Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Global-e Reports Second Quarter 2023 Results By: Global-e Online Ltd via GlobeNewswire August 08, 2023 at 07:00 AM EDT PETAH-TIKVA, Israel, Aug. 08, 2023 (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 second quarter of 2023. “The results of the second quarter of 2023, together with the updated guidance for the remainder of the year, illustrate the continued strong momentum of our business, as evident from both top-line growth, improved profitability and new client launches,” said Amir Schlachet, Founder and CEO of Global-e. “We remain focused on executing across all fronts, as we continue to tap into the massive global opportunity presented by the direct-to-consumer cross-border e-commerce market.” Q2 2023 Financial Results GMV1 in the second quarter of 2023 was $825 million, an increase of 54% year over yearRevenue 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 millionNon-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 millionNon-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 2022Net loss in the second quarter of 2023 was $35.5 million Recent Business Highlights Continued to on-board many new merchants located all around the globe and trading in various verticals, including: 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 ItalyAPAC-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 brandsContinued accelerated growth of our US-outbound business with US outbound revenue up 99% in the second quarter of 2023Strategic partnership with Shopify remains on track: Continuing the migration process of all our legacy Shopify-based enterprise merchants onto the new native appWorking 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 and Full Year Outlook Global-e is introducing third quarter guidance and is raising the full year guidance as follows: Q3 2023 FY 2023 Previous FY 2023(in millions)GMV (1)$840 - $880 $3,480 - $3,640 $3,400 - $3,550Revenue$136 - $142 $570 - $596 $562 - $590Adjusted EBITDA (2)$17 - $21 $85 - $93 $70 - $77 1 Gross Merchandise Value (GMV) is a non-GAAP operating metric. See “Non-GAAP Financial Measures and Key Operating Metrics” for additional information regarding this metric. 2 Non-GAAP Gross profit and Non-GAAP gross margin are non-GAAP financial measures. See “Non-GAAP Financial Measures and Key Operating Metrics” for additional information regarding this metric. 3 Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” for additional information regarding this metric, including the reconciliations to Operating Profit (Loss), its most directly comparable GAAP financial measure. The Company is unable to provide a reconciliation of Adjusted EBITDA to Operating Profit (Loss), its most directly comparable GAAP financial measure, on a forward-looking basis without unreasonable effort because items that impact this GAAP financial measure are not within the Company’s control and/or cannot be reasonably predicted. These items may include, but are not limited to, share-based compensation expenses. Such information may have a significant, and potentially unpredictable impact on the Company’s future financial results. Conference Call Information: Global-e will host a conference call at 8:00 a.m. ET on Tuesday, August 8, 2023.The call will be available, live, to interested parties by dialing: United States/Canada Toll Free: 1-888-886-7786International Toll:1-416-764-8658 A live webcast will also be available in the Investor Relations section of Global-e’s website at: https://investors.global-e.com/news-events/events-presentations Approximately two hours after completion of the live call, an archived version of the webcast will be available on the Investor Relations section of the Company’s web site and will remain available for approximately 30 calendar days. Non-GAAP Financial Measures and Key Operating Metrics To supplement Global-e’s financial information presented in accordance with generally accepted accounting principles in the United States of America, or GAAP, Global-e considers certain financial measures and key performance metrics that are not prepared in accordance with GAAP including: 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 revenuesAdjusted 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. Global-e uses the Non-GAAP measures in conjunction with GAAP measures as part of Global-e’s overall assessment of its performance, including the preparation of Global-e’s annual operating budget and quarterly forecasts, to evaluate the effectiveness of Global-e’s business strategies, and to communicate with Global-e’s board of directors concerning its financial performance. The Non-GAAP measures are used by our management to understand and evaluate our operating performance and trends. Global-e’s definition of Non-GAAP measures may differ from the definition used by other companies and therefore comparability may be limited. In addition, other companies may not publish these metrics or similar metrics. Furthermore, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Thus, Non -GAAP measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP. Global-e also uses Gross Merchandise Value (GMV) as a key operating metric. Gross Merchandise Value or GMV is defined as the combined amount we collect from the shopper and the merchant for all components of a given transaction, including products, duties and taxes and shipping. For more information on the non-GAAP financial measures, please see the reconciliation tables provided below. The accompanying reconciliation tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures. Cautionary Note Regarding Forward Looking Statements Certain statements in this press release may constitute “forward-looking” statements and information, within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including statements or information regarding Global-e’s expectations, operations, strategy and Global-e’s projected revenue and other future financial and operational results or other characterizations of future events or circumstances, including any underlying assumptions. These forward-looking statements may be identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Global-e believes there is a reasonable basis for its expectations and beliefs, but they are inherently uncertain. Many factors could cause actual future events to differ materially from the forward-looking statements in this announcement, including but not limited to, the ability to retain merchants or the GMV generated by such merchants; the ability to attract new merchants; our expectations regarding our revenue, expenses and operations; anticipated trends and challenges in our business and the markets in which we operate; our ability to compete in our industry; our ability to anticipate merchant needs or develop or acquire new functionality or enhance our existing platform to meet those needs; our ability to manage our growth and manage expansion into additional markets; our ability to establish and protect intellectual property rights; our ability to hire and retain key personnel; costs related to being a public company; our ability to adapt to emerging or evolving regulatory developments, technological changes, and cybersecurity needs; our anticipated cash needs and our estimates regarding our capital requirements and our needs for additional financing; impacts from the COVID-19 pandemic, including variants, and related vaccination roll out efforts; and the other risks and uncertainties described in Global-e’s Annual Report on Form 20-F for the year ended December 31, 2022, filed with the SEC on March 31, 2023 and other documents filed with or furnished by Global-e from time to time with the Securities and Exchange Commission (the “SEC”). The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. About Global-E Online Ltd. Global-e (Nasdaq: GLBE) is the world's leading platform enabling and accelerating global, Direct-To-Consumer cross-border ecommerce. The chosen partner of over 1,000 brands and retailers across the United States, Europe and Asia, Global-e makes selling internationally as simple as selling domestically. The company enables merchants to increase the conversion of international traffic into sales by offering online shoppers in over 200 destinations worldwide a seamless, localized shopping experience. Global-e's end-to-end ecommerce solutions combine best-in-class localization capabilities, big-data best-practice business intelligence models, streamlined international logistics and vast cross-border experience, enabling international shoppers to buy seamlessly online and retailers to sell to, and from, anywhere in the world. For more information, please visit: www.global-e.com. Investor Contact:Erica Mannion or Mike FunariSapphire Investor Relations, LLCIR@global-e.com+1 617-542-6180 Press Contact: Headline Media Garrett Krivicich Globale@headline.media +1 786-233-7684 Global-E Online Ltd.CONSOLIDATED BALANCE SHEETS(In thousands) 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 Global-E Online Ltd.CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except share and per share data) 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) $(0.48)Basic and diluted weighted average ordinary shares 156,891,201 164,214,398 155,636,936 163,427,086 CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands) Three Months Ended Six Months Ended June 30, June 30, 2022 2023 2022 2023 (Unaudited) (Unaudited) Operating activities Net profit (loss)$(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 securities752 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 Global-E Online Ltd.SELECTED OTHER DATA(In thousands) 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 Global-E Online Ltd.RECONCILIATION TO Non-GAAP GROSS PROFIT(In thousands) 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 Global-E Online Ltd.RECONCILIATION TO ADJUSTED EBITDA(In thousands) 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 amortization37,433 37,432 74,182 75,585 (4) Amortization of acquired intangibles6,049 5,091 12,665 10,251 (5) Merger related contingent consideration3,026 3,040 5,985 6,080 (6) Acquisition