Global-e Online (GLBE) 22 Feb 232022 Q4 Earnings call transcript

Greetings, and welcome to the Global-e Fourth Quarter and Year End 2022 Earnings Conference Call. This call is being simultaneously webcast on the company's website in the Investors section under News and Events.

For opening remarks and introduction, I will now turn the call over to Eric Mannion at Sapphire, Investor Relations. Please go ahead.

Thank you, and good morning. 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 the of begin XX, December business a will and review Amir results year with XXXX. for fourth ended quarter the the review results of first the will ended full fourth year year for quarter quarter for then Ofer XX, company's XXXX, outlook the and XXXX. December followed the financial by the and

questions. will then open We for call the

of forward-looking statements Act Certain information make Private XXE statements of beyond harbor may constitute XXA of statements Reform Act Securities forward-looking Securities uncertainties to are XXXX we meaning provisions subject the the U.S. to of our assumptions, control. Act Litigation Section safe of and are of events. and and Exchange today within which future Section some the XXXX of of the risks, These of relate Securities XXXX, the views and our that current expectations

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

management's only this reflect statements regarding call. events of as speak These expectations date and future the operating and current of performance

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

of are reflected future reasonable, reflected events expectations the that the forward-looking activity, occur. we levels will in statements achieved our performance guarantee cannot circumstances be or and that statements forward-looking and results, believe we will Although, in

obligation or or release are in refer for after of the a dated February to Except events update occurrence as XXXX of publicly we these information, our statements, forward-looking Please statements as made unanticipated information. new which XX, applicable otherwise press the to revise date result any whether events. make no future additional by law, required or reflect to

addition, to isolation, or In presentation comparisons. metrics. in a for prepared operational we information of to or substitute considered discuss non-GAAP non-GAAP are accordance today to these is certain and evaluate as measures The not the be and financial financial with for, period-to-period this We metrics in making decision superior intended presented GAAP. a financial and means information use financial as will

prospects, past useful these that and performance about and management making. operating future for its metrics financial greater information transparency respect used with financial overall results, believe and in measures by operating understanding decision We provide allow key of enhance the to

tables the reconciliation February For measures, more release financial information non-GAAP provided XXXX. please on the in our dated XX, press see

key management number and more performance other we in XXXX. provide XX, release Throughout used often February in our our by competitors in by and of key detail a press indicators discussed dated our this call, used indicators performance industry. These are

the and to CEO. will Co-Founder call now turn I over Amir,

us. for Today's deck out the are towards Erica, e-commerce nothing transforming is Nir, forward about we very global the path what making celebrated the do, XX XX and and decade, exactly cross-border shoppers since an both is XX, exactly merchants doing border welcome, a slides entrepreneurs of to big dream started earnings agnostic. three by myself PowerPoint Fast years you, truly by one making and special on set Yesterday, Thank call everyone. globally, and of February Andrew e-commerce. a leading extra we and world we Shahar

bringing up fantastic we results quarter finish our year-on-year. million, final record quarter GMV, today, and year, to reporting ever to proud $XXX of was and in year-on-year, revenues of XXXX, earnings, strongest forward $XXX close of generating which our to fiscal you report up million XX% Moving a we are a the the extremely to to are XX% in the that

uncertainty economic XXX for and points same last in Both continued the market. in The despite XX.X% levels GMV headwinds top growth the and profit from revenues the impeccable at came stable gross our quarter XX.X%, of strong range, adjusted close elevated throughout business, year. execution and the momentum prevailing forecasted to of of the the macro remained QX the up margin basis in representing

growth fast X.X% sustainable expenses for of side, Adjusted a administrative general the expenses sales only adjusted revenues. one. exert and or quarter operational control, X.X% ensuring strict we of the totaled $X.X On cost continue is and to revenues, $X and were million our marketing also or only million

coupled continued resulted top synergies XX.X% in our of an QX, or and with of to outlook well with the Borderfree, operational or $XX.X $XX.X margin EBITDA cost million Flow last efforts range. over of adjusted year. in This, And same in XX.X% from quarter realize the up the million

XXXX when for and a we Ofer strong, guidance committed our of call growth future. profitable continuing the path in the for later into evident remain be presents we’ll as this to yet whole, As QX

