Global-e Online (GLBE) 17 Nov 222022 Q3 Earnings call transcript

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

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

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

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

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

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

beating third and the the came ongoing very high GMV year-on-year, macroeconomic report Both in XX% in in of QX, headwinds X.X% you million, and range, revenues QX GMV delivered the growing market Global-e. the respectively. representing XX% Despite all year-on-year. strong represents quarter of conditions to and our across results growth forecasted you, for of We continues $XXX of and today of Erica, prevailing range quarter everyone. our pace another midpoint in XXXX, business Ukraine, the for Global-e welcome in revenues million war growth and We the totaled and over parameters. its Thank X.X% which form for by complex various our $XXX.X

was of growth, million, as a the benefits XX% $XX.X very representing our Our to of strong revenue and growth COG outpacing adjusted synergies gross year-on-year, we economies for pursue realize with profit Flow. quarter scale continue

gross XX.X%, adjusted Our profitability QX up from in XX.X% XXXX. was of

is Borderfree acquired include this As later July will that in in of in which figures we this quarter our on this the is note Ofer results, elaborate in which it call, we important first the the year. to from

our to the we lines at and to continue strict in business to continue strong time delivering business all control of all profitable expenses, discretionary growth. terms operational to cost ensure In spending continue maintain same across but our departments, reinvest growing over the ability

As adjusted to XX.X%. million at margin $XX.X came Adjusted for last in was $X.X million, of QX such, our quarter in EBITDA year. EBITDA compared the

last give quarter. would Moving business to developments the the like on exciting from some results, you in our financial I updates the many during regarding

remain merchant for sales of growth as more more to services world cross-border crosshairs our the and strategy. the strong around direct-to-consumer demand activity the put front, continues On brands their at and

to expanding Italian as London the Milan, merchandize online the the Football brand part Drakes, of of the Creations, of brand toy the vertical. clubs brands, of with reach we Inter t-shirt the Mattel fast-growing Mattel the Lagerfeld, classic brands, the fashion continued based new True famous Classic, the prominent store based third well as launch many U.S. During quarter further brand football group the our Club were into among designer Karl high-end which store

with went Emirates. also brand based innovative merchant our during United We Arab live the first the ever sportswear QX SquatWolf, in

Stella the luxury the to Spanish Blahnik, three Manolo maisons, by from We of and designer continued McCartney, our Stella LVMH Richemont live the shoes well, KVD, Ole by additional Buccellati going Henriksen to in third group, the end segment quarter. as all high extension during

Boss several Suunto Anine Hugo and operated site, In lanes added once including up of Global-e, expanded opened its brands others. list Bing the again the lanes addition, quarter European during by which their and which

which lines also past. happy our I'm we have across existing development grow to While to business product we shared that geographies, significant with progress we share make of our our continuing in to you the initiatives, and continue our are and several business bookings in pipeline

For example, brand presence of a offering leading its Amazon through phase. in its on marketplace with suite which the Japan, is expanded electronics connectivity pilot Jabra, launching Global-e, Global-e’s consumer services

Another Global-e’s demand already offering example merchants. XX generation is which is serving over

next take expect expand these initiatives and to Over quarters, and the others merchants few more we to geographies, well start to as as shape. gradually

of to to being markets with robust We efforts. our we latest Google go-to-market partner well the the Partnership with as ecosystem partners continues international globe a established in this already expansion ecosystem we our to signed channels, as the our bookings in, whom Turning around support indirect our expand Agreement. continuously Referral strive are

advancements with Our all and on engagement Shopify respective very teams with on great high track, much strategic partnership product between levels. the also remains

