PETAH-TIKVA, Israel, May 16, 2022 (GLOBE NEWSWIRE) – Global-e Online Ltd. (Nasdaq: GLBE) the global leader of Direct-To-Consumer cross border eCommerce enablement, today reported financial results for the first quarter of 2022.
“The strength of our business model, as well as the huge market potential ahead of us, are reflected in the strong Q1 results we are reporting today,” said Amir Schlachet, Founder and CEO of Global-e. “The business is performing well across all the key metrics, with many exciting new merchant launches including global mega-brand Adidas, who selected Global-e to support its strategic direct-to-consumer growth plan. Despite the short-term macro and geo-political headwinds, we are excited with the opportunities ahead and believe we are well poised to continue our fast growth well into the future.”
Q1 2022 Financial Results
GMV1 in the first quarter of 2022 was $455 million, an increase of 71% year over year
Revenue in the first quarter of 2022 was $76.3 million, an increase of 65% year over year, of which service fees revenue was $31.9 million and fulfillment services revenue was $44.4 million
Non-GAAP gross profit2 in the first quarter of 2022 was $29.9 million, an increase of 94% year over year. GAAP gross profit in the first quarter of 2022 was $27.2 million
Non-GAAP gross margin2 in the first quarter of 2022 was 39.1%, an increase of 580 basis points from 33.3% in the first quarter of 2021. GAAP gross margin in the first quarter of 2022 was 35.6%
Adjusted EBITDA3 in the first quarter of 2022 was $3.3 million compared to $5.2 million in the first quarter of 2021
Net loss in the first quarter of 2022 was $53.6 million
Recent Business Highlights
Launched our partnership with Adidas, one of the world’s largest and most iconic consumer brands, to support their multi-year Direct-To-Consumer strategic initiative, based on our multi-local offering
16 markets live and trading with additional markets planned to be rolled out gradually over the coming quarters
Continued launching with many more exciting brands across all geographies and verticals we operate in, with notable examples being:
Several iconic US brands including Brooks Brothers, Ralph Lauren, r.e.m. beauty by Ariana Grande and Rare Beauty by Selena Gomez
Prominent UK brands including SpaceNK and Dover Street Market
Leading French fashion brand Sezane; first ever Belgian brand – Buissonniere
APAC expansion continues with high-street brand Esprit, selling out of Hong Kong
Expanded relationships with multiple existing merchants who opened new markets during the quarter, including Celine, FIGS, Full Beauty Brands (+20 additional markets) and La Redoute (added several key European markets)
Continued to strengthen our strategic relationship with the luxury group LVMH, with three new maisons signing up to our services, all of whom are expected to go live during 2022
Continued accelerated growth of our US-outbound business
Continuing the strong penetration into the US market, US outbound revenue was up 111% in the first quarter of 2022
Strategic partnership with Shopify remains on track:
The new native integration emerged out of pilot phase in April; now in general availability for all Shopify Advanced and Shopify Plus merchants
The development of the white-label Merchant of Record, or MOR, solution for Shopify (based on technologies we acquired as part of the Flow Commerce acquisition) remains on track
Flow Commerce post-merger integration process progressing well - former Flow teams already fully integrated into the corresponding Global-e ones, many of the planned synergies and scale efficiency efforts already in motion
During the quarter we continued to invest in further strengthening our growing ecosystem of strategic partners. We rolled out our partnership with Australian Post to extend our support for Australian based merchants. In addition, we expanded our partnership with Klarna to Canada. Klarna is now supported on Global-e in 15 markets
Q2 2022 and Full Year Outlook
Global-e is introducing second quarter guidance and is updating top-line full year guidance. The guidance reflects the recent trends, given the impact of the Ukraine-Russia war and macro environment headwinds on consumption, mainly in Europe. However, we re-iterate our previously established Adjusted EBITDA targets, given the resilience and the agility of our business model.
Q2 2022 FY 2022 Previous FY 2022 (in millions) GMV $495 - $505 $2,280 - $2,400 $2,445 - $2,495 Revenue $82.5 - $84.5 $383 - $403 $411 - $421 Adjusted EBITDA (2) $2.8 - $3.8 $38 - $42 $38 - $42
Additional data and thoughts from me
Q1 Q2 Q3 Q4 2020 19 29 33 53 2021 46 57 59 83 2022 76
2022 Q1 guidance 75 and actual is 76, so only a 1% beat. The Q2 guidance of 83 vs previous year of 57 is only a 46% YoY growth!
- QoQ revenue decrease from Q4 was expected. Guidance cut was not. Also net loss increased by a lot. I haven’t looked into why yet (my guess is acquisition.)
- It is a bad quarter. The headline really is “revenue guidance revised down” despite all the business highlights in the article.
- Guidance cut from 416 to 393 vs 245 in 2021 means their inorganic growth is guided at 60%. Because of the Flow acquisition which accounts for 5% of revenue, the organic growth would be 373 vs 245 or 52% YoY guidance.
I have posted before this data from their 6-K - their breakdown of revenue by merchant outbound region in 2021
Revenue Pct UK 80 59% US 34 25% EU 21 16% Israel 1 1% Other -- --
and it seems that the impact on UK/EU (75% of revenue) from recent trend is what led to them revising guidance down.
I don’t think the story of their business has changed much, but I do think that, right now, there are better bets for my money with companies that are increasing profitability and high growth. I’ve posted before that I view them as a payment company and closer to fintech: https://discussion.fool.com/read-through-the-earnings-call-trans…
Because I don’t want story stocks in my portfolio, I cut most of my position down to about 0.5% after market but will keep GLBE on the radar.