Global-e Online (GLBE) 16 Aug 222022 Q2 Earnings call transcript

Greetings, and welcome to the Global-E Second Quarter 2022 Earnings Call. This call is being simultaneously webcast on the company's website in the Investors section under News & Events.

For opening remarks and introductions, I'll now turn the call over to Erica Mannion at Sapphire Investor Relations. Please go ahead.

Thank you. day. good And from and today Nir Co-Founder Debbi, With Koren Global-E - President, Ofer Chief and me are Financial Officer. with second XX, Nir results begin a of review will the for the quarter XXXX. June ended brief business Ofer for quarter followed June second for ended quarter third review and will company's of XX, outlook XXXX. the then the results the financial by the XXXX, full year for the We'll call questions. then open views forward-looking Securities statements Section Certain future of and the within Harbor Reform may statements XXXX relate Litigation of we of of the make provisions Act Securities the Act and that XXE events. XXA Sections to constitute of Exchange of Act and today XXXX, meaning of Securities current the our Private of information the US XXXX, Safe expectations and are of statements subject some beyond control. uncertainties risks, to assumptions, our forward-looking are which These

reflect from looking including guarantee not views In result materially differ those performance. statements respect these number in future forward-looking the set of are of date our addition, the other and this to titled future filed XXXX, SEC a future XX, on or Risk factors, of and operating performance a as of statements current to and information in current a with events contained may events outcomes as forth our forward with statements Factors the September call. filed only section prospectus furnished reflect These of the the regarding SEC. with Actual management's documents in expectations speak and

on undue You should not any forward reliance statements. looking put

forward-looking after reflected will of information. events. to as future forward-looking results, will are to and activity, as are Please by the reflected whether occurrence our be the occur. applicable no statements press which date that events information, obligation new future August achieved we that statements any law, events in result reasonable, or cannot unanticipated XX, or performance, expectations reflect believe to revise statements guarantee we of made additional or a the or for the of in we and release the circumstances required Except dated publicly Although otherwise, on undertake update statements, levels the refer XXXX forward-looking

as The evaluate In discussed and final to information performance for financial presented believe to prospects, comparisons. overall decision addition, GAAP. a provide understanding the making a to key in management to useful isolation superior is in or of enhance this non-GAAP its and information financial about operational financial operating period-to-period by be these past results, metrics respect metrics. certain transparency measures will means substitute operation intended of with and for for not We with considered today and prepared decision presentation financial non-GAAP are financial be in metrics accordance these financial We use greater used as allow measures information operational making. and that future and or

by more and on For number dated indicators management call the our will competitors discussed to we reconciliation in information our are These please detail the in XX, Co-Founder non-GAAP call, August see of more over XXXX. this indicators provide performance financial used and in by Nir, press used I turn release tables the dated a often performance release industry. and key Throughout our XXXX. XX, press President. August in other key provided our measures,

from mentioned behalf macro towards in Global-E to his Amir forward on the of Erica the call Ukraine. in QX, when passing and and mid-May Back QX factors we uncertainty you, and everyone. the due not deepest would condolences the by like resulting the could we induced to and team. his father war Unfortunately join entire Amir family start our sending results discussed welcome today heightened Thank and of outlook, I

closed Russian, you half the to the report of continuation the in to early second happy improvement am The to time Ukrainian in be May precursors remained X% to quarter. initial that being, indeed improvement saw the represent I market signs and of the war turned further for the today, in out we unfortunate Belarusian less of which the in given the activity our total region. than However,

heightened revenues elaborate regions environment, continue $XX.X we moderately somewhat performance for resulted to GMV of other remain our in But Borderfree Coupled on stronger both previously fast back results, in later the in year there continued outlook activity ever. above increasing million, Quarterly However, strongest stated will and the our - experience Ofer May picked the Furthermore, condition our in while execution, macro our amounted the QX from $XXX up the back million despite our this team's with quarter conditions concerns. in call, amounted of of the Europe quarterly the to top remainder the range. are acquisition. in as we uncertainty in onwards, to QX strong to the going to macro first, in reflect global growth. guidance

the During with XX% the growing revenues year-on-year, and year-on-year. of growing GMV quarter second year XX%

continue in adjusted at to strongly improve gross coming profitability XX.X%. Our

growing mix realization profit strong outpacing synergies again, with line adjusted average, scale of result our a more COGS XX% Our gross revenue. of and top our amounted to of efficiencies at $XX.X favorable growth. Flow the a This growing of million year-on-year, was [ph]

