• Q4 Revenue: $263 million, up 42% year-on-year.
• Q4 GMV: $1.71 billion, up 44% year-on-year.
• Q4 Adjusted Gross Profit Margin: Nearly 46%, up 330 basis points from last year.
• Q4 Adjusted EBITDA Margin: 21.7%, representing $57.1 million, up 62% year-on-year.
• Q4 Operational Cash Flow: Nearly $130 million.
• Full Year 2024 Revenue: Almost $753 million.
• Full Year 2024 GMV: Close to $4.86 billion.
• Full Year 2024 Adjusted Gross Profit: Nearly $350 million.
• Full Year 2024 Adjusted EBITDA: Approximately $141 million.
• Full Year 2024 Net Operating Cash Flows: Nearly $170 million.
• Cash and Cash Equivalents at End of 2024: $474 million.
• Q4 GAAP Profitability: Achieved for the first time since IPO.
• 2025 Revenue Guidance: $917 million to $967 million.
• 2025 GMV Guidance: $6.19 billion to $6.49 billion.
• 2025 Adjusted EBITDA Guidance: $179 million to $199 million.

• Warning! GuruFocus has detected 5 Warning Signs with BLCO.

Release Date: February 19, 2025

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

Positive Points

• Global E Online Ltd (NASDAQ:GLBE) achieved record-breaking financial results in 2024, with Q4 GMV reaching $1.71 billion, a 44% increase year-over-year.
• The company reported a significant increase in adjusted EBITDA margin, crossing the 20% mark for the first time, reaching 21.7% in Q4.
• GLBE achieved GAAP profitability for the first time since its IPO, marking a major milestone.
• The company expanded its total addressable market by increasing its global footprint from 9 to 39 outbound markets and launching new offerings.
• GLBE continues to innovate with AI-driven solutions, such as a customer service chatbot and AI-assisted localization tools, enhancing operational efficiency and customer experience.

Negative Points

• The company anticipates a deceleration in revenue growth due to expected impacts from tariffs and a shift towards multi-local strategies by merchants.
• The take rate is expected to decline in 2025, driven by large merchants adopting multi-local strategies to manage cross-border tariffs.
• GLBE experienced a negative impact on its GDR and NDR rates due to the bankruptcy of Ted Baker and some Borderfree merchants not replatforming.
• The company faces challenges in maintaining high net revenue retention rates as it scales, with expectations for slightly lower retention in 2025.
• The suspension of the de minimis exception rule in the US could add complexity and impact volumes, although it may also drive more merchants to the platform.

Q & A Highlights

Q: Can you explain the deceleration in growth from Q4 to Q1 2025 despite strong Q4 performance? A: Amir Schlachet, CEO, explained that the expected slower growth in Q1 is due to anticipated effects of tariffs imposed by the US and trading partners, which may lead merchants to adopt strategies that lower take rates. Additionally, large merchants onboarded in late 2023 are skewed towards Q4 performance, impacting subsequent quarters. (Amir Schlachet, CEO)

Q: Are merchants already changing their fulfillment strategies due to tariffs, and how is this affecting Global-E? A: Nir Debbi, President, noted that merchants are indeed considering changes due to upcoming tariffs, with many looking at Global-E's solutions like Re B2C or multi-local strategies to manage costs. This shift is expected to impact take rates but could also attract new merchants seeking efficient solutions. (Nir Debbi, President)

Q: What is the outlook for net revenue retention and new merchant contributions in 2025? A: Ofer Koren, CFO, stated that net revenue retention is expected to be similar to 2024, though slightly lower due to scale challenges. The company has a strong backlog of new merchants expected to contribute throughout 2025, although no single merchant is as large as those onboarded in late 2024. (Ofer Koren, CFO)

Q: How is the suspension of the de minimis rule for duty-free goods under $800 expected to impact Global-E? A: Nir Debbi explained that the suspension could increase costs for merchants, leading to more interest in Global-E's services like duty reclaim and Re B2C. While it may affect short-term consumption, it could drive more merchants to Global-E for solutions, similar to the impact seen with Brexit. (Nir Debbi, President)

Q: What are the expectations for take rates in 2025, and what factors could influence them? A: Ofer Koren mentioned that take rates are expected to decrease due to higher multi-local share driven by tariffs. However, faster penetration of value-added services could support take rates, while a higher share of multi-local could negatively impact them. (Ofer Koren, CFO)

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