Global-E(GLBE) - 2024 Q4 - Annual Report

Global-E Q4 and Full Year 2024 Results CEO Commentary The CEO highlighted 2024 as a record year, with Q4 achieving over 20% Adjusted EBITDA Margin and GAAP profitability, setting goals for full-year 2025 to exceed 20% Adjusted EBITDA Margin, achieve annual GAAP profitability, and surpass $1 billion in annual revenue - 2024 was a record year, with Q4 being the strongest quarter ever[3] - Achieved two key financial milestones in Q4 2024: exceeded the 20% Adjusted EBITDA Margin target and reached GAAP profitability for the first time as a public company[3] - Key financial goals for 2025 include surpassing 20% Adjusted EBITDA Margin on a full-year basis, achieving annual GAAP profitability, and crossing a $1 billion annual revenue run-rate[3] Financial & Business Performance Q4 2024 Financial Results In the fourth quarter of 2024, Global-e demonstrated robust growth with a 44% year-over-year increase in GMV to $1,713 million and a 42% rise in revenue to $262.9 million, achieving its first-ever GAAP net profit of $1.5 million and a 62% Adjusted EBITDA growth to $57.1 million with a 21.7% margin Q4 2024 Key Financial Metrics (in millions) | Metric | Q4 2024 | Q4 2023 | % Change | | :--- | :--- | :--- | :--- | | GMV | $1,713M | $1,190M | +44% | | Revenue | $262.9M | $185.4M | +42% | | Non-GAAP Gross Profit | $120.9M | $79.1M | +53% | | Adjusted EBITDA | $57.1M | $35.2M | +62% | | Net Profit (Loss) | $1.5M | $(22.1)M | N/A | | Free Cash Flow | $128.8M | $92.5M | +39% | - Revenue was composed of $117.3 million from service fees and $145.6 million from fulfillment services[6] - Non-GAAP gross margin increased by 330 basis points to 46.0% from 42.7% in Q4 2023[6] Full Year 2024 Financial Results For the full year 2024, Global-e reported a 37% increase in GMV to $4,858 million and a 32% increase in revenue to $752.8 million, with Adjusted EBITDA growing 51.8% to $140.8 million, a significant reduction in net loss to $75.5 million, and strong free cash flow of $167.1 million Full Year 2024 Key Financial Metrics (in millions) | Metric | FY 2024 | FY 2023 | % Change | | :--- | :--- | :--- | :--- | | GMV | $4,858M | $3,557M | +37% | | Revenue | $752.8M | $570.0M | +32% | | Non-GAAP Gross Profit | $349.4M | $244.8M | +43% | | Adjusted EBITDA | $140.8M | $92.7M | +51.8% | | Net Loss | $(75.5)M | $(133.8)M | +43.5% | | Free Cash Flow | $167.1M | $106.5M | +57% | - Non-GAAP gross margin for the full year increased by 350 basis points to 46.4% from 42.9% in 2023[8] Recent Business Highlights Global-e continued to expand its merchant base and services throughout 2024, launching with major brands like Logitech, Spanx, and Tom Ford, onboarding numerous new merchants across North America, Europe, and APAC, and expanding services for existing clients like Adidas, achieving an annual enterprise Net Dollar Retention (NDR) rate of 119% - Maintained strong growth from existing merchants, with an annual enterprise NDR rate of 119% and GDR rate of 93.5%[8] - Launched with major new brands including Logitech, Spanx, Tom Ford, and Tous[8] - Expanded global reach by onboarding new merchants from North America, UK, Europe, and APAC, including brands like Phoebe Philo, Triumph, and Komehyo[8] - Continued joint work with Shopify to enhance features and functionalities for the Managed Markets offering[8] Q1 2025 and Full Year 2025 Outlook Global-e has issued guidance for the first quarter and full year of 2025, projecting full-year GMV between $6,190 million and $6,490 million, revenue between $917 million and $967 million, and Adjusted EBITDA between $179 million and $199 million Q1 2025 and Full Year 2025 Guidance (in millions) | Metric | Q1 2025 Guidance | FY 2025 Guidance | | :--- | :--- | :--- | | GMV | $1,210 - $1,250 | $6,190 - $6,490 | | Revenue | $184.5 - $191.5 | $917 - $967 | | Adjusted EBITDA | $29.5 - $33.5 | $179 - $199 | Financial Statements Consolidated Balance Sheets As of December 31, 2024, Global-e's balance sheet showed total assets of $1.26 billion, an increase from $1.20 billion in 2023, with cash, cash equivalents, and short-term deposits rising to $438.1 million, while total liabilities increased to $370.0 million from $300.4 million year-over-year Balance Sheet Summary (in thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | $1,263,482 | $1,202,360 | | Cash and cash equivalents | $250,773 | $200,081 | | Total Liabilities | $370,049 | $300,381 | | Total Shareholders' Equity | $893,433 | $901,979 | Consolidated Statements of Operations For the full year 2024, Global-e's revenue increased by 32% to $752.8 million, significantly narrowing its operating loss to $(67.9) million from $(137.1) million in 2023, reducing net loss by 43.5% to $(75.5) million, and achieving a net profit of $1.5 million in Q4 Statement