to continue the us. business of building we growing to and required ahead expenses, huge terms infrastructure our reinvest the of that opportunity market operational seize lies in In the

to ability macro sustainable remaining growth, we same the cash beginning the ensure control at while positive. continue and time, exert we the given continue the year, [ph] headwinds our and the cost to healthy of various at strict to delivering foresaw However, throughout quarter,

you of with to drag able topline faster million, on the from quarter. margin business These a developments Flow Commerce update of the thereby to some representing range, realize of expected, resulted outlook been positive factors, lowering adjusted XX.X%. our have we adjusted over would than the our our well our EBITDA I growth, gears, many of addition, line. our strong past recent synergies above planned bottom like than an In Switching $XX.X on in faster acquisition very EBITDA in coupled

to services strong. front, continues On for the remain merchant activity our demand

brands around and consumer the As sales, the strategy. postures growth more and put [ph] direct it's world to cross of border the more

the Rag launching show including & and expanding the part ones. we with which new launches activity fashion & brands Spanish of The brand during many leading the platform, Zenith, and LVMH Cosmetics, with cosmetics Wimbledon, continued store of such, Bone group. brand existing of official tennis and is brands luxury As our Zadig quarter, our many merchandize QX brands, watches Voltaire. as the new on Freshly

digitally clothing brand successful drew house, brands as highly Justin brand Kim's region fashion out Ryderwear, of add to NOBULL, APAC continue fast Australian Hong-Kong, live SKIMS. merchant, first merchant. Swimwear Kim native of our and gain successful also into Bieber’s such Furthermore, continue We to as momentum celebrity and strong well brands, entry Triangl with Japanese apparel signing Kardashian, well of brand as our ever partnership the another training brand our by with first augmenting SKKN, the growing as launches the other as the our

markets proud went expanded to QX all added Last and one not During our Global-e. Suunto, most of operated live with with lanes be adidas the during such I brands we as activity but to by of am additional least, which world's the QX we that to announce also both power to well expertise, Disney the several sales push expand shows its unique multi-local the known Global-E sales direct-to-consumer and as APAC extensive infrastructure. as capabilities respected part as across region, consumer cross-border and well our of in brand Disney, leveraging our

than portfolio growing regarding remain highly ability optimistic before, pipeline this ever. forward-looking bookings new continue is our As stronger of brands to as our we brands of

the event strategic we in world, attended our On example, with continued Tokyo, partner, partnerships have front, of with to first for and our Cosmos. ecosystem around Japan, the held client local Trans our deepen our partnership collaboration growing highly partners in including,

Our partnership to continues Shopify track. on develop with

different of sizes integration direct new more the on platform already integration. are stages the are and various our solutions into of side, native planning On dozens live dozens and of Shopify in merchants

the in been as able beta solution label towards live solution as booked SMBs and Commerce record Commerce ahead merchant new And Global-E quarter, post Shopify, the our of all later is Corporate of technology. the many we white this planned, but than continues year. already now full have the works realize phased during merger on Flow have Flow addition, on expected. into complete. planned full of the rollout upon mentioned, integration earlier innovative on the of steam trials to Work a we already first as the of have built I order part synergies for In

around professionals form a that of cross-border, Our corporate respective second we and of into acquired Borderfree list which all the marquee beginning passionate and on Global-E the part synergetic globe. Besides the of Global-E with will access software highly of our Global-E expect with development we This primarily QX have becoming teams values. work key focused integration localization was Bowes. to of team team now platform, closed at other the was provide now merger to the and out of engineers brands Borderfree, benefits Borderfree the several of talented acquisition Pitney advanced about now who Borderfree at U.S. is

of to both us we of provide expected generation expansion the demand our merchants. planned online expedite marketing First, and will [ph] range it we to and our enable services quality

to expect of has and Over unique field of the a set which to generation, developed audience, offer we Borderfree be our on much the broader merchants platform. we capabilities the able will in years, assets demand cross-border

be Second, providing strategic, strike to logistical software skilled Global-E at some to beneficial as mutually components of partnership on set were clients were as finally, the the owner. part with coming and Pitney's services Global-E engineering And yielding with our technical Pitney's some cross-border enablement of a best-of-breed market also by various built the providing combined elements with considerably team shortening a solution. highly the access Pitney of of as able and access codebase, cross-border which over well elements Borderfree architectural advanced to time this of acquisition, to into best-in-class the solution, quarters will us proprietary we Bowes

