Global-e Online (GLBE 0.02%), which operates a platform facilitating cross-border e-commerce, released its first-quarter results on May 20. The most notable point was that revenue rose 24% year over year to $145.9 million, which exceeded the high end of management's guidance range. Similarly, gross merchandise value and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) grew significantly and topped guidance. On the bottom line, however, it remained in the red, and while its net loss did shrink year over year, it is still concerning.
| Metric | Q1 2024 | Q1 2024 Guidance Range | Q1 2023 | % Change |
|---|---|---|---|---|
| Revenue | $145.9 million | $138.5 million to $145 million | $117.6 million | 24% |
| Gross merchandise value | $929.5 million | $875 million to $915 million | $703.9 million | 32.2% |
| Adjusted EBITDA | $21.3 million | $16 million to $20 million | $14.5 million | 46.8% |
| Net earnings | ($32.1 million) | N/A | ($43.1 million) | N/A |
Source: Company data from company. Guidance from Q4 2023 earnings report.
Quarterly highlights
Global-e Online's platform makes it simpler for international shoppers to buy online and for merchants to sell globally. Recently, its strategic priorities have included investment in new technologies, particularly in support of expanding its footprint in North America and Europe.
Key initiatives and achievements during Q1 included platform capability enhancements and new brand launches across markets including the U.S., Canada, U.K., France, Germany, and Australia. The company also debuted an automated customer service chatbot powered by OpenAI's ChatGPT aimed at improving customer interactions and reducing service workloads.
The company noted that its ongoing partnership with Shopify -- a core part of its strategy -- continues to expand, and that the Shopify Markets Pro initiative is seeing encouraging adoption rates. Also worth noting is that its margins are improving as the business grows: Non-GAAP gross margin was 45.3% in Q1, up 390 basis points from 41.4% in the prior-year quarter.
Looking ahead
Management remains cautiously optimistic about the company's growth prospects. For the second quarter, it expects gross merchandise value in the $1.03 billion to $1.07 billion range, and revenue in the $162.5 million to $168.5 million range. Adjusted EBITDA is anticipated to be between $24.5 million and $28.5 million. For the year, it boosted its GMV guidance range by $40 million to between $4.63 billion and $4.87 billion and its annual revenue forecast by $2 million to a range of $733 million to $773 million.
Investors should closely follow Global-e Online's continued geographic expansion and platform advancements. Key areas to watch include the scalability of its platform, and the success of its strategic partnerships, especially with Shopify.