This full increase XXXX, was full XX% the and a year-on-year. $X.XX XXXX. XX% an GMV an billion, the gross from XXX by Annual for the for steep increase reaching year year in profit came adjusted increase at revenue margin of increased Looking year-on-year, of and adjusted even gross XX.X% an points basis XXXX, at $XXX profit million. faster, of of represents XX% from of year, full growing $XXX.X million,

to growth last year was the million range generate representative over million EBITDA and $XX.X the $XX.X for strong adjusted Finally, of profitable flows. our compared with cash outlook, our to top year, free significantly full of ability

in it detail, the took hand to of review business to a more discuss would across over like year. developments spend of some place results last Ofer our minutes few QX to to financial our I noteworthy during I before that Now

entered share worldwide. strategic have direct-to-consumer for in First, continued brands active a territories adding as recently consumer as momentum to new various the we brands only are well gain we in, across new priority the markets strong our continues as in we as

among merchant the HX and Perry, based Ancient Pure such We and others. Greek leading called the UK the ba&sh, apparel footwear first our All fast-growing brand going launches U.S. in Saints, region Katy continued with Hub and Kill of brand are French respectively. singer Cuts luxury fashion and brands, brand expansion ever Dolls the Hair celebrity-led our Examples Sandals, and with live Greek live went APAC Clothing Singapore, the Australia merchant in of

Moynat, Disney live after delayed three EU relationship in happy was a we QX, our that additional least, new to masons went QX the several I'm active quarter, Chaumet from but with We expansion launch already LVMH BVLGARI, of signed not maisons unfortunately and up also report its and Disney. during live Last with with integration. with representing recently went during major

strategic strong, regional a partners. combination driven inbound teams, outbound ecosystem and Our interest bookings A it our to is great pipeline agreement companies. extremely which growing growing of and example was close recently for creates years, collaboration period global long-term global sales ever testament continues of another to notable partnership synergetic DHL, the for by our renewed three both value with be with our a of

initial Nir forged Pitney in Japan summit Tokyo, joint Trans as as rollout newly part is was with an in of of which Bowes, partnership Cosmos, Another with second logistics just week our formed attended Borderfree which partnership acquisition. as in last client well our the

which strategic track. one with also our remains of (ph) is one number the well on partnership Shopify, key And

as work parallel which the for integration live new exclusive new side, turned One, native to On merchants in the end-to-end adding the we sign many build direct and integration on completing Shopify. cross-border to Shopify's e-commerce adding the on Checkout us merchant record on for provider continue and support

front, solution QX Pro in this planned continues, the market, joint year. label white our towards general first U.S., which the with Shopify availability solution for gearing up the On Shopify work of is Markets the

benefit already the Additional SMB from based down which geographies map, Shopify on our are line to allow will U.S. seamless global sales. the of road merchants outside joint based also

continue highly We've the growing promising merchants we insights valuable and among to Markets live granted gain XX results closed Pro. QX meantime, conversion were in international which the In access based from with those to of in terms U.S. to merchants, uplift. early SMB the adoption

On major of capabilities our development we make continue generation enhancing to effort, our corporate offering, good well. and as other that demand progress

mainly integration other in broader necessary order parts offering adaptations stages, to to the borderfree.com, are merchants. platform technological of post-merger the enable a on our list Borderfree and now of making in to advanced the the our this efforts With of concentrated extension

unique In cross-border merchants parallel, demand demand offering both of are services. additional creating and commercial continuing we and work several technological generation at generation aimed suite well-rounded complete a on capabilities, our

for face from distinct evident all our business the the our have we is several with pleased managed great to we XXXX, As extremely obtain made past macroeconomic headwinds. which we of during the fronts, on are year results in advancements

trust and the dedicated spread combined of to efforts X,XXX on XXX platform, around which the people with already are to We XX is the globe. than super so of thanks managed across which do live our of loyalty more main than strong, relentless capable already professionals, more highly globally and locations our team merchants,