during across will do quarters, profile we Flow we differences realize scale the in happening given order our improve Borderfree expect the acquisition, to should financial the be acquisition the exciting relevant to the As synergies able next elaborate with our few developments efficiencies. to many potentially business. later, are and Ofer margins utilize the expertise both on more There But and on weigh our somewhat as and gradually margin the coming quarters. financial in over

continue second our to market of here very are we position more us capture more and and world's lies pleased results sales enabler, go hand quarter potential. the as interest to of leading merchants it to of to will long-term very the much the over year financial and in our of strategically to color achieve additional and growing with XXXX list While I both cross-border to our summary ahead results our the outlook and just for track, fast-growing to some over that of immense Ofer, full QX detail XXXX we leverage provide time, the in our that in and in more with But financially help realize will And pause regarding and international XXXX. CFO, say opportunities and that, strong I our remain our of on and goals. the

Thank of with morning, you, a the be execution, for signings at cash and as by This record new merchants macro to be fronts, coupled acceptance everyone. quarter of to and continues to which on been environment, cross-border offering strong demonstrate our demand has merchants continuing continue pace. amid fast we very direct-to-consumer record good continues and a growth The all generation with Nir, volatile. strong

we continued significant and and After increase war by year-over-year. March Western XX% April weaker of in as an some consumer experiencing European through rapid impacted Central markets of we seen Eastern the macro and $XXX and the recovery May environment, GMV, million QX Our Europe, through in June. in and of growth Ukraine in generated demand the have

characterized opportunity towards merchants e-commerce we been geographical driven While a year-over-year, In and higher of the remains which of of multi-local growth market total cross-border are QX, merchant grow accelerate driven growth the outbound to rapidly. has the overall our the on XXXX direct-to-consumer and shift In From U.S. massive. XXX% business, generated QX, continuing U.S. the first platforms up revenue fee half million. $XX and mix services. were Service compared growth revenue mix $XX.X continue in softer, is XX% of to outbound was million, to services fulfillment in fulfillment to of grow the by revenue coupled up faster million, U.S. quarter XX% the on outbound and revenue revenue were up Flow up continued $XX.X with strong high XX% by outbound Service platform. revenue Global-E fee revenue, share to U.S. revenue offering, revenue of the year-over-year. Flow, standpoint, the prioritize by services share the

initial In addition, efforts results. markets starting positive into new are our to show penetration

in While XXX% Middle small revenue grown still year-over-year. East relatively the share, APAC outbound and have

profit growth top up million, line In margin $XX.X same gross in was non-GAAP to representing yet Our outpaced year. a profit growth. of XX.X% QX, compared again XX% gross non-GAAP last XX% period year-over-year, the

reporting million. remind adjust acquisition. intangibles you this the for gross the cost fee of to adjusted of revenues, would mentioned, primarily higher scale of our increased share as that service was which Nir is gross are gross was I common amortization As post as of synergies of low QX, by profit, we driven profit $XX.X goods like realization GAAP sold profit and leverage. the acquired

we in synergies. available of gross able X goods to until the Borderfree months to next margin realize to expect our the XX sold weigh are We on cost

on the stock-based year. diversified marketing, and compensation, of sales million. were last enabling Shopify period marketing excluding while to X.X% QX, was we operational in $X or to year. consideration million and compared Flow. $XX.X in broaden deepen offering consolidation Total to the the Throughout as million further was new mainly driven increase percentage revenue stock-based X.X% the develop in of platform. spend or expense, maintaining excluding warrants $X.X and pipeline, us the QX Global-E the X.X% continue invest of sales year. related administrative million period X.X% $X.X a same the in compared compensation, Total $XX.X on amortization to the expense in excluding and marketing for was by is The and we last R&D warrants in acquisition-related related was X.X% R&D, quarter R&D to and XX.X% revenue quarter, and of expense compensation, expenses. or the and $XX.X a efficiencies. amortization $X.X platform our to or expenses, and expenses, million last same $XX stock-based revenue in million of General strong SMB Alongside invest generate of acquired capabilities million amortization revenue million. period were or Sales to or compared R&D Shopify to Flow revenue of of expense of expense the enhancement continued million. revenue of contingent Moving platforms to development enterprise same $X.X intangibles

totaled macro by realization EBITDA in focus driven EBITDA on increasing period additional million year. planned representing upon from growth, reflects As management line over was cost a top expense last increased Adjusted million. significantly volatility. portion EBITDA than quarter, the which and $X.X expense certain reminder, contingent due the synergies and adjusted previous Flow back faster transaction employment for XX.X% the G&A the consideration, of has Adjusted to time. to held Flow consideration the compared QX spend is a the higher-than-expected the discipline founders, same $XX.X a Total in period contingent million, $XX.X with margin

