Global-e Online (GLBE) 15 Nov 232023 Q3 Earnings call transcript

Welcome to the Global-e's Third Quarter 2023 Earnings Call. This call is being simultaneously webcast on the company's website in the Investors section under News and Events.

For opening remarks and introductions, I will now turn the call over to Erica 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 business a will of review Amir results with for third quarter XXXX. the results of the 'XX, the XXXX. for Ofer outlook third quarter fourth by the financial then quarter for will and company's the review of followed full year

the then open call will for We questions.

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

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

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

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

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

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

growth the on of delivered and to strong XX% a in Thank We EBITDA adjusted back growth you, of profitability improved and strict QX call. GMV everyone, quarter Erica, and in welcome, earnings cost XX% third margins our control. with

revenue the forecast. quarter guidance and our to leads revenues advances downward of for strategic and major reasons, all along slight us the also slightly quarter, our range, continued macro-driven of combination vectors short of Despite But we made ]. fell revision [ growth our for path time, during durable the the a towards the adjusted strong our addition, In our sustaining year. annual long-term durability a above which GMV we continue EBITDA reaching GMV EBITDA testament EBITDA our adjusted for model growth. forecast high in on to adjusted while margin our as our guidance the and at and target A are range, same raising also strength the came of we business and

In on deeper of Before who various Hamas we terrorists hearted October unimaginably dive X. have the on like us barbaric the through results, out place few attacks took to first civilians you in of personal channels into the I the past my reached you to thank to whole the would weeks. wake by Israeli that express over many

warming hot are light times. generosity of during raise and these support dark compassion, and give us Your

took The our military actions atrocities their subsequent well-being safety many a families. been have since impacted of of our October place, inevitable impacted. have to attack Ever we extend support team the the taken ensure of and X conflict to both that families and have communities the of lot members broad and Israeli the to

of our usual. duty, have colleagues been impact reserve as our some called has no while active for perspective, activities, been our on ongoing continues there operations business operate to Israeli a and From business

and the cloud-based, business GMV. our join I'm as peaceful all and starting all for case, wishing that with you as natively in resilience our more certain spread any incredible name expect outlook have better than global is more even XX across we in business Global-e we diverse no global business is locations around impact on continues. in of soon. Switching and our the team, in come workforce the of me world and will located suggests, Israel. only infrastructure plans Through a you half times world to continuity and teams As In off our know, quarterly about fact the truly company the place the results organization, our with to working

in luxury hand, the our the up and September any The and in hand, a new the consumer during other in same-store growth, overall macroeconomic sales softening fashion live. headwinds seen encounter QX of we impacted reversing cylinders one merchants the on negatively main all the But and slowdown have came which On segment. we to demand which continued as went business pace in October, of without as well fire impact in trend weaker form European the markets stronger-than-expected during did QX signed part on QX. demand during

take GMV amounted Total guidance, high XX% the to million, for growth XX% the was million, our up the quarter the lower totaling just by mentioned. revenues in by year-on-year. GMV headwinds our rate a rate a quarter total, of further came In $XXX.X Revenue Apart shortfall below for I pace caused the $XXX year-on-year. representing from blended quarter. also in growth macroeconomic affected

consumer guidance to towards like have over while late trading that possible would fiscal mention signs I are in provide sales still XXXX. Starting spending and for bouncing past year few positive with seen continue, season concrete I peak weeks, recovery we back. figures not the October to a the same-store a Before position indicating in we

in this rate We also are half overall relatively the seeing will believe the have second year. of take we stable reason remain into next year to that

macro-related going continued So to forced and enable early positive many growth indications to will believe forward around to together past accelerate into while spending and new growth our strength the short with our annual of us our revise fall XXXX. over bookings few slightly have the engines in guidance rates downwards. the our the weeks, GMV uncertainty in these that levels with nevertheless QX, consumer prevailing combined We

Moving forward, further story down the P&L.

