Exhibit
|
Description
|
|
Global-E Online Ltd.
|
|||
(Registrant)
|
|||
By:
|
/s/ Ofer Koren
|
||
Name:
|
Ofer Koren
|
||
Title:
|
Chief Financial Officer
|
• |
GMV1 in the fourth quarter of 2022 was $839 million, an increase of 66% year over year
|
• |
Revenue in the fourth quarter of 2022 was $139.9 million, an increase of 69% year over year, of which service fees revenue was $62.8 million and fulfillment services revenue was $77 million
|
• |
Non-GAAP gross profit2 in the fourth quarter of 2022 was $57.8 million, an increase of 77% year over year. GAAP gross profit in the fourth quarter of 2022 was $55.8 million
|
• |
Non-GAAP gross margin2 in the fourth quarter of 2022 was 41.3%, an increase of 180 basis points from 39.5% in the fourth quarter of 2021. GAAP gross margin in the fourth quarter of 2022 was 39.9%
|
• |
Adjusted EBITDA3 in the fourth quarter of 2022 was $21.8 million compared to $11.8 million in the fourth quarter of 2021
|
• |
Net loss in the fourth quarter of 2022 was $28.5 million
|
• |
GMV1 for the full year was $2,450 million, an increase of 69% year over year
|
• |
Revenue for the full year was $409.0 million, an increase of 67% year over year, of which service fees revenue was $181.9 million and fulfillment services revenue was $227.1 million
|
• |
Non-GAAP gross profit2 for the full year was $167.9 million, an increase of 84% year over year. GAAP gross profit for the full year was $158.2 million
|
• |
Non-GAAP gross margin2 for the full year was 41.1%, an increase of 380 basis points from 37.3% in 2021. GAAP gross margin for the full year was 38.7%
|
• |
Adjusted EBITDA3 for the full year was $48.7 million compared to $32.4 million in 2021
|
• |
Net loss for the full year was $195.4 million
|
• |
Throughout 2022, 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 130%
|
• |
Continued to launch with many more brands across geographies and verticals we operate in, including:
|
o |
British luxury brand All Saints, French brand ba&sh, celebrity-led footwear brand of the singer Katy Perry,
and fast-growing US apparel brands Dolls Kill and Cuts Clothing
|
o |
Innovative footwear brand Ancient Greek Sandals, our first ever merchant based in Greece
|
o |
Pure Hair and H2 Hub in Australia and Singapore, respectively, continuing our expansion in the APAC region
|
o |
Three new LVMH maisons – BVLGARI, Chaumet and Moynat – continuing our expansion within the luxury vertical in
general and within the LVMH group in particular
|
• |
Went live with Disney EU after its launch was delayed from Q4, representing a major expansion of our relationship with Disney
|
• |
Continued to strengthen the US-outbound market
|
o |
US outbound sales were up 163% in the fourth quarter year over year, driven by our accelerated penetration into the US market as well as the high share of US outbound activity at Borderfree
|
• |
Penetration efforts into new markets starting to show initial positive results
|
o |
While still only 3% in share, APAC and the Middle East outbound revenues in the fourth quarter have grown almost 8X year-over-year
|
• |
Strategic partnership with Shopify remains well on track
|
o |
Direct (3P) - acceleration in merchants going live using the new native integration, as this is now the default integration for any new Shopify-based merchant
|
o |
White-label (1P) - alpha trials successfully completed, with Shopify recently extending early access to another subset of relevant merchants
|
• |
Post-merger integration process of Borderfree continues to progress as planned