and driven by that of improvement the now adjusted in a We have end reach EBITDA, to Flows expect Flow breakeven we significant synergies year. this realized have

ago. $X.X ended and compared cash Turning generated million net including operating cash statements. flow to deposits and the operating same million $XXX sheet short-term $XX.X million year flow the the quarter of and was cash in a balance flow to cash equivalents, marketable with QX in quarter securities. cash a Net We in

our and Moving XXXX. financial the on third to for quarter guidance year full outlook and

to million GMV this, a midpoint versus range, $XX XX.X% $XX expected Borderfree At the contribute of million QX GMV. rate is the growth of in XXXX. $XXX of the $XXX We to of to million Of this expect QX range represents to be million. of

be is similar to revenue million the of At EBITDA million expected the note slightly rate expect of be QX adjusted in $XX.X in midpoint is be of of that QX growth million. negative. $XXX.X a to take take $X.X EBITDA range million. to We QX range, range the of to represents rate, in while to XXXX. Global-Es $XX.X the rate expected is this Please Adjusted to Borderfree's Borderfree's versus XX.X%

outlook are performance reflect increasing earlier, Nir of year in our stronger previously Borderfree we the the As remainder to QX mentioned the the and stated acquisition. for

full of anticipate range. the to $X.XX Of $X.XX billion, billion XXXX, $XXX year $XXX of range be midpoint expected million to GMV. annual now XX.X% GMV of in we For to the the growth is the of this, Borderfree representing contribute to at million

the midpoint XX.X% guidance Borderfree, million, representing billion. are to is to million $X.XX to the our $X.XX a expected at to Revenue Excluding full of range. year raising be of of year the for GMV growth in $XXX rate we range full $XXX the billion

also year despite previously headwinds million, all to remains we $XX In was which opportunity guidance, to fronts, execution $XX EBITDA to conclusion, of $XX $XX macro are into negative slightly as Borderfree. million contribution of us. million adjusted the expect million. massive We from while at it be to range continue, tap our in increasing our we the full ahead now strong continue the And on

will Our We merchants continue us enable cross-border of that, enhance while your Operator? with Please happy Nance and further comes fast of further to are to with continue any partners believe with leveraging first our Thank Nir top grow question line and improve And efficiency. enable proceed to take Sachs. your their [Operator our scale the demonstrating to direct-to-consumer line I from question. with Goldman along Will will offering growth, to businesses to efficiently. questions. our Instructions] this you. We effectively

to morning. good Amir. guys, Hey, Condolences

throughout and that continued you of the a can expecting that. on some absorb the you of about to tie recovery guidance year that your assume to I seen have that FX talk trends some that early you in guys of to half wanted ask you're if quarter. the is updated I about that markets hear in the there back have to guide. recently maybe on Sorry may more as seem incremental question well. together May to be headwinds with the the or the with having that some Wondering

for when ex macro strength Borderfree of quarter? takes we have how and the Thanks. remainder recently So seen guys the the about puts in maybe versus think you some FX the more thinking second the just of guidance about the of that you year, are

Ofer. Its Will. question. for Hi, the Thank you

a we the in been to mainly that due As Europe April, weaker we've macro the seen seen and war in of see affected communicated, environment. some this Eastern we've the fact June, After May up business markets back, quite and partially and from of March that has year volatile. were we've coming European the markets pick the some in did Central

product everything have we've not May on up. did a activity and So both a as seen see and been launches June. activity, their but strong pushing that And have pipeline. came direct-to-consumer, we continuously of communicate, XXX%, we lot new of picking lot we marketing putting forward, lot then focus existing And merchant business have things very merchants we of during a seen and a

activities bit QX on Borderfree. So updated in still new into FX us. that's seen already the is we've eased know, macro reflects volatility be last and accumulated will take on the And of the other may is all high into to but has happen. hand, into been the then uncertainty. looked baked the and QX we be a guidance, at the results, some weeks, headwinds, when the one There better-than-expected that, obviously, what there guidance, so basically, the few one, that we which it and what did of market that's incorporated with hand, of some June. history. And the some addition it merchants we account remains in And we the launching seen you And May strong

it. about question helpful. if then could thinking demand on how follow That's I you're up about cross-border Got And e-com. maybe just a for

of seems over the that continue commentary the that to the the will would so it, and people about Given expectation How is like of earnings online impact of travel thinking of frequently the the demand cross-border interplay and remainder kind traveling nicely season the be all recover guys about cross-border more e-commerce? next, how for cross-border that return strong it over year. the you far call this are

