Exhibit
|
Description
|
|
Global-E Online Ltd.
|
|||
(Registrant)
|
|||
By:
|
/s/ Ofer Koren
|
||
Name:
|
Ofer Koren
|
||
Title:
|
Chief Financial Officer
|
• |
GMV1 in the second quarter of 2023 was $825 million, an increase of 54% year over year
|
• |
Revenue in the second quarter of 2023 was $133.3 million, an increase of 53% year over year, of which service fees revenue was $59.5 million and fulfillment services revenue was $73.8 million
|
• |
Non-GAAP gross profit2 in the second quarter of 2023 was $57.7 million, an increase of 58% year over year. GAAP gross profit in the second quarter of 2023 was $54.9 million
|
• |
Non-GAAP gross margin2 in the second quarter of 2023 was 43.3%, an increase of 140 basis points from 41.9% in the second quarter of 2022. GAAP gross margin in the second quarter of 2023 was 41.2%
|
• |
Adjusted EBITDA3 in the second quarter of 2023 was $21.0 million compared to $11.1 million in the second quarter of 2022
|
• |
Net loss in the second quarter of 2023 was $35.5 million
|
• |
Continued to on-board many new merchants located all around the globe and trading in various verticals, including:
|
o |
Renowned fashion brands such as LK Bennet and Club L London in the UK, Monday Swimwear and Pepper in the US, Tara Jarmon in France and Diesel in Italy
|
o |
APAC-based brands such as Venroy, Rollie Nation, Lahana and Lilybod in Australia, Japanese brands including Hinoya, 45R, A-tude, Nubian and Anna Sui,
and our first ever Korean brand - HYEIN SEO |
• |
Expanded within existing merchant groups, with notable examples being Orveda, which is part of the beauty and fragrance group COTY and Givenchy Beauty, which is part of the LVMH group of luxury brands
|
• |
Continued accelerated growth of our US-outbound business with US outbound revenue up 99% in the second quarter of 2023
|
• |
Strategic partnership with Shopify remains on track:
|
o |
Continuing the migration process of all our legacy Shopify-based enterprise merchants onto the new native app
|
o |
Working in close collaboration with Shopify towards the roll out of Shopify Markets Pro, currently in early access. General availability in the US expected later this year, to be followed by the UK
|
Q3 2023
|
FY 2023
|
Previous FY 2023
|
|||
(in millions)
|
|||||
GMV (1)
|
$840 - $880
|
$3,480 - $3,640
|
$3,400 - $3,550
|
||
Revenue
|
$136 - $142
|
$570 - $596
|
$562 - $590
|
||
Adjusted EBITDA (2)
|
$17 - $21
|
$85 - $93
|
$70 - $77
|
United States/Canada Toll Free: | 1-888-886-7786 |
International Toll: |
1-416-764-8658 |
• |
Non-GAAP gross profit, which Global-e defines as gross profit adjusted for amortization of acquired intangibles. Non-GAAP gross margin is calculated as 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,
|
|||||||
2022
|
2023
|
|||||||
(Audited)
|
(Unaudited)
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
165,033
|
$
|
151,020
|
||||
Short-term deposits
|
46,353
|
55,064
|
||||||
Accounts receivable, net
|
16,424
|
14,095
|
||||||
Prepaid expenses and other current assets
|
51,904
|
57,365
|
||||||
Marketable securities
|
16,813
|
17,599
|
||||||
Funds receivable, including cash in banks
|
78,125
|
70,057
|
||||||
Total current assets
|
374,652
|
365,200