related costs751 - 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Global-e Reports Second Quarter 2023 Results By: Global-e Online Ltd via GlobeNewswire August 08, 2023 at 07:00 AM EDT PETAH-TIKVA, Israel, Aug. 08, 2023 (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 second quarter of 2023. “The results of the second quarter of 2023, together with the updated guidance for the remainder of the year, illustrate the continued strong momentum of our business, as evident from both top-line growth, improved profitability and new client launches,” said Amir Schlachet, Founder and CEO of Global-e. “We remain focused on executing across all fronts, as we continue to tap into the massive global opportunity presented by the direct-to-consumer cross-border e-commerce market.” Q2 2023 Financial Results GMV1 in the second quarter of 2023 was $825 million, an increase of 54% year over yearRevenue 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 millionNon-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 millionNon-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 2022Net loss in the second quarter of 2023 was $35.5 million Recent Business Highlights Continued to on-board many new merchants located all around the globe and trading in various verticals, including: 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 ItalyAPAC-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 brandsContinued accelerated growth of our US-outbound business with US outbound revenue up 99% in the second quarter of 2023Strategic partnership with Shopify remains on track: Continuing the migration process of all our legacy Shopify-based enterprise merchants onto the new native appWorking 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 and Full Year Outlook Global-e is introducing third quarter guidance and is raising the full year guidance as follows: Q3 2023 FY 2023 Previous FY 2023(in millions)GMV (1)$840 - $880 $3,480 - $3,640 $3,400 - $3,550Revenue$136 - $142 $570 - $596 $562 - $590Adjusted EBITDA (2)$17 - $21 $85 - $93 $70 - $77 1 Gross Merchandise Value (GMV) is a non-GAAP operating metric. See “Non-GAAP Financial Measures and Key Operating Metrics” for additional information regarding this metric. 2 Non-GAAP Gross profit and Non-GAAP gross margin are non-GAAP financial measures. See “Non-GAAP Financial Measures and Key Operating Metrics” for additional information regarding this metric. 3 Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” for additional information regarding this metric, including the reconciliations to Operating Profit (Loss), its most directly comparable GAAP financial measure. The Company is unable to provide a reconciliation of Adjusted EBITDA to Operating Profit (Loss), its most directly comparable GAAP financial measure, on a forward-looking basis without unreasonable effort because items that impact this GAAP financial measure are not within the Company’s control and/or cannot be reasonably predicted. These items may include, but are not limited to, share-based compensation expenses. Such information may have a significant, and potentially unpredictable impact on the Company’s future financial results. Conference Call Information: Global-e will host a conference call at 8:00 a.m. ET on Tuesday, August 8, 2023.The call will be available, live, to interested parties by dialing: United States/Canada Toll Free: 1-888-886-7786International Toll:1-416-764-8658 A live webcast will also be available in the Investor Relations section of Global-e’s website at: https://investors.global-e.com/news-events/events-presentations Approximately two hours after completion of the live call, an archived version of the webcast will be available on the Investor Relations section of the Company’s web site and will remain available for approximately 30 calendar days. Non-GAAP Financial Measures and Key Operating Metrics To supplement Global-e’s financial information presented in accordance with generally accepted accounting principles in the United States of America, or GAAP, Global-e considers certain financial measures and key performance metrics that are not prepared in accordance with GAAP including: 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 revenuesAdjusted 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. Global-e uses the Non-GAAP measures in conjunction with GAAP measures as part of Global-e’s overall assessment of its performance, including the preparation of Global-e’s annual operating budget and quarterly forecasts, to evaluate the effectiveness of Global-e’s business strategies, and to communicate with Global-e’s board of directors concerning its financial performance. The Non-GAAP measures are used by our management to understand and evaluate our operating performance and trends. Global-e’s definition of Non-GAAP measures may differ from the definition used by other companies and therefore comparability may be limited. In addition, other companies may not publish these metrics or similar metrics. Furthermore, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Thus, Non -GAAP measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP. Global-e also uses Gross Merchandise Value (GMV) as a key operating metric. Gross Merchandise Value or GMV is defined as the combined amount we collect from the shopper and the merchant for all components of a given transaction, including products, duties and taxes and shipping. For more information on the non-GAAP financial measures, please see the reconciliation tables provided below. The accompanying reconciliation tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures. Cautionary Note Regarding Forward Looking Statements Certain statements in this press release may constitute “forward-looking” statements and information, within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including statements or information regarding Global-e’s expectations, operations, strategy and Global-e’s projected revenue and other future financial and operational results or other characterizations of future events or circumstances, including any underlying assumptions. These forward-looking statements may be identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Global-e believes there is a reasonable basis for its expectations and beliefs, but they are inherently uncertain. Many factors could cause actual future events to differ materially from the forward-looking statements in this announcement, including but not limited to, the ability to retain merchants or the GMV generated by such merchants; the ability to attract new merchants; our expectations regarding our revenue, expenses and operations; anticipated trends and challenges in our business and the markets in which we operate; our ability to compete in our industry; our ability to anticipate merchant needs or develop or acquire new functionality or enhance our existing platform to meet those needs; our ability to manage our growth and manage expansion into additional markets; our ability to establish and protect intellectual property rights; our ability to hire and retain key personnel; costs related to being a public company; our ability to adapt to emerging or evolving regulatory developments, technological changes, and cybersecurity needs; our anticipated cash needs and our estimates regarding our capital requirements and our needs for additional financing; impacts from the COVID-19 pandemic, including variants, and related vaccination roll out efforts; and the other risks and uncertainties described in Global-e’s Annual Report on Form 20-F for the year ended December 31, 2022, filed with the SEC on March 31, 2023 and other documents filed with or furnished by Global-e from time to time with the Securities and Exchange Commission (the “SEC”). The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. About Global-E Online Ltd. Global-e (Nasdaq: GLBE) is the world's leading platform enabling and accelerating global, Direct-To-Consumer cross-border ecommerce. The chosen partner of over 1,000 brands and retailers across the United States, Europe and Asia, Global-e makes selling internationally as simple as selling domestically. The company enables merchants to increase the conversion of international traffic into sales by offering online shoppers in over 200 destinations worldwide a seamless, localized shopping experience. Global-e's end-to-end ecommerce solutions combine best-in-class localization capabilities, big-data best-practice business intelligence models, streamlined international logistics and vast cross-border experience, enabling international shoppers to buy seamlessly online and retailers to sell to, and from, anywhere in the world. For more information, please visit: www.global-e.com. Investor Contact:Erica Mannion or Mike FunariSapphire Investor Relations, LLCIR@global-e.com+1 617-542-6180 Press Contact: Headline Media Garrett Krivicich Globale@headline.media +1 786-233-7684 Global-E Online Ltd.CONSOLIDATED BALANCE SHEETS(In thousands) 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 Global-E Online Ltd.CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except share and per share data) 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) $(0.48)Basic and diluted weighted average ordinary shares 156,891,201 164,214,398 155,636,936 163,427,086 CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands) Three Months Ended Six Months Ended June 30, June 30, 2022 2023 2022 2023 (Unaudited) (Unaudited) Operating activities Net profit (loss)$(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 securities752 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 Global-E Online Ltd.SELECTED OTHER DATA(In thousands) 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 Global-E Online Ltd.RECONCILIATION TO Non-GAAP GROSS PROFIT(In thousands) 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 Global-E Online Ltd.RECONCILIATION TO ADJUSTED EBITDA(In thousands) 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 amortization37,433 37,432 74,182 75,585 (4) Amortization of acquired intangibles6,049 5,091 12,665 10,251 (5) Merger related contingent consideration3,026 3,040 5,985 6,080 (6) Acquisition related costs751 - 1,198 - Adjusted EBITDA 11,128 20,979 14,410 35,464