XXXX for look our share and members, excited the us for and number this the we everything await any that becoming our is and our I opportunity and to we send take sincere as to gratitude like our clients would deep are both how with team anywhere. global beyond, go-to many merchant, in vision opportunities one e-commerce and of business that supporting place towards long-term you

territories mostly few greenfield we of to the us, already opportunity the with established in see markets, of in, course in to services. and value-added of We over new are intend growing quarters, continue coupled which our both the suite a and ahead to expand we large next

our growth a growth the and strong above this As well few in with just revenues, market minutes' GMV both growth elaborate momentum, guidance in represents annual XX% time, roughly Ofer of will rates e-commerce for on the XXXX expected itself. continued

are started. down So I one more come. to getting opened This now decade exciting is circling exciting We many and just with. really what back decades to

some And hand XXXX. year our deeper into for with the results our additional CFO, full and to that, dive I financial quarterly provide Ofer, regarding to QX for it outlook and of our over color will

thanks us for for Thank call. you, again, Amir, earnings joining everyone, quarterly today and our

QX with full fast results. year We quarter and to we growth our are well very execute all continue cash pleased strong strong and of as another fronts. was generation on QX

to also be discussing certain I'd that again results, addition I'll GAAP results. in non-GAAP to like our out point

earnings release. found non-GAAP our Our along with GAAP can GAAP financial the be reconciliation results, and in between results

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

slowed benefit overall opportunity, from fast the and While to down growth we strong in of e-commerce with position. global large our growing direct-to-consumer XXXX, market continue the e-commerce market coupled

growth our and continued total million. revenue were new service platform generated growth in Throughout higher up with we mix existing our fee have signings in by of revenues NDR rate XX%. $XXX.X services reflected XXXX. million, XX% GMV QX. XX%, the of up to The service revenues of generated our year-over-year. services in merchants rate stay $XX in At launch million, experienced over during of QX, fulfillment In launched have was on and as fulfillment GDR driven we to grow up XXXX, $XX.X the annual revenue Service we same the were XXX% and multi-local revenue and of us, XX% XXXX to to base continued that us time, merchant record our and compared with

revenue of have We momentum U.S. portfolio. Borderfree was U.S. in our outbound outbound driven buyers revenue paced up the and in experience also as XXXX, continued, by flow the to U.S. growth our continued In strong XXX% higher year-over-year. the U.S.

profit continues gross to outpace non-GAAP mentioned, growth. revenue Amir As

margins, gross improve to scale improving continue we our efficiencies. leveraging and As

a non-GAAP the margin higher efforts million, was share XX.X% efficiencies. the gross continued XX.X%. was QX, in representing margin compared the of year, further period XX.X% GAAP year-over-year, of to profit and gross improve representing last leverage $XX.X million, gross $XX.X service In up driven a XX% our to to scale of profit revenues by fee same our

expenses. operational on to Moving

and the or strengthen million continue same of last million stock-based R&D the We compensation or further to XX.X% year. excluding XX.X% offering. QX, was to development revenue compared platform to expense enhancement $X.X our period invest in our $XX.X in in of

a as and in Borderfree. spend The million. partially of expenses Flow in R&D was was Total of consolidation increase driven revenue percentage by the $XX.X QX R&D

also pipeline sales maintaining while efficiencies. We in continue build invest and marketing to to our

amortization amortization intangibles the compared Sales expense, in or $XX.X million. same of period acquisition-related sales $X of year. $X.X X.X% and $XX.X revenue expenses, marketing the for excluding related or and million warrants was was expenses Shopify revenue $X.X last marketing Shopify-related amortization and expense Total compensation stock-based to million quarter was million.

year. revenue stock-based X% expenses, million. administrative period of QX Total related and compared excluding acquisition G&A $X.X in was expenses X.X% was million or related compensation, of or and to contingent spend $X.X General $XX.X same acquisition the last consideration revenue million in

period from in mainly margin million net warrants transaction-related totaled adjusted EBITDA Net $XX.X driven $XX.X in increasing period, year Shopify loss Adjusted million EBITDA XX.X% loss the for the year. XX.X% of the expenses a compared a the amortization was same and margin, or intangibles. $XX.X representing quarter by million, related the to $XX.X ago the last to to million

operating ago, flow driven at cash gears in working generation operating deposits to the cash and including we cash quarter and Switching million EBITDA compared and by an ended year of with adjusted $XX marketable has accelerated the million $XX.X in flow flow balance $XXX and securities. dynamics. equivalents, mainly million cash with to short-term XXXX turning sheet a Cash and growth capital cash statement,

financial to for outlook our and guidance Moving XXXX.

