Exhibit
|
Description
|
|
Global-E Online Ltd.
|
|||
(Registrant)
|
|||
By:
|
/s/ Ofer Koren
|
||
Name:
|
Ofer Koren
|
||
Title:
|
Chief Financial Officer
|
• |
GMV1 in the third quarter of 2022 was $621 million, an increase of 77% year over year
|
• |
Revenue in the third quarter of 2022 was $105.6 million, an increase of 79% year over year, of which service fees revenue was $47.8 million and fulfillment services revenue was $57.8 million
|
• |
Non-GAAP gross profit2 in the third quarter of 2022 was $43.8 million, an increase of 92% year over year. GAAP gross profit in the third quarter of 2022 was $40.8 million
|
• |
Non-GAAP gross margin2 in the third quarter of 2022 was 41.5%, an increase of 290 basis points from 38.6% in the third quarter of 2021. GAAP gross margin in the third quarter of 2022 was 38.7%
|
• |
Adjusted EBITDA3 in the third quarter of 2022 was $12.5 million compared to $7.7 million in the third quarter of 2021
|
• |
Net loss in the third quarter of 2022 was $64.6 million
|
• |
Continued to launch with many more brands across geographies and verticals we operate in, with notable examples being:
|
o |
The US based toy brand Mattel Creations, part of the Mattel group of brands, the fast-growing t-shirt brand True Classic, the online store of the prominent fashion designer Karl Lagerfeld, the classic high-end London based brand Drakes,
as well as the merchandize store of the famous Italian Football Club Inter Milan
|
o |
Went live with our first ever merchant based in the UAE, the innovative sportswear brand SquatWolf
|
o |
Continued our expansion in the luxury segment, including the high-end Spanish designer Manolo Blahnik, Buccellati of the Richemont group and three additional LVMH maisons – KVD, Ole Henriksen and Stella by Stella McCartney
|
• |
During the quarter several brands expanded the list of their lanes operated by Global-e, including Suunto, Anine Bing which opened up its EU site, Hugo Boss and others
|
• |
Progress in select business development initiatives:
|
o |
The leading consumer electronics brand Jabra has expanded its suite of services with Global-e, launching its presence on Amazon Japan, through Global-e’s marketplace connectivity offering which is in a pilot
phase
|
o |
Global-e’s demand generation offering is already serving over 40 merchants
|
• |
Continued to strengthen the US-outbound market
|
o |
US outbound revenues were up 184% year over year driven by the accelerated penetration to the US market and the high share of US outbound of Borderfree
|
• |
Penetration efforts into new markets are starting to show initial positive results
|
o |
While still only 3% in share, APAC and the Middle East outbound revenues have grown 496% year-over-year
|
• |
Strategic partnership with Shopify remains on track
|
o |
On the direct side, acceleration in merchants going live using the new native integration, as this is now the default integration for any new Shopify-based merchant
|
o |
On the white-label side, alpha trials successfully completed, and Shopify recently granted early access to a subset of relevant merchants
|
• |
Continued to expand our partnership network, signing a referral partnership agreement with Google
|
• |
Post-merger integration processes are progressing as planned
|
Q4 2022
|
FY 2022
|
Previous FY 2022
|