to cost favorable QX tight to part in gross at the quarter beating mix the coming of range profitable for In XX.X% efficiencies XXXX, the with quarter growth growth. well same in $XX.X our and of and to in expand, XX.X% to margin Our top quarter and the driven conjunction adjusted in This, efforts adjusted generate non-GAAP sustainably thanks continued continued by compared continued durable, our as its representing in efficiency versus and a revenue to staggering million, yielded our the control growing in the to of XX.X% year-on-year, best-in-class EBITDA margin dollar last model operational profitability business terms, economies fast-paced of drive optimizations of the an year. our as XX% strength forecasted and scale. and XX.X% EBITDA amounted ability

make XXXX, we large our towards expect provides adjusted to year As will our full detailed see long-term when stride guidance, target. you Ofer a EBITDA in profitability achieving

year, in XXXX. from span forecasted XX% the XXXX over the to we of for moved in As XX.X%

opportunity market abilities of position our durable global firmly profitable and the our teams, believe trajectory execution on the we leadership clear growth market top-notch us, in immense into and well of the Given future. our this ability ahead to continue

few metrics, a the Beyond give financial strategic I would initiatives. like updates on also and main poster to you our

luxury many many brand, new different onboard mentioned Balzac Ted during brand, brands and we well in launched U.K. racing Moi as the iconic across Polin all eco-friendly and cooperation verticals. iconic Paul French Lacoste Baker, clothing brand, the Paris, more. In with Depancel, its during markets icon, as watches & we with brand, the third new to Shark QX, UNDWX the Italian fashion quarter, et I including merchants brand, fashion French As Europe, the Spanish continued the earlier, and with many

Eileen went Jeans. In and ,Rothy's, the footwear as well Tory U.S., fashion leading and brand, the known bags Denim the as Fashion the American Guess, the the Magic, the with store Frank women-led online others watches among AG women-owned Moon Burch, live house, jewelry sustainable we brand, brand California of and brand

continued to our audio expansion iconic also consumer the brand, as the Bang Olufsen. such of We launch with electronics, verticals recent additional &

our exciting Kong-based brand Japan we advances presence diary only [indiscernible], quarter, as Hello fashion Fast [indiscernible] [indiscernible] and so well. Further and expansion this the brand, brand, sneaker well, in plus-size famous fast [indiscernible], many into In and this our clothing others. we growth of as ground, stationery also Taking emerging brand, called brand, terms Emervel [indiscernible]. as brand, as strengthen lingered including Swimwear, brands Amilly, as launched and well Shape, the ] we Australia, the innovative brand, organic of one with In including Kotomi the launches clothing launched newborn [ Moly. new with to Fashion brands additional in fashion new APAC, with the kids Korean fashion popular region. in Hong region, an continue some high-end many and world saw QX

expand we existing live also with activity we X jewelry LVMH with our During [indiscernible] the brand the Group, masons brand merchant as new quarter, went [indiscernible]. the groups fashion continued from and to

select U.K. the These of We which live are [indiscernible], went is brand, part the luxury [indiscernible] few with also just a examples. group.

in beginning firmly year a headed with just once the cross-border are terms massive record believe pipeline opportunity across different a of we of geographies, As again that at growing and e-commerce. opportunities the and dozens growing in capturing are bookings of verticals of new new we towards we and

of elements our additional strategic road to map. on Moving

have We partnership across expand Shoppifly domains. with continued strong all to our

has agreement merchants third-party for been migration completion native of nearing are our we of into renewed the and Shopify partnership On the with new year, side, solution. based the our Shopify another all

state-of-the-art new and in Shopify's extend into complete integration our refi this with of of stability collaboration phase the engineering first feature checkout expect the teams end capability the launched exciting also new to XXXX. of have We close by rollout

it Shopify bigger launch, news further Markets the such, for by international Markets countless Shopify shipping for work a rapidly to quarter come. experience highly community, for available localized who innovative to consumers capabilities merchants Shopify U.S. But need first-party U.S. which to many side will or is availability well offering a comprehensive international Pro together has addressing primary was set expect closely without came This into the outside and years year. on complexities based the merchants. driver reach enhance the merchants believe been markets. general this we clear successfully the additional received and be is the merchants and in solution compliance, international September. grow continue as a with merchant these and to enable taxes fraud, want teams duties their payment markets consumer launched markets merchants so international all it continue merchants Besides to to Pro, of to to create worldwide. And growing for over our enables supporting across the worrying the next about centric teams on. This of expand we and in to Shopify's

payment prospect to gateway, and A invest the platform in our for stack, in In the will with of checkout. notable which our of new technology our examples both we the merchants features overall and to few would extending payment building allow relevant methods interoperability our the merchants. be cryptocurrencies terms crypto.com, always, benefit functionality as our accept new integration and existing as continue of