|
||||||
Property and equipment, net
|
10,283
|
9,883
|
||||||
Operating lease right-of-use assets
|
19,718
|
22,827
|
||||||
Long term deposits
|
3,225
|
3,537
|
||||||
Deferred contract acquisition costs, noncurrent
|
1,825
|
2,080
|
||||||
Deferred tax assets
|
171
|
-
|
||||||
Other assets, noncurrent
|
3,739
|
3,259
|
||||||
Commercial agreement asset
|
282,963
|
261,741
|
||||||
Goodwill and other intangible assets
|
466,024
|
455,773
|
||||||
Total long-term assets
|
787,948
|
759,100
|
||||||
Total assets
|
$
|
1,162,600
|
$
|
1,124,300
|
||||
Liabilities and Shareholders’ Equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
52,220
|
$
|
30,842
|
||||
Accrued expenses and other current liabilities
|
75,990
|
71,252
|
||||||
Funds payable to Customers
|
78,125
|
70,057
|
||||||
Short term operating lease liabilities
|
3,245
|
3,591
|
||||||
Total current liabilities
|
209,580
|
175,742
|
||||||
Long-term liabilities:
|
||||||||
Deferred tax liabilities, net
|
6,558
|
2,604
|
||||||
Long term operating lease liabilities
|
16,579
|
18,995
|
||||||
Other long-term liabilities
|
1,762
|
1,036
|
||||||
Total liabilities
|
$
|
234,479
|
$
|
198,377
|
||||
Shareholders’ equity:
|
||||||||
Share capital and additional paid-in capital
|
1,253,093
|
1,329,405
|
||||||
Accumulated comprehensive income
|
(1,926
|
)
|
(1,820
|
)
|
||||
Accumulated deficit
|
(323,046
|
)
|
(401,662
|
)
|
||||
Total shareholders’ equity
|
928,121
|
925,923
|
||||||
Total liabilities, convertible preferred shares and shareholders’ equity
|
$
|
1,162,600
|
$
|
1,124,300
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2023
|
2022
|
2023
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Revenue
|
$
|
87,305
|
$
|
133,309
|
$
|
163,628
|
$
|
250,940
|
||||||||
Cost of revenue
|
52,954
|
78,419
|
102,094
|
150,174
|
||||||||||||
Gross profit
|
34,351
|
54,890
|
61,534
|
100,766
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development
|
17,597
|
24,620
|
35,284
|
47,516
|
||||||||||||
Sales and marketing
|
50,986
|
52,788
|
100,625
|
104,636
|
||||||||||||
General and administrative
|
15,071
|
13,878
|
26,611
|
27,017
|
||||||||||||
Total operating expenses
|
83,654
|
91,286
|
162,520
|
179,169
|
||||||||||||
Operating profit (loss)
|
(49,303
|
)
|
(36,396
|
)
|
(100,986
|
)
|
(78,403
|
)
|
||||||||
Financial expenses, net
|
(680
|
)
|
754
|
986
|
3,154
|
|||||||||||
Loss before income taxes
|
(48,623
|
)
|
(37,150
|
)
|
(101,972
|
)
|
(81,557
|
)
|
||||||||
Income taxes
|
174
|
(1,617
|
)
|
411
|
(2,941
|
)
|
||||||||||
Net loss attributable to ordinary shareholders
|
$
|
(48,797
|
)
|
$
|
(35,533
|
)
|
$
|
(102,383
|
)
|
$
|
(78,616
|
)
|
||||
Basic and diluted net loss per share attributable to ordinary shareholders
|
$
|
(0.31
|
)
|
$
|
(0.22
|
)
|
$
|
(0.66
|
)
|
$
|
(0.48
|
)
|
||||
Basic and diluted weighted average ordinary shares
|
156,891,201
|
164,214,398
|
155,636,936
|
163,427,086
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2023
|
2022
|
2023
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Operating activities
|
||||||||||||||||
Net profit (loss)
|
$
|
(48,797
|
)
|
$
|
(35,533
|
)
|
$
|
(102,383
|
)
|
$
|
(78,616
|
)
|
||||
