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]