GLBE - Earnings call transcript Q3 2024

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Operator

Welcome to Global-e Third 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.

Erica Mannion

Thank you, and good morning. Global-e Koren, Schlachet, Nir Chief from Executive and Debbie. today Ofer Officer; Financial me are Co-Founder Amir Chief With Officer; and Co-Founder and President. for with the XXXX. begin review the results will of third Amir quarter a business of will of quarter Ofer the XXXX. review results the for then third financial full by and company's of the XXXX. followed for the of The quarter fourth outlook XXXX year

will then open We the call for questions.

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

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

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

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

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

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

Amir Schlachet

Erica, We delivered quarter, you, everyone, third very earnings the of quarter. launches new QX strong growing to the to call. our merchant within welcome, a Thank and thanks contribution

merchants. existing our of growth as well As

above almost growth This our yielding the and accelerating top growth strong midpoint GMV rate adjusted saw QX accompanied an control, to respectively, XX%, XX% such, . XX%, top by and of efficiency of EBITDA our As cost revenue our both guidance was more line measures of range than X% both the well continued range. and guidance. growth above

the successful year-over-year the expect September, with of to consumer of guidance accordingly. expect XXXX and well annual We sentiment Given our raising continue full more GMV growth now positive trading and of to are year merchants, as rate are To year we XX% a a full which accelerating new EBITDA launches of the ability in grow bookings, QX. again to for in at mark high, further new our XXXX. performance XX% in XX% and conviction grow the GMV XX% and revenues year-over-year. board merchant grow strong an across at all-time are Moreover, in to which our adjusted hit almost XX% to the XXXX growth strengthen combined our

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

power know, global you better As Global's mission e-commerce. to is

are adding new global in nevertheless, all But functionalities clear invest in as leader e-commerce features Service. we time. the We new the and a

continuously another. we shoppers transformation with across As the world merchants engage and one

multichannel hubs using For Merchants example, we online to with buy utilize reach their enabling global a BOPIS for up a fulfillment physical the different for and store, new option QX, of and as their global countries e-commerce. BOPIS during world stores relevant merchants went level. live to click black in local in can enhance pick around

thereby As experience, store efficient shopper in convenient stock more a locations well pickup global as utilization footfall. and rise physical for enabling their shoppers, a better

in-country XX% to its e-commerce this managed month first U.S. Canada of series first merchant utilize through option the capability The sales to its this branded during offering around shoppers. of saw to

return On several and beta the started direct on consolidated testing new both and on inbound additional injection lanes, lanes. side, we several outbound operational

their best-in-class offering a enhancing and options offering As with of we merchants globe, provide to logistics the more their diverse set the around better efficiency while strive to shoppers.

options new platform we customer program, service the granted merchants for comprehensive duties while to stick with GDDP. And hassle-free ones. drawback experiences enables several access now through our those early front, have a duty to better taxes drawback shopper taxes program provide simplified, global new names. and duties and additional supports global shipping leveling the merchants transparent on a stand On This refinances, and of duty

us AI-based in language to to efficiency. capabilities incredible invest and we landscape make as service Last leaps in enables continue the or but of large LLM, evolving not least, models

accurate accuracy during precise its in a This improve duties Compared to example, and is and mapping LLMs tool, import the restrictions of customer previous leverages LLM as our merchants harmonized we shipping first-generation products time. as based catalogs allocations well a system, prerequisite out which classification new management. or crucial a taxes codes. For and to their to scopes for algorithms, AI constantly increased utilizes ability to AGS of new rolled this generate learning the tool bettering QX, machine performance. yields iteration cutting-edge learn respective product and over has which our

up more with us. to continues platform merchants and our live As evolve, and go sign more

quarter, few. with footwear the we a name just encash such Martens, mentioned and third we onboard many [indiscernible] toured with As new brand want In Road other the electronics a during In plus-size the iconic brand, we live fashion markets continued emerging we news Dr. brands went vitamins basics cosmetics with fashion the brands. of verticals. with brand, different America, Raycon, John with to across with merchants the to leading to fast-growing as live Berg. earlier, Beauty North twin went all brand, tons and I verticals, fast-growing and consumer elevated brand, Dr. the

of El of all trading and of migration la enjoy platform Borderfree globally, the the and platform During ], our benefits can successful [ from services. Oscar [ completed which now onto Ben also Renta, more through ] the several including quarter, we cutting-edge brands Landen old de