Yeah.

back we in traveling assumed COVID when we QX people that into I XXXX, the our for XXXX. think and relief baked gave to already, that some we [ph] will we in went in as guidance go

in And we though. and optionalization included the - expected was so already number, some some this

However, we believe and the we started, e-commerce would Global say, a e-com more much still shale, growth. continue. retail although relief cross-border see even positive growing the I ago, this COVID is do that faster e-commerce, And of the continues than growing than in that do trend scale. e-commerce in and trend still on entire growth will commerce decade physical still especially longer-term sales is growing of within a global

enterprises into we and that. So we And see new in see quite into that brands with it's to continues into it future DXC. us take global trend that this rollout about of support optimistic growth we coming here, and our the partnering and the looking we When in would reflected bookings large, DXC, in increase. interest are say, are with merchant substantial bookings new a I

my Appreciate it. Got taking Nice results this questions. morning. Understood.

very you much. Thank

Thank you.

your Josh Markets. from Please question. proceed of Capital next comes with KeyBanc with question Our the Beck line

well. Thank you, that broader we've as seen ask my to wanted in I trend team, condolences and about e-commerce. a

lot future to corridors as growth, the drive new trying about think verticals, about of the message XXXX the towards this companies you are years, that also into the broader from helping a across new the how guidance? quarter gains broader normalization algorithm you we you customers, commercial these trend within market? which just into has e-commerce somewhat And levels a When been are macro penetration think contemplate when of well? certainly pace have Obviously, thinking I of as think well.

It's Ofer. you Josh, thank that. for

macro Nir softer there that, obviously, have you some seen on. mentioned mentioned is trends all there The environment. are regarding that there, environment. the out we as a And think and I are the uncertainties and e-commerce reopening so

us is gaining the the in the is However, merchants channel and fact channels. differentiates is think the focus what share other of direct-to-consumer I that over that

in for pace. And believe that definitely this is So growing time, for nice stay us we channel a a with for will of they enjoy as the long have secular this relationship channel the they close and is want and at the day. trend this margins want reason prioritize end growing the a to the to the consumer, merchants that data they want

I what So a cross-border of market. the this general is direct-to-consumer from think differentiates sort e-commerce

very your in to maybe That's anything helpful. of requesting. a can of the capabilities synergy assume services the how merchant equation. really Difficulty] across understand Borderfree base, on demand one would been bucketed on more business, share [Technical just something curious model. under types they've Maybe Also but you easily revenue follow-up gets there. see Could us the these learn this you be help you applicable I

Josh, Hi, this Nir. is

the of certain when acquisition what made as we bought. for Borderfree, was So looked we well we that synergies, as capabilities

And in I time, develop of couple in something say, the we efficiently we last that, started our where a is that you very generation a is one, take a is over they to to have us privacy, wider say to that accelerate important many has for what very regulation place different to unique years would as and do would generation growth. I looking a demand say, and and on we Borderfree are demand much privacy related more to proactive over grown is the base would believe developed became, and due fast problematic approach have base So how more for that to there order years, us based to to to with sales. our local merchants, we becomes, asset over markets, to in build a related merchant mentioned can And generation that can on more merchant I we they demand a it time it mentioned base. on from broader And with their [indiscernible] fuel our offer that demand all as believe to and build there. we

see high there. So very we do potential a

with which was Pitney us to, allowing key this is say, looked also thing The into Bowes into partnership especially acquisition U.S. would for access certain a other services at sophisticated we Canada, market brands. logistical I markets, a

side Bowes did we say, as client on be also side financial of that believe the Pitney E we as localization as a our base well. question. realize on coming merchant with a globally will partnership access able, advanced profile - expertise logistical As larger - enjoying, services. answers giving well advanced that Borderfree giving and would scale to your Flow synergies better Hopefully out I the to

Ofer. helpful. Perfect, Nir and Very

Thank you.

