Global-e Online (GLBE) 14 Aug 242024 Q2 Earnings call transcript

Welcome to the Global-E Second Quarter 2024 Earnings Announcement Conference Call. This call is being simultaneously webcast on the company's website in the Investor Relations 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 second quarter XXXX. the results of the XXXX, the XXXX. for Ofer outlook second quarter third by the financial then quarter for will and company's the review of followed full year

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

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

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

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

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

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you, and everyone. welcome, Thank Erica,

as as or which our range, top and strong financial our at our are long-term Our strategic our of end a trajectory above demonstrated well the business growth of targets. towards execution all second results, quarter momentum guidance continuation

our quarterly growth. ever above XX% first to terms $X year-on-year for In marked historical another with quarter of billion, representing $X.XX yet landmark GMV, accounting representing GMV QX billion, non-peak us,

XX%, revenues by quarter. reaching million $XXX Our in the grew

to year expand to continued of that enabling last in QX revenues. record adjusted our a gross margin profit gross outpace growth this adjusted of profit XX.X% QX to XX.X% Our year, of from in

in representing for million, the our quarter efficient all scale, year, our across adjusted EBITDA costs. and growing the our last in business came testament nearly economies at team's proven the XX% Finally, of a continued to $XX effectiveness controlling same elements execution growth period of our over

Looking the ahead business. at of confident in remain and the of rest beyond, reacceleration year the we the

large noteworthy call, discuss of bookings, As who a well our to already second in Shopify. about on record slight delivering also beyond half and as especially strong growth encountered store in as are continue of This of Ofer with largest growth unfortunate growth second it will pipeline, of franchisees, took contributions half and track, our new online the consumer softness we the one XX% strong the and GMV merchants, continued as levels Ted in remain XX% at which given ability and go in new which additional or well of significant off projects to our signs merchants top later in we our Moreover, month. earlier air expected currently some durable of strong on live as year-to-date revenues anticipated above in the and expect whose stand from unexpected and the and confident XXXX and growth high, merchants early during are churn this despite macro its Baker's July XX% sentiment August large went in bankrupt integrations late managed comes XXXX. is given mixed as line of markets form including the we highly U.K. Europe integration the

financial detail for will and for our third updated describe quarter I usual, guidance more our Ofer, the year. as when full fiscal As hand the to the well call quarterly results as he in

updates our would However, you some regarding walk to first like through key I business.

AMI the renowned British footwear Fish, shirtmaker Curtis; we Beauty; we lifestyle Eyewear; and the merchants publisher in including Isabel trading book country quarter, As onboarding Paris around several brand, every verticals. across the the all services, of and the Assouline. Weird cosmetics went in many curated various customizable apparel strong of brands, platform. In Marant. and renowned brand high-street brand But & different our MNML; went brand streetwear and North fashion brand, with new In and America, clothing launched glasses and demand Clarks; see with period, last Jermyn art live Pair Revolution Italy. the during In went iconic France, homewear we such located other Hawes LA-based other Street continued all Closed parts globe Pinko on Germany, and with U.K., brand in Tuckernuck; live to In live as we for Europe, Continental Fashion Cordings; and luxury our the brands JOOP! innovative brand

Polish designer, live brand, designed that Magda our Swedish first-ever We fast-growing the a store creates fashion with runners. went also And with online brand, backpacks IAMRUNBOX, specifically of Butrym. for Polish

and our Direct. pop-culture including FASCINATE received a GeekJack in Matcha merch addition, stores during Orient the growing Japanese and curated watch In big and fashion the going boost live, with site Japanese presence Seiko-Epson's tea last provider APAC quarter Matcha brands Nagano-market, many Star, brand

live designed Korean and brand also fashion sunglasses Outcast fast Hong went brand, Monster. with headphones [ Kong-based metal with consumer and heavy which Shona Australian Joy creates enthusiasts the electronics ], dressmaker for fast-growing We brand Heavy Gentle with Clothing

in in presence to new business to regional commitment local our and part [ welcoming in in we colleagues Seoul our our growing Tokyo support to As Korea, new offices in Melbourne onboard growth established our continue main X there. expand ] office of and APAC, a