card payment notable which outcome of inventory in newly the recently our optimize platforms. via merchants long-term would integrations in a basket, plug-in addressable hubs their of process from these different improved now footprint. all support unified merchant to for based well [indiscernible] Other countries expand global of as on into to to via light are which part be support In easy-to-use to the ongoing pilot parallel, live integration for contain shopping that on preorders examples delivery continue onboarded enabling market first opportunities The others, pursue. orders, effort weeks-based a of merchants, products experience this global as we our is In are additional our added as to our many And by shipped located product capability simple ensuring latest this exciting developments platform. platform, means is developed popular we Wix our and testing, multiple eager

evident Ofer that, to as globe. so our teams to quarterly in I doing our take now in more continue and both present our hand expand sustainable as remain as to well and is generation our consistent committed over with as around the will EBITDA commercial through you durable We we and growth. And technological the it a teams depth from But always, updated guidance. cash to hyper adjusted figures way,

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

First, innocent and support on we attack vis-a-vis expressed October emphasis thank moderate also civilians on you like experienced X. would many I who have of to the

came for our consumer model softer to in QX while As in results by our demand results, its our September, driven range, below guidance business line robustness. our top mainly demonstrate slightly continues

that in we have improvement in continued addition and to the our the we've consumer supported coming line will of parallel, business Shopify pro certain As Amir again witnessed QX, in range. adjusted improvement EBITDA coming the witnessed rapid October. by guidance results, the expansion of in bottom continued results, quarters, like believe I'd our a point stated, of the since In the non-GAAP that enterprise also sentiment results. Markets we late with GAAP be above growth to growth globally in I'll discussing accelerate, out

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

in with growth of growth pace softness The due same-store rapid increase on our slightly of said, European than September guidance million in generated GMV As in decrease a our sales range, luxury to by and $XXX year-over-year. in an in starting driven QX early consumer GMV goods our demand. platform, weakness was continued XX% lower demand

fulfillment million, $XX.X million. we generated QX, were million, year-over-year. were XX% year-over-year total services XX% up of revenue In revenues revenues up $XXX.X up $XX.X XX% Service to and fee

fulfillment to fulfillment the shipping, some continued While service take by decrease, which inherently our multi-local take of rate mainly shipping. continued rate services increased lower the driven compared well to growth rate compared to QX as as Express take standard shift drives towards

we continues mentioned, in was the non-GAAP will by XX.X% growth which expansion of of improved business same-store since and gross to continued coming the gross profit million, a to improvement accelerate, a of $XX.X I representing consumer late the As XX.X%. driven growth outpace quarters, year-over-year, Pro, in we enterprise Shopify gross improved profit the gross globally last the growth in of compared margin believe witnessed that service markets sentiment have rapid $XX.X resulted period QX, Non-GAAP was sales. the revenue share the by and GAAP fees XX% of XX.X% representing million, year. of driven same higher profit efficiencies. In margin up October,

Moving operational expenses. on to

label of U.S. million. period to we general in We September. Total $XX.X compared solution, excluding product Shopify was was or compensation, million R&D as million QX, in white last to in markets year. spend R&D or into QX effort QX, XX.X% availability pro same in and in $XX.X expense the the $XX.X around stock-based capabilities. invest XX.X% In our the strengthened services continue went platform the which of revenue

marketing expense, in for expand and compared to efficiencies. revenue of related and Shopify invest revenue while Total expense same and pipeline last $XX.X maintaining sales or and million. was of stock-based We Shopify-related marketing also X.X% in year. million sales period continue $XX.X marketing was amortization to expenses X.X% expenses, amortization $XX.X was million. million warrant our $X excluding intangibles support compensation Sales quarter amortization acquisition-related the the or to and

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

expenses, operational expenses acquisition-related excluding long-term amortization year, Shopify-related at expenses stock-based of versus stood contingent compensation, XX% overall XX% same and our in Our quarter last acquisition-related towards consideration efficiency target the moving XX%.