Munich, We the Manchester of launches also Europe, deepening many in football and and and went this U.K. including our the further new United vertical with Premier top and live clubs, within brands League across Byron sports triggered penetration significant league two vertical. [indiscernible]

Danish brand, Ex brands Swedish other German across the the We sportswear ], ski brand, the Bogner, many, fast-growing with Land Swedish others. clothing the handbag various science-based ], clubwear also part The Bright. Trapstar, brand, went Stockholm, Polish site, London, British Equestrian misbehave, verticals, riding [ lifestyle many a brand Bionic horse and brand, VCollective brand, the and swimwear live including many spare EloParts brand, Rover U.K.-based Swiss the [

fast to Examples Harold's planned leading our the this our Kong, online more more Japanese year. every Asia the a to integration of globe, in our would further around and iconic the world's domestic holiday in watches fashion activity brand, chosen share the Harrods, global last with brands we customers sites via sales, Harold's Through in the including platform. biggest and luxury QX, preowned growth gained for sports large leather France fashion and the to exhibit famous for Australian Rose sales. and Ragtag Choupal several list launch Raban front, brand well to the Dish, the Japan their [ is planned brands. Hong Pacific go to time brand, launched experience be on -- U.K. this portfolio just Kong-based in platform localized as the in our Switzerland. most their and designer, and brand, of probably and their APAC-based merchants support fully -- of the Long scale, on the Capon merchant of growing jewelry delivered the fashion news the of and launch DmitX. Derrick saw Sham additions luxury the store customer in recent gear the also department in But in top-of-the-line traditional shopping Howell Hong stores QX U.K., Korean setter, by luxury ], web Most brand, Margaret Paco the notably, continued the

forward the online to Harold's and together business with the excited years. them much extremely supporting We coming growing are very look to over of be

motion. Apart our groups and of as expand existing from new continue we the our brands to also activity expand as launch part with merchants, always, and land of

the the Secret, planned. During remaining Victoria's with thereby phase added completing the quarter, we launch all lanes as

luxury Disney went support Fashion the with on XX store. we brand go ], fashion hour brand with the Group. Chelsone LVMH with design with Swiss went the the Zealand markets of brands Group In brands, with [ third for also of APAC and to Brands three to live form brand New Group. that us brand, the Holy we of Went France, live swimmer live list We brands work live Australia [indiscernible], well as live the added go in within the out second more Billabong, [indiscernible] the expanding the with iconic as the further Liberated and

new demand serve. across all With year geographies services an strong for to merchant we at verticals all-time our bookings see continue high, and this we

road Moving on to map. our additional some of elements

managed Shopify planned new out as released the prior to support We more on payment markets, more and to develop markets. merchants allowing with generate alternative upgrades orders merchants quarter, sell to products thousands the our which to algorithms, past capabilities it. provides international new which new Among roll features continue we're add to order analysis for merchants editing, and using automated catalog grow several methods, its to ability to and great this of continues value the to fulfillment,