Our question. next line with with from Samad your proceed comes Samana of the question Jefferies. Please

Hi, questions. And the the with thinking Like the that what terms terms year? of the customers? congrats just Ofer in Maybe understand retention guidance in you're for existing number net – good what's seen the us for your for especially morning. assumed first, the net taking revised demand, guidance, the Thanks ex- Borderfree results. rebound help you've strong my maybe you on in strong of can

Samad. Hi,

as you basis. we on know, a a number disclosing quarterly not So are

we the And this XXXX would the our years. is average quarter, historical that the numbers in what previous something we levels, as the upon. MDR XXXX, plan previous in but the around communicated be of not around However, do our seen believe we based is have and

And guidance we've in the after previous I the you have know, there. get so think far, revising been been quarter, – to on things track

Great. you change either for more informs in forward doing little in have your behavior change, any or outlook year? seen any acceleration of maybe the terms maybe for in in length that are cycles times you customers either of pull just what a seen merchant sales or the hesitant direction, go-live And one or you. an Have Nir, of the rest

recent we are larger lot we seen way go consumer stayed in that to to we've and the many going a the the I others out this launched phase. store our support direct scale. are coming just would say, a the example other honest, to in We've But where a to merchandising be APAC Disney, seen is more basically, around. doing Sure. seen interest before would APAC, global say related that Then same. it markets on with fence brands in we've of I much few on of from

bookings higher was Our the I think what than year over and is significantly it new last for quarter us significantly record had, bookings. quarter a in than higher new we

us, question. from gives to and the it of I rest into So would further the there. answers confidence it say, your some our related down year Hopefully, outlook

again, the Thanks to Definitely. great and strong results. see

you. Thank

Thank you.

the of comes question Koji of proceed next Bank Our Please your question. line with from with Ikeda America.

Hey, me. best of couple my everyone. from questions for. give Amir narrative A Please

prepared you call, today, you I of GMV the So kind But and guidance. of softness it European just on Belarus, down quarter. sounds guide the really Eastern kind the European called know Eastern the prior on like the called has really Central out was and premise Russia, in improved. last remarks Central of in and the Ukraine, asking out really

So kind just hammer from to of are a from know, Or geographic the down updated to those call same want assumptions regions there out? within really guide perspective, of perspective, the are geographic the a the you today? other any impact kind curious, from assumptions previous are guidance

It's the you thank Ofer. for question. So

the improved war. much during throughout improved, the used same but get basically, a pace Those not also everything, have very impacted some war And from additional the I - guidance, geographical the necessarily expect in QX. macro have that at continue we say effect I seen people to at Unfortunately, the the markets them would that regarding we from to think to or that including XXX%, with directly impact conditions. some year. were similar

I So than we nothing basically, weaknesses into we've drop, some not dynamic nice seen account in partial we a of geographies, that, always ordinary. XXX%. we but the is have taking to mean this comeback, what some year. out is and the are guidance. a Other in there our think we during different And then seen strengths saw

macro high account we the into account to uncertainty take However, need we into in And also this the our environment. took guidance. into

it. on Got me. you. fantastic win Thank with ask it. then to wanted brand. just a from I Got mega Disney. global one a a And Clearly, follow-up question

with Asia first win the maybe Disney to Or you could us being maybe if walk more Was division Disney a driven guys. Asia wondering market with came win? this was I this Thanks, So was come? more something this how through with target HQ about.

Yeah.

it say, I a certain a we the as Asia I, in I Phase also Disney So of is into would part APAC. larger, and with see indeed, markets approach deployment would say,

of only APAC. additional not back markets, on a into those do a the we On geographies, success within rollout expect

Disney. has it's and live a as over launched a merchants, also groups, while, extensive a been well as can level as other was the will assume, many we requirements is project we management with, you expand on did for see go quite we a with to do Disney and discussion that as So with merchants, large and land going believe brand, reputable we that retail time, of

guys. it. questions. Got Thanks, Thanks for the taking

Thank you much. very

Thank you.

Our next your proceed James Please line question comes question. with Stanley. of Faucette from Morgan with the

region. the This James. potential the a point obviously, you're strength for talk demand is a Can on just in of thinking up Beatty the perspective about How of to of follow particularly for Sandy you from outbound? APAC, guys. about Thanks. wanted merchant I drivers quickly just terms there, you

well. You have more as Obviously, you these a moving there? are over. brands organic color larger bit provide little potentially just more wins Can that

Yes.

penetration APAC, going and extensive very quarters. for we Japanese success So of DHL team bookings in and very, being stages are brands strength say, by amazing partner over Trans the to go Cosmos we in we seen in fueled the of a Japan the see as would building tremendous visited the Post our we partnership looking initial but interest event from I the We've future, seen pipeline into Australian I recently Australia, to new we've our DXC. confident had with from looking Australia. pipeline with strength Tokyo, the are at at

I the of So we taking, from. sales a chunk mix APAC corridors say, of significant over we in outbound would time, believe do see would that

will would take say, are more we - see ago, taking I APAC we time, much So sure. more with we're it We activities. years our today, chunk momentum used assume of with we much a today, significant European U.S. outbound mainly balanced balanced be over than in that APAC, to the