our in period top EBITDA period. of to balance $XX.X flow warrants and $XX.X business its model loss driven to EBITDA to demonstrate line same in our and $XX Although statement. $XX.X Adjusted million turning the guidance margin ended resilience. million range, cash securities. margin gears Net under XXXX expenses Net million are loss compared cash million the mainly We've slightly sheet net loss XX.X% the our last the to to by was $XX.X representing cash a growing million, XX% year including or totaled compared XX.X% results deposits transaction-related a year-over-year adjusted and year. the equivalents, in intangibles. Switching with is related Shopify ago and marketable QX short-term the amortization continues and to

million operating strength flow business million cash into Our used generation to cash model year translate ago. was a generating to continues by compared activities $X.X $XX.X as

XXXX our outlook guidance and Moving on full updated financial QX and XXXX for year to our guidance.

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

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

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

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

For growth the $XX.X translate rate of flow million, of guidance positive adjusted of are EBITDA, $XX.X turn strong generation. XX% at expecting million we which to a year into the in and raising hyper a profit cash range, will representing a of year-on-year our midpoint

cash. improving happy to growth tap of your In cross-border conclusion, direct-to-consumer and of Operator? our I aim that, to we and massive with efficiencies our generating any the potential Amir offering continue and while are enhance take into opportunity. questions. We continue to the rapid And

[Operator from Instructions] with Our Morgan first question as Stanley. comes James

James. It's Michael for on [indiscernible]

Given Shopify's that's commentary and from your unpack perspective could informing if what a in outlook. same-store XQ and October the and commentary in on of interested recovery how be Pro, sales I'd perhaps the magnitude Markets saw late quarter you the you you saw

Thank question. you for the

this As also call. is board. saw we consumer luxury weakness same-store in that during also growth we and addition a from -- towards for using shift lower that in came the are take the merchants mentioned, that, is the our across was which This fulfillment much to a multi-local also in has inherently is mix our pretty in segment, rate. sentiment offering, Europe own the What mainly sales was

main figure. kind So the factors that these of were impacted that

see and we of we since improvement with towards we look also, reversal late mentioned signs QX and an did in As onwards, trends if forward these some sales. same-store positive October,

confidence gives the us the markets dynamics Shopify combined and strong growth the going the forward. believe enterprise will with we in pipeline that accelerate. quarters, growth do And Pro that So in coming in our

mix Got maybe the medium thing this of level near- it. thinking thinking grows ramp reasonable given more by about some the revenue it medium-term new the just caused to is the term? market's how so, NDR XX% your for over if persistence you retention. are And How dollar to that is, assume of GMV will net as outlook And I'm the degradation? Pro That's much? through The on helpful. merchant

into to Looking XXXX. this year

most is in did October, part lower and we reflected said, we and that of softness in first the in same-store As September then sales. or see some

working expect forward, XXXX. we we previously we do be annual to And our communicated. in budget honest, XXX looking to we XXXX, on still However, be to that for close as think our currently are NDR

already will the our with this, our growth do to as well. coming XXX% along I our And quarters. we gives enterprise say the strong flow accelerate However, pipeline close in can that believe growth and that in year said, us our of we NDR remain markets ability confidence next to as

with from question Our comes Jefferies. next Samad Samana

Pro. GMV away, in few want just Great. the it, terms up you've on of And the And maybe Maybe assuming first, quarter. And maybe about don't early how of about but you Markets seen one Shopify the Can go you're understand September. maybe Shopify momentum the initial live in to help follow-up. kind I think fourth what thinking get I looks understanding customers? in in, what maybe like in month-over-month what trends think you're has ramp following just first mentioned us GMV thousands the to since just know kind we carried quarters, I and momentum let's and call of have the

Thank that. for you

achieved a and U.S. the our [indiscernible] now internationally years Shopify of Amir As mentioned X available who onboarded, and Markets both way. of mentioned, in to in then, merchants team are sell as Shopify pro seamless milestone the for merchants and for call, development generally have in thousands the after simple we QX is able Since almost significant now team on a

late generally Markets very, available very the is limited. in Pro became contribution this quarter, Given QX the fact that actually only

But However, and year it's years. early be for still expect our our next reflected the guidance do we and significant coming will contribution in to it growth days, XXXX.