Trans leader, transformation During QX, digital Cosmos. we also with our strategic partnership expanded the

successful of our work clients. also Cosmos we Following have to together Korean to support with Trans our their we cover Japan, partnership online joint work Korea, in the South where extended will growth international

international their can an over innings, fast-growing fashion participating many you shoppers supported with that up media happy reward I'm our take offering, Ofer spearheaded on discovery I Borderfree.com. value journey the And tapping on online launched that mass up portal provide an merchants. and planned, but by have the launch, already starting we activity who by early over in to guidance demand level recently our now more detail for and which our very through wear cashback generation portal. present merchants world grow of remainder portal time, it to will increased across and into hand These already of as announce our products engagement displaying is year. generation and that, the a their the to the updated campaign, are brand see offering. believe for figures of merchants signed multiple the Hundreds of now the of channels the shopper we quarterly to and the demand will Borderfree.com, already well. our launch on more Borderfree.com by campaign to as still Based out-of-home revamped signed Finally, and on offering the The and

Ofer Koren

thanks call. of on joining Thank earnings all today our you, you Amir, and us for

both our with pleased contribution are driven the that was QX, In the third margins. merchants accelerated by strong growth combined successfully to launched like We with new we addition results, September. in discussing certain and improvement point results. as that planned. be to and of in sentiment I'll onboarded an consumer out GAAP also I'd our as non-GAAP performance in quarter. of healthy experienced The growth

of $X.XX reconciliation financial XX% our an quarter. GAAP year-over-year, between GMV billion Our QX, the can with in our GMV, midpoint increase to of results, grow for we the be generated GAAP non-GAAP and along as of earnings found X% rapidly results in continued the guidance release. over

volumes launched, were sentiment growth on by as fueled by strong side merchants the and of trading consumer positive new generated upper of September our was Our GMV which expectations.

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

balanced characterized demand service Non-GAAP account, by margin services decreased gross same profit from QX line margin In XX.X%. non-GAAP rate the was the million, of provided year, quarter and profit increased high XX.X% QX, fee was last Ted take XX% of $XX.X generation driven Services growth. loss operational in growth. rate This $XX.X a to million, profit with Fulfillment a gross take up gross period QX, a once by again due of by had representing which non-GAAP year-over-year, favorable was outpaced we driven compared XX.X% GAAP to services Baker compared take the rate to top mix. efficiencies. gross representing slightly

operational to expenses. on Moving

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

we the also expenses, expense, compensation marketing acquisition-related continue to in We Shopify-related and amortization $XX.X and and $XX.X were revenue expenses sales in excluding sales invest $XX.X for amortization continued or amortization ahead. X.X% pipeline see period strong was of stock-based revenue marketing, Shopify year. last the was million. a and of Sales XX.X% million same quarter $XX.X intangible to marketing to and Total compared or million million. warrant-related expense

from $X.X of G&A compensation revenue or or Adjusted loss administrative was an a million $XX.X period Total the was General QX margin, and items close the year by the believe to We be the $XX.X of the margin million, net related mentioned, despite to increase stock-based of the ago QX, mainly I period. $XX.X to adjusted loss intangibles. million breakeven that Net last growth to last warrant the net EBITDA million $X.X a Shopify X.X% a consideration spend impact was in excluding expenses, representing peak XX% and the $XX.X our compared thanks in EBITDA just in the million. million same and contingent to transaction-related acquisition-related year. we amortization The is revenue. X% totaled period same in driven expenses $XX.X by in will period. trading loss XX.X% million of of and compared year.

in to related significantly our profitable Shopify GAAP year. to to track making awards GAAP turn expenses amortization the the mid-XXXX, ending As are expected December profitable XXXX first-ever and believe on in April we XXXX XXXX, are decrease we

cash and Switching and sheet gears turning flow statements. the to balance

$XXX ago. $XX.X We by continue with in million $XX.X the including securities. quarter. generate quarter short-term to cash generated Cash marketable deposits cash was to flow activities a cash, operating million million year in and ended compared equivalents, the We

outlook. financial our to on Moving

for be guidance the guidance. growth billion. XXXX, midpoint billion QX we and in $X.XXX are full to QX a of this In versus the expecting of introducing the range, represents year XXXX. QX to of XXXX rate $X.XXX GMV are We range of At XX% raising our