Got walk particularly you multi-local And as upside some you margin, you. gross how shift, then obviously. about us Can you're it. And Thank particularly integrate a one on looked strong there trajectory these longer-term this just of acquisitions? drivers it just the just scale, mix basis, thinking quarter. new through on between

Yes.

strong had behind One, but and So quarter, three of terms the fees I we color in good fulfillment can think mix already some drivers mentioned on gross the a add service that. you services. this margin I maybe

gross and an obviously Two, impact has this margin. on So this is important.

have We realize anticipated. Flow think I sold originally mentioned able, we cost of we been and it with few synergies a faster to times than goods

QX, well, on everything the see the very changes. implemented and end to that are beginning some needed good already we end. wait towards of we QX and think We results and of that I works seeing So

significantly Flows you we had, something quarter. continuous efficiencies based we the gross our a last invest And on over this gain leveraging basis. on improved to mentioned, we So margins do scale, we is also continuously as

I three main drivers So number. are those the the think behind

of did that going on that margin we than Borderfree we have bit In think see forward, next we Borderfree, margin, every putting is the we over X, improvement We the XXX to gross aside gross points expect expect I Borderfree a terms can of lower currently And weighing will We quarters, have dynamics. think as quarter. of same an our Flow. X improve ours. basis don't as the with to

expect able improve do to time, over However, we our margins. gross to gradually be

questions. Perfect. Thank you for taking my

you. Thank

next with Sklar proceed Our the line from your with comes Alex James. of Raymond Please question. question

growth terms can strength the the in you're to or behind your So that earlier pipeline tracking What merchants commentary? of questions in quantification activity tell or on following us some the up other on metrics of some you pipeline put answers, help demo some macro. of

Thank for you question. Nir. the Sure. It's

we and on this and can is is are one QX momentum the you terms X-digit from, it and funnel at that in signings tell basically, that. of would in starts that demo a year-over-year, substantial go higher XXXX growth pipeline, entire increase I than we've of and say, - even growth half into new the merchants, the bookings QX I over throughout XXX% of the the seen So for

I bookings, part substantial increase second support that answers say, new guidance a in it's of So question… would and your into I would Hopefully the long-term increased also our, our goals. say year the that supports

the And tell up on the I goes just you played thank that No, integration us you quarter. this hand guess partnership, following think, of earlier running? I once of that's Shopify can have color. you. But terms but launched, that in how what in up great kind native and hand, expectations the maybe in Nir, native integration out versus

- are the future with with tremendous Shopify closer Shopify product and are the go - and on very embedded built to we're our a commercial requires would live and to do past, this and appreciative So integration. say, say native partner, we existing very Shopify are we - team, checkout very friends happy of requesting we engineering being merchants, year I looking lot about into and on within the evolved team hundreds the think are adoption the next a I very of on And the I as the giving – it, would native We very, see true way go had being have, in native with a the acceptance evolves. of we integration. and think optimistic much in well as as happy of can expect of new cooperation the this than and as partnership. we strengthens, in that And the the we they it, and they are

current our up are well I integration, but overall and do out we as said, the time classic and customer of our of improve experience. as as scale on Shopify, new, merchant launch it Some them, expect them of to some

Great. you Thank much. very Okay.

you. Thank

you. Thank

Scott Our proceed next Needham Please & with question. question Berg comes your from with line of the Company.

to EBITDA Hi, the with start guess, thanks year. Ofer, for your questions on I here. full everyone. Congrats guidance taking and off great quarter my for I wanted

like? strong quarter, see with the half. and had growth that about you You you that results you're anything there look we in think But that business. second the Thank of here? like quarter the in the did aggressively quarter It would not interesting obviously, mentioned. entire looks a the that through controls But the what terms into two out second carry last be maybe you've continuing in cost identified to investments the new note your or I you. to opportunities is synergies invest How second outperformance should there

Yes.

we that We we in were know, costs. result. our I factor the is large QX, number, a quarter. the has top On the baked think Borderfree guidance. that overall this you a were previous negative did and do in some you – is not the is model, still negative, adjusted mentioned, QX, that should agility have And we discuss in of this but controlling discussion EBITDA to add Borderfree. on we main into that, impact as

If you we guidance, remember, but the the year. adjusted we for our didn't number change did update EBITDA

but So growth investing much as than now after the support - of quarter, was we expected, are well. course, and, so said, the we are, in in second year's future the can growth you next also which still as costs, better controlling we

the be, would those guidance. adjusted impacting main So think, points our EBITDA I

