Press Release

Global-e Reports Record Fourth Quarter and Full Year 2021 Results

Feb 16, 2022

PETAH-TIKVA, Israel, Feb. 16, 2022 (GLOBE NEWSWIRE) -- Global-E Online Ltd. (Nasdaq: GLBE) the global leader of Direct-To-Consumer cross border eCommerce enablement, today reported financial results for the fourth quarter of 2021 as well as the outlook for the first quarter and the full year 2022.

“We finished the year with the strongest quarter in the company’s history, continuing our consistent trend of delivering growth and strong execution, with $82.7 million of revenues in Q4 and $245.3 million for the full year, delivering roughly 80% year-on-year growth in 2021, coupled with further gross margin expansion,” said Amir Schlachet, Founder and CEO of Global-e. “We believe that the opportunity ahead of us remains massive, and that we are well positioned to capture it. We enter 2022 with our teams around the globe firing on all cylinders and will continue to execute on all fronts to drive strong top-line growth, while leveraging economies of scale and continuing to generate cash. This is reflected in our guidance for 2022, as we plan for 70% top line growth this year.”

FY 2021 Financial Results

  • GMV1 for the full year was $1,449 million, an increase of 87% year over year
  • Revenue for the full year was $245.3 million, an increase of 80% year over year
  • Gross profit for the full year was $91.4 million, an increase of 110% year over year
  • Adjusted EBITDA2 for the full year was $32.4 million, an increase of 157% year over year
  • Net loss for the full year was ($74.9) million, compared to a net profit of $3.9 million in the year-ago period. Net profit excluding the Shopify warrants related amortization expense of $84.3 million was $9.4 million

Q4 2021 Financial Results

  • GMV1 in the fourth quarter of 2021 was $505 million, an increase of 66% year over year
  • Revenue in the fourth quarter of 2021 was $82.7 million, an increase of 54% year over year, of which service fees revenue was $35.5 million and fulfillment services revenue was $47.2 million
  • Gross margin in the fourth quarter of 2021 was 39.5%, an increase of 600 basis points from 33.5% in the fourth quarter of 2020
  • Adjusted EBITDA2 in the fourth quarter of 2021 improved to $11.8 million compared to $7.2 million in the fourth quarter of 2020
  • Net loss in the fourth quarter of 2021 was ($22.5) million, compared to a net profit of $4.3 million in the year-ago period. Net profit excluding the Shopify warrants related amortization expense of $29.4 million was $6.9 million

Recent Business Highlights

  • Throughout 2021, our existing merchant base continued to stay and grow with us, as reflected in our annual GDR rate of over 98% and NDR rate of 152%
  • Continued accelerated growth of our US-outbound business
    • Continuing the strong penetration into the US market, US outbound revenues were up 108% in 2021
  • Continued launching with many more incredible brands over the last quarter and continued expanding our relationships with prominent retail groups. Select notable examples include:
    • Launched with another couple of brands from the LVMH group, Fenty Beauty and Fenty Skin, Rihanna’s cosmetics brands
    • Yeezy-GAP, Kanye West’s much discussed fashion cooperation with GAP, launched with us during Q4, as did the fast-growing sports clothing brand NVGTN
  • Expanded our relationship with several of our merchants, serving more and more lanes for them
    • Cartier, Stussy, Suunto, the French brand The Kooples and the Spanish footwear brand Camper are some of the brands which added additional key lanes
    • German audio equipment brand Sennheiser added the US, one of its largest destination markets, continuing our growth in the exciting new vertical of consumer electronics
  • Continued pursuing our geographical expansion efforts into APAC
    • Expanded our team on the ground in Tokyo, established a partnership agreement with the Japanese global digital transformation leader Trans Cosmos
    • With a first team member already on the ground in Melbourne, Australia, signed up a first reputable Aussie merchant
  • Continued to develop and enhance our multi-local service offering, with emphasis on further developing the granularity of our multi-local support features
  • Strategic partnership with Shopify on track to deliver the new native integration
    • Recently met additional important milestones in the technical development roadmap, gearing up towards the full launch of the new integration
    • Meanwhile, continued to onboard new Shopify-based merchants, of various sizes, on the existing 3rd-party integration including, among others Fenty Beauty and Fenty Skin, Yeezy-GAP and NVGTN mentioned above, as well as the direct-to-consumer healthcare apparel and lifestyle brand FIGS and the McLaren Formula-1 team’s online merchandize store
  • Closed the Flow Commerce transaction, aimed at enhancing our support for emerging brands as well as our ability to provide our solutions through channel partners in white-label form
    • Welcomed the Flow team into the Global-e family, and went full steam ahead with integrating teams and capabilities
    • Established a new Channels and Emerging Brands division
    • Continued joint work with Shopify towards launching the first white-label channel solution

Q1 2022 and Full Year Outlook

Global-e is introducing first quarter and full year guidance as follows:

 Q1 2022 FY 2022
 (in millions)
GMV (1)$446 - $456 $2,445 - $2,495
Revenue$74.5 - $76.5 $411 - $421
Adjusted EBITDA (2)$0.7 - $1.7 $38 - $42

Given the uncertainty of the ongoing impact and unprecedented conditions surrounding COVID-19 pandemic on business globally, we will provide investors with updated business trends as they evolve.