On continuing integration Shopify-based side, stream any to default the merchants live the direct merchant. as new the is this now is integration our new of going accelerate native using for

with granted a merchants. On Shopify solution access front, were for solution, Markets the small to white-label a subset Pro, alpha Shopify successfully completed, recently relevant trials early were successfully of

next as models, our integrated now relevant our the integrating post-merger several its partnership in We organization. with Flow all We highly the future COG currently planned continue many part hand-in-hand put gradually with is Global-e. attention potential Borderfree into and the By done, the Borderfree’s Shopify corporate but way of assets to of our remain term regarding capabilities Borderfree by had with regards primarily merchant onto migrate realize Shopify. have been optimistic teams strategic synergies, road use the to to on platform teams year. development. that aim to been possible towards integration our all Work into general to With platform the efforts, of team's long Borderfree’s on development Global-e and built is down with availability focused

we We work quarters compounded next our model, of conditions performance, in market We the a spite by look enthusiastic Moreover, unfolded. volatile ecommerce market global the XXXX the have as potential, to to are clear adoption as this towards all the strong into long for key Bowes to solutions extremely advanced as as of synergies above map we expect how of and of global in on the of building way. realized the and scale. position unusually the extended robustness Pitney believe we capabilities. acquired for road remain generation testament channel the markets with In our joint first and the year quarters this a our summary, taking is In the well partnership pleased continue for over the marketing working transaction, account, with the very part merchants. the next of on approach and direct-to-consumer gradually execution growth along its capabilities three term as we integration leadership brands growth a are true logistics growing and several of demand our with parallel, beyond, we regarding

of slightly at midpoint results. have we However, on to and account and which take in decided XXXX and of anticipate GMV unusually order X% to extraordinary large adverse err into the an will two side QX caution, range lower factors X.X% the to we forecast in the order by our revenue to respectively effect our on have

the worsened those especially dollar, of via-a-vis the swings, First, third of major currencies. through is quarter large which foreign exchange November, the and other unusually into effect U.S. the

the reduce X.X% strategic was EBITDA itself, to for additional center realizations QX, we full the immense which the Ofer, financial cost massive will opportunity ahead The large above annual of details results synergy front lies We it fast over believe quarterly year represents plans. for optimizations, come, as put to very the planned adjusted the growth, to move the range, XXXX hand merchants forecast more regarding year-on-year. globe year progress such of a for to our in last XXXX. the guidance parts of we more revenue which workforce our rates outlook have the dive XX% into the go-live well CFO, we full e-commerce At postponed years is the market QX of to deeper decided us time upwards including same to that, the provide though, Borderfree on expected represents of future and have around update cross-border, channel and minute direct-to-consumer our managed that merchant other of growth a with I a to some the And as and their acquisition. originally growth Greenfield headcount factor by our was XXXX. At initially of at as midpoint but post than more our

macro and fast strong coupled all and to to Amir, continue and amid macro of durable, clear continues another and volatile. growth, good be profitable everyone. demonstrate been we environment you, which This with fronts Thank a as has afternoon quarter margins, healthy on strong remains growth. model fundamentals headwinds, challenging path we business Despite the a our the to continue of see rapid

Before moving the which note to first quarter into incorporate the that again please our in we financial this statements. is numbers, Borderfree

we continued As mentioned, growth in of as of Amir increase already an GMV in our million GMV, $XXX generated XX% year-over-year. fast QX

share over Borderfree, While center Service the channels front year-over-year. XX% were to QX share our and driven higher the fee offering revenue continued and our rapidly. total strong in of services up as continuing which the revenue outbound outbound U.S. of we has fees. is million, fulfillment slowed outbound platform In in gaining revenue to revenues on up the in characterized which revenue, was Service grow growing. the XX% cross-border growth generated of of by down and compared to a million. platform. revenue were with $XX.X service overall U.S. XXXX, XXX% e-commerce share their up business, faster border by market U.S. fees continued to high fulfillment other up merchants direct-to-consumer driven services opportunity revenues of U.S. coupled the by revenues XXX%, are million, cross $XX.X $XXX.X multi-local massive of direct-to-consumer Global-e outbound In remains put grow to results mix growth QX, growth and of Borderfree strategy, year-over-year, continuously

