2] - Global-e's solutions include localization capabilities, big-data business intelligence models, and streamlined international logistics [2]