Press Release

Global-e Reports Second Quarter 2022 Results

Aug 16, 2022

PETAH-TIKVA, Israel, Aug. 16, 2022 (GLOBE NEWSWIRE) -- Global-e Online Ltd. (Nasdaq: GLBE) the global leader ofDirect-To-Consumer cross border eCommerce enablement, today reported financial results for the second quarter of 2022.

“The record results we are publishing today for the second quarter of 2022, together with the updated guidance for the third quarter and full year, illustrate the continued momentum of our business, as evident from top-linegrowth, improved profitability and the strong new bookings pipeline,” said Amir Schlachet, Founder and CEO of Global-e. “We remain focused on executing across all fronts,to tap the massiveglobal direct-to-consumer opportunity.”

Q2 2022 Financial Results

  • GMV1 in the second quarter of 2022 was $534 million, an increase of 64% year over year
  • Revenue in the second quarter of 2022 was $87.3 million, an increase of 52% year over year, of which service fees revenue was $39.3 million and fulfillment services revenue was $48.0 million
  • Non-GAAP gross profit2 in the second quarter of 2022 was $36.5 million, an increase of 77% year over year. GAAP gross profit in the second quarter of 2022 was $34.3 million
  • Non-GAAP gross margin2 in the second quarter of 2022 was 41.8%, an increase of 580 basis points from 36.0% in the second quarter of 2021. GAAP gross margin in the second quarter of 2022 was 39.3%
  • Adjusted EBITDA3 in the second quarter of 2022 was $11.1 million compared to $7.6 million in the second quarter of 2021
  • Net loss in the second quarter of 2022 was $48.8 million

Recent Business Highlights

  • Launched partnership withDisney,one of the world’s most well-known brands, to support their direct-to-consumer efforts, based on ourmulti-local offering
    • Launched several markets in the APAC region, as a first phase
  • Continued launching withnumerous exciting brands across geographies and verticals, with notable examples being:
    • Leading fashion brands Rag & Bone and Zadig&Voltaire, as well as the official tennis merchandize store of Wimbledon, and the luxury watches brand Zenith, expanding our partnership with the LVMH group
    • Several celebrity brands and other fast-growing digitally native brands, such as Justin Bieber’s fashion brand drew house, the highly successful training apparel brand NOBULL, as well as SKKN, another brand by Kim Kardashian, augmenting our successful partnership with SKIMS
    • APAC expansion continues with the launches of Triangl Swimwear out of Hong-Kong, and Ryderwear, our first live Australian merchant, as well as the signing of our first ever Japanese merchant
  • Expanded activity with brands such as adidas and Suunto, which added additional lanes to be operated by Global-e
  • Continued accelerated growth of the US-outbound business, with revenues up 104% year-over-year
  • Penetration efforts into new markets are starting to show initial positive results
    • While still relatively small in share, APAC and the Middle East outbound revenues have grown 213% year-over-year
  • Strategic partnership with Shopify remains on track
    • On the Global-e enterprise offering side, dozens of merchants of different sizes are already live on our new native integration into the Shopify platform
    • Booked our first live orders as part of the alpha trials of the new white-label Merchant of Record solution on Shopify, built upon the Flow Commerce technology
  • Post-merger integration processes are on track with earlier than planned synergies realization in Flow and the Borderfree process progressing

Q3 and Full Year Outlook

Global-e is introducing third quarter guidance and raising previously issued guidance for the fiscal year as follows:

  Q3 2022 FY 2022
  (in millions)
GMV$600 - $614 $2,450 - $2,550
Revenue$99.5 - $102.5 $406 - $426
Adjusted EBITDA (1)$8.5 - $11.5 $41 - $46

Of this, Borderfree is expected to contribute:

  • Q3 2022: GMV of $50-54 million, at a similar take rate to Global-e’s
  • FY 2022: GMV of $125-135 million, at a similar take rate to Global-e’s
  • A slightly negative adjusted EBITDA both in Q3 2022 and in FY 2022

Given the macro environment uncertainty, we will provide investors with updated business trends as they evolve.

1 Gross Merchandise Value (GMV) is a non-GAAP operating metric. See “Non-GAAP Financial Measures and Key Operating Metrics” for additional information regarding this metric.

2 Non-GAAP Gross profit and Non-GAAP gross margin are non-GAAP financial measures. See “Non-GAAP Financial Measures and Key Operating Metrics” for additional information regarding this metric.