XXX% grown efforts Middle positive revenue, of to the East are revenue APAC and into show signs. the outbound new which penetration continuing markets year-over-year. total are Our have X%

synergies service by margin. was and of continued gross outpace growth. last profit primarily XX% XX.X% This $XX.X efforts. optimization was the to compared of of non-GAAP million, same a Borderfree's XX.X% of cost profit representing period positive realization sold was profit revenues, gross top lower despite to goods of year Flow GAAP Our non-GAAP in share year-over-year, margin In million. higher up QX, growth the driven impact gross continuous Borderfree fee and $XX.X the line

year. power to on QX, based we label with million to emphasis excluding or was in compared on revenue to the million. and same revenue the to expense of Moving percentage markets enterprise offering spend SMB platforms, the R&D and as primarily period or expenses, Total Borderfree. driven the is operational XX.X% increase expense in development continue in consolidation Shopify invest $XX.X white a compensation the new XX.X% stock R&D by of $XX.X last Global-e R&D $X.X of in growth. million The was QX of of Flow

EBITDA $XX.X related million, the compared consideration a were representing the same in or We was the to well XX.X% and reinvestment or X.X% X.X% G&A the $XX.X Total amortization excluding in of and period and sales Shopify adjusted same was pipeline, on related $XX.X $X.X expense, was year. in amortization including generate of QX $X.X million revenue million. related expense continued million. marketing was expense and in X.X% of business. Shopify expenses, million. related stock-based be quarter, administrative Sales us X.X% and last $X.X period million diversified warrants and revenue million excluding increasing of margin, million $X continue compared invest a contingent period despite and to revenue totaled efficiencies. enabling last revenue, warrants track. of to marketing expenses or from million sales continued for compensation, year, acquisition last General amortization related year. maintaining EBITDA robust $X.X acquisition marketing, spend stock-based Shopify acquired the Total in same intangibles and to compensation or Adjusted into the while expenses, $XX.X amortization warrants expenses to EBITDA Adjusted

to We focus synergies realization to adjusted and continue support optimization EBITDA further on growth.

same million equivalents, and QX million million cash flow Net on the cash generated day-to-day cash to of marketable short-term transaction $X.X due to related ago. $XXX expenses year ordinary the cash in the Turning flow our $X.X held mainly management. of cash $X.X operating Net as cash one-off of revaluation of in and quarter including flow quarter million was USD ended securities. sheet Borderfree expenses was balance a to impact of part negatively we quarter financial statements, used of balances the million, cash the flow deposits in impacted operating with in compared by out and the and $XX.X non-USD

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

of year the as revenue be and in the full range this updated have growth merchant of $X,XXX million high its as Amir mentioned, to As X%, respectively. $X,XXX due $XXX million, of headwinds, Of at expected represents now the range, quarter, GMV rate large to go-live million GMV midpoint and a outlook X.X% for expect $XXX to well We unusually is by the FX year. postponing this, GMV versus contribute million XXXX. we very to the by our full of XX% Borderfree a to XXXX

of adjusted updating it represents outlook At EBITDA to to we be $XXX.X XXXX. a now this the of of XXXX and the $XXX.X the global to revenue growth XXXX. which is conclusion, expect almost range $XX.X some realization accelerate in journey million This we million on driven the by with continued of $XX.X growth cost to e-commerce. our the execution rightsizing enable for profitable workforce in direct-to-consumer strong and and focus is cross-border X.X% our Meanwhile, midpoint, expected of the are at range, versus be by XX% Borderfree, We in includes In range million. million rate activities. midpoint synergies continue upwards to to

front to Nir and support opportunity We their growth. take will add I are us questions. growing into enhance with believe our this will massive to and And value further your that, We direct-to-consumer the and happy of tap any continue to offering of to Operator. to us. Amir, enable in merchants

Instructions]. [Operator Thank you.

the line your is from proceed with with question Jefferies. Samad of Please first Samana question. Our

Thanks questions. evening. taking my Good for

quite you Ofer? headwind that So in was exceeded Can trends and on the of spending quarter us maybe maybe versus better the growth FX go-lives understand help timing the quarter of a first, was good, much you of quarter, your much the guidance. in how was how

in of for our the existing projections. with would the did seen, in line from of It stable QX, of a bit the have I launch merchants our side we see So say over expectation demand relatively in within terms growth merchants. was We bids, consumer the quarter.

than Hopefully, launched a bit quarter full. guidance. versus within earlier was the expected, of your Some a of tailwind in gave and us I what questions them our this answered

then And customer, just maybe just Yes. know quarter impact understanding, one to enough I the large it's fourth but it's guidance.