us like -- about way should there maybe the size is that, something quantify think there. how of I just just the economic pilot with we very any there maybe first Great. the think the a obviously is? [ we lot a as e-commerce platform And of maybe help rent know Wix And ] what frame to curious can you about versus But at stores. I'm it's should large maybe customer. that follow-up, Shopify, a the another opportunity. relationship how just is then

team. in first to did we mentioned, did, a come but is it, of early integration which order out to partnership hybrid expectation very on Wix it as as commercial and partnership most or in you platforms client, such we [indiscernible] days Wix a quite others what very We with work. robust pilot with contribute about Relationship is Salesforce launched the in build expect to towards very, growth uplift the speak of do The in to have close Then with Sure. for method XXXX. we

I effect we us it expect think we expect it some the don't incremental at as market expect we pro be Shopify growth. would from to give same but the same do scale, to

& Our next Scott question Needham comes from with Berg Company.

echo of best certainly. I with situation questions and luck certainly challenging the of sentiments a guess here. couple the I there

How the start here year-to-date in the business. quarter expectations? off wins new net of logo should think new bookings, your and with new Let's about we kind just net maybe customer versus

a see in record remain for we a numbers our will year XXXX on bookings, As achieve us. make new funnel, at we target for which our and our track to annual

our changes sales notable onwards. it itself the we're any to optimistic time either funnel quite the clients onboard seen the so towards of haven't contribution or to We cycle sell XXXX in enterprise takes on the

which In Pro. terms is Shopify is of which Markets additional factor,

and activated was we've then, started in an in us it U.S. the really onwards. As nice September. with do to to adoption that date into availability general see actually of accept the additional solution, give acceleration into thousands stated, merchants Since it we XXXX to launched

strong know ability same-store or the season. implemented September -- I season, of sure sure even holiday strong your maybe negatively a into October. before holiday selling customers small or these positively your make then environment sales does And kind your of the and implementation sample going desires it's in modestly But the make customers' to solutions impact it. changing size Got Helpful.

you we as during enjoy to typically, extra see -- year. push mentioned, Then same period. the localization This prepeak the this do goes we clients peak is from the provide early November, for and October, this go services Sure. live late actually to

to would launches dozens freeze last launched as the us peak prior that do period us as and go have We into expect the for of and the more launching trading. few imposed of clients days quiet go that well focus peak X with coat the in merchants in We in seen maybe the trading. RECONNECT the it of days terms then would into actually

we've are the very change launch happy and with haven't more by seen sales and is where sales to consumer seen changes as as sentiment. dynamic, launches, is though. However, within cycle Offer the and the . -- about any spoke onboarding we with actually Amir multi-year same-store we well much which we affected The

Our Goldman Toefer next question comes from ] Alex with Sachs. [

maybe fulfillment This is couple terms take just shift standard mix of from it's talk of of sort know versus but the profile, if cross-border on We and Will. this lower has the towards last adopted. of typical shipping -- the what were rate on Pro Congrats quarter. multi-local the the Markets popular could Express. you you're on about can early, color adoption in we launch how much verticals you're Alex the some seeing for wondering the getting And mix in merchant then GMV resulted follow-up, still quarters from you my like share of size, seeing

question first Pro. the take Markets Shopify I'll related Nir. it's Alex, to

it's size on early see as of expected. average the early be you see still would adoption solution. the days enterprise than As mentioned, adoptions for on solution But our we we what smaller the in we

in So onboard what onboard to a period we platform. more than can enterprise certain many clients time it's much easier on

smaller However, they scale. in much are

I'll the part your So second of Ofer. to it refer question,

Nir. you, Thank

us. Actually, multi-local growing of to lot share from of with method this in And and that . from you time prefers work a mentioned. onboarded standard, can time, the on based is is shift have higher fulfillment do of from is rate, are it remaining the to we that certain to launch adoption. And merchants and from So impact take a merchant the a they they are already terms year an inventories utilize. have as Express additional large that global from because they ago

Our next question ] with comes Kunal Madhukar UBS. from [

and in how definitely and after thoughts have a in you tragedy. the I you guys are understand One, the Europe luxury, that to then consumers. the war to zone, . exposure help go then European out you of an us follow-up can on have Our luxury big in to a And especially sitting business

Basically, you question. during we adopted they Ofer. closed, stores the once for have and are direct-to-consumer very physical we Covid It's fast. grew grew that with luxury understood Thank very brands fast that