3 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 8:00 a.m. ET on Tuesday, August 16, 2022.
The call will be available, live, to interested parties by dialing:                       

United States/Canada Toll Free:1-877-704-4453
International Toll:1-201-389-0920

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

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 and key performance metrics that are not prepared in accordance with GAAP including:

  • Non-GAAP gross profit, which Global-e defines as gross profit excluding amortization of acquired intangibles. Non-GAAP gross margin is calculated Non-GAAP gross profit divided by revenues
  • Adjusted EBITDA, which Global-e defines as operating profit (loss) adjusted for stock-based compensation expenses, depreciation and amortization, commercial agreements amortization, amortization of acquired intangibles, merger related contingent consideration and acquisition related 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 the Non-GAAP measures 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. The Non-GAAP measures are used by our management to understand and evaluate our operating performance and trends.

Global-e’s definition of Non-GAAP measures may differ from the definition used by other companies and therefore comparability may be limited. In addition, other companies may not publish these metrics or similar metrics. Furthermore, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Thus, Non -GAAP measures should be considered in addition to, not as substitutes 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 Annual Report on Form 20-F for the year ended December 31, 2021, filed with the SEC on March 28, 2022 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,  June 30, 
  2021  2022 
  (Audited)  (Unaudited) 
Current assets:        
Cash and cash equivalents $448,623  $232,971 
Short-term deposits  41,985   35,079 
Accounts receivable, net  9,185   9,344 
Prepaid expenses and other current assets  46,568   52,598 
Marketable securities  18,464   16,492 
Funds receivable, including cash in banks  57,635   63,627 
Total current assets  622,460   410,111 
Property and equipment, net  3,269   9,431 
Operating lease right-of-use assets  20,108   20,565 
Long term deposits  2,219   2,288 
Deferred contract acquisition costs, noncurrent  1,314   1,638 
Other assets, noncurrent  213   190 
Commercial agreement asset 196,544   280,861 
Goodwill and other intangible assets  -   366,221 
Total long-term assets  223,667   681,194 
Total assets $846,127  $1,091,305 
Liabilities, Convertible Preferred Shares and Shareholders (Deficit) Equity        
Current liabilities:        
Accounts payable $24,064  $30,089 
Accrued expenses and other current liabilities  47,358   51,681 
Funds payable to Customers  57,635   63,627 
Short term operating lease liabilities  2,517   3,316 
Total current liabilities  131,574   148,713 
Long-term liabilities:        
Long term operating lease liabilities  18,803   16,932 
Total liabilities $150,377  $165,645 
Shareholders’ deficit:        
Share capital and additional paid-in capital  823,550   1,157,398 
Accumulated comprehensive income  (159)  (1,714)
Accumulated deficit  (127,641)  (230,024)
Total shareholders’ (deficit) equity  695,750   925,660 
Total liabilities, convertible preferred shares and shareholders’ (deficit) equity $846,127  $1,091,305 

Global-E Online Ltd. 
(In thousands, except share and per share data) 
  Three Months Ended  Six Months Ended 
  June 30,  June 30, 
  2021  2022  2021  2022 
  (Unaudited)  (Unaudited) 
Revenue $57,287  $87,305  $103,438  $163,628 
Cost of revenue  36,687   52,954   67,471   102,094 
Gross profit  20,600   34,351   35,967   61,534 
Operating expenses:                
Research and development  5,739   17,597   11,182   35,284 
Sales and marketing  30,017   50,986   33,117   100,625 
General and administrative  4,337   15,071   7,051   26,611 
Total operating expenses  40,093   83,654   51,350   162,520 
Operating profit (loss)  (19,493)  (49,303)  (15,383)  (100,986)
Financial expenses, net  2,420   (680)  8,129   986 
Loss before income taxes  (21,913)  (48,623)  (23,512)  (101,972)
Income taxes  311   174   461   411 
Net loss attributable to ordinary shareholders $(22,224) $(48,797) $(23,973) $(102,383)
Basic and diluted net loss per share attributable to ordinary shareholders $(0.25) $(0.31) $(0.44) $(0.66)
Basic and diluted weighted average ordinary shares  87,308,647   156,891,201   54,750,595   155,636,936 