We ours supported an longstanding launch SHOPLINE Singaporean-based also of completed the integration on to a newly platform with the U.K. e-commerce platform. onto EverythingXPounds, first merchant being this

as sports globally portfolio their verticals, adding terms to Newcastle as of Barca their to of and teams, continue we directly Premier Barcelona, our fans United Spanish use famous U.K. of list brand the expand sell In League all world. merchandise as the FC well around growing to that the clubs Soccer Club also to loyal known sports Club the

commerce part we the strategy. another scope Escada launch expand In enterprise of of welcome the part in and on Monaco, the of of brands Being are Global-E's Secret expand were to SJP our also with front of celebrity several merchants, with iconic the during being the the Senza launch to includes that of to to existing our as and on with large biggest Sarah Victoria's Group. Lagerfeld, half new Global-E second Paris, Labs are and which Parker launching world, during list Group growing continued platform. merchant is go Secret, Haus La on Gaga global work platform. Besides and ] undoubtedly the We the and our MCO GX we brands [ news best-in-class lingerie brand XXXX. recognizable with also by U.S., excited the from the merchants Karl recent of Club the we added launched also Lady expecting we quarter, both latest merchants Victoria's and Jessica the by the to of But the most to live brands groups land first brand the one

in group U.K., While the & brands X, we that of of TPG part with the includes Whistles. which launched also Hobbs is Phase

lanes several Kors, Lagerfeld, they use expanded of the In notably merchants for Geiger. and Karl list Olufsen most which addition, & Michael our Global-E, of Bang Kurt

up GMV As I volume already of is year-to-date. a firing the all record cylinders, on business new signing mentioned earlier,

brands the momentum As in confident our lie Global-E the using to market the coming such, that immense platform volume given the in of are variety opportunity ability the clear with our us, strong to and market years. of we our position and growth continues ahead leadership in both continue of

just you our with Now various before to Ofer, handing I Shopify. components to the regarding update strategic like partnership the call over of would

migration new migrate practically is On integration the the integration the of plan base native XP merchants merchant side, direct complete imminently. the our or onto with historical to remaining

few extensibility. considerable in on of process this of international ones possible migration majority and R&D process and our of the we now Global-E's More XX% of over professional the quarters, In undertaking best the merchants merchants Shopify checkout a best-in-class transitioning. our during Once teams quarter, to services last with checkout capability the monumental the are remaining at by addition, Shopify-based using already Shopify-based achieve extensibility enjoy will of that Global-E the in transitioning combination ensuring for over Shopify's our solution. progress conclude than aimed done, a our to merchants managed

As on merchants. new features, the migration enhancing and the working additional shifted processes has completion, for team's functionality nearing to already focus performance are our

internationally this and onboarding on continue innovative go and sides capabilities In enjoying on on On developing both and the the parallel, to growth solution, sales. quick teams XP to to rates conversion enhance work effortless and additional solutions for up merchants supplies in and into merchants a additional such in services, the their managed continue live local effectiveness integrating ability trade international or in as sign include side, taxes market best further market manage align support the enhance restrictions, to and manner. catalog product the and visibility to duties compliant with shipping price, for and reach to help practices automatically merchants which

large hand Given the the meaningful managed platform [ market this opportunity now QX we Shopify present ] believe and salary CFO, the as Ofer, potential our in solution to take capture with part to market adoption updated Shopify will the over of full ability the the close as rise, numbers in depth in it years. I massive our continue year. over quarterly continues this and for partnership on well to through to a of coming market you our innovative more to guidance

merchants to to our and committed another I'll of address for continue joining expanding again us opportunity delivering their like Amir, certain in be also front addition that earnings international discussing our of to results, us and to today call. QX Thank strong value everyone, the in results. we growth was out market GAAP remain growth. thanks, as you, to point on margins non-GAAP in and I'd quarter