typically and seeing I early So on into would think 'XX. XXXX? a is factored Maybe us about can to help you you delay? maybe holiday the GMV are strong out would for that decision, think drove and how pretty thoughts the quarter other XQ is delaying go-live any season why and push maybe that company's what merchant to that customers understand your

Yes. it's Hi, Samad, Amir.

obviously, So merchant actually on a would or the wasn't, our on say side to delay it conscious decision I either side.

the As you would to live. liked the both so be merchant noted, holiday rightly and period have coming, us is

in unfortunately complete project, a integration manage time. to of their that was third didn't in this a However, side on party dependency there specific the

So while launch were merchant delay everything because of both and freeze. into else was QX, the forced the ready, to a us code into went we

So wouldn't the any other on anything see so next to if don't else movement expect year. on any we than I contrary, impact delay that,

maybe been I think squeeze XQ Ofer, FX what can the guidance the clarify you in. one the I'll just volatile. XXXX FX – that more revised or Great, so impact and to it's of guidance?

would out. were a headwind the Just before it? or assuming currency you that constant of think much just everybody number what is guys I how help

versus mentioned, previous the main merchant was of euro quarter and into till quarters with reason go-live the in but since XX% us, USD, USD accelerated all versus the mainly obviously and guidance. didn't we revenue in top hit GBP, along impact mainly We updating guided QX the over with currencies, we the basically revaluation that the other in but that November impact our in Yes. as and we since the euro report but is taken of and in this we are is previous for currencies, guidance There our got the the was GBP. line this account as the is the well,

my again Thanks understood. for Okay, taking questions.

Samad. Thanks

you. Thank

is Our Please with of proceed from the Nance with question. line Sachs. Will next your question Goldman

know mean my seeing. appreciate exposure ask luxury of guys to some guys! like apparel. trends questions. the particularly think, Hey I you you e-commerce, on things I taking I overseas you the just the some spending exposure, and I to that wanted are specifically

guys’ revision I a of confidence course being guys the are think know curious you that know on talk terms the of and on ground of seeing with due just a gives are some is what what of you the in November? of of and October the in boots we due of first you in the around implementation about to spending lot levels underlying of And don't what when we that over trending on ground? just you that guidance delay, the this the the people talk behavior. consumer How actually macro the kind spending maybe general seeing you Just and the for quarter? FX to assumptions know you're see deceleration remainder parts

It's Hi Will! Nir.

trends macroeconomics, your by the especially see were in the increases. hit as around more question, the for recent terms rates European more interest we a quarters part with or parts client see larger first were consumer spending the We and in different different affected did of affected they world spending. CPI So of of do

holding APAC to mainly slowness spending, is is consumer while what region, seen a However, see, Zealand of New part second that in we in U.S. and especially the relatively strong. Australia in also QX, in some we've started still decrease QX

QX our this was but merchants, growth. So starting already softer seen look even seen at than still growth, we built see growth we’ve basically see existing this it we in results. a is quarter, what to prior we've previous in we do reporting When but our and trend

[Cross Yeah, Nir. So, Sorry may add though… Talk] I go just ahead.

please ahead. No, go

prime term. I performance the that much it's sentiment as in to We growth that from I note main that affects at the on we believe opportunity services believe we we mostly longer because when Yes, and is look and factor any the deciding say in softness term, are long-term side, spend our I consumer a front, it think When we that mentioned, greenfield our just merchant important would it. consumer on add are more look to the whatsoever. at and the by and always wanted shorter impacted position we the we massive this pursue that not it's seeing demand is to of

of another short-term sort FX makes it. could guess matters at over you clarify just you guys of commentary? seven I wondering are Got was if to just circle striking sense. week. worldwide this when past question, risk have FX back kind done what you I unfortunately, I asking the the of It FX can rates guidance? markets in given mean days know I

Just for wondering baked little quarter? guidance a if the you could color sort into of what's of terms the in provide fourth

Yes.

stable because I FX, assumption that to best think is the knows direction the FX. of it's one regarding no assume always

we average this incorporated So last the few and guidance our QX. of basically what days for at is the in we looked

helpful. you That’s I questions. it. my all taking Got appreciate

Thanks Will.