and momentum strength the see, the you As the reflects will business. continued of the guidance

to $XXX growth GMV range midpoint this the represents versus XX.X% the of rate be the At of we're XXXX. expecting million QX For million. $XXX in QX of a to of range, XXXX,

expect million XX.X% At midpoint be of $XXX We QX of of rate QX the versus in growth the XXXX. to represents to range a of revenue range, $XXX this million. the

adjusted of million range $X.X the For a profit million. in $XX.X expecting we're EBITDA, to

midpoint representing at be million expected of at full rate XXXX, to to to growth midpoint the a Revenue billion we of billion, range in the growth anticipate XX% annual $XXX of in the be nearly GMV $X.XX range. range. is the the representing $XXX over range to the XX% For million, of of the $X.XX of year slightly

of $XX to million. EBITDA, $XX we a million expecting profit adjusted are For

we believe to is and positioned that are ahead opportunity conclusion, that capture well it. immense In the we

We merchant value and to scale creating positioning. while We of line strengthen top cash. to to will further growth strong continue drive generating leveraging economies continue our and the strive

with of happy I and Operator? And your any to that, Amir, take questions. are Nir

with Instructions] sir. have ahead. Sachs. much, now first Ladies we a the We from of Nance question-and-answer Goldman very begin [Operator the Please you line go gentlemen, question Thank will and session. Will

Hey, guys. particularly market. around uncertainty I of know guidance. ask Good to wanted morning. the there's on question Nice lot e-commerce I a I mean results. the a there, in

I year degree you in the referenced that e-commerce fairly are XXXX, strong a in as And last about to you out forward it. backdrop. guys ended about XXXX, had talk look that of are you conservatism When you how being year? think NRR could NRRs thinking very XXX% weak guys you despite metric maybe you up go into The into you embedding the next guide. relative

Will. Hi, question. It's for you Ofer. the Thank

this, rate Going into XXXX to over be and will plus. us looking forward, as we and previously mentioned, a strong around bookings we expect And maintain to ability high enable to new XX% pipeline very NDR our our fast. XXXX, GDR with coupled of grow XXX% into

way with to would go. higher to a embedding conservatism And degree It top are best certain fluctuation. degree macro our the adjusted current of into the and of think into a very conservatism EBITDA. is sensitive We this our be we top line environment, line any

And in one from Got that to that and higher that Shopify channels? remain expect U.S. does just level, growth coming the know strong question wondering to a the you do be Borderfree contributing really it. mentioned. you And on I also That component were guys maybe acceleration I'm to you just makes also of it outbound higher kind outbound? a U.S. there's of your -- mentioned that then contributors sense. U.S. Is outbound. Flow if Very growth. helpful.

Nir. Hi, Will. Yes. It's

outbound invest seen last U.S. And continue supports shipping Shopify our over to of unparalleled (ph) this years exclusive MRR in outbound. with we was few the base and client for strong indeed, We the U.S. see accelerated U.S. a to growth since We've of developing as of started partnership growth partner with mentioned, an this, an globally. you outbound Shopify. has our course, as it

this fuel our So to indeed all-in-all, growth. continue

availability go with expect solution into label in also to U.S. the We quite expected later new general year. Shopify on given the forward this the rollout to going SMB continue is of fast, that the of growing white

the you Got taking it. questions. Appreciate

Will. Thanks,

Morgan question We of line go the James the Thank you. next Stanley. Faucette take ahead. from Please with

follow up question Thank Shopify you very there. to the on wanted I much. Great.

controlling it exclusivity think particularly GMV is what should wondering pace Just can how about and It that merchants, Shopify accelerator, looks should where an a be should how we of cadence? and of but organic with those And think the opportunity, is trajectory like big pretty via penetration or onboarding it something any it? you about is of 'XX? the press in merchants more we change in the