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

XX% the noting to $XX.X growth. we year-over-year, take service was compared were profit million, gross to gross volumes In in our QX, and $X.X fulfillment GMV, XX.X% our values, up XX% Amir HX, continue XX% were average guidance growth order QX, representing revenue, last that gross service XX.X% have XX.X%. and an gross gross of up results of fees the higher revenue see revenue GMV profit are we impact million, outpace same order generated higher fee for rates our have of negative non-GAAP lower worth same to a mainly we fee XX% on driven in As value, million. margin increase as the share expected fulfillment of EBITDA. Non-GAAP for of over average year-over-year, Service services continued increase operational up was a $XX.X grow driven revenue revenue a to million, midpoint revenue the $XX.X $XX.X generated GMV. impact It representing by continues mentioned, an given fulfillment in to to total in a billion of which positive The QX QX. $XXX which time, In on a on revenue but in is quickly fulfillment year-over-year. also was our to higher up non-GAAP and profit year, adjusted by overall impact at of limited period record favorable GAAP XX% of compared efficiencies margin a mix. million, fee margins X.X%

on Moving expenses. to operational

in revenue was invest in enhancement expense XX.X% or $XX.X million same R&D excluding last platforms. in spend million million. to QX the XX.X% the to stock-based our Total or We compensation, of in continue $XX.X of period QX, R&D was year. compared $XX

consideration, sales pipeline marketing amortization we of and year. G&A sales or compared us. expense, and excluding $XX.X million quarter the $XX.X Total to related period, last ended revenue the X% $XXX the and representing compensation EBITDA of cash excluding contingent to expenses, cash compared grow million deposits and short-term same stock-based QX of a the and period with million. General by $XX.X revenue the were XX% million, operating loss acquisition-related X.X% was expenses, in of flow by $XX.X was to and adjusted of period warrants or of invest Total front was Shopify $XX.X amortization totaled transaction-related activities statements. by to including mainly in year. Net Shopify and or turning continued the increasing to expenses strong and and million compared $XX stock-based XX.X% compensation, securities. expenses and compared administrative was Sales and in X.X% XX.X% last margin EBITDA and ago an XX.X% Very ago. and the spend million gears We rapidly million $X.X $XX.X the amortization, million. cash amortization $X.X million $XX.X revenue marketing, to same million year. our also period in warrant-related was $XX.X a million last revenue million. Adjusted expense margin. marketable million the in for see acquisition-related to $XX acquisition-related intangibles, in Shopify-related strongest-ever or currently marketing continued or year net $XX.X in by from year in of expenses generated to loss driven equivalents, We intangibles. Switching sheet balance the quarter and million cash flow same

full outlook financial XXXX of we guidance fiscal our are we the for as seeing our to on and towards would Moving QX and first year. guidance. the I explain dynamics look year to end like underlying updated the

its results. ordinary already loss recently earlier over the Amir franchisee, went August. our serve represented Baker's of Baker Besides addition negative Ted a HX mentioned, we on the churn revenue services, merchant, Europe volume the As standard a be obvious the which Baker we was X% supplied our to demand went Ted impact will as and of take the top air impact an we bankrupt main which the GMV, rate experienced business out line. U.K. of our of our high generation in off will and high and services. loss Ted in of also

are slight the coupled we our adjusted nevertheless, limited lower profile, Baker, full significant will order potential same positively softness and overall be guidance, and is in operational to impact revenue, line in weeks. us negatively our full with top few leading the this to our consumer factors out-of-the-ordinary in expected At control affected values of the factors impact previously gross have to higher our seen HX sentiment to expected full but EBITDA year over last average on to top our us year on our are of gross strong cautiously additional line. Besides year in are margins impact the significantly impacting the margin a guidance. signs the have projected. In fulfillment time, churn raise However, gross higher Ted of line conclusion, expenses bottom margin and leading the positive addition negatively churn than the above are that rise

be As for At itself, $X.XX of the of XX% are range QX the XXXX, to billion represents this rate the midpoint we QX in for of guidance billion. to versus the expecting a $X.XX GMV range, of XXXX. growth