|||
(in millions)
|
|||||
GMV
|
$808 - $848
|
$2,419 - $2,459
|
$2,450 – $2,550
|
||
Revenue
|
$135.5 - $141.5
|
$404.7 - $410.7
|
$406 - $426(4)
|
||
Adjusted EBITDA (1)
|
$16.5 - $19.5
|
$43.5 - $46.5
|
$41 - $46
|
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,
|
September 30,
|
|||||||
2021
|
2022
|
|||||||
(Audited)
|
(Unaudited)
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
448,623
|
$
|
106,945
|
||||
Short-term deposits
|
41,985
|
67,551
|
||||||
Accounts receivable, net
|
9,185
|
11,693
|
||||||
Prepaid expenses and other current assets
|
46,568
|
45,885
|
||||||
Marketable securities
|
18,464
|
16,731
|
||||||
Funds receivable, including cash in banks
|
57,635
|
70,609
|
||||||
Total current assets
|
622,460
|
319,414
|
||||||
Property and equipment, net
|
3,269
|
14,732
|
||||||
Operating lease right-of-use assets
|
20,108
|
20,838
|
||||||
Long term deposits
|
2,219
|
3,011
|
||||||
Deferred contract acquisition costs, noncurrent
|
1,314
|
1,776
|
||||||
Other assets, noncurrent
|
213
|
4,254
|
||||||
Commercial agreement asset
|
196,544
|
281,912
|
||||||
Goodwill and other intangible assets
|
-
|
452,608
|
||||||
Total long-term assets
|
223,667
|
779,131
|
||||||
Total assets
|
$
|
846,127
|
$
|
1,098,545
|
||||
Liabilities and Shareholders’ Equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
24,064
|
$
|
34,244
|
||||
Accrued expenses and other current liabilities
|
47,358
|
63,210
|
||||||
Funds payable to Customers
|
57,635
|
70,609
|
||||||
Short term operating lease liabilities
|
2,517
|
3,297
|
||||||
Total current liabilities
|
131,574
|
171,360
|
||||||
Long-term liabilities:
|
||||||||
Long term operating lease liabilities
|
18,803
|
16,896
|
||||||
Other long-term liabilities
|
-
|
1,726
|
||||||
Total liabilities
|
$
|
150,377
|
$
|
189,982
|
||||
Shareholders’ deficit:
|
||||||||
Share capital and additional paid-in capital
|
823,550
|
1,205,356
|
||||||
Accumulated comprehensive income
|
(159
|
)
|
(2,218
|
)
|
||||
Accumulated deficit
|
(127,641
|
)
|
(294,575
|
)
|
||||
Total shareholders’ (deficit) equity
|
695,750
|
908,563
|
||||||
Total liabilities and shareholders’ equity
|
$
|
846,127
|
$
|
1,098,545
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2021
|
2022
|
2021
|
2022
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Revenue
|
$
|
59,119
|
105,556
|
$
|
162,557
|
269,184
|
||||||||||
Cost of revenue
|
36,308
|
64,754
|
103,779
|
166,848
|
||||||||||||
Gross profit
|
22,811
|
40,802
|
58,778
|
102,336
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development
|
8,281
|
22,224
|
19,463
|
57,508
|
||||||||||||
Sales and marketing
|
34,853
|
52,883
|
67,970
|
153,508
|
||||||||||||
General and administrative
|
7,762
|
18,926
|
14,813
|
45,537
|
||||||||||||
Total operating expenses, net
|
50,896
|
94,033
|
102,246
|
256,553
|
||||||||||||
Operating profit (loss)
|
(28,085
|
)
|
(53,231
|
)
|
(43,468
|
)
|
(154,217
|
)
|
||||||||
Financial expenses (income), net
|
(217
|
)
|
10,890
|
7,912
|
11,876
|
|||||||||||
Loss before income taxes
|
(27,868
|
)
|
(64,121
|
)
|
(51,380
|
)
|
(166,093
|
)
|
||||||||
Income taxes
|
601
|
430
|
1,062
|
841
|
||||||||||||
Net loss attributable to ordinary shareholders
|
$
|
(28,469
|
)
|
(64,551
|
)
|
$
|
(52,442
|
)
|
(166,934
|
)
|
||||||