James. Hi,

continuous the excited of are we very Shopify. growth yes, in So partnership about potential with

solution Our and lot work process, Shopify of rollout Checkout is Shopify the joint now A Checkout support with under of to the deliver the within of on continue teams checkout especially GMV hand-in-hand to platform. still One. to February as native best-in-class a also work the of One

offering goes In Shopify we our part that growth expect SMB have of ongoing parallel, as into do coming And of availability, Pro. Markets development well. the of we out this as once much more general

using So coming both very solution once Markets growth out large of a integration Pro, use Shopify smaller general we our to merchants native as going that are is availability. that well to goes as it merchants direct will into see

a ahead. So not (ph) fraud of lot

that your EBITDA to in And up wanted the just little being now for conservative Got that a on and way it. It EBITDA sounds bit then more on I you're like follow margin. 'XX. you're comment forecasting

that and perhaps, where have find and First, the you business year? where can pull 'XX? you about that typically thinking is? to that been as And can what -- in leverage the moving talk your we why are about And more typically are how through you levers you importantly, go we able in

It's Thank Ofer. you, James. Yes.

honest, we've EBITDA. be with always adjusted been more to conservative -- are We bit being a

sensitive that have uncertainty, And macro consistent in this fluctuations -- it change. seen to any top especially well, in bottom go As seen more due And line year and we been to continues to much we've to challenging, with any remains as line, it the and the we it's the be macro we honest, XXXX. remains change It environment. fluctuate. haven't to the

been on So more adjusted side. a cautious bit EBITDA we've the

levers a to few pulling, quite continue have pull do have pull We XXXX. to we that will in been we and

leveraging improve gross scale our economies are margin. of We to

expense level side. but OpEx not maneuver do in we have that do the some to room we side, with expect managing there. disciplined And had same we cautious we XXXX, very the and the are So improvement of

So we with upside side the business for mix adjusted change of that to do a positive might -- potential the and bit that coupled creates the EBITDA. on additional

Great. Appreciate Ofer. that

We take of you. Thank of Bank Ikeda America. ahead. the question Koji the line next from Please with go

Amir. taking the Hey, milestone. XX-year for your Hey, Thanks Congrats questions. Ofer. on

a a couple me. label to Shopify within mean, go that products globally be direct really a about? questions perspective? have, about between just kind we talk XP to wanted and of Shopify is thinking XP, little offered listen bit really then those Just kind thinking that from those about and I Market to the for better two fully those is you the And want powered? Markets of there When are understand offerings a I what -- the Pro, else just that back to clarify monetization and nuances should versus from here. within just we to anything those partnership white of

Yeah.

with managers behind specialized I XX years dedicated international are direct I that our first our to Nir. client ability current the enterprise team -- related customer us the start our has integration, to it, larger It complements to you that is to brands. that an running So on It's question. success have services It customize. of XP, would trained say, been support with it growth. our last for Related will offerings Thank question. the this for has

as elements also support as not the we is the merchant of by an customize the with to currencies, an that well It client requirements. basic solution, to XP all actually attractive local us. duty sold has The services supporting all specific by according this functionalities solution Shopify out directly being box capabilities solution record of For of offering. shipping guarantee the is on

it needs of is not is the actual driven Shopify and for the customized the it by specific client selling However, itself. of

be main would the differences. this So

terms In on have question, of that long both do believe second Shopify. runway I we products the a within

give general smaller deployed I to on the are is a and complete will And So use. on once the alternative not one once as SMB fall to One with do solution great a runway clients side well. builds on well, additionally that XP, merchants into into as the XP a go that be availability to today utilize we with outreach have we think solution, solution there Checkout to we an able those better in Shopify

ahead. So runway quite a of lot

And sorry missed if I any.

make Yeah. on Koji, I'll sure well, just part as complete just there's confusion. no that second maybe, to the

on by non-merchant that Pro a technology Commerce. record is the they Global-e scenes themselves. a that which solution that Shopify offering on merchant So a is not Global-e, control Flow that set Hopefully, Shopify we their Shopify It's end-to-end Markets solution, setup like if to is a only we separate acquired it's of of for not own, acquired, and solution. Markets but sense. of powered Markets full essentially it's and is capabilities Shopify makes But can Pro. Shopify manage, record the provides merchants that's solution when a the that that behind based by have unrelated

think it, did one year? Thanks as got Borderfree the questions. it, thinking That's Thanks, this GMV Borderfree just expected And contributor share Thank here, is I considered come to No, And might have you. the talked growth guys. super about how it. for missed follow-up it could you about for if really in to but on clear. now, anything as you a apologies organic but year? taking

Yeah.