As is XX% few wide you our it's currently, did We this additional X of have know, we LVMH launch approximately Luxury GMV. but brands. quarter. definition, quite a

approximately inbound Regarding is Europe of inbound it's sales. XX% a Europe, our large and market,

look Pro rate there we is at as expansion them some you Markets services customers, then start an And if Shopify opportunity marketing offering your behalf with spread? of for efforts on marketing take

Yes.

just between I'll not Markets the offer Shopify we to clarify platform. the Shopify not merchants the Pro, our localization. the in the difference marketing On service there onboarding from to just no merchants side, Markets is order Global-e business. or and enterprise use selling efforts on So side, Pro and on the

is the [ simulation the acquisition started clients early marketing It platform, -- into To service. We're launch would Global the with still to of clients, course, capabilities part the the Borderfree on the indeed the marketing globally, those side. ] On company. still them, board offer I we is the enterprise bring on in investment is which in days. undergoing of marketing of the to say and of

and adoption nice at a early see we already the However, growth stage.

to additional back marketing generation that are did merchants our into brand on we demand service launch managed did our increase large worldwide. of couple capabilities, merchants the services awareness using we So and XX of a

a give quarters we we I adoption. the to in expect time, the Over early time, do innings of take . on do say, rate. extra the take it will expect So would over as us we past, realize that few that. some to but it guided we see,

comes Piper Our Brent Sandler. next from Bracelin question with

the would additional luxury by you the luxury family of around Was and a extend same-store really you Israel it to I into best sales for sales? magnitude support in and color Amir, you, with it could your of the back space. helpful. those brands across and same-store merchants? Was Any How tragedy majority some here. of the luxury to slowdown your and us also wishes saw double-click in there slowdown was be I'll give sales broad-based colleagues handful? impacted Maybe, the go same-store wanted

brand, individual words. thank and I see Obviously, broad I the say, that luxury there a would did brands to around our is terms in Brent, slowdown. It XX% say, you, see did of but are that the Thank always covered of of are for sale characteristics less. growth same-store trend that down roughly or outliers this was impacted we relatively you would Sure. the kind luxury. brands It

because of to macro Ofer here, in same-store I sales, GMV obviously, as you're Super there. XX% QX, little at QX then helpful growth. follow-up, a in it the light look And guiding growth XX% came a if

challenging. to So a in actually are on basis year-over-year giving worse. more things suggest an improvement getting growth QX. you in points getting improve Data in GMV What's slightly Obviously, macro visibility is QX. growth the the for

going to to confidence You GMV growth did even pro QX. talk call going new some don't about live there out into improve help. in and challenges double luxury. what it, of exposure that could But know. QX several could is actually with brands you XX% the Maybe markets gives click in I you helps

Yes.

up. smaller as XXXX. believe quarters. mentioned, into successful Pro, We accelerate And of for into will will ramping mentioned, large mentioned, drivers we is, do growth will And one, contributing mainly it's contribute a in It's do towards the in as the But Markets in So still, same-store number have contribute already Well, in more for that the merchants, significantly thanks, and luxury seen question. main going launch of start it on, sales we a but of QX slowdown we into have the seen bounce we that which end coming as Shopify the Europe a QX. in also, QX. October merchants back Brent, certain have around November.

addition the support saw of we In growth. the will late beginning day that, peak. And up as pipeline actually improvement, and in to sentiment to an launches we did I very accelerated mentioned, the the consumer to healthy also going October this since see

But in So be we And took of into is there account. us. the growth that will . that still do obviously, accelerated. believe period peak front we

Peterson Our comes next question with Raymond James. from Brian

on wanted to family times. last maybe in really question. these challenging Amir, follow wishes Brent's to Global-e up best the I

are were love what last is signs the August? kind over based to weeks. Europe trends it some it the in and softened seen trends they you've function what last click in Is you've double had spending that those where few maybe a that? And Or of same-store weeks. of broader outside I'd few is better? mentioned You've luxury of seen encouraging in fair getting kind of that say back to to improved just on over what's and

Brian, question. have improvement. is general what the for we thanks, the So seen And

all, out We bounced in improvement have less in improvement around back. part But Europe luxury. improvement the numbers and improvement as all seen general limited luxury of of the have

to it's we period, improvement what happens So but seen Europe through and general have peak, with a need that. of the see a part we as but wait X-week

synergies. that? reason on you in is I talked progress the update Borderfree free. coming sure for appreciate an and the an border And that I update get And maybe just perspective. enterprise what's quarters, love of in included on with on just make to get going I there as kind I'd expected growth a free. want on Water to about is accelerating