I today. here Borderfree know Borderfree that you follow-up out especially benefits as the the you Great. then discussed But a Helpful. you Nir, of – about before, type services of on your impact guess, sales perspective, [ph] from And core and all for Commerce cycles - from a some think customer? Flow lot Pitney for I realize those to to Bowes. in Are expected or are your maybe, those your Global-E next year? benefits starting the Or listed

you it year Thank for see benefit the next most would we integration Yeah. question. of the assume up. I only and technical set requires as

in side the integration. are of building process processes, We the as tech of the well the as

offer, current would better benefit additional different areas. service would I say, it, additional it clients more of it consumers say, with in than I us some But giving that, services capabilities. Following client customer to the service to base, winning new [ph] both I would expect enable a own will to to

in see only ways, or come assume - early would both it, would of I it So we QX but XXXX. most QX,

my Thanks on the again. for questions. quarter taking strong Congrats

Appreciate it. Thank you.

you. Thank

question. next of comes with from the Sandler. line proceed Brent with Please Our question Piper Bracelin your

is Clarke Brent. for This Hello. on

or more fashion question seen luxury different QX First product GMV, within the the stabilization me is, over past or seen could segments or categories of in the was whether improvement from that Are more tell of cosmetics. you eight that there what segments months QX? product or or any in XXXX, course you've categories sequentially you've about

Thank you for the question.

that similar seen generally have within different segments. the think we I speaking, trends

out to we opening point decrease some relates I think have work. the gap seen to a and can I people it goods slight going sporting if sporting back differences, wear, and However, in

be one would that So observation.

a I think faster bit others. have a brand second we newer observation that native be digital and growing the seen brands than would the the

I think main observations. two those are the

of questions the you opportunity right. Global-E And a excited most But in I capabilities ask could or wanted second, platform. wondering you're base? offering the what the where on talk know, Borderfree about you All about see most customer if then inverse to lot you to about Great. to Borderfree of the applied capabilities steam being Global-E terms

it's I And - that think Nir Sure. speaking.

times, Global-Es, is almost is the I XX – would Given size of more more than Borderfree. than say,

more we had once rates, the at the into we more into as in size We conversion much than additional on have would optimize proposition, see what international those - to as impact and required positive the traffic I well the a that data sales bring of nice I Borderfree know-how to past. Global-E were base, not Borderfree. - client merchant into capabilities And say, turning would client expect can

we We we can account So we the I started bring brand. boost do, some be currently the think quick more would engineers management time, are And and the We can could analyzed sales Borderfree. on Borderfree we where doing additional COVID much that course, journey. team. do, the I with - with over capabilities do changes for that would already say, able merchant of deals [ph]

that. very about we are excited So

much. very you Thank

Thank you.

question. Thank of Pat Please Walravens you. final line with Ladies with JMP your question Securities. proceed the gentlemen, and comes from our

for Thank you. Amir prayers let his and thoughts And and family. Great. my add me

be to are being just So also, out then might that interesting M&A? are some finding let than the running maybe And there interesting. they available used companies Nir on And cash that. and more me if are that Borderfree more technologies what of be? add that kinds with so, things would you of have of Are out smaller

Thank you, Pat.

bright see of We say, either would with latter. third of out would horizon we're companies interested through don't looking reaching the ahead in out interest start transaction. us them, I see I or parties, making to cash or more So if a direct either running additional of very that are,

is yes, interest. So there

focusing say, from it into are side, the of at on, say, acquisition, look I solution we the potential the we of, the would I out especially label would Global-E when white Flow Commerce build realizing currently However, the Shopify.

the ahead spoke a We capabilities and on see maybe if from the large additional the would might can area a some for about and We would we capabilities it with Borderfree acquiring, maybe acquisitions, time complement faster demand I have we versus hand new looking consider phase, skills acquisition. would to realizing But the generation not look lot earlier, something that. of look, at but at we say, say, I scale, if our we in area it we in build and see we are interest benefits interest. might an of say, a that tactical the in investment I can, we Global-E of for

And Great, guys. congratulations thank quarter, great such you. on a

Thank you.

Thanks, Pat.

to floor for the and comments. final turn Ladies our concludes session. back Debbi any you. gentlemen, Mr. Thank I'll this question-and-answer

with Thank seeing yet future calls. of earnings and again ongoing Good we exciting quarter. to the behalf and to Ofer, on your our team, like for and as forward you very for great and joining our myself Global-E you. bye look journey today On entire I all We support, thank take on much you would ambitious continue another

Thank conference. today's you. This concludes

you time. your for may your this at participation. disconnect You Thank lines