|
• |
Renewed global strategic partnership agreement with DP/DHL for an additional three-year period
|
Q1 2023
|
FY 2023
|
|||
(in millions)
|
||||
GMV(1)
|
$645 - $675
|
$3,360 - $3,520
|
||
Revenue
|
$108 - $114
|
$557 - $584
|
||
Adjusted EBITDA (3)
|
$9.5 - $12.5
|
$66 - $74
|
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,
|
December 31,
|
|||||||
2021
|
2022
|
|||||||
(Audited)
|
(Unaudited)
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
448,623
|
$
|
165,033
|
||||
Short-term deposits
|
41,985
|
46,353
|
||||||
Accounts receivable, net
|
9,185
|
16,424
|
||||||
Prepaid expenses and other current assets
|
46,568
|
51,904
|
||||||
Marketable securities
|
18,464
|
16,813
|
||||||
Funds receivable, including cash in banks
|
57,635
|
78,125
|
||||||
Total current assets
|
622,460
|
374,652
|
||||||
Property and equipment, net
|
3,269
|
10,283
|
||||||
Operating lease right-of-use assets
|
20,108
|
19,718
|
||||||
Long term deposits
|
2,219
|
3,225
|
||||||
Deferred contract acquisition costs, noncurrent
|
1,314
|
1,825
|
||||||
Deferred tax assets
|
-
|
171
|
||||||
Other assets, noncurrent
|
213
|
3,739
|
||||||
Commercial agreement asset
|
196,544
|
282,963
|
||||||
Goodwill and other intangible assets
|
-
|
466,024
|
||||||
Total long-term assets
|
223,667
|
787,948
|
||||||
Total assets
|
$
|
846,127
|
$
|
1,162,600
|
||||
Liabilities and Shareholders’ Equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
24,064
|
$
|
52,220
|
||||
Accrued expenses and other current liabilities
|
47,358
|
75,990
|
||||||
Funds payable to Customers
|
57,635
|
78,125
|
||||||
Short term operating lease liabilities
|
2,517
|
3,245
|
||||||
Total current liabilities
|
131,574
|
209,580
|
||||||
Long-term liabilities:
|
||||||||
Deferred tax liabilities
|
-
|
6,558
|
||||||
Long term operating lease liabilities
|
18,803
|
16,579
|
||||||
Other long-term liabilities
|
-
|
1,762
|
||||||
Total liabilities
|
$
|
150,377
|
$
|
234,479
|
||||
Shareholders’ deficit:
|
||||||||
Share capital and additional paid-in capital
|
823,550
|
1,253,093
|
||||||
Accumulated comprehensive income
|
(159
|
)
|
(1,926
|
)
|
||||
Accumulated deficit
|
(127,641
|
)
|
(323,046
|
)
|
||||
Total shareholders’ (deficit) equity
|
695,750
|
928,121
|
||||||
Total liabilities and shareholders’ equity
|
$
|
846,127
|
$
|
1,162,600
|
Three Months Ended
|
Year Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2021
|
2022
|
2021
|
2022
|
|||||||||||||
(Unaudited)
|
(Audited)
|
(Unaudited)
|
||||||||||||||
Revenue
|
$
|
82,717
|
139,865
|
$
|
245,274
|
409,049
|
||||||||||
Cost of revenue
|
50,062
|
84,023
|
153,841
|
250,871
|
||||||||||||
Gross profit
|
32,655
|
55,842
|
91,433
|
158,178
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development
|
10,298
|
23,698
|
29,761
|
81,206
|
||||||||||||
Sales and marketing
|
36,717
|
52,592
|
104,687
|
206,100
|
||||||||||||
General and administrative
|
7,830
|
14,659
|
22,643
|
60,196
|
||||||||||||
Total operating expenses, net
|
54,845
|
90,949
|
157,091
|
347,502
|
||||||||||||
Operating profit (loss)
|
(22,190
|
)
|
(35,107
|
)
|
(65,658
|
)
|
(189,324
|
)
|
||||||||
Financial expenses (income), net
|
658
|
217
|
8,570
|
12,093
|
||||||||||||
Loss before income taxes
|
(22,848
|
)
|
(35,324
|
)
|
(74,228
|
)
|
(201,417
|
)
|
||||||||
Income tax (benefit) expenses
|
(357
|
)
|
(6,853
|
)
|
705
|
(6,012
|
)
|
|||||||||
Net loss attributable to ordinary shareholders
|
$
|
(22,491
|
)