you. Thank

Please your line Our next Peterson from question with is question. James. Brian of proceed the with Raymond

is on John for Thanks This question. taking Brian. for the Hi!

are last you you I pipeline build it mentioned metrics, QX. new activity, seeing was On think you that deal in or in tracking the continued pipeline including there? any Has stronger your indicators than changes quarter are demos? what

bookings are development, new pipeline the and So the basically optimistic. on very we

to our continue see what We significantly had year. than the we higher pipeline, build is of and very to-date solid last signings

future. the a we than even significant very revenue higher growth and year-over-year our GMV our and growth growth, should see reported this fuel So into

into deal this last Australia, see into to the where APAC and earlier pipeline also out also and to invest year in signed region the year of We started Japan. late the the start contribution we

that contribute, to year. do and we to be we our do starting do next significant into see affect that So we expect sales – part and

one progressing? more I'm if expansion I this in How expansion? changes geo the cadence or there. the accelerating then brand And notable decelerating? merchants are efforts in just That Any how or Thanks. great approaching trends of maybe are curious Perfect! was these color may. macro,

I the new think, on regions merchants additional see minimum business investment. current much with is, regions discussions team I and in our how more we with can say management with would in our we success what or grow

we we we are or versus of taking returns discussions are offering to my more better and our the models usage best-in-class shipping business offering as an product optimize add and on we And doing can smart versus growing are do investment that. So of Global-e your see can price without on insights the a for lot how opportunity I proposition of significant based of interest where related to our with we geographies, sees merchant. data any

have So those team. currently we more management calls much success with our of

you very Thank much.

Thank you.

of the Please Morgan question James from state Faucette next is with your Our question. Stanley. line

much. very Thanks

when on third up that FX formulated versus was to had to drag as on try you much we following sensitize results Just outlook? the originally quarter how idea? continue Ofer, an ourselves incremental FX there, any of

I additional we the drag X% versus deepening QX. see into think Versus around formulation, the and was it formulation the

expand parts about kind you are expanding independently we driving gross what's and mix, – margins talk other can of you seeing margin be some and Got the of talking both or that aspect, of margins seeing you of it, thinking it. term, how mix be know shift fulfillment whether in we And about we got about near are the then if contribution? should independent medium it can

over of improve of it margins, margins long we been to able very improvement. time, so has clear the have period the Regarding a been trend a gradually

basis we we to we quarter. expect to as the points you time previously XXX expand said, margins. can However, continue don't every or think get Over that XXX know we

reasons. have fees mix, growing the of terms for In several been service faster

generation were revenue margins However, on improved pillars. both

able been also have improve fee over we side. to time but side, the service on the So fulfillment margins on

annual but to term, about you Got quarter, a the I’d think probably it. appropriate to an few that basis you you say bear medium margins, And going etcetera can then how should aren't hundred margin the be think forward? points of on expanding appreciate rate we expansion, and basis, in going bring per

to on I next think number it's put early that, know you still year. a

got do year. time maintain coming margins into quarter, also we see the again, that but over However, last we improvement, will just that guide and to think that we you can next know on we and

Thank Great! you.

Thanks James.

Thank you.

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

questions. Yeah, hey the guys! Thanks for taking

You question, so the to of know a all the end the that earlier go-live ask viewing. color I for thank And question market that. wanted you definitely I you appreciate is on kind in way your

the market know the strategicness for there importance Is the viewing in of of into next or businesses the a You change growth importantness strategicness any way these as category maybe year. heading cross-border cross-border? that end is the or

Hi is Amir. This Koji!

and is in the This that no for alike. think the both different now. it's both general have as a I over years seen the trend brands is new many consumers it are not than we trend. Businesses benefit moving into direct-to-consumer,

continuation are of strategy seeing that are pillar more more on key their a a direct-to-consumer more verticals of global merchants, and trend. and seeing as scale we more a that forward. We're So adopting going

that a their plan, brands past their and following others in kind the year as five prominent suit. this put other in brands mentioned plan strategic part that we of think have like key of are I Adidas

across definitely continuation seeing a are the of basically. we trend that So all in market geographies