Borderfree as came So in expected.

is very Borderfree. provided to guidance So the we regarding it close

grow less growth our general rate. portfolio Borderfree a than the to Going forward, we expect bit

the to that. we the we platform for So said a do that, merchants due do And once bit. Global-e we a gradually. to into integrating see Borderfree Having Borderfree share decrease upside expect in we uplift are potential sales

you. Thank

Samana from Thank go the ahead. you. take We Samad Please line the of Jefferies. question with next

taking my questions. for Thanks morning. Good Hey.

of What customer help sounds were sign-ups And merchant are customer you maybe Maybe have new can is behavior, terms what go-live goes? of sales what So cycles the far new terms healthy. as behavior seeing follow-up still just I us in pipeline, you're very like, a then like like? and looking well. new looking in as timing it understand, as first,

we XXXX witnessed Hi, that seen, have is the new was in we what merchants. in Samad. It's had actually client Nir. signing remains have Good in far morning. strong. bookings year XXXX by best we new Basically, general

but we've trajectory within We APAC. Japan sales continue strong And here, to a growth coming to showed as noting it's of see started our in Australia had as well incumbent in pipeline in markets, market, see QX. nice into especially a chunk very expansion and a worth our significant already

road So are optimistic on the we quite forward.

seen, be that pipeline We any to delay through in rare the be but feeling would case odd general one. months conditions. due sign shift uncertainty or we the haven't to clients be from to macro market. performance, mentioned to that this will related major to ability the that a the the in not a our of move month or seen for due We've couple they the a the the It honest, decision client get

So new bookings versus record positive and in we grow be XXXX. a will XXXX, to continue we are able overall, year we had the in in what that,

existing the XXX% pieces it? about think wanted trying other merchants same are the when the source outlook what thing much Just what different different I portfolio as for should we And like How to is to we number, in Great. the them And within maybe think I at underneath expanding maybe NRR, there. that geographies? drivers about of you guidance, their growth think forward same-store embedded well? as expanding if strength the look at into the are of versus what's sales about unpack understand, NRR then are it how

Sure, Samad.

and in would As existing the existing of within of mentioned you That the made out majority vast XXX%, a we've be is the seen. growth the mentioned that vast growing the majority merchants territories. Ofer while,

we them expand, that new more is us. or as out call which into what served opening However, are that there that and and actually were moved markets coming its is merchants well being of Either Global-e. is internally existing land markets markets are that that growth to are with

earlier recently. mentioned lanes just for Amir call, opened As in on Disney we Europe the

existing in So merchants of part majority would more the see our giving be growth. the markets. do But the large merchants lanes territories of in existing different still this we us still is and vast growth

congrats strong you results. on the Thank Great. and

Thanks, Samad.

the from Scott Thank the with you. Needham. line We Please take of next question Berg ahead. go

Hi, and Congrats couple me. the questions on everyone. for a of quarter strong

for numbers? fiscal kind GMV the assumptions or really is First or a partial of -- 'XX, all, Shopify full relationship that to offer to year, on was an don't with there of still guidance your and But answer this was kind I and given any relationship think earlier of how on year it your are for guidance be your there. within upside question that side revenue we should the thinking about

Yeah.

within In in So and working we mix forecasted to the also see we have growth XXXX, based is indeed, a bookings, to continue grow. it significantly. continued we Shopify share We our look new in is we Shopify merchants Shopify when earlier, gradual And see the of pace do business. partnership the the on as as at grown new right mentioned overall mix the of bookings.