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

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

growth million, of $XXX.X $XXX.X midpoint the is to expected the million XX% be now of of range $ rate the billion, now a at $X.XX annual we For $XXX.X a growth range now anticipate XX% XXXX, representing in of range. EBITDA, be expecting are Adjusted billion raising Revenue at XXX.X the the $X.XX range. growth middle year of representing rate the guidance million XX% of profit representing at a million, of range. the to to point the we're the of of midpoint to and full in a our GMV to

the opportunity their around and grow Amir of with we growing cash We continue to have. and direct enable to on immense are can the And happy the remain focused potential answer you generating consumer might free unlock believe conclusion, global merchants continue questions rapidly before globe we In years that, us execution as is Operator? flow ahead. while I to businesses. to

Operator

Ladies now Instructions]. and will [Operator gentlemen, we begin question-and-answer the session.

first Your with from question comes Nance William Goldman Sachs.

William Nance

note, the EBITDA. And to I was outlook EBITDA that for It hear if was of great outlook. just -- was conversion coming could profitability very and cash margins just in ready strong. on on wondering you commentary flow I free the talk wondering the

I free fourth then first conversion quarter you've quarter. elevated very the dips in and in flow think it historically, had some cash

Just that that's and seasonality wondering if expect. still you could something speak we if to should

Ofer Koren

we QX It's free flow, the EBITDA is It's full cash flow. QX you of have in that and to put the look the flow quite and mentioned, quarter we Sure. seasonality in other aside Thank quarter. free QX year you, a the in cash the typically we cash around. Ofer. is standard. in as strong we above and Typically, levels. tends do Generally slowest in QX speaking, at and slightly positive capital way expect adjusted typically be very that, flow Yes, terms peak And to in season terms when seasonality, cash of very due the Will. strong flow. But cash do a free around working QX have are particular. QX

William Nance

power rolled product announced And get store. the product that's full of to and in you're wondering years. with about on sure I'm just very enhancements, just thinking buy pricing of enhancements, That's client the operationally great all the year to product next to hear low how reception if Great. the I'm pricing talk couple and pickup out. over helpful. on you intensive kind the that some very number, could you

Nir Debbi

for Nir. question. it's Will, you Thank the

So our of mentioned those and we've first seen a client. them out few we in continue Amir from solutions shops in We rolled product in great to our invest BOPIS large traction -- with that in shop enterprise enhance the the Canada. the

We of a a aiming have to them order physical we network And experience. also multichannel are more of customer that to service global enable to retail clients do great the for in global Drover our optimize trade in enterprise we released to to many We it do global product other market that. to do recently in we just program, merchants for Duty to cost fields. the of the enhancement drawbacks duty a such with lot as continue intend the provide and

Some of take as more we can build inherently, the increase rate. it, capabilities, we slightly

service. we example, new duly reclaim for can because expenses a adopt They For returns. duty no it. drawback, save [indiscernible] is Basically, on out-of-pocket money there money merchants it's them. now

a it. we of cut However, take out

we able yes, rates. So to increase are take our

However, our as an increase fee. merchants does see not in it

create and contrary, for the saves costs On efficiency them. it

happy that of general, interest So places, In on rates at the of such the media the merchants our to expect buying we difficult understand to cost the them, our we are are cetera. don't prices. increase future a going extra et time, We margin. enjoy out foreseeable for

are So make them for we to efficient to trade, or trying pricing power. do more utilizing it trying it to not

Operator

from Wells Andrew Your Bauch question next Fargo. comes with

Andrew Bauch

that how demand opportunity are? past big their mentioned some you've of to sense would on uplift. that be? frame the pipeline the could demand be we The on there. there. hit would weight kind activity Can are What gen in merchants just these gross reconfirm believe levels the dollar margin And put you you in a anticipate merchants if to I of us you that you wanted Maybe a give said gen Just hundreds platform. could that