Got it, revenue, was to noticed question contribution U.S. understand on the you outbound? me. and thank great number contribution of And there. you. follow-up just to understand ask I then wanted us for Borderfree Maybe then help and for Borderfree. one a of us help definitely so Thanks Borderfree maybe I U.S. XXX%, much you outbound But how also, up guys. revenues mentioned total

our million this to to is a $XXX as million year expected average $XXX take similar to rate GMV So in contribute guided, we Borderfree take with rate.

contribution. very a you gives good this indication the revenue So of

contribution. since U.S., Regarding then obviously U.S. outbound, biased most its is outbound, Borderfree and towards of has significant it U.S. a activities very the

Borderfee Global-e quarter the Global-e, and has platform the previous U.S. very putting and grown quarters the aside, as on fast this the well. outbound even However, years business, for last nine

just follow-up. last maybe And Okay.

or third range Thanks in did the know million the third guide the GMV the above for the for You at $XX Borderfree $XX it the quarter, of the the guys. come below to quarter million? maybe of just range range,

range. in came the above It slightly

it. Got Thank you much. so

Thanks.

Thank you.

of Please proceed question Beck line your next from is Our question. with with the Josh KeyBanc.

the to wanted taking ask bit question. market for Thanks within backdrop I e-commerce. about a little the

we've QX what from tad U.S. was flattish. is, up the think domestic a of heard in I some companies maybe

I of forecast Europe back in domestic. their effectively declined likely seen view you've for QX. that think And the market lot office on a in is people

at growth kind double-click what So about you're curious, thinking maybe sector, level you year? when cross-border algorithm I'm next the the market seeing for a a of cross-border at just you're sector into in and how going level

mentioned, Nir. we it's Josh, hi As

growth As the we previously. QX earlier, QX what and lower we beginning of we've than seen did rate the slightly mentioned see

continue still would where a However, this But we it, do We effect. specific our differentiate do The do do see, are are positive regions making see trading to on see variant, don't overall a merchants we regular and see of year-on-year. from our is lower aggregate can see slightly on I merchants overall that a growing. we We merchants decrease. for global say we we it the reach, but see grow. merchants

effect. trading lower, of a we So do regions regardless stronger different see

the XX% our strength at the externally coming U.S. U.S., the in shopping U.S. actually for shoppers are we and USD, cheaper merchants more see cheaper. to what than actually global growing U.S. and us, you see mainly the of It's of outside sales is source for us. from in domestic, look For Because when the the of it's them

due strength looks Global-e on the regions. the to the currencies other aggregate for due of solid weakening the So very the spending, in of consumer to U.S. still

some follow-up a updates Okay, had very maybe helpful. on And there. We then constructive Shopify.

side. was direct an the go-lives think the I on in there acceleration

that think you revenue. is can know to be that material something more You

that's I that is But thinking know that disclose because How one year? opportunity? that of respect not should about partnership. You you framing You more a be that, into obviously in may multiyear should it heads? kicking something our that model is be we we the know next

white positive demand the but haven't of expectation, expect budgeting finalized next label as there us, solution. be do and and Shopify, a the up the current Global-e, Our for with with we building for will that effect of QX for we year

believe main in some the our do and rate, we and within growth onwards, late only launch late effect of would time company the XXXX growth the rate, would on QX, However, sometime I affect overall XXXX bulk growth the rate. merchants start-only come as that XXXX say on

team. helpful. you, Thank and Nir Very

Thanks Josh.

you. Thank

Our your next Securities. the question proceed of JMP Pat from line with Please with Walravens is question.

Oh, great! Thank you.