1 Gross Merchandise Value (GMV) is a non-GAAP financial measure. See “Non-GAAP Financial Measures” for additional information regarding this metric.

2 Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” for additional information regarding this metric, including the reconciliations to Operating Profit (Loss), its most directly comparable GAAP financial measure.  The Company is unable to provide a reconciliation of Adjusted EBITDA to Operating Profit (Loss), its most directly comparable GAAP financial measure, on a forward-looking basis without unreasonable effort because items that impact this GAAP financial measure are not within the Company’s control and/or cannot be reasonably predicted. These items may include, but are not limited to, share based compensation expenses. Such information may have a significant, and potentially unpredictable impact on the Company’s future financial results.

Conference Call Information:

Global-e will host a conference call at 4:30 p.m. ET on Wednesday, February 16, 2022.
The call will be available, live, to interested parties by dialing:

United States/Canada Toll Free:1-877-705-6003
International Toll:1-201-493-6725

A live webcast will also be available in the Investor Relations section of Global-e’s website at:

Approximately two hours after completion of the live call, an archived version of the webcast will be available on the Investor Relations section of the Company’s web site and will remain available for approximately 30 calendar days.

Non-GAAP Financial Measures and Key Operating Metrics

To supplement Global-e’s financial information presented in accordance with generally accepted accounting principles in the United States of America, or GAAP, Global-e considers certain financial measures that are not prepared in accordance with GAAP, including Adjusted EBITDA. Global-e defines Adjusted EBITDA as operating profit (loss) adjusted for depreciation and amortization, offering related expenses, merger and acquisition expenses and stock-based compensation expenses. Adjusted EBITDA is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate directly to the performance of the underlying business.

Global-e uses Adjusted EBITDA in conjunction with GAAP measures as part of Global-e’s overall assessment of its performance, including the preparation of Global-e’s annual operating budget and quarterly forecasts, to evaluate the effectiveness of Global-e’s business strategies, and to communicate with Global-e’s board of directors concerning its financial performance. Adjusted EBITDA is a measure used by our management to understand and evaluate our operating performance and trends. Adjusted EBITDA is a key performance measure that Global-e’s management uses to assess its operating performance and the operating leverage in Global-e’s business.

Global-e’s definition of Adjusted EBITDA may differ from the definition used by other companies and therefore comparability may be limited. In addition, other companies may not publish this metric or similar metrics. Furthermore, this metric has certain limitations in that it does not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Thus, Adjusted EBITDA should be considered in addition to, not as substitute for, or in isolation from, measures prepared in accordance with GAAP.

Global-e also uses Gross Merchandise Value (GMV) as a key operating metric. Gross Merchandise Value or GMV is defined as the combined amount we collect from the shopper and the merchant for all components of a given transaction, including products, duties and taxes and shipping.

For more information on the non-GAAP financial measures, please see the reconciliation tables provided below. The accompanying reconciliation tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.

Cautionary Note Regarding Forward Looking Statements

Certain statements in this press release may constitute “forward-looking” statements and information, within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding Global-e’s operations, strategy and Global-e’s projected revenue and other future financial and operational results. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this announcement, including but not limited to, the ability to retain merchants or the GMV generated by such merchants; the ability to attract new merchants; our expectations regarding our revenue, expenses and operations; anticipated trends and challenges in our business and the markets in which we operate; our ability to compete in our industry; our ability to anticipate merchant needs or develop or acquire new functionality or enhance our existing platform to meet those needs; our ability to manage our growth and manage expansion into additional markets; our ability to establish and protect intellectual property rights; our ability to hire and retain key personnel; our expectations regarding the use of proceeds from our initial public offering; our ability to adapt to emerging or evolving regulatory developments, technological changes, and cybersecurity needs; our anticipated cash needs and our estimates regarding our capital requirements and our needs for additional financing; the impact of the COVID-19 pandemic, including variants, and related vaccination roll out efforts; and the other risks and uncertainties described in Global-e’s prospectus filed with the Securities and Exchange Commission (the "SEC") on September 13, 2021 and other documents filed with or furnished by Global-e from time to time with the SEC.  The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors.  These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release.  Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

About Global-E Online Ltd.