Then Brian, it's thanks, Nir. Sure.

are onboarding volumes. it, in we is over platform. Borderfree mentioned the past, already. trading as over to positive of to extend But signs migrate managed say Global quarter, rates to Borderfree we see I clients the that migrated did that better. into we platform back actually expected. we Conversion for there up globally see we the on for this start clients the And much period trading can clients globally we the higher As to

BorderFree on majority of XXXX, impact we expect is that migrated vast platform, once do same-store as say, currently, the I . as the we have not what this good we within that Borderfree the would on positive sales So globally. will see

next Our from Koji of Ikeda America. comes question Bank with

and going the of realize I how was to on did shipping. fulfillment Amir, take And in you this the dig rate about take about rate to multi-local standard X.X%. wanted Ofer. kind and In forward. quarter, I metric and think Nir call out the

really do take products lower. But in -- color fulfillment ramp sometimes prior rate I the also drive can appreciate there. box, the smaller layering the thinking then And recall I quarters, about on high-value So some rate of on maybe be affect top Market about for The question the could that. here is we Pro the of long-term that? business thinking that how and of dynamics the fulfillment take should

Yes.

we So thank wasn't for quarter as you luxury. I'll luxury, for from Koji. start a great mentioned, it that,

negative So that on rates. didn't have take fulfillment any impact

shipping. some from Express we to and were forward, as and main drivers shift standard shipping also the multi-local Going mentioned,

and Going we working first maybe into the quarters. 'XX the next on throughout forward, stabilization volatility going expect expect stay we slight we the in currently, all with XXXX, a improvement do year, budget to stable do we take between rates quarter. but look if to But into all, and are relatively again, some

Markets. question Maddie next Our from comes with Schrage KeyBanc Capital

if rates. Just take fulfillment the the to kind wanted with and I consumer of shipping keep maybe resonates on weakness rate speeds also of to subject. wanted know shipping any take

Just last compared if the express year. shipping maybe holiday expect in year express wondering to maybe we or this less would -- season

we've the mix. more and with was shoppers the that versus some in seen mainly in effect you're standard consumer perfectly think share standard QX seen Europe, higher there I as we've towards trending right to the of shipping in increased Express, related growth standard sentiment

shopping, Christmas don't it when prior if shift more into for sales to into continue we arrive, it time as lot Christmas about give back towards to the to checkout trend do we and the alert concerned are the a package Usually, to much consumers Christmas is in we we go some -- with period for about Express. towards this in However, QX, especially speak standard. warnings higher as a transit take expect of time peak see see gifting, we especially will the

don't expect continue. to So this we

that from we've other season bigger the And I some this Great. of players expecting they're retailers. e-commerce discount Okay. heard holiday kind think from

So what in ] and guys' [ discounts just expectations your terms lower of wondering cart from retailers are maybe typical. sizes maybe than

sales September, of average. into especially lower smaller driven did company-wide, would I with to within baskets average And AOV order October, was say, combination a So that some within translate also both Europe, peak. of a reduction or with a and did It in discuss on the on witness of in luxury bit we it do we yielded baskets reduction some expect lower do We value. we few by, very the look in the than in don't in And and it the early some heavier signings of into last basket without major brands major last is larger would plans year. discounting of in of peaks think average or days positive impact a we last of some terms year. All on our based that be uplift versus we see on it peak all, a effect.

from Securities. question comes next with JMP Walravens Our Pat

of to that mean, I top works? what still done for does you that renewal? XXXX? all you together, the or And Is that, automatic feel how so it are putting as still April with that X agreement the as Shopify XXXX things the X in Amir, need CEO, part get expire

original start that second the year. but of it an term, another in. also we mechanism agreement for extended year, Pat. was had easier the which renewal ends indeed as thanks, It's X-year April with in kicked The one. I'll mentioned, as initial agreement was next auto the