Adjustments to reconcile net profit (loss) to net cash provided by operating activities:
|
||||||||||||||||
Depreciation
|
330
|
460
|
594
|
887
|
||||||||||||
Share-based compensation expense
|
12,843
|
11,352
|
20,772
|
21,064
|
||||||||||||
Commercial agreement asset
|
37,433
|
37,432
|
74,182
|
75,585
|
||||||||||||
Amortization of intangible assets
|
6,049
|
5,091
|
12,665
|
10,251
|
||||||||||||
Changes in accrued interest and exchange rate on short-term deposits
|
-
|
(182
|
)
|
-
|
(709
|
)
|
||||||||||
Changes in accrued interest and exchange rate on long-term deposits
|
(38
|
)
|
(54
|
)
|
6
|
(200
|
)
|
|||||||||
Unrealized loss (gain) on foreign currency
|
5,913
|
(156
|
)
|
7,579
|
(740
|
)
|
||||||||||
Accounts receivable
|
728
|
(1,752
|
)
|
4,721
|
2,329
|
|||||||||||
Prepaid expenses and other assets
|
(1,334
|
)
|
(11,185
|
)
|
(4,725
|
)
|
(5,347
|
)
|
||||||||
Funds receivable
|
960
|
(1,195
|
)
|
20,125
|
2,556
|
|||||||||||
Long-term receivables
|
-
|
94
|
-
|
480
|
||||||||||||
Funds payable to customers
|
18,175
|
7,902
|
3,238
|
(8,068
|
)
|
|||||||||||
Operating lease ROU assets
|
657
|
1,037
|
1,455
|
1,708
|
||||||||||||
Deferred contract acquisition costs
|
(230
|
)
|
(226
|
)
|
(475
|
)
|
(383
|
)
|
||||||||
Accounts payable
|
2,699
|
(3,169
|
)
|
2,263
|
(21,378
|
)
|
||||||||||
Accrued expenses and other liabilities
|
4,501
|
10,701
|
(4,543
|
)
|
(5,463
|
)
|
||||||||||
Deferred taxes
|
-
|
(1,873
|
)
|
-
|
(3,783
|
)
|
||||||||||
Operating lease liabilities
|
(2,128
|
)
|
(1,098
|
)
|
(2,985
|
)
|
(2,054
|
)
|
||||||||
Impairment of marketable securities
|
48
|
-
|
62
|
-
|
||||||||||||
Net cash provided by (used in) operating activities
|
37,809
|
17,646
|
32,551
|
(11,881
|
)
|
|||||||||||
Investing activities
|
||||||||||||||||
Investment in marketable securities
|
(357
|
)
|
(829
|
)
|
(7,555
|
)
|
(1,279
|
)
|
||||||||
Proceeds from marketable securities
|
752
|
200
|
7,910
|
599
|
||||||||||||
Purchases of short-term investments
|
(197
|
)
|
(37,250
|
)
|
(31,495
|
)
|
(46,502
|
)
|
||||||||
Purchases of long-term investments
|
-
|
(15
|
)
|
-
|
(112
|
)
|
||||||||||
Proceeds from short-term investments
|
35,000
|
9,250
|
38,400
|
38,500
|
||||||||||||
Purchases of property and equipment
|
(1,900
|
)
|
(145
|
)
|
(6,584
|
)
|
(487
|
)
|
||||||||
Payments for business combinations, net of cash acquired
|
(1,471
|
)
|
-
|
(217,083
|
)
|
-
|
||||||||||
Net cash provided by (used in) investing activities
|
31,827
|
(28,789
|
)
|
(216,407
|
)
|
(9,281
|
)
|
|||||||||
Financing activities
|
||||||||||||||||
Exercise of Warrants to ordinary shares
|
15
|
5
|
43
|
22
|
||||||||||||
Proceeds from issuance of Ordinary shares in IPO, net of issuance costs
|
-
|
-
|
-
|
-
|
||||||||||||
Proceeds from exercise of share options
|
386
|
773
|
488
|
865
|
||||||||||||
Net cash provided by financing activities
|
401
|
778
|
531
|
887
|
||||||||||||
Exchange rate differences on balances of cash, cash equivalents and restricted cash
|
(5,913
|
)
|
156
|
(7,579
|
)
|
740
|
||||||||||
Net decrease in cash, cash equivalents, and restricted cash
|
64,124
|
(10,209
|
)
|
(190,904
|
)
|
(19,535
|
)
|
|||||||||
Cash and cash equivalents and restricted cash—beginning of period