Global-e (Nasdaq: GLBE) is the world's leading platform enabling and accelerating global, direct-to-consumer cross-border e-commerce. The chosen partner of hundreds of brands and retailers across the United States, Europe and Asia, Global-e makes selling internationally as simple as selling domestically. The company enables merchants to increase the conversion of international traffic into sales by offering online shoppers in over 200 destinations worldwide a seamless, localized shopping experience. Global-e's end-to-end e-commerce solutions combine best-in-class localization capabilities, big-data best-practice business intelligence models, streamlined international logistics and vast cross-border experience, enabling international shoppers to buy seamlessly online and retailers to sell to, and from, anywhere in the world. Founded in 2013 by Amir Schlachet, Shahar Tamari and Nir Debbi, Global-e operates from eight offices worldwide. For more information, please visit:

Investor Contact:
Erica Mannion or Mike Funari
Sapphire Investor Relations, LLC 
+1 617-542-6180

Press Contact:
Headline Media
Garrett Krivicich 
+1 786-233-7684 

Global-E Online Ltd.
(In thousands)

 Period Ended 
 December 31,
 December 31,
 (Audited)  (Unaudited) 
Current assets:       
Cash and cash equivalents$68,637  $448,623 
Short-term deposits 6,457   41,985 
Accounts receivable, net 3,594   9,185 
Prepaid expenses and other current assets 23,047   46,568 
Marketable securities 16,871   18,464 
Funds receivable, including cash in banks 34,492   57,635 
Total current assets 153,098   622,460 
Property and equipment, net 717   3,269 
Operating lease right-of-use assets 4,160   20,108 
Long term deposits 2,223   2,219 
Deferred contract acquisition costs, noncurrent 729   1,314 
Other assets, noncurrent 368   213 
Commercial agreement asset-   196,544 
Total long-term assets 8,197   223,667 
Total assets$161,295  $846,127 
Liabilities, Convertible Preferred Shares and Shareholders (Deficit) Equity       
Current liabilities:       
Accounts payable$19,057  $24,064 
Accrued expenses and other current liabilities 29,432   47,358 
Funds payable to Customers 34,492   57,635 
Short term operating lease liabilities 915   2,517 
Total current liabilities 83,896   131,574 
Long-term liabilities:       
Deferred tax liabilities, net 105   - 
Warrants liabilities to preferred shares 5,738  - 
Long term operating lease liabilities 3,513   18,803 
Total liabilities$93,252  $150,377 
Commitments and contingencies       
Convertible preferred shares 112,553  - 
Shareholders’ (deficit) equity:       
Share capital and additional paid-in capital 8,087   823,550 
Accumulated comprehensive income (loss) 111   (159)
Accumulated deficit (52,708)  (127,641)
Total shareholders’ (deficit) equity (44,510)  695,750 
Total liabilities, convertible preferred shares and shareholders’ (deficit) equity$161,295  $846,127 

Global-E Online Ltd.
(In thousands, except share and per share data)

 Three Months Ended
 Year Ended
 December 31,
 December 31, 
 (Unaudited)  (Audited)  (Unaudited) 
Revenue$53,574  $82,717  $136,375  $245,274 
Cost of revenue 35,604   50,062   92,902   153,841 
Gross profit 17,970   32,655   43,473   91,433 
Operating expenses:               
Research and development 4,872   10,298   15,400   29,761 
Sales and marketing 3,894   36,717   9,838   104,687 
General and administrative 3,785   7,830   9,822   22,643 
Total operating expenses 12,551   54,845   35,060   157,091 
Operating profit (loss) 5,419   (22,190)  8,413   (65,658)
Financial expenses, net 940   658   4,339   8,570 
Income (loss) before income taxes 4,480   (22,848)  4,074   (74,228)
Income taxes 146   (357)  160   705 
Net earnings (loss) attributable to ordinary shareholders$4,333  $(22,491) $3,914  $(74,933)
Undistributed earnings attributable to participating securities$3,545  $-  $3,189  $- 
Net earnings (loss) attributable to ordinary shareholders$788  $(22,491) $725  $(74,933)
Net earnings (loss) per share attributable to ordinary shareholders, basic$0.04  $(0.15) $0.03  $(0.74)
Net earnings (loss) per share attributable to ordinary shareholders, diluted$0.03  $(0.15) $0.03  $(0.74)
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic 21,617,948   149,283,090   21,120,208   101,737,026 
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, diluted 29,971,390   149,283,090   28,637,801   101,737,026 

Global-E Online Ltd.
(In thousands)

