Form 20-F ☒
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Form 40-F ☐
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Yes ☐
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No ☐
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Yes ☐
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No ☐
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Exhibit
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Description
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Global-E Online Ltd.
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(Registrant)
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By:
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/s/ Ofer Koren
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Name:
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Ofer Koren
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Title:
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Chief Financial Officer
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• |
GMV1 in the first quarter of 2022 was $455 million, an increase of 71% year over year
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• |
Revenue in the first quarter of 2022 was $76.3 million, an increase of 65% year over year, of which service fees revenue was $31.9 million and fulfillment services revenue was $44.4 million
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• |
Non-GAAP gross profit2 in the first quarter of 2022 was $29.9 million, an increase of 94% year over year. GAAP gross profit in the first quarter of 2022 was $27.2 million
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• |
Non-GAAP gross margin2 in the first quarter of 2022 was 39.1%, an increase of 580 basis points from 33.3% in the first quarter of 2021. GAAP gross margin in the first quarter of 2022 was 35.6%
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• |
Adjusted EBITDA3 in the first quarter of 2022 was $3.3 million compared to $5.2 million in the first quarter of 2021
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• |
Net loss in the first quarter of 2022 was $53.6 million
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• |
Launched our partnership with Adidas, one of the world’s largest and most iconic consumer brands, to support their multi-year Direct-To-Consumer strategic initiative, based on our multi-local offering
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o |
16 markets live and trading with additional markets planned to be rolled out gradually over the coming quarters
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• |
Continued launching with many more exciting brands across all geographies and verticals we operate in, with notable examples being:
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o |
Several iconic US brands including Brooks Brothers, Ralph Lauren, r.e.m. beauty by Ariana Grande and Rare Beauty by Selena Gomez
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o |
Prominent UK brands including SpaceNK and Dover Street Market
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o |
Leading French fashion brand Sezane; first ever Belgian brand – Buissonniere
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o |
APAC expansion continues with high-street brand Esprit, selling out of Hong Kong
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• |
Expanded relationships with multiple existing merchants who opened new markets during the quarter, including Celine, FIGS, Full Beauty Brands (+20 additional markets) and La Redoute (added several key European markets)
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• |
Continued to strengthen our strategic relationship with the luxury group LVMH, with three new maisons signing up to our services, all of whom are expected to go live during 2022
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• |
Continued accelerated growth of our US-outbound business
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o |
Continuing the strong penetration into the US market, US outbound revenue was up 111% in the first quarter of 2022
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• |
Strategic partnership with Shopify remains on track:
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o |
The new native integration emerged out of pilot phase in April; now in general availability for all Shopify Advanced and Shopify Plus merchants
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o |
The development of the white-label Merchant of Record, or MOR, solution for Shopify (based on technologies we acquired as part of the Flow Commerce acquisition) remains on track
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• |
Flow Commerce post-merger integration process progressing well - former Flow teams already fully integrated into the corresponding Global-e ones, many of the planned synergies and scale efficiency efforts already in motion
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• |
During the quarter we continued to invest in further strengthening our growing ecosystem of strategic partners. We rolled out our partnership with Australian Post to extend our support for Australian based merchants. In addition, we
expanded our partnership with Klarna to Canada. Klarna is now supported on Global-e in 15 markets
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Q2 2022
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FY 2022
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Previous FY 2022
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(in millions)
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GMV (1)
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$495 - $505
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$2,280 - $2,400
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$2,445 - $2,495
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Revenue
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$82.5 - $84.5
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$383 - $403
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$411 - $421
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Adjusted EBITDA (2)
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$2.8 - $3.8
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$38 - $42
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$38 - $42
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• |
Non-GAAP gross profit, which Global-e defines as gross profit excluding amortization of acquired intangibles. Non-GAAP gross margin is calculated Non-GAAP gross profit divided by revenues
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• |
Adjusted EBITDA, which Global-e defines as operating profit (loss) adjusted for stock-based compensation expenses, depreciation and amortization, commercial agreements amortization, amortization of acquired intangibles, merger related
contingent consideration and acquisition related expenses. Adjusted EBITDA is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We believe that Adjusted EBITDA is an appropriate measure
of operating performance because it eliminates the impact of expenses that do not relate directly to the performance of the underlying business.