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

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

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

growth For a revenues expected the going and that pace million adjusted we are Shopify, will we fee as million, volume guidance. Despite which negative mentioned, previous border profit growth expecting to expected track, XXXX, a managed by our HX is elevated merchant believe on on EBITDA, into above from will a [ ] contribution QX we've year-on-year anticipated impact $XXX continue to lower continue on the of into impact accelerate of large and comparison. driven now growing on are which $XXX from markets launches,

the their rapidly are impact believe opportunity to while and merchants can offset our and our higher significantly will Operator? from to expectations. In on generation We and expect be us result journey I continue by grow compared our conclusion, be As we EBITDA previous minimal generation believe line is higher the years. And execution in guidance, may evident adjusted coming have. that, gross top the lower flow to profit, further questions on in expanding while focus we a with to we our remains cash direct-to-consumer happy margin we and answer worldwide business. updated estimation front to massive, expanding Amir, cash support continue in in of you Nir gross and

begin session. and Nance comes the [Operator question-and-answer Will first Ladies we Goldman will gentlemen, now Your with Sachs. question Instructions] from

we the just was merchant. pieces helpful the guidance quantify churned moving the I that to to in make wanted sure very understand

guide correct, churned understand that that. good So margin revenue to love I'd I of very of at, from heard a in high it's the chunk you something the but what I that kind like came rate. if take of low merchant, believe, and gross helpful. That's X% explains drives

coming to expectations? business like get run underlying the would lower a Second same brings for was gross that of you're the was just relative macro. I'm how in the the haven't And prior in merchant churned kind if AOVs your I dynamics, the be then X, the of take rate we for sense rate impact have neutral much expectations on the to changed? of third down your to trying profit actually excluding how fulfillment macro guidance one seen maybe the guess, attributing to big kind first relatively place? GMV. And the

the I drivers sort mentioned to think in of that order the we've of magnitude. order in the according

of short impact. fulfillment bankrupt, has AOV activity, a in which is Baker, Ted that rising the also obviously, before. merchant of term they unfortunately, lot the in impact went translates and lower never us that happened And So has to to And line. terms like top significant a losing something

the and the the seen terms softness weeks. our have market, we I carry X in mixed of of last out think more signals guidance. update we few first drivers have terms some of the macro In of in But weight conditions, the seen

just the follow And then of prepared some the wanted on comments that's in helpful. to Yes, I remarks. up

commented this you got, pipelines think, record you've year. I I think

of with the You large X merchants. went one live

of the about is something of of or then I think said trajectory XX-plus thought something feeling the business I I shortly good one along launching about And the you year. kind other the beyond those lines. on second kind remaining half like heard

additions talk looking? year? that you are dimensionalize how new maybe can have if working way kind customer pipelines kind next there just into the to through So any of this you been wondering on Is momentum year, of

Nir. pipeline coming we strong do out It's see business. a very our Yes, enterprise of

previously have merchants. new we finding record a As year stated, in

the back However, of one with due to very X.X launches. the the just clients, one to end Secret, some that Victoria's say, them significance first of launched live. the shifts see we let's Victoria do year of large the almost, is

currently already tipped We track. expected the others testing into of on project. stage that X are the They're

will We the expect live into them get both we back be early QX. coming push And to QX. on of a it,

see of see will net early And even the be only the the in growth into coming trajectory see On merchants multiple where planning quarters live most of as in that give managed quick the QX, it, to year. In we the most and add-on the go a out line us for this boost at look only growth on year only to will XXXX expected market have and very in parallel the the that enterprise back it, launched we slightly well. business spike when of for midsized following quarters significant it above. late we they launching QX, with a platform coming what we we you of launched

the in rate believe the of coming visibility allowed So into overall growth a have over state we're to that on optimistic we XX% quarters. that trajectory going we us forward quite that