|
(28,471
|
)
|
$
|
(74,933
|
)
|
(195,405
|
)
|
||||||
Basic and diluted net loss per share attributable to ordinary shareholders
|
$
|
(0.15
|
)
|
(0.18
|
)
|
$
|
(0.74
|
)
|
(1.24
|
)
|
||||||
Basic and diluted weighted average ordinary shares
|
149,283,090
|
160,589,413
|
101,737,026
|
157,691,173
|
Three Months Ended
|
Year Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2021
|
2022
|
2021
|
2022
|
|||||||||||||
(Unaudited)
|
(Audited) |
(Unaudited)
|
||||||||||||||
Operating activities
|
||||||||||||||||
Net profit (loss)
|
$
|
(22,491
|
)
|
$
|
(28,471
|
)
|
$
|
(74,933
|
)
|
$
|
(195,405
|
)
|
||||
Adjustments to reconcile net profit (loss) to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
121
|
570
|
331
|
1,585
|
||||||||||||
Share-based compensation expense
|
3,919
|
9,112
|
12,001
|
38,909
|
||||||||||||
Commercial agreement asset
|
29,406
|
37,433
|
84,298
|
149,047
|
||||||||||||
Amortization of intangible assets
|
-
|
6,473
|
-
|
27,833
|
||||||||||||
Short term deposit revaluation
|
-
|
(291
|
)
|
-
|
(291
|
)
|
||||||||||
Long term deposit revaluation
|
24
|
(214
|
)
|
24
|
(931
|
)
|
||||||||||
Accounts receivable
|
(5,301
|
)
|
(4,731
|
)
|
(5,591
|
)
|
2,662
|
|||||||||
Prepaid expenses and other assets
|
(11,054
|
)
|
(5,813
|
)
|
(23,239
|
)
|
(2,685
|
)
|
||||||||
Funds receivable
|
(15,661
|
)
|
8,874
|
(29,272
|
)
|
17,097
|
||||||||||
Long-term receivables
|
-
|
(1,734
|
)
|
-
|
(1,279
|
)
|
||||||||||
Funds payable to customers
|
21,201
|
7,517
|
23,143
|
17,736
|
||||||||||||
Operating lease ROU assets
|
599
|
1,121
|
1,382
|
3,253
|
||||||||||||
Deferred contract acquisition costs
|
(149
|
)
|
(77
|
)
|
(814
|
)
|
(761
|
)
|
||||||||
Accounts payable
|
6,402
|
17,873
|
5,007
|
16,648
|
||||||||||||
Accrued expenses and other liabilities
|
16,475
|
21,440
|
17,926
|
20,531
|
||||||||||||
Deferred tax liabilities
|
(138
|
)
|
(7,999
|
)
|
(90
|
)
|
(8,178
|
)
|
||||||||
Operating lease liabilities
|
478
|
(369
|
)
|
(437
|
)
|
(4,359
|
)
|
|||||||||
Impairment of marketable securities
|
140
|
11
|
140
|
73
|
||||||||||||
Warrants liabilities to preferred shares
|
-
|
-
|
5,872
|
-
|
||||||||||||
Net cash generated by (used in) operating activities
|
23,971
|
60,724
|
15,748
|
81,485
|
||||||||||||
Investing activities
|
||||||||||||||||
Investment in marketable securities
|
(652
|
)
|
-
|
(2,806
|
)
|
(8,298
|
)
|
|||||||||
Proceeds from marketable securities
|
491
|
200
|
748
|
8,110
|
||||||||||||
Purchases of short-term investments
|
(191
|
)
|
-
|
(117,185
|
)
|
(91,967
|
)
|
|||||||||
Purchases of long-term investments
|
(86
|
)
|
-
|
(20
|
)
|
-
|
||||||||||
Proceeds from short-term investments
|
41,257
|
21,489
|
81,657
|
87,889
|
||||||||||||
Purchases of property and equipment
|
(2,259
|
)
|
(370
|
)
|
(2,883
|
)
|
(8,352
|
)
|
||||||||
Payments for business combinations, net of cash acquired
|
-
|
(7,519
|
)
|
-
|
(317,483
|
)
|
||||||||||
Net cash used in investing activities
|
38,560
|
13,800
|
(40,489
|
)
|
(330,101
|
)
|
||||||||||
Financing activities
|
||||||||||||||||
Proceeds from exercise of Warrants to ordinary shares
|
15
|
15
|
529
|
73
|
||||||||||||
Proceeds from issuance of Ordinary shares in IPO, net of issuance costs
|
-
|
-
|
396,494
|
-
|
||||||||||||
Proceeds from exercise of share options
|
598
|
127
|
1,584
|
1,166
|
||||||||||||
Net cash provided by financing activities
|
613
|
142
|
398,607
|
1,239
|
||||||||||||
Net Increase (decrease) in cash, cash equivalents, and restricted cash
