Financial Data and Key Metrics Changes - The company reported a GMV of $1,450,000,000, representing a 34% year-over-year increase, and revenues of almost $215,000,000, up 28% year-over-year [10][23] - Adjusted gross profit for Q2 was just shy of $100,000,000, up 24% from last year, with adjusted EBITDA of $38,500,000, up 23% compared to the same quarter last year, resulting in a 17.9% margin [10][26] - The company achieved GAAP profitability with a net profit of $10,500,000 compared to a net loss of $22,400,000 in the same quarter of last year [10][27] Business Line Data and Key Metrics Changes - Service fee revenue for the quarter was $102,900,000, while fulfillment services revenue was $112,000,000 [23] - The service fee take rate increased compared to Q1 2025, while the fulfillment take rate decreased as expected due to seasonal higher average order value [24] Market Data and Key Metrics Changes - The company continues to see strong growth across many geographies and cohorts of merchants, with notable expansions in the U.S. market [12][78] - The U.S. business has outperformed, driven by strong growth from digitally native brands [78] Company Strategy and Development Direction - The company extended its partnership with DHL for an additional three years, enhancing service offerings for merchants [14] - The acquisition of ReturnGo aims to improve post-purchase solutions for merchants, integrating advanced technology for returns and exchanges [15][49] - The company is focused on enhancing its 3B2C offering to help brands offset costs due to rising tariffs [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model despite uncertainties around duty tariffs and trade dynamics [9][11] - The company anticipates continued strong trading patterns and does not expect significant impacts from upcoming changes to the U.S. de minimis exemption [11][36] Other Important Information - The company ended the quarter with $516,000,000 in cash and cash equivalents, with free cash flow of $63,500,000 [27] - For Q3 2025, the company expects GMV in the range of $1,455,000,000 to $1,495,000,000, representing a growth rate of 30% versus 2024 [28] Q&A Session Summary Question: Expectations around the de minimis exemption and its impact - Management indicated that they do not expect a significant impact from the removal of the de minimis exemption, noting resilient trading patterns [33][36] Question: Impact of the ReturnGo acquisition on revenue and OpEx - The acquisition is expected to have a slight positive impact on revenue and a minor negative impact on adjusted EBITDA in 2025, with expectations of neutral impact by 2026 [38] Question: Take rate dynamics for the 3B2C product - The take rate for the 3B2C solution is expected to be similar to regular B2C transactions, with minimal impact from clearance fees [45] Question: Growth in the U.S. business and its drivers - The U.S. business is outperforming due to strong growth from digitally native brands, contributing positively to overall performance [78] Question: Contribution from borderfree.com - The borderfree.com platform contributed over 4% of sales from merchants utilizing the service, in line with expectations [87] Question: Trends in NDR and same-store merchant GMV growth - Year-to-date figures are in line with historical averages, with expectations for new merchant contributions to be similar to last year [89]

Financial Data and Key Metrics Changes - The company reported a GMV of $1,450,000,000, representing a 34% year-over-year increase [9] - Revenue reached almost $215,000,000, up 28% year-over-year [9] - Adjusted gross profit for Q2 was just shy of $100,000,000, a 24% increase from last year [9] - Adjusted EBITDA was $38,500,000, up 23% compared to the same quarter last year, resulting in a 17.9% margin [9][26] - The company achieved GAAP profitability with a net profit of $10,500,000 compared to a net loss of $22,400,000 in the same quarter last year [9][27] - Cash and cash equivalents at the end of the quarter were $516,000,000, with free cash flow of $63,500,000 [27] Business Line Data and Key Metrics Changes - Service fee revenue for the quarter was $102,900,000, while fulfillment services revenue was $112,000,000 [23] - The service fee take rate increased compared to Q1 2025, while the fulfillment take rate decreased as expected [23] - Non-GAAP gross profit was $99,900,000, representing a gross margin of 46.5% [24] Market Data and Key Metrics Changes - The company continues to see strong growth across many geographies and cohorts of merchants, with a positive trend in trading patterns continuing into Q3 [10][11] - The U.S. market showed strong growth, outperforming other developed markets, driven by digitally native brands [78] Company Strategy and Development Direction - The company extended its partnership with DHL for an additional three years, enhancing service to merchants [14] - The acquisition of ReturnGo aims to improve post-purchase solutions for merchants [14][29] - The company is focused on enhancing its 3B2C offering to help brands offset costs due to rising tariffs [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model despite uncertainties around duty tariffs [7][10] - The company anticipates continued strong trading volumes and does not expect significant impacts from upcoming tariff changes [10][36] - The outlook for Q3 includes GMV expectations in the range of $1,455,000,000 to $1,495,000,000, representing a growth rate of 30% versus 2024 [28] Other Important Information - The company is on track for its first full year of GAAP profitability in 2025 [10][27] - The integration of ReturnGo's technology is expected to enhance the return experience for customers [15] Q&A Session Summary Question: Impact of de minimis exemption changes - Management indicated that they do not expect a significant impact from the removal of the de minimis exemption, citing resilient trading patterns [34][36] Question: Acquisition impact on revenue and OpEx - The acquisition of ReturnGo is expected to have a slight positive impact on revenue and a negative impact on adjusted EBITDA in 2025, with expectations of neutral impact by 2026 [39] Question: 3B2C product uptake and take rates - The 3B2C solution has seen growing interest, with take rates expected to remain stable as they are similar to regular B2C transactions [45][46] Question: U.S. business growth dynamics - The U.S. business is outperforming due to strong growth from digitally native brands, contributing to overall growth [78] Question: BorderFree contribution to revenue - The BorderFree platform contributed over 4% of sales from merchants utilizing the service, with expectations for further growth [87] Question: International market opportunities - The company sees significant potential in APAC, particularly in Korea and Taiwan, with plans for increased sales and account management resources in the region [109]

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]