With the business potentially at an important milestone, we thought we'd take a closer look at Global-E Online Ltd.'s (NASDAQ:GLBE) future prospects. Global-E Online Ltd., together with its subsidiaries, provides direct-to-consumer cross-border e-commerce platform in Israel, the United Kingdom, the United States, and internationally. The US$5.9b market-cap company announced a latest loss of US$76m on 31 December 2024 for its most recent financial year result. Many investors are wondering about the rate at which Global-E Online will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
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Consensus from 13 of the American Multiline Retail analysts is that Global-E Online is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$46m in 2025. Therefore, the company is expected to breakeven roughly a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 61%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Global-E Online given that this is a high-level summary, but, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Check out our latest analysis for Global-E Online
One thing we’d like to point out is that Global-E Online has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
There are too many aspects of Global-E Online to cover in one brief article, but the key fundamentals for the company can all be found in one place – Global-E Online's company page on Simply Wall St. We've also compiled a list of pertinent factors you should look at:
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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