|
203,871
|
202,196
|
458,899
|
211,522
|
||||||||||||
Cash and cash equivalents and restricted cash—end of period
|
$
|
267,995
|
$
|
191,987
|
$
|
267,995
|
$
|
191,987
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||||||||||||||||||
2022
|
2023
|
2022
|
2023
|
|||||||||||||||||||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||||||||||||||||||
Key performance metrics
|
||||||||||||||||||||||||||||||||
Gross Merchandise Value
|
534,459
|
825,026
|
989,752
|
1,528,921
|
||||||||||||||||||||||||||||
Adjusted EBITDA (a)
|
11,128
|
20,979
|
14,410
|
35,464
|
||||||||||||||||||||||||||||
Revenue by Category
|
||||||||||||||||||||||||||||||||
Service fees
|
39,324
|
45
|
%
|
59,532
|
45
|
%
|
71,272
|
44
|
%
|
109,885
|
44
|
%
|
||||||||||||||||||||
Fulfillment services
|
47,981
|
55
|
%
|
73,777
|
55
|
%
|
92,356
|
56
|
%
|
141,055
|
56
|
%
|
||||||||||||||||||||
Total revenue
|
$
|
87,305
|
100
|
%
|
$
|
133,309
|
100
|
%
|
$
|
163,628
|
100
|
%
|
$
|
250,940
|
100
|
%
|
||||||||||||||||
Revenue by merchant outbound region
|
||||||||||||||||||||||||||||||||
United States
|
33,944
|
39
|
%
|
67,516
|
51
|
%
|
61,865
|
38
|
%
|
123,429
|
49
|
%
|
||||||||||||||||||||
United Kingdom
|
33,963
|
39
|
%
|
40,014
|
30
|
%
|
62,244
|
38
|
%
|
77,746
|
31
|
%
|
||||||||||||||||||||
European Union
|
17,798
|
20
|
%
|
21,088
|
16
|
%
|
36,852
|
23
|
%
|
42,164
|
17
|
%
|
||||||||||||||||||||
Israel
|
263
|
0
|
%
|
531
|
0
|
%
|
628
|
0
|
%
|
756
|
0
|
%
|
||||||||||||||||||||
Other
|
1,337
|
2
|
%
|
4,160
|
3
|
%
|
2,039
|
1
|
%
|
6,845
|
3
|
%
|
||||||||||||||||||||
Total revenue
|
$
|
87,305
|
100
|
%
|
$
|
133,309
|
100
|
%
|
$
|
163,628
|
100
|
%
|
$
|
250,940
|
100
|
%
|
(a) |
See reconciliation to adjusted EBITDA table
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2023
|
2022
|
2023
|
|||||||||||||
(Unaudited)
|
||||||||||||||||
Gross Profit
|
34,351
|
54,890
|
61,534
|
100,766
|
||||||||||||
Amortization of acquired intangibles included in cost of revenue
|
2,198
|
2,796
|
4,874
|
5,592
|
||||||||||||
Non-GAAP gross profit
|
36,549
|
57,686
|
66,408
|
106,358
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2023
|
2022
|
2023
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Operating profit (loss)
|
(49,303
|
)
|
(36,396
|
)
|
(100,986
|
)
|
(78,403
|
)
|
||||||||
(1) Stock-based compensation:
|
||||||||||||||||
Cost of revenue
|
52
|
161
|
88
|
274
|
||||||||||||
Research and development
|
5,296
|
6,572
|
10,448
|
12,630
|
||||||||||||
Selling and marketing
|
1,706
|
1,089
|
2,465
|
1,964
|
||||||||||||
General and administrative
|
5,788
|
3,530
|
7,771
|
6,196
|
||||||||||||
Total stock-based compensation
|
12,842
|
11,352
|
20,772
|
21,064
|
||||||||||||
(2) Depreciation and amortization
|
330
|
460
|
594
|
887
|
||||||||||||
(3) Commercial agreement asset amortization
|
37,433
|
37,432
|
74,182
|
75,585
|
||||||||||||
(4) Amortization of acquired intangibles
|
6,049
|
5,091
|
12,665
|
10,251
|
||||||||||||
(5) Merger related contingent consideration
|
3,026
|
3,040
|
5,985
|
6,080
|
||||||||||||
(6) Acquisition related costs
|
751
|
-
|
1,198
|
-
|
||||||||||||
Adjusted EBITDA
|
11,128
|
20,979
|
14,410
|
35,464
|