We’ve posted about this before, but the stock has tanked the last 10 days (since I started buying, of course, from $66 to $56) so I wanted to revisit it as I think it seems like one of those “gifts” Saul has mentioned.
I know we’ve discussed that the Shopify agreement isn’t exclusive and they paid a pretty penny in terms of options to get in with them, but even considering this, the company seems to have a really valuable service, great management, investing heavily in its future, and growing pretty substantially.
Numbers to consider:
Gross retention rate is 98%
Net retention is over 140%. I haven’t seen a higher number than that. Their clients obviously are seeing real value in the services they offer.
Revenue and GMV seem to track pretty closely. GMV went from 81% in 2018-19 to 103% to 111% this year while revenue growth is upwards of 90% and accelerating.
The opportunity seems massive, too. Global-E cited research by Forrester that suggests the cross-border e-commerce market could top $736 billion by 2023. That the company’s GMV is around 770 million, so lots of room to grow. Margins are increasing, too, from 32% to 36%.
I’ve also went through their presentation reel and it looks like a transaction running through GLBE is pretty seamless and does a lot of lifting.
I guess there’s not much to add before ER, but seems like the stock is taking a hit on no news and maybe a good time for people luckier than myself to start a position.