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]