Exhibit
|
Description
|
|
Global-E Online Ltd.
|
||
(Registrant)
|
||
By:
|
/s/ Ofer Koren
|
|
Name:
|
Ofer Koren
|
|
Title:
|
Chief Financial Officer
|
• |
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
|
• |
Launched partnership with Disney, one of the world’s most well-known brands, to support their direct-to-consumer efforts, based on our multi-local offering
|
o |
Launched several markets in the APAC region, as a first phase
|
• |
Continued launching with numerous exciting brands across geographies and verticals, with notable examples being:
|
o |
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
|
o |
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
|
o |
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
|
o |
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
|
o |
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
|
o |
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 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
|
- |
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
|
United States/Canada Toll Free:
|
1-877-704-4453
|
International Toll:
|
1-201-389-0920
|
• |
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.
|
Period Ended
|
||||||||
December 31,
|
June 30,
|
|||||||
2021
|
2022
|
|||||||
(Audited)
|
(Unaudited)
|
|||||||
Assets
|
||||||||
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
|
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
|
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
|
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
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2021
|
2022
|
2021
|
2022
|
|||||||||||||
(Unaudited)
|
||||||||||||||||
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
|
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
|