Basic and diluted net loss per share attributable to ordinary shareholders
|
$
|
(0.19
|
)
|
(0.41
|
)
|
$
|
(0.61
|
)
|
(1.07
|
)
|
||||||
Basic and diluted weighted average ordinary shares
|
146,629,361
|
158,792,119
|
85,714,176
|
156,700,221
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2021
|
2022
|
2021
|
2022
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Operating activities
|
||||||||||||||||
Net profit (loss)
|
$
|
(28,469
|
)
|
$
|
(64,551
|
)
|
$
|
(52,442
|
)
|
$
|
(166,934
|
)
|
||||
Adjustments to reconcile net profit (loss) to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
79
|
421
|
210
|
1,015
|
||||||||||||
Share-based compensation expense
|
5,464
|
9,025
|
8,082
|
29,797
|
||||||||||||
Commercial agreement asset
|
29,406
|
37,432
|
54,892
|
111,615
|
||||||||||||
Amortization of intangible assets
|
-
|
8,695
|
-
|
21,360
|
||||||||||||
Long term deposit revaluation
|
-
|
(723
|
)
|
-
|
(717
|
)
|
||||||||||
Accounts receivable
|
283
|
2,672
|
(290
|
)
|
7,393
|
|||||||||||
Prepaid expenses and other assets
|
(6,753
|
)
|
7,854
|
(12,185
|
)
|
3,128
|
||||||||||
Funds receivable
|
(4,091
|
)
|
(11,902
|
)
|
(13,611
|
)
|
8,223
|
|||||||||
Long-term receivables
|
-
|
455
|
-
|
455
|
||||||||||||
Funds payable to customers
|
5,442
|
6,981
|
1,942
|
10,219
|
||||||||||||
Operating lease ROU assets
|
193
|
677
|
783
|
2,132
|
||||||||||||
Deferred contract acquisition costs
|
(291
|
)
|
(209
|
)
|
(665
|
)
|
(684
|
)
|
||||||||
Accounts payable
|
(1,389
|
)
|
(3,488
|
)
|
(1,395
|
)
|
(1,225
|
)
|
||||||||
Accrued expenses and other liabilities
|
5,857
|
3,633
|
1,451
|
(909
|
)
|
|||||||||||
Deferred tax liabilities
|
29
|
(179
|
)
|
48
|
(179
|
)
|
||||||||||
Operating lease liabilities
|
(287
|
)
|
(1,005
|
)
|
(915
|
)
|
(3,990
|
)
|
||||||||
Impairment of marketable securities
|
-
|
-
|
-
|
62
|
||||||||||||
Warrants liabilities to preferred shares
|
-
|
-
|
5,872
|
-
|
||||||||||||
Net cash generated by (used in) operating activities
|
5,473
|
(4,211
|
)
|
(8,223
|
)
|
20,761
|
||||||||||
Investing activities
|
||||||||||||||||
Investment in marketable securities
|
-
|
(743
|
)
|
(2,154
|
)
|
(8,298
|
)
|
|||||||||
Proceeds from marketable securities
|
-
|
-
|
257
|
7,910
|
||||||||||||
Purchases of short-term investments
|
(4,681
|
)
|
(60,472
|
)
|
(76,594
|
)
|
(91,967
|
)
|
||||||||
Proceeds of long-term investments
|
115
|
-
|
66
|
-
|
||||||||||||
Proceeds from short-term investments
|
-
|
28,000
|
-
|
66,400
|
||||||||||||
Purchases of property and equipment
|
(361
|
)
|
(1,398
|
)
|
(624
|
)
|
(7,982
|
)
|
||||||||
Payments for business combinations, net of cash acquired
|
-
|
(92,881
|
)
|
-
|
(309,964
|
)
|
||||||||||
Net cash used in investing activities
|
(4,927
|
)
|
(127,494
|
)
|
(79,049
|
)
|
(343,901
|
)
|
||||||||
Financing activities
|
||||||||||||||||
Exercise of Warrants to ordinary shares
|
-
|
15
|
-
|
58
|
||||||||||||
Proceeds from issuance of Ordinary shares in IPO, net of issuance costs
|
-
|
-
|
396,983
|
-
|
||||||||||||
Proceeds from exercise of share options
|
838
|
551
|
1,011
|
1,039
|
||||||||||||
Net cash provided by financing activities
|
838
|
566
|
397,994
|
1,097
|
||||||||||||
Net Increase (decrease) in cash, cash equivalents, and restricted cash
|
1,384
|
(131,139
|
)
|
310,722
|
(322,043
|