Nir Debbi

thank Andrew, Nir. you. It's

launched recently we've our as initiative Borderfree.com, yes, generation for partner demand for mentioned, you brands. a cornerstone As

still -- While so its innings. in still in its early it's

potential grows the also it it. additional an of excited in in have years. start adopt to our to the and And coming that of they years, generate on coming very are effect to contribution we out take our ability it believe We brands long-term will the as it,

making in term, we penetration for be sure short would create the the value product and focus quarter, about the in that coming think of our I brands. our the

traffic. in increase seeing are We

We more came that than brands hundreds in of of a have and registered. couple already

most On of already. areas midsize, the the that them, joined

stage, rate more our that the top will don't line. clients it out rates think will we demonstrate to coming building in. any value coming that are I start quarters, adoption I and we we're as we will take and create, of merchants, we there. more gain bring value to it once we impact the and I more traction able think have see we our it to some At more our can and see traction on into of and believe might or the see the this

Andrew Bauch

about 'XX from mean But we follow-up, perspective, I was just plan. Great. also markets And managed to want year the then I far adoption guess for that ahead? time of we Last as that could markets. plan? spoke, you think product kind managed And talk think it about ahead that is do tracking what on I mentioned of tracking my believe a in ahead further of you is as as

Amir Schlachet

next Yes. product it's expect traction you indeed same And into to is gradually continue year new and And that, base, tracking within adding merchant It's continuing said, trend goes and it's features that as well. the capabilities. as the to the to gain new improves. market thanks Shopify we for managed Amir,

So as well. we expect to the merchant improve adoption curve

Operator

from of comes Koji America. Ikeda question Next Bank with

Koji Ikeda

question a guide GMV ask to the for the fourth wanted I quarter. on

big kind looking at It's year, absolute GMV guide, Just the When net was to in implies the the of million at I about XXX. up number. do XQ that pretty That's of XX% midpoint look add year-over-year. up sequentially. sequential is a $XXX GMV XX% adding last

So I there that know growth was before.

you hear that launches all trends news all giving kind just bit here. are in what that's confidence you the and I in So quarter-to-date the the transaction But there. seeing a good to in the dig you more little on guide? Definitely wanted of

Ofer Koren

drivers all behind the you fair. Thank it's that, there our what QX Koji, are around that built for we that, Yes. guide. Basically, two confidence have basically seen,

launches of mentioned, throughout you United the is, out half ones, and we did year. Harrods Secret, some obviously the the including Victoria's others. larger had one call many the second and first of merchant the merchants, of We as some names, that the successful The [indiscernible]

those have of side on we trading they're trading plan. the And our basically, They're expectations. higher So on mentioned, launched as well.

strong So driver. is this definitely one

which second surprisingly continues second improved as consumer mentioned be half, sentiment terms is previous softness the The in stable, first was half volatile to deep sentiment. one the the -- July the going August. consumer very into unlike we saw the in quarter, of in and We

picked very November. However, nicely and the in September, of it up and that continued beginning through October

So our as be be and we know, may this is control, may -- continue volatile. to it out of

We haven't growth. have we the also what incorporated numbers to that and also past encouraged the we we the but much are highest compared August, driving saw month more is of in that two, some seen in or

Operator

question Scott with Needham. comes from next Your Berg

Scott Berg

bookings near, like was You larger looked about we the guess really that a but but company know bookings Have you premier two don't it's to as number, quarter what or composition typical. launch with know going me. be for I that think at here. really quarter growth all? if know We'll I launch and fourth I and year-to-date. nice your year-to-date, that on large went the well, your start than have and revenue I revenue of retention landed year, a has last shifted get net

over bit versus expansion but historical if that strong might the seeing year. XX a Try cadence this Just little laid activity XX, have didn't time. be the know big lane, more small, with markets customers you're really XX,

Nir Debbi

Scott, it's Nir.