That's great. morning. detail Appreciate all the this

comes with Samad question Samana next from Your Jefferies.

about, fourth the guidance? dig you or steep as the more you the in of but have ramp the just the that your any I half changing you letting first, mentioned assumptions? want think Ofer, piece think half of about But Or guess, assumptions you are as the the think that And quarter of how is we year, especially macro the back underlying about know into maybe assumption us lowest NRR being in that that, changed I you should change. that's guidance? the to XQ are thinking implied NRR back part you for something just I about, for that

of the year. same-store our half back We assumptions for the sales have slightly changed

signals, more same-store say, towards signals more, slower As we've softness, seen I last few mixed weeks. but mentioned, and some seen sales the softness, towards we've would in we've

driver our was So impacts and HX you we top I the only in mentioned assumptions. slightly as But XXXX. that third did adjust line mentioned, the that

And that towards I in used. that, think, I mentioned what maybe at was of half there know the of Shopify, And Markets numerical growth expectations, markets in you the looks product, understand XXXX? were you then means Pro even the you that maybe Can just like? your Understood. words heading is the more better, formerly help managed same less then you coming Nir, slightly terms, back how think into confidence or about the rate as the year and us

do are We markets board. as plans. come when the more merchants in see to the on year we growth coming we to the and size and onboarding, the expected building to in a up onboarding at larger rate the see to into many even we do even managed merchants of it we expect expect coming launch end markets do Sure. quarters, continuous funnel features continue the our managed of slightly above And of

So yes, into going we dollar terms. accelerate to do in XXXX expect it

Stanley. Your comes Faucette next Morgan from question with James

Great.

to second assumption other for beyond both year changes if and or this you're the us involuntary. voluntary next a has if follow-ups any churn of churn-related Baker? Just into sense your that year there. been and Can you been just have give any making maybe the of highlighted could and you half sense ex-Ted has be of couple a Baker as what what Ted And

previous ordinary, out have putting the Baker, seen we churn, rates is really of to aside which year. Ted of terms similar the In

So in expecting different significant We're change months. there. no anything few the next not

churn border-free the once is remaining. mentioned, off, last platform the border-free previously we we see As of shut merchants some might

lately. X of successful been in larger have the we border-free However, merchants migrating

of forward. going we more hopefully, So get can those some

And in that then had How that's trending. product? update the further those et how well it. to some of Shopify about launch during an on course the of the you this engagement on intended relationship you thinking with operationally you're give and how us of functions kind on Got of having an the year. cetera, much launched? that impact is improvements and Have merchants, Can

James, this is Amir.

the ability the like prepared say, This were of the the which the being time, now to some options to include able for is recently is way product a features long shipping there a highly restrictions, into would like was patterns, I for in very we've merchants. for important These also we that capabilities to mentioned on we in be So able already standard all highly features the important obviously, into to additional anticipated added price, a which was the of for, capability merchant a we've sell remarks. added had that is visibility additional markets. many very merchants and managed that product localized our get and in And markets. our that lot duties

of are There that and XXXX. So the in for it's features. of remainder the and lot rolled a were more out more are that for year the pipeline

exactly but the merchants. becomes the applicability more appeal obviously, many each such in more increases general, obviously effect pinpoint and more reach advanced, as to feature its So hard feature, product to of and its it's it

and our planned working in continue So quarters. teams few along releasing in we continue and to be hard at map next both road features collaboration the the to these continue Shopify's work, teams

with from comes question Brian next Your Peterson Raymond James.