of Operations Summary (in thousands) | Account | Year Ended 2024 | Year Ended 2023 | | :--- | :--- | :--- | | Revenue | $752,764 | $569,946 | | Gross Profit | $339,433 | $233,603 | | Operating Loss | $(67,928) | $(137,059) | | Net Loss | $(75,548) | $(133,805) | | Net Loss Per Share, basic | $(0.45) | $(0.81) | Consolidated Statements of Cash Flows For the full year 2024, net cash provided by operating activities was $169.4 million, a significant increase from $108.2 million in 2023, driven by improved profitability and efficient working capital management, resulting in a strong free cash flow of $167.1 million after capital expenditures Cash Flow Summary (in thousands) | Account | Year Ended 2024 | Year Ended 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $169,393 | $108,222 | | Net cash used in investing activities | $(108,963) | $(55,039) | | Net cash provided by financing activities | $3,276 | $1,991 | | Free Cash Flow | $167,058 | $106,481 | Supplementary Information Non-GAAP Financial Measures and Key Operating Metrics Global-e utilizes several non-GAAP financial measures, including Non-GAAP gross profit, Adjusted EBITDA, and Free Cash Flow, along with Gross Merchandise Value (GMV) as a key operating metric, to assess performance, forecast, and make strategic decisions by excluding certain non-core operational impacts - The company uses Non-GAAP measures (Non-GAAP gross profit, Adjusted EBITDA, Free cash flow) and a key operating metric (GMV) to assess performance[13][14] - GMV is defined as the combined amount collected from the shopper and the merchant for all components of a transaction, including products, duties, taxes, and shipping[13] - Adjusted EBITDA is defined as operating profit (loss) adjusted for stock-based compensation, depreciation and amortization, commercial agreements amortization, amortization of acquired intangibles, and merger-related contingent consideration[17] Reconciliation of Non-GAAP Financial Measures This section provides detailed reconciliations of GAAP to non-GAAP financial measures, showing how GAAP Gross Profit of $339.4 million is reconciled to Non-GAAP Gross Profit of $349.4 million, GAAP Operating Loss of $(67.9) million to Adjusted EBITDA of $140.8 million, and Net cash from operations of $169.4 million to Free Cash Flow of $167.1 million Reconciliation to Non-GAAP Gross Profit For the full year 2024, GAAP gross profit of $339.4 million was adjusted by adding back $10.0 million in amortization of acquired intangibles, resulting in a Non-GAAP gross profit of $349.4 million FY 2024 Reconciliation to Non-GAAP Gross Profit (in thousands) | Description | Amount | | :--- | :--- | | Gross Profit (GAAP) | $339,433 | | Amortization of acquired intangibles | $9,994 | | Non-GAAP gross profit | $349,427 | Reconciliation to Adjusted EBITDA For the full year 2024, the GAAP operating loss of $(67.9) million was reconciled to an Adjusted EBITDA of $140.8 million, primarily by adding back $148.6 million for commercial agreement asset amortization, $39.2 million for stock-based compensation, and $18.8 million for amortization of acquired intangibles FY 2024 Reconciliation to Adjusted EBITDA (in thousands) | Description | Amount | | :--- | :--- | | Operating loss (GAAP) | $(67,928) | | Stock-based compensation | $39,158 | | Depreciation and amortization | $2,131 | | Commercial agreement asset amortization | $148,594 | | Amortization of acquired intangibles | $18,812 | | Adjusted EBITDA | $140,767 | Reconciliation to Free Cash Flow For the full year 2024, free cash flow was calculated by taking the net cash provided by operating activities of $169.4 million and subtracting the purchase of property and equipment of $2.3 million, resulting in a free cash flow of $167.1 million FY 2024 Reconciliation to Free Cash Flow (in thousands) | Description | Amount | | :--- | :--- | | Net cash provided by operating activities | $169,393 | | Purchase of property and equipment | $(2,335) | | Free cash flow | $167,058 | Selected Other Data This section provides a breakdown of revenue by category and merchant outbound region, showing that for FY 2024, fulfillment services constituted 53% of revenue ($402.5 million) and service fees made up 47% ($350.3 million), with the United States being the largest contributor at 53% of total revenue FY 2024 Revenue by Category (in thousands) | Category | Revenue (in thousands) | % of Total | | :--- | :--- | :--- | | Service fees | $350,311 | 47% | | Fulfillment services | $402,453 | 53% | | Total revenue | $752,764 | 100% | FY 2024 Revenue by Merchant Outbound Region (in thousands) | Region | Revenue (in thousands) | % of Total | | :--- | :--- | :--- | | United States | $399,596 | 53% | | United Kingdom | $182,904 | 24% | | European Union | $125,547 | 17% | | Other | $44,717 | 6% |