I next like seems look is a at the heard It your the so midpoint is as XXX, new finalized XXX and So but and consensus it of like year, you that's XX% yet, haven't I lot. guidance growth. at

opportunity thought for to So about maybe a I for expectation would to a little good be year? have comment people what's a bit next reasonable just this

cross-border fast. As growing some we on, still very very, even the is focus we said, although volatility, is more that which segment there are and and lot the of headwinds obviously a important, direct-to-consumer

to we grow We market into to will be we we next the few and next expect that just to able for target. is and the huge then into tap growth continue fast taking year fact fast our years think it, this account is into that and the the starting are

Okay. That’s impact. the then super very great, FX roughly And helpful. on just great,

million that the million is I delayed, Is being a is million, of that's that previously So guidance QX, $XXX that's one-merchant at consensus $XXX was million. FX now it us million of delta. and fair basically for to at $X right? about so if like the $XX of assume look Midpoint around $X

As a I not far ballpark off. think direction, you're

you. Thank great. Okay

Thanks Pat.

a Before gotten couple press of to we move clarify item I questions. release in like one on, we've would our just as

revenue Our revenue, in was so $XXX for was $XXX release, There million prior guidance the to year a prior again million. full $XXX typo million. guidance million to $XXX

Thank you.

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

at the Congrats Shopify a apologize you. in over with for to good maybe everyone! your or white because I three it get expectations; background excitement expectations days, ago? it of around that noise, behind? to sense to wanted of partnership and XX you your where just of relative six I’m progressing a last months Thank any Amir's clarify, trying is or rollout are airport. Just on in your line remarks, quarter. this thoughts some in is I about where there. the But the were know ahead you talked Hi that kind But label is year pre-scripted

terms we And partnership are of very Hey yes, that Scott! say with good in part Shopify. advancing of would the travels. all, of on First track I much

thank was Got perspective, bookings. follow-up customer it. you. a And It’s new very helpful, from the then on

going were just question your there in were would signings regions or earlier different pipeline customer on at into look your was you any have the what than else's Someone areas commentary quarter expectations But [inaudible]. materially been? if bookings, that new new QX, your

Yes.

bookings, to do I momentum continue. it of good quarter new expect signed there the we and continue within on think with hundreds we millions to that the see

in Japan. XXXX, that come even with of We expect the contribution couple the the improvement QX months most signed positively We pipeline surprised the contribution would this year. last agreements to also within – significant in but and of are do in a into in see expansion with the probably Australia of in contribution even pipeline

about positive We are it. very

Thanks Got taking my for it, helpful. very questions everyone.

travel. Scott. Thanks Safe

you. Thank

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

Good merchants' existing to Global-e actually have given or Thanks. desire recessionary growth? for you. to international the back the to all or but given international adopt backdrop, driver you to incremental higher any now that capitalizing seen lower reduce totally Global-e. benefits about driving Thank help merchants cost, still I go get merchants growth, actually I it to primary driving afternoon. traffic new cross-border to on of costs maybe the and wanted new is looking

top both, it. growth great is to line a to profitable see honest. the grow merchants comes have When a first, speak be its a Brent, question. want and That's merchants, and to want Thanks We route we international Nir. expansion for to growth

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have lot for as savings development, of you and of many growth we our logistic box using that it. We which the money Actually, out as our we giving is services do our that of economies save are services, of logistics of the actually merchants. have can have the scale a and scale we adoption well as see of efficiencies

line, So both the discussion points is and and the to the both usually on top we the see with efficiency combined of combination the it new ability combined, expand merchants.

materialize Got it. the Helpful or you're color quick there. kind of has year on optimistic of for months. This And products customer been operations that there one could is it any then here Borderfree. or new follow-up little cross-sell now Are to early opportunities four next actually too a part just discuss?

bought was well base very optimistic buyers, portal. asset with the users, are international generation we're demand where registered rationale as to related actually the demand that Borderfree advancing generation, of we We international back had the transaction of that build on in for the a assets part the as

all I second We utilize times are say advancing more to sometime, in plan group bigger the we half next it of will our XX would than utilize globally is to group it we across do and merchants alone, year. merchants, stand what believe which able than the of of be Borderfree

Thank you. color. Helpful

Brent. Thanks

comments. you. back for our Thank like would floor us Amir to to question-and-answer the session. to turn over closing This I of end brings the

for today. you. thank Thank you joining And us everyone

what and during your and us. support for very for quarter For your was your continued another interest strong questions

future us. look And for there goodbye we exciting you As as much such, our lot take today, future in heard and developments business and again forward a but on our of us from now you seeing of are care! earnings to ahead a bright calls, very

This teleconference. concludes today’s

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