So overall, revenue within based even we expect do see time of Shopify higher over share mix. an our to on

well. forward a So as overall, positive going outlook quite

in spend follow-up Great. some the some services to Helpful. to and goods like from then PayPal from consumer discretionary commentary companies from perspective, And a shift spend and about Shop person. from heard we've

more in your part some you're is Thank or numbers, in here. about building of behavior? on of you guidance look maybe think just macro exceptional growth the it what the spending pretty But impact is that Your as general you. macro slowdown weakness in consumer guidance, your

than And reflected Yes, guidance, And is in slowdown numbers XXXX. on top that. reason embed as spend. have companies. different that Hi. conservative less our have Yes. this the some well we is we certainly in did It's -- in in market conservatism are seen we the of some the we discretionary Ofer. growing that And of and taken

peers and is we than e-commerce continue cross-border direct-to-consumer our the However, opportunity market our is grow and to stronger. and particularly for the competitive position immense, faster much as getting only

the continue do to peers we and grow the So faster than market. anticipate fast and and

I Great. questions. all have. That’s Thank taking you for the

Thank with you. Brent go Piper ahead. Please of line Sandler. question from the next We take our Bracelin

looks Thank go compare, I wondering guide. your out visibility asked I maybe full because year had versus going the back estimate growth, wanted you That's faster like going year. organic growth was the here. GM you GMV the guy into and I Shopify. the about year morning, if and back you to for the X visibility that than just into if good this I last times here, could it's to XX% contrast

So the us through to get be contrast that you you last might this what love a know have visibility versus visibility year? optimism there's compare, going and is here have but this products, year more compare, it the I contrast visibility going walk to relative the into into the and Thanks. year? driving answer,

Yes.

visibility very We merchants. guidance forecast think most a for of good be honest, or it's optimistic. existing So you, thank the is question. based To as do don't the have the Brent pretty on we

to growing, our than continue rate general than I of have we most As lower market and last the had it grow will growth been faster year. reflects And and we said, peers. we

So have visibility. good we do

we unfortunately, we it. Assuming solid and like can guidance that think we had Ukraine execute a very in XXXX that no it's worse break upon will in

from, follow-up to couple the across Thanks. you two last expect And or of I U.S. you geo driver years I last leader be going ago, the growth exiting the of just mix, been the there. growth? XXXX think, Do mix going the this a it's, expect think XX% to of then relative continue big here, my balanced to on over growth outbound into here color has XXXX. geo’s U.S. Helpful XX% do years, more

Yes.

So and a we just do a going grew in main market expect momentum. we that there few we is penetrated and reasons we that One a the great -- more are balanced market, had few ago, U.S. because it's forward the that the fast growth huge reasons years

outbound. they other contributed a have that The and well towards a bias is one that U.S. as Borderfree as to Flow

potential expect in grow. to massive and the see we expect do we it U.S., continue So to we

actually lot the hard However, infrastructure, but building pushing only see in fruit we the a Europe. are to and building, not APAC, starting in investing in

grow we the but alongside expect decrease Europe as share our APAC it market, to forward, continue UK expect to as and going fast U.S. to So we the in well first do was

to Thank hear. you. Great

Thanks, Brent.

next you. Brian line take of Thank our We question with Please Raymond from ahead. James. the go Peterson

for and here. questions the congrats very taking Thanks strong decade quarter gentlemen. on a and Hi,

So far. just question as level higher maybe a

the last pipeline and at and I'd has all of over last love Adidas XX brands I that looked mentioned kind maybe to or composition brands larger the merchants, over has Disney we You the talking to to a and months to love changed you're of of these smaller like months opportunity XX to bigger? know I Shopify. have the months. with just say months understand the how lot merchants ones XX potential are understand that XX

Hi, Josh Thanks (ph). you. Nir. It's

direct-to-consumer likes in-house, e-commerce say, Adidas large that brands us the partner on other with would have side for driven, Disney, doing the the support to opt them brands I to expansion global global seen and in and very journey. many this We of much more one basically larger

to of parallel very are in do see with us Shopify, many that fast, our growing However, as part coming of Shopify. exclusivity joining out direct-to-consumer brands it, we

slight do the So the increase average overall, of we client. in see a size

complete a change. not it's However,

model kind we world's DXC think well growth as each would The within, I moving as of towards other. with that balancing midsized some are the of us. clients brands see say, the largest I it's

maybe That's How a and synergies about coming. follow-up, do of of Shopify we that a lot think And Borderfree, great potentially the ramp perspective. Flow there's or XXXX, and are know and with a in basis in impact level to bigger love beyond? maybe confidence qualitative those understand your having those XXXX in are I'd guys. a on those Thanks, even I synergies.