)
|
||||||||||
Cash and cash equivalents and restricted cash—beginning of period
|
394,371
|
267,995
|
85,033
|
458,899
|
||||||||||||
Cash and cash equivalents and restricted cash—end of period
|
$
|
395,755
|
$
|
136,856
|
$
|
395,755
|
$
|
136,856
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||||||||||||||||||
2021
|
2022
|
2021
|
2022
|
|||||||||||||||||||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||||||||||||||||||
Key performance metrics
|
||||||||||||||||||||||||||||||||
Gross Merchandise Value
|
351,591
|
621,011
|
944,377
|
1,610,763
|
||||||||||||||||||||||||||||
Adjusted EBITDA (a)
|
7,743
|
12,537
|
20,595
|
26,949
|
||||||||||||||||||||||||||||
Revenue by Category
|
||||||||||||||||||||||||||||||||
Service fees
|
22,959
|
39
|
%
|
47,782
|
45
|
%
|
61,161
|
38
|
%
|
119,054
|
44
|
%
|
||||||||||||||||||||
Fulfillment services
|
36,160
|
61
|
%
|
57,774
|
55
|
%
|
101,396
|
62
|
%
|
150,130
|
56
|
%
|
||||||||||||||||||||
Total revenue
|
$
|
59,119
|
100
|
%
|
$
|
105,556
|
100
|
%
|
$
|
162,557
|
100
|
%
|
$
|
269,184
|
100
|
%
|
||||||||||||||||
Revenue by merchant outbound region
|
||||||||||||||||||||||||||||||||
United Kingdom
|
27,142
|
46
|
%
|
36,249
|
34
|
%
|
76,392
|
47
|
%
|
98,494
|
37
|
%
|
||||||||||||||||||||
United States
|
16,877
|
29
|
%
|
48,005
|
46
|
%
|
46,722
|
29
|
%
|
109,867
|
41
|
%
|
||||||||||||||||||||
European Union
|
14,577
|
25
|
%
|
18,189
|
17
|
%
|
38,158
|
23
|
%
|
55,040
|
20
|
%
|
||||||||||||||||||||
Israel
|
153
|
0
|
%
|
271
|
0
|
%
|
647
|
0
|
%
|
899
|
0
|
%
|
||||||||||||||||||||
Other
|
370
|
1
|
%
|
2,842
|
3
|
%
|
638
|
0
|
%
|
4,884
|
2
|
%
|
||||||||||||||||||||
Total revenue
|
$
|
59,119
|
100
|
%
|
$
|
105,556
|
100
|
%
|
$
|
162,557
|
100
|
%
|
$
|
269,184
|
100
|
%
|
(a) |
See reconciliation to adjusted EBITDA table
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2021
|
2022
|
2021
|
2022
|
|||||||||||||
(Unaudited)
|
||||||||||||||||
Gross Profit
|
22,811
|
40,802
|
58,778
|
102,336
|
||||||||||||
Amortization of acquired intangibles included in cost of revenue
|
-
|
2,951
|
-
|
7,826
|
||||||||||||
Non-GAAP gross profit
|
22,811
|
43,753
|
58,778
|
110,162
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2021
|
2022
|
2021
|
2022
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Operating profit (loss)
|
(28,085
|
)
|
(53,231
|
)
|
(43,468
|
)
|
(154,217
|
)
|
||||||||
(1) Stock-based compensation:
|
||||||||||||||||
Cost of revenue
|
20
|
79
|
59
|
167
|
||||||||||||
Research and development
|
1875
|
5,667
|
2,319
|
16,115
|
||||||||||||
Selling and marketing
|
264
|
747
|
708
|
3,212
|
||||||||||||
General and administrative
|
3,305
|
2,532
|
4,996
|
10,303
|
||||||||||||
Total stock-based compensation
|
5,464
|
9,025
|
8,082
|
29,797
|
||||||||||||
(2) Depreciation and amortization
|
79
|
421
|
210
|
1,015
|
||||||||||||
(3) Commercial agreement asset amortization
|
29,406
|
37,432
|
54,892
|
111,615
|
||||||||||||
(4) Amortization of acquired intangibles
|
-
|
8,695
|
-
|
21,360
|
||||||||||||
(5) Secondary Offering Costs
|
879
|
-
|
879
|
-
|
||||||||||||
(5) Merger related contingent consideration
|
-
|
3,027
|
-
|
9,013
|
||||||||||||
(6) Acquisition related costs
|
-
|
7,168
|
-
|
8,366
|
||||||||||||
Adjusted EBITDA
|
7,743
|
12,537
|
20,595
|
26,949
|