Global-E(GLBE) - 2023 Q4 - Annual Report

Financial & Business Highlights Global-e reported strong Q3 2023 results, showing significant growth in GMV, revenue, and Adjusted EBITDA, alongside key business developments Q3 2023 Financial Highlights (YoY) | Metric | Q3 2023 | Q3 2022 | % Change | | :--- | :--- | :--- | :--- | | GMV | $839 million | - | 35% | | Revenue | $133.6 million | - | 27% | | Non-GAAP Gross Profit | $59.3 million | - | 36% | | Non-GAAP Gross Margin | 44.4% | 41.5% | +290 bps | | Adjusted EBITDA | $22.1 million | $12.5 million | 76% | | Net Loss (GAAP) | ($33.1 million) | - | - | - The CEO attributed the strong results to the robustness of the business model and highlighted the immense greenfield opportunity ahead, particularly with the launch of Shopify Markets Pro[4] - Key business developments in Q3 2023 included new merchant onboarding (Ted Baker, Tory Burch), expanded partnerships (LVMH, Richemont), Shopify Markets Pro general availability in the US, and a new integration with Wix Commerce[7] Financial Outlook Global-e provided financial guidance for Q4 and updated its full-year 2023 outlook, projecting GMV, revenue, and an upwardly revised Adjusted EBITDA Q4 2023 and Full Year 2023 Guidance (in millions) | Metric | Q4 2023 Guidance | FY 2023 Guidance | Previous FY 2023 Guidance | | :--- | :--- | :--- | :--- | | GMV | $1,125 - $1,175 | $3,493 - $3,543 | $3,480 - $3,640 | | Revenue | $178 - $186 | $563 - $571 | $570 - $596 | | Adjusted EBITDA | $31.5 - $36.5 | $89.1 - $94.1 | $85 - $93 | Financial Statements The consolidated financial statements detail Global-e's financial position and performance, showing total assets of $1.12 billion and a Q3 net loss of $33.1 million Consolidated Balance Sheets Global-e's balance sheet as of September 30, 2023, reported total assets of $1.12 billion, with liabilities at $210.3 million and equity at $908.2 million Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2023 (Unaudited) | Dec 31, 2022 (Audited) | | :--- | :--- | :--- | | Cash and cash equivalents | $145,824 | $165,033 | | Total current assets | $400,581 | $374,652 | | Total assets | $1,118,468 | $1,162,600 | | Total current liabilities | $188,600 | $209,580 | | Total liabilities | $210,299 | $234,479 | | Total shareholders' equity | $908,169 | $928,121 | Consolidated Statements of Operations For Q3 2023, Global-e reported a 27% revenue increase to $133.6 million, gross profit growth to $56.5 million, and a narrowed net loss of $33.1 million Statement of Operations Highlights (in thousands, except per share data) | Metric | Q3 2023 (Unaudited) | Q3 2022 (Unaudited) | Nine Months 2023 (Unaudited) | Nine Months 2022 (Unaudited) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $133,605 | $105,556 | $384,545 | $269,184 | | Gross Profit | $56,516 | $40,802 | $157,282 | $102,336 | | Operating Loss | ($35,601) | ($53,231) | ($114,004) | ($154,217) | | Net Loss | ($33,091) | ($64,551) | ($111,707) | ($166,934) | | Net Loss Per Share | ($0.20) | ($0.41) | ($0.68) | ($1.07) | Consolidated Statements of Cash Flows For the nine months ended September 30, 2023, net cash from operating activities was $14.7 million, with net cash used in investing activities significantly lower at $44.3 million Cash Flow Summary (Nine Months Ended Sep 30, in thousands) | Cash Flow Activity | 2023 (Unaudited) | 2022 (Unaudited) | | :--- | :--- | :--- | | Net cash provided by operating activities | $14,728 | $32,055 | | Net cash used in investing activities | ($44,336) | ($343,901) | | Net cash provided by financing activities | $1,747 | $1,097 | | Net decrease in cash | ($28,971) | ($322,043) | | Cash at end of period | $182,551 | $136,856 | Key Metrics and Non-GAAP Reconciliations This section details key operating metrics, including a 35% GMV growth and 50% revenue from US merchants, alongside reconciliations to non-GAAP measures like gross profit and Adjusted EBITDA Key Performance Metrics & Revenue Breakdown In Q3 2023, GMV increased 35% to $839.1 million, with fulfillment services accounting for 53% of revenue and US-based merchants contributing 50% of total revenue Key Performance Metrics (in thousands) | Metric | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | Gross Merchandise Value | $839,056 | $621,011 | | Adjusted EBITDA | $22,093 | $12,537 | Revenue by Merchant Outbound Region (Q3) | Region | 2023 Revenue % | 2022 Revenue % | | :--- | :--- | :--- | | United States | 50% | 46% | | United Kingdom | 31% | 34% | | European Union | 16% | 17% | | Other | 3% | 3% | Non-GAAP Reconciliations The company provides reconciliations from GAAP to non-GAAP measures, showing Q3 2023 Non-GAAP gross profit of $59.3 million and Adjusted EBITDA of $22.1 million after various adjustments Reconciliation to Non-GAAP Gross Profit (Q3, in thousands) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Gross Profit (GAAP) | $56,516 | $40,802 | | Amortization of acquired intangibles | $2,796 | $2,951 | | Non-GAAP gross profit | $59,312 | $43,753 | Reconciliation to Adjusted EBITDA (Q3, in thousands) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Operating loss (GAAP) | ($35,601) | ($53,231) | | Stock-based compensation | $11,716 | $9,025 | | Commercial agreement asset amortization | $37,433 | $37,432 | | Amortization of acquired intangibles | $5,092 | $8,695 | | Other adjustments | $3,453 | $10,195 | | Adjusted EBITDA | $22,093 | $12,537 | Supplementary Information This section provides administrative and legal information, including non-GAAP measure definitions, a safe harbor statement, and a corporate overview of Global-e's leading cross-border e-commerce platform - The company uses non-GAAP measures such as Non-GAAP gross profit and Adjusted EBITDA to assess performance, evaluate business strategies, and communicate with its board[12][16] - The report contains forward-looking statements subject to risks and uncertainties, and readers are cautioned not to put undue reliance on these statements[17] - Global-e is the world's leading platform for D2C cross-border e-commerce, enabling over 1,000 brands to sell internationally by providing a seamless, localized shopping experience in over 200 destinations[18]