So going into guidance the to not we down breaking different segments. XXXX, are

months, expect we we say HX and expect -- XXXX. in the next SMB volumes we expect that to which get hope the However, that of significant White few launched solution, see be more and we we SMB do solution, in can and Shopify will the start to label

gradually into mentioned, the Borderfree Borderfree, the Regarding take we It as some I integrating will Global-e are time. merchants platform.

merchants. in see we potential for that, do some do once sales we However, uplift those

will growth hopefully, gradual quite optimistic. It Borderfree, solution. faster and in So we be the a with SMB growth are

Great. Thank you.

from with next line go Beck ahead. the We the you. question Josh take Thank of KeyBanc. Please

a of much environment question. bit for demand taking Yes. Also little a Thanks follow-up. the so

in the 'XX, to half the inbound talk in XX% of you're believe Just wanted seeing of first about just shy that demand Europe. I it mix. was of the

how from shape expected that you're year, there a Just Europe trends is be curious given contemplating kind and of likes Salesforce little just to weaker how this are the bit up? PayPal the just some commentary and expected to of of

Josh. Yes,

bit So, is in into been that yes, XXXX, has we well. throughout as expect XXXX -- demand continue to and weaker a Europe

However, see any last the we in didn't few decrease months.

the have do as we So uncertainty. the few more in guidance we embedded macro we And stabilized last or in also -- less our months. it's said,

need goes. been has we than and see to lower wait But bit direction which it it's So a previously. yes, it

bit a just remember, through Obviously, XX-month have acquisition. line. I period margins. now, helpful. But good looking at six gross still that the basis margin month I be a Borderfree post quite we're for From the what to Very follow-up expansion of believe. of was Okay. And then about a supposed year-over-year you on a on half governor gross to

contemplating the So as should into gross margin 'XX, we how look we be trends?

and been we from gross previous able Yes, is our a to margin. weighing this a Borderfree XXXX, on is improve trend years. bit a margins weighing gross still -- have continued bit in

the improve Borderfree been to economics. able have We

not still it's Flow. level However, of same the and Global-e at

I previously, continue can Going think that we is we forward, And said we and potential that. improve think there as upside. a

in previous improvement years. we same of expect seen that the However, don't we've pace

Ofer Team. Thanks helpful. and Super

our Matt ahead. line final Please question with go from of the Code Autonomous We take Research.

question. taking Hey. the Good guys. morning, for Thanks

well expectations It one had the up your for still guidance. midpoint, but looks like on below next year-over-year EBITDA Just year. at margin slightly it's your long-term

of So next I margin years? think couple could was you're in how currently, the kind over a opine trajectory on just what the we about and investing like of you hoping kind should like of

Matt. Yes,

We that XX% adjusted we for believe thank track margin. of EBITDA on remain question. the you So towards our long-term target

profile mentioned, which is despite in investment side reaching acquisitions XXXX, to continued as And a also mainly in SMB Our investment as weighing assumes both few XXXX, expect Global-e. solution and product, we and as into the on and of terms launch are I the well hoped our peak in you product on is the in it Borderfree label months. improved weighing, as of white group's in as integration solution, in next in enterprise the still the and the the R&D in the that, the guidance mentioned, on slightly margins this

helping Really to I And last but your Thank one, if of like it, terms quarter, like, our constant detail this of organic level kind of of XXXX. then firm the helpful. any you. just of, just profile revenue could apologies currency say, and missed get us terms expectations provide you growth in in for

details be what Just terms in of contribution would or like inorganic FX you're assuming any helpful. for

growth We this had sales, that organic the in rates we think also geographies is positive wasn't of as And to a plus. very going the effect pace expect of to new currency XXX reflects QX, be significant. existing but that have built NDR slight of same-store it forward, at but I merchants. from or said, expansion out And we we

you. Thank

you. Thank

now floor question-and-answer the Over closing and the reached turn back have you, gentlemen. I'd to over And Amir for the end session, We ladies comments. to Schlachet sir. like of to

thank your continued your support. and joining for you, and today, everyone, for us Thanks, questions, and your interest

the take are could on lie not be second tremendous embark XXXX our ours opportunities ahead we to of which and beyond. we in us, excited As decade, that more and with

care. we forward earnings to much all call. Until you our take and then, As very look again seeing such, on future goodbye

concludes you. Thank this today's gentlemen, and Ladies teleconference.

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