results we very So are with year-to-date very, on bookings. happy the

We of are record a at bookings. level

for single signing few gave great market our of seen going over multi-local local all the the momentum only the the have strategy. took Victoria's but global market market, as with not large outside domestic us in markets, also distribution specific most global U.K. markets, and We of part which e-commerce live, enterprises of actually a the where we in hard distribution Secret, in

multi-local the have market we've seen Manchester of as strategy. local only also expansion, the part same United, not but We the the global also where taken with

even positive a I see -- it. do they of effects robust virtually we e-commerce think actually that large XXXX. almost merchants e-commerce part global also So give see the of everything with pipeline do And as have launching and domestic on to we looking into that

We the in staying very into deals We of stages the conversion with are optimistic funnel. see leads strong. advanced

So we're continue also into XXXX. going is quite optimistic this to going

Scott Berg

Very more led but going were down then, much be QX sustainably noted helpful. and if expenses than that down modeling G&A forward? a they And that seen year, about seasonal on to of what Anything rate to next lower really more trying we've nature, I'm might for kind were that? think Ofer, a historically. you into quarter-over-quarter, just

Ofer Koren

one-off Yes, it one-offs expenses, we of had timing, some some to related QX. some really in

to representing base, So think the can quarters. between growing, as you quarters, But at basically, the going in should something look this grow I midpoint you as this or pace QX a the maybe and time. look -- forward. between expense be . if at over the middle X Obviously, we the are we expect

Operator

question from Your next comes Jefferies. with Samad Samana

Samad Samana

what first, next think are should from what going embedding take back you're think rate quarter about should that that I year? Borderfree.com, to thinking we guess into the the maybe there and anything, implications how about just launch? If you're through expectations and Maybe we how XQ into fourth

Ofer Koren

expenses It's Ofer. QX, yet. that. embedding to In don't associated the expect are launched we revenue are with related Borderfree.com, product. any There see to mainly have We some we

is Currently, for mentioned, create Nir merchants their objective the and our to main As this confidence in survey. value create

in year, of on already significant least into line. the expenses first say guide. in top service. have half I embedded So QX term, at the the would do next We going It's and again, short related the nothing some that to the

Samad Samana

I the this as live as and but guess, the be you based I But in it to was booked, question merchants it are is bookings we then launch wait And about know this you're imply looking point, go-lives, you if half major well. the large comment that how the last the think XXXX other Great. there case is And it in seasonality Does go year. similar just that that thinking is that mentioned prior maybe Harrod first in that XXXX? XXXX? like that -- I at we'll should in should about of

Nir Debbi

As have pipeline. you understood, a we do robust

is in advanced signed, stages. it of Some not already only

launch are They those would material XXXX we we the I for I year expect, half. that do as we've projects versus in to a would this start But this see would but in in see change don't would new what say, QX, don't think it not significant think couple of I have launch contribution motion. QX, sized see that of in merchants. seen it merchants So to rise. the we think we timing any year. of we nice I first as would in

Operator

next Faucette question from with Morgan Your comes James Stanley.

James Faucette

wanted to take ask quickly rates, I of clarification a bit Great. on there. little

one last stable about Baker which last both mentioned fulfillment, you of had But And quarter. fee drivers you with versus was think the the And compressing AOV to of quarter, increase Was to term? should a them ]. similarly when trajectory near acreage. alluded not broad-based quarter? this factor how over fulfillment a medium You the take services decel strip that in [ have then out, to slightly Ted been service as rate of up maybe we

Ofer Koren

question. the James, it's you for Thank Ofer.

going we the debt see main the aside, when Baker the And from stability stable quarter. that terms And you expect as side account. basically, fee rate, In yes, we quite forward. on to that of impact service put mentioned, is take were this we

there than fee different so the are rates, more take much and forth. so because fulfillment service mix, on and it's parameters of terms always, impacting multi-local as In AOV, volatile

met It had expectations so actually we that positive positive our at quarter, impact. expected, mix, had was a but or This it reality reality was our expectation. a

-- QX. actually an of terms AOV slightly decreased in In

and we try So look to trend rates When QX from a we forward the take think would be. haven't fulfillment continuing. what seen

embedded which would I a for as lower think good a pace in year. are rates, take QX that bit next guidance our be

This quarter is we ongoing slightly rate there. higher than as see the what take

Operator

next Chris Zang from . with Your question comes UBS.