Global-E Online Ltd.                
(In thousands)                
  Three Months Ended  Six Months Ended 
  June 30,  June 30, 
  2021  2022  2021  2022 
  (Unaudited)  (Unaudited) 
Operating activities                
Net profit (loss) $(22,224) $(48,797) $(23,973) $(102,383)
Adjustments to reconcile net profit (loss) to net cash provided by operating activities:                
Depreciation and amortization  69   330   131   594 
Share-based compensation expense  1,551   12,843   2,618   20,772 
Commercial agreement asset  25,486   37,433   25,486   74,182 
Amortization of intangible assets  -   6,049   -   12,665 
Long term deposit revaluation  -   (38)  -   6 
Accounts receivable  (1,530)  728   (573)  4,721 
Prepaid expenses and other assets  (7,561)  (1,334)  (5,432)  (4,725)
Funds receivable  (7,452)  960   (9,520)  20,125 
Long-term receivables  957   -   -  - 
Funds payable to customers  6,122   18,175   (3,500)  3,238 
Operating lease ROU assets  208   657   590   1,455 
Deferred contract acquisition costs  (184)  (230)  (374)  (475)
Accounts payable  2,857   2,699   (6)  2,263 
Accrued expenses and other liabilities  7,163   4,501   (4,406)  (4,543)
Deferred tax liabilities  8   -   19   - 
Operating lease liabilities  (163)  (2,128)  (628)  (2,985)
Impairment of marketable securities  -   48   -   62 
Warrants liabilities to preferred shares  1,625   -   5,872   - 
Net cash used in operating activities  6,932   31,896   (13,696)  24,972 
Investing activities                
Investment in marketable securities  (508)  (357)  (2,154)  (7,555)
Proceeds from marketable securities 257   752  257   7,910 
Purchases of short-term investments  (64,360)  (197)  (71,913)  (31,495)
Purchases of long-term investments  (31)  -   (49)  - 
Proceeds from short-term investments  -   35,000   -   38,400 
Purchases of property and equipment  (149)  (1,900)  (263)  (6,584)
Payments for business combinations, net of cash acquired  -   (1,471)  -   (217,083)
Net cash used in investing activities  (64,791)  31,827   (74,122)  (216,407)
Financing activities                
Exercise of Warrants to ordinary shares  -  15   -  43 
Proceeds from issuance of Ordinary shares in IPO, net of issuance costs 396,983   -  396,983   - 
Proceeds from exercise of share options  20   386   173   488 
Net cash provided by financing activities  397,003   401   397,156   531 
Net decrease in cash, cash equivalents, and restricted cash  339,144   64,124   309,338   (190,904)
Cash and cash equivalents and restricted cash—beginning of period  55,227   203,871   85,033   458,899 
Cash and cash equivalents and restricted cash—end of period $394,371  $267,995  $394,371  $267,995 

Global-E Online Ltd.                                
(In thousands)
  Three Months Ended  Six Months Ended 
  June 30,  June 30, 
  2021  2022  2021  2022 
  (Unaudited)  (Unaudited) 
Key performance metrics      
Gross Merchandise Value  326,231       534,459       592,786       989,752     
Adjusted EBITDA (a)  7,613       11,128       12,852       14,410     
Revenue by Category                                
Service fees  21,106   37%  39,324   45%  38,202   37%  71,272   44%
Fulfillment services  36,181   63%  47,981   55%  65,236   63%  92,356   56%
Total revenue $57,287   100% $87,305   100% $103,438   100% $163,628   100%
Revenue by merchant outbound region                                
United Kingdom  27,706   48%  33,963   39%  49,250   48%  62,244   38%
United States  16,638   29%  33,944   39%  29,845   29%  61,865   38%
European Union  12,433   22%  17,798   20%  23,581   23%  36,852   23%
Israel  243   0%  263   0%  494   0%  628   0%
Other 267  0%  1,337   2% 268  0%  2,039   1%
Total revenue $57,287   100% $87,305   100% $103,438   100% $163,628   100%
(a)      See reconciliation to adjusted EBITDA table                                


Global-E Online Ltd.                 
(In thousands)                 
  Three Months Ended  Six Months Ended  
  June 30,  June 30,  
  2021  2022  2021  2022  
Gross Profit  20,600   34,351   35,967   61,534  
Amortization of acquired intangibles included in cost of revenue  -   2,198   -   4,874  
Non-GAAP gross profit  20,600   36,549   35,967   66,408  
Global-E Online Ltd.                 
(In thousands)                 
  Three Months Ended  Six Months Ended  
  June 30,  June 30,  
  2021  2022  2021  2022  
  (Unaudited)  (Unaudited)  
Operating profit (loss)  (19,493)  (49,303)  (15,383)  (100,986) 
(1)    Stock-based compensation:                 
Cost of revenue  19   52   39   88  
Research and development  222   5,296   444   10,448  
Selling and marketing  223   1,706   444   2,465  
General and administrative  1,087   5,788   1,691   7,771  
Total stock-based compensation  1,551   12,842   2,618   20,772  
(2)    Depreciation and amortization  69   330   131   594  
(3) Commercial agreement asset amortization 25,486   37,433  25,486   74,182  
(4) Amortization of acquired intangibles -   6,049  -   12,665  
(5) Merger related contingent consideration -   3,026  -   5,985  
(6) Acquisition related costs -   751  -   1,198  
Adjusted EBITDA  7,613   11,128   12,852   14,410