• GMV (Gross Merchandise Volume): $1.134 billion, up 35% year-over-year.
• Total Revenue: $176 million, up 32% year-over-year.
• Service Fee Revenue: $82.6 million, up 32% year-over-year.
• Fulfillment Services Revenue: $93.4 million, up 31% year-over-year.
• Non-GAAP Gross Profit: $82.3 million, representing a margin of 46.8%.
• GAAP Gross Profit: $80.1 million, representing a margin of 45.5%.
• Adjusted EBITDA: $31.1 million, representing a 17.7% margin, up 41% year-over-year.
• Net Loss: $22.6 million, compared to a net loss of $33.1 million in the prior year.
• Cash Flow from Operating Activities: $30.3 million.
• Cash and Cash Equivalents: $359 million.
• Q4 2024 GMV Guidance: $1.615 billion to $1.685 billion, growth rate of 39% at midpoint.
• Q4 2024 Revenue Guidance: $243 million to $255 million, growth rate of 34% at midpoint.
• Q4 2024 Adjusted EBITDA Guidance: $51.5 million to $57.5 million, growth rate of 55% at midpoint.
• Full Year 2024 GMV Guidance: $4.76 billion to $4.83 billion, growth rate of 35% at midpoint.
• Full Year 2024 Revenue Guidance: $732.9 million to $744.9 million, growth rate of 30% at midpoint.
• Full Year 2024 Adjusted EBITDA Guidance: $135.2 million to $141.2 million, growth rate of 49% at midpoint.

• Warning! GuruFocus has detected 6 Warning Signs with WIX.

Release Date: November 20, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Global E Online Ltd (NASDAQ:GLBE) reported strong third-quarter results with GMV and revenue growth of 35% and 32%, respectively, exceeding guidance.
• The company achieved an adjusted EBITDA growth rate of almost 41%, surpassing the midpoint of their guidance range.
• Successful launches of new merchants and improved consumer sentiment are expected to drive further growth in Q4, with a projected 39% year-over-year increase.
• The company continues to innovate with new features like BOPIS (Buy Online, Pick Up In Store), enhancing multichannel reach and shopper experience.
• Global E Online Ltd (NASDAQ:GLBE) is investing in AI-based capabilities, improving product classification accuracy and operational efficiency.

Negative Points

• The loss of the Ted Baker account impacted the service fee take rate, causing a slight decrease.
• Despite strong performance, the company reported a net loss of $22.6 million, primarily due to amortization expenses related to the Shopify warrant.
• There is seasonality in cash flow, with Q1 typically being the slowest quarter in terms of cash flow generation.
• The company faces challenges with consumer sentiment volatility, which could impact future performance.
• Expenses related to the launch of Borderfree.com are expected to continue, potentially affecting short-term profitability.

Q & A Highlights

Q: Can you discuss the seasonality of free cash flow and its conversion from EBITDA? A: Ofer Koren, CFO, explained that there is seasonality in cash flow, with Q4 typically being strong due to peak season and positive working capital, while Q1 is usually the slowest. Over the full year, free cash flow tends to be slightly above adjusted EBITDA levels, and a strong Q4 is expected.

Q: How are clients responding to the new product enhancements like buy online, pick up in-store (BOPIS), and how does this affect pricing? A: Nir Debbi, President and Co-Founder, noted that the BOPIS feature has seen great traction, particularly with large enterprise clients. While new capabilities can slightly increase take rates, they are designed to save costs and create efficiencies for merchants, rather than increasing fees.

Q: Can you provide more details on the demand generation platform and its potential impact on gross margins? A: Nir Debbi mentioned that the Borderfree.com platform is in its early stages, with hundreds of brands already registered. While it is not expected to impact take rates or top line in the short term, it is anticipated to contribute to gross margins as it gains traction.

Q: What is driving the confidence in the Q4 GMV guidance, given the significant sequential increase? A: Ofer Koren highlighted two main drivers: successful merchant launches, including large names like Victoria's Secret and Harrods, and improved consumer sentiment since September, which has continued into October and November.

Q: How are sales cycles for enterprise customers trending, and is there any impact from attracting larger brands? A: Nir Debbi stated that sales cycles have improved over the last few years due to increased experience and the company's stable financial position. Typically, sales cycles for large enterprises run around six months, with launches taking three to four months.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.