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Period Ended
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December 31,
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March 31,
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2021
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2022
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(Audited)
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(Unaudited)
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Assets
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Current assets:
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Cash and cash equivalents
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$
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448,623
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$
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187,965
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||||
Short-term deposits
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41,985
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69,882
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||||||
Accounts receivable, net
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9,185
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10,072
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||||||
Prepaid expenses and other current assets
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46,568
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51,189
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||||||
Marketable securities
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18,464
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17,571
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||||||
Funds receivable, including cash in banks
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57,635
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45,453
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||||||
Total current assets
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622,460
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382,132
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||||||
Property and equipment, net
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3,269
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7,860
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||||||
Operating lease right-of-use assets
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20,108
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20,455
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Long term deposits
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2,219
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2,250
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Deferred contract acquisition costs, noncurrent
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1,314
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1,484
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||||||
Other assets, noncurrent
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213
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209
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||||||
Commercial agreement asset
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196,544
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279,811
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Goodwill and other intangible assets
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-
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385,860
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Total long-term assets
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223,667
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697,929
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||||||
Total assets
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$
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846,127
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$
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1,080,061
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Liabilities, Convertible Preferred Shares and Shareholders’ (Deficit) Equity
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||||||||
Current liabilities:
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Accounts payable
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$
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24,064
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$
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27,411
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Accrued expenses and other current liabilities
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47,358
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48,750
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Funds payable to Customers
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57,635
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45,453
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Short term operating lease liabilities
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2,517
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3,368
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Total current liabilities
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131,574
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124,982
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Long-term liabilities:
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Long term operating lease liabilities
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18,803
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18,240
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||||||
Total liabilities
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$
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150,377
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$
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143,222
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Commitments and contingencies
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||||||||
Shareholders’ (deficit) equity:
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||||||||
Share capital and additional paid-in capital
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823,550
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1,119,143
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||||||
Accumulated comprehensive income (loss)
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(159
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)
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(1,077
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)
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Accumulated deficit
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(127,641
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)
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(181,227
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)
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Total shareholders’ equity
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695,750
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936,839
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||||||
Total liabilities, convertible preferred shares and shareholders’ (deficit) equity
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$
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846,127
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$
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1,080,061
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Three Months Ended
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March 31,
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||||||||
2021
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2022
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|||||||
(Unaudited)
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||||||||
Revenue
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$
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46,151
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$
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76,322
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||||
Cost of revenue
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30,784
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49,139
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||||||
Gross profit
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15,367
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27,183
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||||||
Operating expenses:
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Research and development
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5,444
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17,687
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Sales and marketing
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3,099
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49,639
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General and administrative
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2,714
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11,540
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Total operating expenses
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11,257
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78,866
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Operating profit (loss)
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4,110
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(51,683
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)
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Financial expenses, net
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5,709
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1,666
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Loss before income taxes
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(1,599
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)
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(53,349
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)
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Income taxes
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150
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237
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Net earnings (loss) attributable to ordinary shareholders
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$
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(1,749
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)
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$
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(53,586
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)
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Basic and diluted net loss per share attributable to ordinary shareholders
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$
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(0.08
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)
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(0.35
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)
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Basic and diluted weighted average ordinary shares
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21,830,024