PETAH-TIKVA, Israel, Aug. 08, 2023 (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 second quarter of 2023. “The results of the second quarter of 2023, together with the updated guidance for the remainder of the year, illustrate the continued strong momentum of our business, as evident from both top-line growth, improved profitability and new client launches,” said Amir Schlachet, Founder and CEO of Global-e. “We remain focused on executing across all fronts, as we continue to tap into the massive global opportunity presented by the direct-to-consumer cross-border e-commerce market.” Q2 2023 Financial Results GMV1 in the second quarter of 2023 was $825 million, an increase of 54% year over yearRevenue 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 millionNon-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 millionNon-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 2022Net loss in the second quarter of 2023 was $35.5 million Recent Business Highlights Continued to on-board many new merchants located all around the globe and trading in various verticals, including: 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 ItalyAPAC-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 brandsContinued accelerated growth of our US-outbound business with US outbound revenue up 99% in the second quarter of 2023Strategic partnership with Shopify remains on track: Continuing the migration process of all our legacy Shopify-based enterprise merchants onto the new native appWorking 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 and Full Year Outlook Global-e is introducing third quarter guidance and is raising the full year guidance as follows: Q3 2023 FY 2023 Previous FY 2023(in millions)GMV (1)$840 - $880 $3,480 - $3,640 $3,400 - $3,550Revenue$136 - $142 $570 - $596 $562 - $590Adjusted EBITDA (2)$17 - $21 $85 - $93 $70 - $77 1 Gross Merchandise Value (GMV) is a non-GAAP operating metric. See “Non-GAAP Financial Measures and Key Operating Metrics” for additional information regarding this metric. 2 Non-GAAP Gross profit and Non-GAAP gross margin are non-GAAP financial measures. See “Non-GAAP Financial Measures and Key Operating Metrics” for additional information regarding this metric. 3 Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” for additional information regarding this metric, including the reconciliations to Operating Profit (Loss), its most directly comparable GAAP financial measure. The Company is unable to provide a reconciliation of Adjusted EBITDA to Operating Profit (Loss), its most directly comparable GAAP financial measure, on a forward-looking basis without unreasonable effort because items that impact this GAAP financial measure are not within the Company’s control and/or cannot be reasonably predicted. These items may include, but are not limited to, share-based compensation expenses. Such information may have a significant, and potentially unpredictable impact on the Company’s future financial results. Conference Call Information: Global-e will host a conference call at 8:00 a.m. ET on Tuesday, August 8, 2023.The call will be available, live, to interested parties by dialing: United States/Canada Toll Free: 1-888-886-7786International Toll:1-416-764-8658 A live webcast will also be available in the Investor Relations section of Global-e’s website at: https://investors.global-e.com/news-events/events-presentations Approximately two hours after completion of the live call, an archived version of the webcast will be available on the Investor Relations section of the Company’s web site and will remain available for approximately 30 calendar days. Non-GAAP Financial Measures and Key Operating Metrics To supplement Global-e’s financial information presented in accordance with generally accepted accounting principles in the United States of America, or GAAP, Global-e considers certain financial measures and key performance metrics that are not prepared in accordance with GAAP including: 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 revenuesAdjusted 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. Global-e uses the Non-GAAP measures in conjunction with GAAP measures as part of Global-e’s overall assessment of its performance, including the preparation of Global-e’s annual operating budget and quarterly forecasts, to evaluate the effectiveness of Global-e’s business strategies, and to communicate with Global-e’s board of directors concerning its financial performance. The Non-GAAP measures are used by our management to understand and evaluate our operating performance and trends. Global-e’s definition of Non-GAAP measures may differ from the definition used by other companies and therefore comparability may be limited. In addition, other companies may not publish these metrics or similar metrics. Furthermore, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Thus, Non -GAAP measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP. Global-e also uses Gross