Unknown Analyst

in terms merchant On QX what's your embedded launches. in of guidance

ramp-up fourth our the easier on. merchants, during markets, have and new the based a pattern is managed about visibility year. lot then turn quarter you part it's also throughout But even for. merchants season. you number of completing understanding, merchant better of So turn other smaller since wondered launch the onboarding holiday shop have the the for you've for supply throughout And markets this [indiscernible] assume on a quarter, continued just the talked those you the year, managed last to mid-size I what's Do more last expect shopping a rest it it's merchants of fourth of of

Ofer Koren

Yes.

So thank for Ofer. the you It's question.

generally every the in as October. year, the around speaking, that, less significant calendar on think we see typically launches I

us the larger into is or November. a few decent into goes generally wouldn't sized after We because once or preparing everybody October is season. have then smaller merchants that. see peak you for behind also do after onboarding merchants peak speaking, some typically, go everybody season. Sometimes, merchants the going launching But the the And holiday

the nothing February. December, work that typically, back launches mid-January, a you to significant as start we merchants few see and seeing, So of results. but prioritizing beginning would in then of this sort impact And of getting again, project

the towards in additional see of end launches coming QX and you QX. typically, So

the be is So and we as seeing standard what now are well. that this would cadence

Operator

next Your Brian Raymond comes with from Peterson James. question

John Messina

And How sales to brands larger with on of with platform, larger enterprise could journey is be trended here, for the the and versus I cycles wondering And attracted seasonality does the cycles? in if that helping was sales and follow-up. you wanted then is timing as customer certainly I for year? have This to maybe that you quick Brian. have the sales speak each ask there's is to different the pace customers. the I to cycles? of a holidays going on John earlier realize

Nir Debbi

you Nir. the It's question. for Thank

for traded stable launching enterprise quarter. et to into cetera, be improvement. much we do that additional enterprise an over a and potential large enterprise with as experience going generates the we it our -- from see getting will different. cash It's much think think last other the, a I yield. positioning materially It don't multiple enterprise, sell improvement us it or sharpened multiple comes factors factors. X We years, takes I the on around launching complexity X gaining in of it months, cycle all the merchants. of depending It's the cycle and the timing X the asks. X sales The realm say, phases, on due I clarifications an more client. stability, would as to in onboarding over did a clients, see of sales financial So months, and the depending quicker X company, on the that would their typically months, company be publicly the runs every

most [indiscernible] the will the funnel. sales clients, XXXX of in So enterprise are clients would and we already launch XXXX in

are signed. earlier, Some of as them, said already I

on year. the throughout see them converting and advanced the in stages. to of we of launching early back will are And them it, Some

John Messina

seeing there then Great. added I That's markets. on for managed how managed vision update any size follow-up you changing more color pace of just share commentary the features could And really on as you're And if a any also, merchant good. wondering maybe the merchant markets. there? earlier was on maybe on you've

Amir Schlachet

is they a these and a applicable the Yes, that We Amir. number very just somewhat the as various slightly out and gradual merchants step-ups, gradual and roll are Yes, improvement it's processes major joining, we more don't to very sure. pace kind merchants. we This tenuous of as more larger increase expect also do of but dependent features in of see are expected, on because gradual collection are any features. how

Operator

Patrick from Citizens next Your comes Walravens with JMP. question

Patrick Walravens

would do Congratulations. we end think Amir, higher your how in be and getting impact States. on about if up United the the tariffs what tariffs universal we business potentially possible

