Good morning, Everyone - I wanted to start a post on GLBE’s earnings this morning, which were not received well by the market (down about 25% right now). The earnings call transcript has not been posted yet so my references to the cc are just from my memory after listening to it. You can listen to the full call yourself here: https://edge.media-server.com/mmc/p/b6jsyb43/
The bad part: the numbers. GLBE’s revenue of $133.61 M (+26.6 y/y) missed by $7.36M. GLBE also lowered its full year revenue guide to $563M - 571M from $570M - 596M. The good news in the numbers was a small ($.03) beat in EPS estimates.
The reason for the miss and lowered guidance was explained on the cc as slower than expected consumer purchases in Europe - especially in relation to luxury goods. Management explained the slowness seemed temporary, happening mostly in September and early October. GLBE saw an uptick to normal levels in late October and early November.
The most important thing for me on the cc was the continued re-iteration by the CEO and CFO that they see their growth accelerating from here both next quarter and next year. They probably mentioned that four or five times. Drivers for the acceleration were discussed as the Shopify partnership, which just started ramping up in the last few weeks of this just reported q so it did not have a meaningful contribution. They also talked about having a strong pipeline and a new partnership ramping up with Wix.com.
My take is that this morning’s reaction is overdone. If management feels so strongly that re-acceleration is coming, I see this q as the trough for GLBE’s performance.
I am new to this name so this is my first earnings call. I’d love to hear from others that have listened to prior calls to see if they have gained a trust in what management has to say.
Thanks for reading and hang in there.
Not investment advice, just musings.