been And be on take rates take the half a should may for the or year? on on Can rates I have fulfillment you back we fulfillment the any of expensive to expectations? in how of We've mix your modeling in shipping that versus there's how the preference help comment Ofer, others So, a wanted ecosystem bit. heard rates. slower hit been from less that more

value, been The the to main order of pretty we've both we is it higher In merchants year, shift partially stable. change that of seen optimization Sure. has standard. beginning last the consumers. also by driven some it's seen have But months, and in few the which

the growing So cost last has the that shipping, higher same so value on and take QX, have ticket our the of basically, getting rates. seen average a in fulfillment specifically months, over few of trend impact on order we significant that a

a X or last in standard seen haven't few significant Express from weeks X, months. to the We shift

any forward, of we going should As we quarter guideposts levels? that second figure think kind at look from about or where modeling

that, can repeat Brian, Sorry, you please?

how kind half looking fulfillment the forward. in I'm the going of should Yes. be back understand and we rate the year just of modeling to take

Not expected the that most our rate of has are due to more that that see the increase fulfillment you as joining rate, by do Baker demand generation back see But to in all was the reduction provide which coming the a service previously, the in we we've in. take Well, rate see is fulfillment due or year side. merchant shipping services. we most And decrease platform we change this fact using we reflected also take because rates the it do on of be the of the take utilizing in services, and to that half AOV take in onboarding fee mentioned, the our the fulfillment. is significantly, increased guidance take to Ted merchants will but and high driven of rate

Andrew from with comes Fargo. question Bauch Wells next Your

the Just wanted to think, wide the range of from X seems to Still, end pretty I and speak points to revenue it high low the the end. guide. here from, outcomes

for versus us through halfway high achieve setting you the understand the maybe aside? low what we're the macro you end you happen gets that if year, needs to now in what order Just end, can to to help

Yes.

for I some changes that due seen AOV higher the when into think reduction took to as the a fulfillment merchants well in due of year, of into basket. the the our mix guidance we've in course, you take to between rates first, that we lower as look rest account

is took and we changes we that thing account for into in second need account consumer the sentiment. The to

to mentioned X We it, it, the last in have witnessed especially X also weeks.

end some of year. into for larger So towards of we bake the it the in spread our allowing a guidance, did

And we might affected is, built we took changes there so then course, approach we of this conservative with well. as here. these but by and is And in macro, this do shift that, a believe

checkout on by Got it. to the side, base economic plans? according And the understand about extensibility. XP Understand. go could to now of original the And your XX% merchants on the if us Shopify, extensibility. highlighted you help business maybe then moving to those checkout you thinking your that ramp model Did implications to the being XX%

Amir. It's

say, from or merchant integration, say, process our quickly quarters. classic the, say, the onto transitions. I would kind So mastered I had would work easier. native up is yes, over the perspective, ramp these couple last last integration migration of Unlike did the the is we CX from initial I to it per migration really And of previous intensive. to ability original over make was, the would teams a the which have couple fairly more of new The the migration quarters

complete quickly, that migration. anticipate the to So happens it's entire long us take too we not that to fairly and going

Global-E terms and and economics, from the and kind I no of on the a, Shopify expected. the latest to features would more impact merchants the direct is In It's economic say, able greatest use the of side. there of both being the general impact tech

than of any quarters I So and technological transition hopefully, the economics over or the next for being, rather change more But benefits. say, of therefore provide our and years, performance will model. immediate kind us would merchants a this in with it's time

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

a wanted timing Victoria's I to a to then are you Congratulations later these taken ask I or to getting bit it there's I that than in remarks, wanted size think earlier anticipated? of bit ask longer. X a the come, little the prepared of Was that or And but of launch. to on more types launches Secret the launch. mentioned live. on plan? bit about Was it those

the question holiday is XXXX after there is the risk to get those And so the season? launches that what pushed

answer the They're we're less actually, or that on big more all looking these So same at. for plan. it's launches of