April So until renewed, it was and it's XXXX. now

regarding that's Shopify the agreement. So

pretty I it's for us. clear In year, terms of priorities think next for

very executing We believe core firmly our vectors. our all continue on ability We set. have our to strategic in

live growing our on generation are actual a about important On integration, and strong we into a with signed have quite talked that, have them Pro continue a it So our will of it value-added have top sure that are into as and together they for making push will and We the that of actual in their in parallel, Shopify also initiatives. longer stated. additional as planned. will in And And believe engines as many that markets Shopify, reach verticals that and future strategic we of additional services we in few but getting are in Markets building, extending funnel we to invest we impact growth terms merchants financials, the in previous the be the deals. quarters, we we stones . continue the to getting the we business. building demand lot term few these

Benchmark the with Zgutowicz Mark Company. from comes question next Our

ones. quick Two

more next Just there's may snapback, snapback you about improving, flex if of you look think to half as tighter -- specifically understand you and near-term higher on have as attribute a how and the a thing. -- curious year, you will, but looking volumes, in if what gets you about at if expense flexibility sentiment have talked not of any we at and consumer side of of sort you of any just trying And lot you the that bit that some to macro numbers, for where think Europe, type specific first you then I'm the there. look if correlation specifically to sort sales

Thank Nir. you It's question. your for

bouncing the and we've or to in or back say, ending We major have expectations as shift in coming didn't explanation September, it don't I seen in we inflation kind of or October. inflation good would So see current inflation softening in macro late really a Europe. a

So I something specific. can't honestly to attribute it

did a changing see we However, change back and again.

we've trend now continue will seen a hopefully, So repeat. it's to

for that, quarters. position optimistic. on good I think we're the in a we're following And and year-end

I'll take your second question.

base. future the mentioned also last always some few the doing that, making to more we expenses diligently, growth grow terms of tightly it over quarters, doing and In what our managing are adding that remarks than sure, and expand very business lookout actually we same doing very been But team we cost we do faster sure of headcount, to have is continue that expenses, and as with operational flex, even make but have expected are development. in to actually, our we're preempting what look the we do that to our in the additional forward time, the revenues prepared to support we than our we at the the

on So actively a us basis. managed very by this day-to-day is

Okay. And one. last maybe one

mentioned you significant talk you that be a about, when albeit you not to expect year, yet. Markets next Shopify Pro Just contributor quantifying

do that for base merchant plus you of their type penetration need Just be of significant? to curious, what

Pro, that thing for Markets think caters all I Shopify and -- merchants. great about of Shopify the it virtually

and actually interested very, So turn us. the plus international even platform in that simple. in rates international broader adoption It's amounts on will even actually, Shopify outside on. or much merchants the come a significant small small high. it the if doing And we service will can believe it's very to We is subscribe not to any adoption do it than aren't see limited

that through We we current globally around it -- Shopify is billion a recall to will get mark. Pro, if able the are growth need top You significant our of a on GMV reported for rate it the cross-border Markets also growth. we see Shopify very to some contribution. cater $XX of If . for is nice

Our next question comes from FT Zachary with Partners. Dunn

just take on I fee wanted rate. the touch quickly service to

basis, accelerated. think second I declining. decrease So And that actually quarter it's on a year-over-year rate the sequential take of the

going quarter, last lower coming take the upside from I is said some services? two, we should year-over-year. So that that that rate to Should appreciated. because rate in And One, just value-added of how Any fold. back take you you stay value-add to from stable weaker would be my is context down we half to in think expected be with again about services. expect guess demand forward? it question then

going is upside believe believe do do as the previous quite we the we side. it for quarter Thank again, high we the service . had previously, next I stay maybe Actually, take from some satisfied in because into mentioned tough sequentially did should take a and on meet the fee expectations. can mentioned We And as see, fee rate to QX in But that QX QX is comp from are the some take our stable. year, increased XXXX. And Yes. you rate that fee upside. service rate. you But additional question. has particularly service QX. It very fee there we that a

time. would comments. to further Amir are no for like to the over floor this back questions There at closing I now turn

on us you, thank and you, Thank everyone, this joining for call today.

market. again all to we continue We by. on very the this cross-border this our your I finish, support for for our to updating again ongoing we look to just and our in presented path would sharing belief passion forward like conquer you enormous and and opportunity you rapid opportunity Before e-commerce much as take our for thank calls

next and take So until time, you care. to all goodbye

teleconference. This today's concludes

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