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154,368,734
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Three Months Ended
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March 31,
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||||||||
2021
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2022
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|||||||
(Unaudited)
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||||||||
Operating activities
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||||||||
Net profit (loss)
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$
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(1,749
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)
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$
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(53,586
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)
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Adjustments to reconcile net profit (loss) to net cash provided by operating activities:
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||||||||
Depreciation and amortization
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62
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264
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||||||
Share-based compensation expense
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1,067
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7,929
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||||||
Commercial agreement asset
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-
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36,749
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Amortization of intangible assets
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-
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6,616
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Long term deposit revaluation
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-
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44
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||||||
Accounts receivable
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956
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3,993
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||||||
Prepaid expenses and other assets
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2,129
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(3,392
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)
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Funds receivable
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(2,067
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)
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19,165
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Long-term receivables
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(957
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)
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-
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Funds payable to customers
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(9,622
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)
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(14,937
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)
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Operating lease ROU assets
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382
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797
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Deferred contract acquisition costs
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(190
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)
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(245
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)
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Accounts payable
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(2,863
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)
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(436
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)
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Accrued expenses and other liabilities
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(11,569
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)
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(9,043
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)
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Deferred tax liabilities
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11
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-
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||||||
Impairment of marketable securities
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-
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14
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Operating lease liabilities
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(465
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)
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(857
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)
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Warrants liabilities to preferred shares
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4,247
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-
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||||||
Net cash provided by operating activities
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(20,628
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)
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(6,925
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)
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Investing activities
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||||||||
Investment in marketable securities
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(1,646
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)
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(7,198
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)
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Proceeds from marketable securities
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-
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7,158
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||||||
Investment in short-term investments
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(7,553
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)
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(31,298
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)
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Proceeds from short-term investments
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-
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3,400
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||||||
Investment in long-term deposits
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(18
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)
|
-
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Payments for business combinations, net of cash acquired
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-
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(215,611
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)
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Purchases of property and equipment
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(114
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)
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(4,684
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)
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Net cash (used in) provided by investing activities
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(9,331
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)
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(248,233
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)
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Financing activities
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||||||||
Proceeds from exercise of warrants to ordinary shares
|
-
|
28
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||||||
Proceeds from exercise of share options
|
153
|
102
|
||||||
Net cash provided by financing activities
|
153
|
130
|
||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash
|
(29,806
|
)
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(255,028
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)
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||||
Cash and cash equivalents and restricted cash—beginning of period
|
85,033
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458,899
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||||||
Cash and cash equivalents and restricted cash—end of period
|
$
|
55,227
|
$
|
203,871
|
Three Months Ended
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||||||||||||||||
March 31,
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2021
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2022
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(Unaudited)
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Key performance metrics
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||||||||||||||||
Gross Merchandise Value
|
266,555
|
455,293
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||||||||||||||
Adjusted EBITDA (a)
|
5,239
|
3,282
|
||||||||||||||
Revenue by Category
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||||||||||||||||
Service fees
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17,096
|
37
|
%
|
31,947
|
42
|
%
|
||||||||||
Fulfillment services
|
29,055
|
63
|
%
|
44,375
|
58
|
%
|
||||||||||
Total revenue
|
$
|
46,151
|
100
|
%
|
$
|
76,322
|
100
|
%
|
||||||||
Revenue by merchant outbound region
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||||||||||||||||
United Kingdom
|
21,544
|
46
|
%
|
28,282
|
37
|
%
|
||||||||||
United States
|
13,207
|
29
|
%
|
27,920
|
37
|
%
|
||||||||||
European Union
|
11,149
|
24
|
%
|
19,054
|
25
|
%
|
||||||||||
Israel
|
251
|
1
|
%
|
364
|
0
|
%
|
||||||||||
Other
|
-
|
0
|
%
|
702
|
1
|
%
|
||||||||||
Total revenue
|
$
|
46,151
|
100
|
%
|
$
|
76,322
|
100
|
%
|
(a) |
See reconciliation to adjusted EBITDA table
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Three Months Ended
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||||||||
March 31,
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||||||||
2021
|
2022
|
|||||||
(Unaudited)
|
||||||||
Gross profit
|
15,367
|
27,183
|
||||||
Amortization of acquired intangibles included in cost of revenue
|
-
|
2,677
|
||||||
Non-GAAP gross profit
|
15,367
|
29,860
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2021
|
2022
|
|||||||
(Unaudited)
|
||||||||
Operating profit (loss)
|
4,110
|
(51,683
|
)
|
|||||
(1) Stock-based compensation:
|
||||||||
Cost of revenue
|
19
|
36
|
||||||
Research and development
|
223
|
5,151
|
||||||
Selling and marketing
|
221
|
759
|
||||||
General and administrative
|
604
|
1,983
|
||||||
Total stock-based compensation
|
1,067
|
7,929
|
||||||
(2) Depreciation and amortization
|
62
|
264
|
||||||
(3) Commercial agreement asset amortization
|
-
|
36,749
|
||||||
(4) Amortization of acquired intangibles
|
-
|
6,616
|
||||||
(5) Merger related contingent consideration
|
-
|
2,960
|
||||||
(6) Acquisition related costs
|
-
|
446
|
||||||
Adjusted EBITDA
|
5,239
|
3,282
|