launch, markets, with that and testing sometimes to think some case. is the active I expect it's they very and hope And phases schedule. phased there. actually, gradual the now. Secret it respective don't You mentioned, believe And so of advancing Currently, launch say, a live there are, delayed, just we say, peak as through kind believe and the the on large date. in at the would that was on additional subsequent it's generally go already But are, I majority reason sufficient that them we be remain additional speaking, before they're schedule, on in the to schedule how large them with launch We or Nir of point. And season, its we peak, this week here schedule. also our, mentioned, in already the we ensure not early in but QX, there as I the any large have initial planned launches, a they this these will also rollout would of that they're launches that to buffers and nicely of already terms are or time go the Victoria's too live shifts time currently projects live of know we're as say, would will works launch, project as merchant each I many again, in for

these of launch projects. are very the advanced the So phases

with Your next question Needham. from Scott comes Berg

Nir, in I made Korea. quarter new about a Nice some opening couple. got guess you office comments I a

Asia it's get Just to highlight. comments you business, all typically your new some wanted on in because Pac maybe business region to activities that a not tend

It's Sure. Nir.

about APAC, started seen hitting of percentage established Monster. and already APAC would merchants a the year-to-date digits in very APAC and outbound strong And uptick the I in the Singapore, we've total Gentle ago. in from, Global-E out sales launched the are a markets, X back of Japan. journey region around an from it, optimistic interest few rollout Amir the in we've on Japan additional, we Korea We that key currently Kong, years mentioned into bookings. where Hong signed All of Australia, a we X large growth nothing HQs say, to coming into we as we very In of Australia lot then, new since seen Korea, with a coming virtually even adds the that deals all, into first came

Excellent. I on structure longer-term wanted business. Very intermediate thoughts in maybe helpful, then, Nir. or get the And your margin Ofer, to

a you least adjusted margins at both this gross higher approaching are XX%, quarter. I assumptions? how to what prior your to think years short the Gross do might Because margins why intermediate-term in and dynamics you X least high communicated model I on you pretty maybe kind term versus and out record looked you're if at at had EBITDA margins, that prior look getting discussed think some be the believe here. we that your structure about close margin X like. But of of

all, what the to into we Baker achieve as high this high, us as been margins Ted tight addition coming than quarters, quarter you margins as with as higher in translates expect, EBITDA well, first in to enable to our So for to increasing. next mix at able remain for top adjusted because we we of not have time, drivers as at addition And in dollars larger seen had quarter. have this impact EBITDA mentioned, as to But we've maybe gross some we higher and adjusted had neighborhood higher this line control, AOV but And churning, gross same of U.S. the to much cost we expected some get slightly it margin you that, well. negative least year. in efficiencies those impact on initially do the

few to in So we continuing expect see quarters. the next that

term, it's Regarding think a the I great longer question.

months. and target. on we long-term in any we we coming introduce targets hope working We But new are that, the long-term can that disclosed yet haven't

question comes Patrick with from Walravens JMP. Your next Citizens

into Great. since mean, if reported dig XX, you quarter, guys the more, some right? filing was I'd So before you Ted can. like Baker I Amir, known... April I have bankruptcy to on last

it's for it's It files the that will administration no, doesn't not mean as bankruptcy start Pat, that Amir. trading. first U.K. it's in the they time called Actually, or because merchants Actually,

in not And a stores stores, outcome is administration brands and had of it. the of streamline typically, intent with it the where a matter number cases, business to the focus of that the that completely, drove physical the actually because we've online past the are the assets shut into online but higher fact, of of As goes reduced the cases in the lot actually operation down physical to the a is business. have

So for that's we've the past where even had the our from bankruptcy our business perspective. cases good or in administration

will I in would but unexpectedly, have couldn't signals have the it didn't So stopping the done result us any them took was, was we this by case, long That we time online filing anticipated ago, a say, fact actually in that surprise. or trading.

quick Okay. X I money to have going that And they if off? you owe write are you? more follow-ups How to much And that. on do may,

don't in us They point owe time. this any money at

expected. write-off no So

next comes Brent with from Sandler. Your Bracelin Piper question

color to factor the weakness guide softness some third X where to have but the I little wanted I you're to go last to back the in X be to more isolated noticed would talk on about additional macro. Was you helpful. broad-based? here, one follow-up. weeks. that contributing And maybe a the I luxury, Any did seeing