Amir Schlachet

a good it's Pat, question. Yes.

position. it two from our think has sides to I it

unreasonable -- let's it of but the goods trade we with in buy not be that will not tariffs to impact the the sell. extremely On for or high other merchants as merchants of is U.S. overcome it the and probably to for for scale, points there type We that shoppers say, hand, the helping mainly should U.S. price barriers. believe tariffs, one they the to out it to that hand, we're obviously, as on grander harder business higher the deal be make that the detrimental remember are of long important

additional to world. case, U.S. make want our markets that barriers way, this trade biggest in more the actually the serve as offering in the a for e-commerce valuable in the So in the form merchants of tariffs

so overcome service challenges side had made depending for from. import more that selling at of on Brexit for U.K. it was market, much merchants you good change the the into it's our if which were European So a like to examples because and the that for export took historically, rules now like we've additional introduction Brexit take other them merchants our valuable look into business. on we everyone the prior a But Yes, U.K. hit. hand, or seen

in forward. general, assumption that's . our So going

Operator

[Operator Instructions].

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

Madison Schrage

to generation going again. are back right you incurring recurring now be of for I just portion the then wanted if are onetime additional go these U.S. demand or if expenses goals that seems second to guidance. do guys Wondering the the expenses geo callouts. geo expenses are kind strong, And to are any baked Obviously, question my into to there penetration. you, but

Ofer Koren

for Maddie, it's question. Ofer. the Thanks

Regarding the gen. is ongoing demand They're there launch, but there to expense obviously, be expenses will around related not the onetime higher expenses.

expenses will Borderfree.com, to there going We traffic so are be this forward. promoting product

on -- of second terms your In question.

Nir Debbi

Yes.

and the expect in to demand what spend will on level going not see of today. marketing clear, be forward, difference do in of Just from rate we you create investment any sales generation, material the

Ofer Koren

as the have I rise. was the But the the pretty second around same the down Europe really the globe. base When question, mentioned, call at at was it we of I look Ladenburg, And sentiment regarding year-to-year. would as time, the a out consumer low. can that that you highest part mention I better But seen continent

seen have least only terms in base. we doing low trade [indiscernible]. the very destination a not Europe, well the in good market. at currently of Europe is So It's

Operator

next with comes question Your Zgutowicz from Mark Benchmark.

Koji Ikeda

in of just But $XXX of roughly I'm jumping target a had Shopify year. from $XXX I'm was if to And managed just apologies you for asked. this another curious, the markets, terms million earnings call.

Just range. contribution into coming between perhaps you that just expect and see GMV next of that your is there's the related curious if as at the in lower yourself? can higher if talk co-promotion GMV maybe Shopify year to versus more you pickup end the perhaps And about

Ofer Koren

Yes.

the for So thank you question.

within at we looking range that this I are at mentioned. year, we the think range, but not and I range not broad the the are top

And offering in. step expect as well so we change, this as to planned. grow. it's going adds This mentioned merchants continue We to any and of in already pretty see going expect expect but to regarding see we XXXX, continuous call, we don't do forward, is the coming do

Operator

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

Amir Schlachet

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

global the staff onboard support just preparations existing make worked that to I for this necessary also of our of direct-to-consumer clients serve take Before them and would our all-important fully all trading thank global past vision and your to globally the over who and to the have merchants ensure our all all will thank to we all new transform to would peak shared like and world the conclude, of support opportunity belief amazing period. your be to e-commerce. to to you during ready their tirelessly months like I members merchants ongoing

path take we would that and happy the and globally, calls look capture our rapid holiday to holiday again at you to opportunity season, all exciting a Until of I successful very the of of goodbye period into all head here to on ahead next as behalf us much like continue care. we forward lies to on As updating us. we wish time, our and you and immense you and

Operator

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

Global-e Online (GLBE) 20 Nov 242024 Q3 Earnings call transcript