Merchandise Value (GMV) as a key operating metric. Gross Merchandise Value or GMV is defined as the combined amount we collect from the shopper and the merchant for all components of a given transaction, including products, duties and taxes and shipping. For more information on the non-GAAP financial measures, please see the reconciliation tables provided below. The accompanying reconciliation tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures. Cautionary Note Regarding Forward Looking Statements Certain statements in this press release may constitute “forward-looking” statements and information, within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including statements or information regarding Global-e’s expectations, operations, strategy and Global-e’s projected revenue and other future financial and operational results or other characterizations of future events or circumstances, including any underlying assumptions. These forward-looking statements may be identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Global-e believes there is a reasonable basis for its expectations and beliefs, but they are inherently uncertain. Many factors could cause actual future events to differ materially from the forward-looking statements in this announcement, including but not limited to, the ability to retain merchants or the GMV generated by such merchants; the ability to attract new merchants; our expectations regarding our revenue, expenses and operations; anticipated trends and challenges in our business and the markets in which we operate; our ability to compete in our industry; our ability to anticipate merchant needs or develop or acquire new functionality or enhance our existing platform to meet those needs; our ability to manage our growth and manage expansion into additional markets; our ability to establish and protect intellectual property rights; our ability to hire and retain key personnel; costs related to being a public company; our ability to adapt to emerging or evolving regulatory developments, technological changes, and cybersecurity needs; our anticipated cash needs and our estimates regarding our capital requirements and our needs for additional financing; impacts from the COVID-19 pandemic, including variants, and related vaccination roll out efforts; and the other risks and uncertainties described in Global-e’s Annual Report on Form 20-F for the year ended December 31, 2022, filed with the SEC on March 31, 2023 and other documents filed with or furnished by Global-e from time to time with the Securities and Exchange Commission (the “SEC”). The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. About Global-E Online Ltd. Global-e (Nasdaq: GLBE) is the world's leading platform enabling and accelerating global, Direct-To-Consumer cross-border ecommerce. The chosen partner of over 1,000 brands and retailers across the United States, Europe and Asia, Global-e makes selling internationally as simple as selling domestically. The company enables merchants to increase the conversion of international traffic into sales by offering online shoppers in over 200 destinations worldwide a seamless, localized shopping experience. Global-e's end-to-end ecommerce solutions combine best-in-class localization capabilities, big-data best-practice business intelligence models, streamlined international logistics and vast cross-border experience, enabling international shoppers to buy seamlessly online and retailers to sell to, and from, anywhere in the world. For more information, please visit: www.global-e.com. Investor Contact:Erica Mannion or Mike FunariSapphire Investor Relations, LLCIR@global-e.com+1 617-542-6180 Press Contact: Headline Media Garrett Krivicich Globale@headline.media +1 786-233-7684 Global-E Online Ltd.CONSOLIDATED BALANCE SHEETS(In thousands) 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 Global-E Online Ltd.CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except share and per share data) 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) $(0.48)Basic and diluted weighted average ordinary shares 156,891,201 164,214,398 155,636,936 163,427,086 CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands) Three Months Ended Six Months Ended June 30, June 30, 2022 2023 2022 2023 (Unaudited) (Unaudited) Operating activities Net profit (loss)$(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 securities752 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 Global-E Online Ltd.SELECTED OTHER DATA(In thousands) 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 Global-E Online Ltd.RECONCILIATION TO Non-GAAP GROSS PROFIT(In thousands) 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 Global-E Online Ltd.RECONCILIATION TO ADJUSTED EBITDA(In thousands) 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 amortization37,433 37,432 74,182 75,585 (4) Amortization of acquired intangibles6,049 5,091 12,665 10,251 (5) Merger related contingent consideration3,026 3,040 5,985 6,080 (6) Acquisition related costs751 - 1,198 - Adjusted EBITDA 11,128 20,979 14,410 35,464