Nothing terms specific to of in call verticals. was out It broad-based.

for exposed trade So in I currently, not China the is into We luxury China. that weakness China we think brand main and to don't are much. that

impact a us broad-based. on that less So from angle,

double-clicking Helpful free. color And just border then into there.

maybe we when what shutting down volume be turning assess there you platform. potentially timing there and you if then could be the would potentially platform. that shutdown And would helpful on the legacy just risk that try the legacy of legacy as just have off? risk. frame the You platform to still occurs at talk of the the What's did about volume that

Brent, it's Nir.

with the and continuing process the of platform. into Global-E migrating the in are We merchants process

and I of than merchants, or also stated would slower for in it However, stores, restructuring year we I the complex and physical our year, years expected process in say, many I the last et QX think difficult discussion, this handling, is cetera. going our say, would

it the managed time more time a bit. to we to platform the time for by So replatform itself, extended [indiscernible] into we're we base, in of them project efficient the line being. order in let it to The and cost made control the some the running put

So we give did extensions into XXXX.

X% business. the our overall border-free is However, of remaining on platform volume circa today

couple the happen significant And on still off already move, but is half would do platform. of are expect majority that the of down the a platform that So in it, platform. And to sometime merchants XXXX. shut only border-free the following would we expect the this first there we

Benchmark question comes Company. next Zgutowicz Your from Mark with

terms what then of your your there or in at just assumptions tied if dilution segment? XQ, of some the your in relative I get just just midpoint Baker implied If trajectory implied some in-store GMV are then take if quick there's I And clarity at in-store the looking that curious GMV multi-local that's the XQ of had in in like in Ted assumptions. to follow-up. terms for built I'm to else? anything look of still and all or rate, I was to softer XQ we're a consumer declines on assumptions just rate. further more the consumer take softer And sentiment, hoping

Yes.

of we for QX consumer the QX. sentiment, assumptions have So similar terms and in

to previously sales bit we for than and but what expect expected, a QX. QX same lower same-store We be

and combination is do rate rate a addition, is in in have higher towards we take of biased QX leading impact very as In seasonality terms to the of multi-local merchant. QX, high average Ted which And rate which take the it's of take Disney, a mentioned, take Baker, slight in we biased terms we've fulfillment value, as was of order rate, also lower in QX, have merchant. a

do expect some in GMV we QX. more So multi-local

Oliver comes [indiscernible]. next [ from with Lester] Your question

migration. How of of Can that specifically main you led that long one switch migrated biggest expect be merchants. until bit them they're was there up to detail it fully to you? kind what a more off follow slow competitors, And Secret, to just do which to wanted you of be mentioned you ESW. that [indiscernible] on would kind on Victoria's just a give I is

Nir. It's

partner We of are the with very switch happy us. that and grow coming expect our Victoria's We're platform to partnership Secret to years. proud Secret growing very to and and continue Global-E in Victoria's decided with we the it,

late to plan, within over mid-July. expect the already, launch say, we we I with would we of terms the rollout July, QX. are initial finish and market rollout the the And started the entire half, In

selected reason also for the developed the in I to towards demand in to they So are developed market. and commerce unique we all is in in appreciated all, a data lot is everything capabilities capabilities being been leader the capabilities, think duty The think, related developed shipping, evident moving management, we project global I multi-local Global-E to anything date drawbacks returns, around the Global-E, of duty according plan. local for generation Global-E, things and the cross-border market the we it's

So and Seccret us. Victoria's we're happy proud joining have to

closing There time. questions call I are remarks. Amir now the to for at over further will this no turn

for future and everyone, again us ongoing very you, joining on appreciate support earnings our a forward to this and lot, call your look you calls. much today. Thanks thank on We updating

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

you Ladies and please We thank you gentlemen, disconnect this that for call participating for concludes this lines. and conference ask today. your