|
63,144
|
74,666
|
373,866
|
(247,377
|
)
|
|||||||||||
Cash and cash equivalents and restricted cash—beginning of period
|
395,755
|
136,856
|
85,033
|
458,899
|
||||||||||||
Cash and cash equivalents and restricted cash—end of period
|
$
|
458,899
|
$
|
211,522
|
$
|
458,899
|
$
|
211,522
|
Three Months Ended
|
Year Ended
|
|||||||||||||||||||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||||||||||||||||||
2021
|
2022
|
2021
|
2022
|
|||||||||||||||||||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||||||||||||||||||
Key performance metrics
|
||||||||||||||||||||||||||||||||
Gross Merchandise Value
|
504,919
|
839,460
|
1,449,299
|
2,450,224
|
||||||||||||||||||||||||||||
Adjusted EBITDA (a)
|
11,829
|
21,755
|
32,424
|
48,703
|
||||||||||||||||||||||||||||
Revenue by Category
|
||||||||||||||||||||||||||||||||
Service fees
|
35,499
|
43
|
%
|
62,835
|
45
|
%
|
96,659
|
39
|
%
|
181,887
|
44
|
%
|
||||||||||||||||||||
Fulfillment services
|
47,218
|
57
|
%
|
77,030
|
55
|
%
|
148,615
|
61
|
%
|
227,162
|
56
|
%
|
||||||||||||||||||||
Total revenue
|
$
|
82,717
|
100
|
%
|
$
|
139,865
|
100
|
%
|
$
|
245,274
|
100
|
%
|
$
|
409,049
|
100
|
%
|
||||||||||||||||
Revenue by merchant outbound region
|
||||||||||||||||||||||||||||||||
United Kingdom
|
37,443
|
45
|
%
|
48,069
|
34
|
%
|
113,835
|
47
|
%
|
146,562
|
36
|
%
|
||||||||||||||||||||
United States
|
24,373
|
29
|
%
|
64,100
|
46
|
%
|
71,095
|
29
|
%
|
173,967
|
43
|
%
|
||||||||||||||||||||
European Union
|
20,019
|
24
|
%
|
23,453
|
17
|
%
|
58,177
|
23
|
%
|
78,491
|
19
|
%
|
||||||||||||||||||||
Israel
|
405
|
0
|
%
|
458
|
0
|
%
|
1,052
|
0
|
%
|
1,357
|
0
|
%
|
||||||||||||||||||||
Other
|
477
|
1
|
%
|
3,785
|
3
|
%
|
1,115
|
0
|
%
|
8,672
|
2
|
%
|
||||||||||||||||||||
Total revenue
|
$
|
82,717
|
100
|
%
|
$
|
139,865
|
100
|
%
|
$
|
245,274
|
100
|
%
|
$
|
409,049
|
100
|
%
|
(a) |
See reconciliation to adjusted EBITDA table
|
Three Months Ended
|
Year Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2021
|
2022
|
2021
|
2022
|
|||||||||||||
(Unaudited)
|
||||||||||||||||
Gross Profit
|
32,655
|
55,842
|
91,433
|
158,178
|
||||||||||||
Amortization of acquired intangibles included in cost of revenue
|
-
|
1,917
|
-
|
9,743
|
||||||||||||
Non-GAAP gross profit
|
32,655
|
57,759
|
91,433
|
167,921
|
Three Months Ended
|
Year Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2021
|
2022
|
2021
|
2022
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Operating profit (loss)
|
(22,190
|
)
|
(35,107
|
)
|
(65,658
|
)
|
(189,324
|
)
|
||||||||
(1) Stock-based compensation:
|
||||||||||||||||
Cost of revenue
|
26
|
95
|
85
|
262
|
||||||||||||
Research and development
|
1,873
|
5,855
|
4,192
|
21,970
|
||||||||||||
Selling and marketing
|
580
|
665
|
1,287
|
3,877
|
||||||||||||
General and administrative
|
1,440
|
2,497
|
6,437
|
12,800
|
||||||||||||
Total stock-based compensation
|
3,919
|
9,112
|
12,001
|
38,909
|
||||||||||||
(2) Depreciation and amortization
|
121
|
570
|
331
|
1,585
|
||||||||||||
(3) Commercial agreement asset amortization
|
29,406
|
37,433
|
84,298
|
149,047
|
||||||||||||
(4) Amortization of acquired intangibles
|
-
|
6,473
|
-
|
27,833
|
||||||||||||
(5) Secondary Offering Costs
|
-
|
-
|
879
|
-
|
||||||||||||
(6) Merger related contingent consideration
|
-
|
3,148
|
-
|
12,161
|
||||||||||||
(7) Merger and acquisition related costs
|
573
|
126
|
573
|
8,492
|
||||||||||||
Adjusted EBITDA
|
11,829
|
21,755
|
32,424
|
48,703
|