 Three Months Ended
 Year Ended
 December 31,
 December 31, 
 (Unaudited)  (Audited)  (Unaudited) 
Operating activities               
Net profit (loss)$4,333  $(22,491) $3,914  $(74,933)
Adjustments to reconcile net profit (loss) to net cash provided by operating activities:               
Depreciation and amortization 65   121   235   331 
Share-based compensation expense 1,716   3,919   3,956   12,001 
Commercial agreement asset -   29,406   -   84,298 
Long term deposit revaluation -   24   -   24 
Accounts receivable (1,197)  (5,301)  (1,652)  (5,591)
Prepaid expenses and other assets (6,804)  (11,054)  (12,273)  (23,239)
Funds receivable (4,623)  (15,661)  (11,829)  (29,272)
Long-term receivables (150)  -   (150)  - 
Funds payable to customers 13,373   21,201   12,884   23,143 
Operating lease ROU assets 217   599   (2,761)  1,382 
Deferred contract acquisition costs (107)  (149)  (429)  (814)
Accounts payable 8,601   6,402   10,018   5,007 
Accrued expenses and other liabilities 15,834   16,475   18,874   17,926 
Deferred tax liabilities 52   (138)  52   (90)
Impairment of marketable securities -   140   -   140 
Operating lease liabilities 49   478   2,988   (437)
Warrants liabilities to preferred shares 1,631   -   5,523   5,872 
Net cash provided by operating activities 32,990   23,971   29,350   15,748 
Investing activities               
Investment in marketable securities (16,759)  (652)  (16,759)  (2,806)
Proceeds from marketable securities -   491  -   748 
Investment in short-term investments (1,310)  (191)  (6,375)  (117,185)
Proceeds from short-term investments -   41,257   -   81,657 
Investment in long-term deposits (181)  (86)  (456)  (20)
Purchases of property and equipment (125)  (2,259)  (456)  (2,883)
Net cash (used in) provided by investing activities (18,375)  38,560   (24,046)  (40,489)
Financing activities               
Proceeds from issuance of convertible preferred shares, net of issuance costs-  -   58,821  - 
Proceeds from issuance of Ordinary shares in IPO, net of issuance costs-  -  -   396,494 
Proceeds from exercise of warrants to ordinary shares-  15  -   529 
Proceeds from exercise of share options 81   598   539   1,584 
Net cash provided by financing activities 81   613   59,360   398,607 
Net increase in cash, cash equivalents, and restricted cash 14,696   63,144   64,664   373,866 
Cash and cash equivalents and restricted cash—beginning of period 70,337   395,755   20,369   85,033 
Cash and cash equivalents and restricted cash—end of period$85,033  $458,899  $85,033  $458,899 

Global-E Online Ltd.
(In thousands)

 Three Months Ended  Year Ended 
 December 31,  December 31, 
 (Unaudited)  (Unaudited) 
Key performance metrics     
Gross Merchandise Value 303,647      504,919      773,843      1,449,299    
Adjusted EBITDA (a) 7,200      11,829      12,604      32,424    
Revenue by Category                           
Service fees 20,475  38%  35,499  43%  49,927  37%  96,659  39%
Fulfillment services 33,099  62%  47,218  57%  86,448  63%  148,615  61%
Total revenue$53,574  100% $82,717  100% $136,375  100% $245,274  100%
Revenue by merchant outbound region                           
United Kingdom 29,903  56%  37,443  45%  80,122  59%  113,835  47%
United States 14,399  27%  24,373  29%  34,140  25%  71,095  29%
European Union 9,063  17%  20,019  24%  21,269  16%  58,177  23%
Israel 209  0%  405  0%  844  1%  1,052  0%
Other-  -   477  1% -  -   1,115  0%
Total revenue$53,574  100% $82,717  100% $136,375  100% $245,274  100%

      (a)       See reconciliation to adjusted EBITDA table

Global-E Online Ltd.
(In thousands)

 Three Months Ended  Year Ended 
 December 31,  December 31, 
 (Unaudited)  (Unaudited) 
Operating profit (loss)5,419  (22,190) 8,413  (65,658)
(1) Stock-based compensation:           
Cost of revenue3  26  10  85 
Research and development237  1,873  507  4,192 
Selling and marketing260  580  442  1,287 
General and administrative1,216  1,440  2,997  6,437 
Total stock-based compensation1,716  3,919  3,956  12,001 
(2) Depreciation and amortization65  121  235  331 
(3) Secondary Offering Costs-  -  -  879 
(4) Commercial agreement asset amortization-  29,406  -  84,298 
(5) Merger and acquisition costs-  573     573 
Adjusted EBITDA7,200  11,829  12,604  32,424