Global-e Online Ltd. Q1 FY2025 earnings call

Business Start: Had a strong start to 2025 with first quarter results at or above the midpoints of guidance regions across the board. ### Shopify Partnership: Signed a new three-year strategic partnership agreement with Shopify, transitioning from exclusive to preferred provider. This includes exclusive feature set on 3P side and improved commercials. ### New Product: Developed new 3B2C offering to help global brands offset costs due to tariffs. ### Merchant Expansion: Dozens of brands went live with Global-E during Q1 in various regions including Europe, Asia Pacific. ### GAAP Profitability: Expect to move to GAAP profitability from Q2 as majority of Shopify warrants amortization is done, and expect to be GAAP profitable moving forward.

In the first quarter of 2025, Global-E achieved strong financial results. GMV was $1.243 billion, up 34% year-over-year. Revenues were nearly $190 million, up 30% year-over-year. Adjusted gross profit for Q1 was $86.3 million, up 31% from the previous year. Quarterly adjusted EBITDA was $31.6 million, up 48% compared to the same quarter last year, resulting in a 16.6% margin. Service fees revenue were $84 million, up 23%, and fulfillment services revenue were up 36% to $105.9 million.

2025 Full Year: Reiterates guidance with GMV expected to be in the range of $6.19 billion to $6.49 billion, representing a 30.5% annual growth rate at the midpoint. Revenue is expected to be in the range of $917 million to $967 million, with a growth rate of 25% at the midpoint. Adjusted EBITDA is expected to be $179 million to $199 million. ### Q2 2025: GMV is expected to be in the range of $1.387 billion to $1.427 billion. Revenue is expected to be in the range of $204 million to $211 million. Adjusted EBITDA is expected to be in the range of $35 million to $39 million.

Tariff Impact: Heightened U.S. import tariffs and removal of de minimis on imports into the U.S. from China and Hong Kong may negatively impact some U.S. inbound GMV, which represents approximately 12% of overall GMV. ### Uncertainty: Future escalation in tariffs and counter tariffs between the U.S. and its trade partners may increase uncertainty for merchants and consumers and weigh on confidence.

Q: Could you remind us what's baked in in terms of the potential for demand destruction as well as some of the shifts to multi-local offering in the outlook for the full year and how we're tracking against those assumptions to date?

A: We definitely see greater uncertainty in the geopolitical and macro environment. We have incorporated a certain impact in our full year guidance. Same store sales are slightly lower than multi-year average, but we haven't identified clear trends in trading patterns and maintain our guidance.

Q: On the Shopify partnership, any changes or thoughts around the timeline for continued expansion of Managed Markets and on the third party side with loss of exclusivity?

A: We're happy to extend the partnership with Shopify. Moving to preferred partner status gives exclusivity on certain key features on 3P side and we believe we'll maintain leadership position despite potential competition.

Q: Any commentary on evolution of the NDR component in your forecasting?

A: We haven't seen notable change on average. Same store sales slightly lower than historical average, but we're seeing nice ramp up from large new merchants and trading close to expectations.

Q: How much of the guidance reiteration is based on not seeing a change in trends versus debate on spending guidance?

A: We see greater uncertainty in geopolitical and macro environment, but didn't identify clear directional trends in trading patterns, so maintain guidance.

Q: What's the model impacts from a merchant taking 3B2C solution versus going the multi-local route?

A: Main difference is effort and economics. 3B2C requires less effort and different economics compared to multi-local setup.