Global-E Online Ltd.

Greetings and welcome to the Global EVE fourth quarter and year-end 2021 earnings call. This call is being simultaneously webcast on the company's website in the Investors section under News and Events. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during a conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded For opening remarks and introductions, I'd now like to turn the conference over to Erica Mannion at Sapphire Investor Relations. Please go ahead.

Thank you, and good afternoon. With me today from GlobalE are Amir Shloket, Co-Founder and Chief Executive Officer, Ofer Karan, Chief Financial Officer, and Nir Devi, Co-Founder and President. Amir will begin with a brief review of the business results for the fourth quarter and year ended December 31, 2021. GoFundMe will then review the financial results for the fourth quarter and year ended December 31, 2021, followed by the company's outlook for the first quarter and full year of 2022. We will then open the call for questions. Certain statements we make today may constitute forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Safe Harbor Provisions of the U.S. Private Securities Litigation Reform Act of 1995 that relate to the current expectations and views of future events. These forward-looking statements are subject to risks, uncertainties, and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including those set forth in the section titled Risk Factors in our prospectus files with the SEC on September 13, 2021, and other documents filed with or furnished to the SEC. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this call. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance, and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise, after the date on which these statements are made, or to reflect the occurrence of unanticipated events. Please refer to our press release dated February 16, 2022 for additional information. Certain metrics we will discuss today are non-GAAP metrics. The presentation of these financial information is not intended to be considered in isolation or as a substitute for or superior to financial information prepared and presented in accordance with GAAP. We use these non-GAAP financial measures for financial and operating decision making as a means to evaluate period-to-period comparisons. We believe that these measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making. For more information on the non-GAAP financial measures, please see the reconciliation tables provided in our press release dated February 16, 2022. Throughout this call, We provide a number of key performance indicators used by our management and often used by competitors in our industry. These and other key performance indicators are discussed in more detail in our press release dated February 16, 2022. I will now turn the call over to Amir, co-founder and CEO.

Thank you, Erica, and welcome, everyone. Today marks our third quarter as a public company and our first Q4 reported one. This is an exciting chance to reflect on what an unbelievable year we've had. We finished the year with the strongest quarter in the company's history, continuing our consistent trend of delivering growth and strong execution against our ambitious targets. During today's call, we will review our Q4 and full 2021 results, update you on the exciting developments going on in the business, and provide guidance towards what we expect to see in 2022. Starting with Q4 results, I could not be prouder of the Globally team for producing yet another record quarter, despite the tough year-on-year comp as we lapped last year's COVID-impacted holiday period. For the first time in our company's history, we surpassed half a billion dollars in quarterly GMV, with $505 million generated in the quarter. Together with our strong execution in the previous three quarters, annual GMV summed up to $1.45 billion in 2021, delivering more than 87% growth versus 2020 GMV. Revenues followed a similar trend with $82.7 million of revenues in Q4 and $245.3 million for the full year, delivering roughly 80% year-on-year growth in 2021. Thanks to our growing economies of scale and our continued focus on operational excellence, we managed to continue improving our gross profitability margin, which in Q4 reached 39.5%. As a result of the top line growth, coupled with the scale average, we more than doubled our gross profit in 2021, reaching $91.4 million compared to $43.5 million last year, delivering 110% year-on-year gross profit expansion. We continue to reinvest across our business as we rapidly scale up, but as always, we do it in a thoughtful and highly efficient manner, maintaining our cash generating model with an adjusted EBITDA margin of 14.3% for Q4 compared to 13.5% in Q4 of last year, and 13.2% for the full year of 2021, up from 9.2% in 2020. We continue to witness an immense and growing market opportunity ahead of us across all regions and market segments we operate in. Interest in our services remains as strong, if not stronger than ever. and we believe the effects of the COVID pandemic on merchants' priorities and decision-making processes is largely permanent. As we mentioned in the past, we do expect the gradual normalization of e-commerce growth rate to continue over the coming quarters as the impact of the pandemic wears off and shoppers around the world increase the percentage of their spend in physical stores. It is also worthwhile mentioning that given our scale and the strategic relationships we have with a variety of logistics service providers, coupled with the fact that merchants tend to prioritize direct-to-consumer over other channels, to date we have not witnessed any meaningful impact from supply chain challenges or merchant inventory shortages. Over the last quarter, we continued launching with many more incredible brands and continued expanding our relationships with prominent retail groups. During the fourth quarter, we launched with yet more brands from the LVMH group, this time Fenty Beauty and Fenty Skin, Rihanna's cosmetics brands. Yeezy Gap, Kanye West's much-discussed fashion corporation with Gap, also launched with us during Q4, as did the fast-growing sports clothing brand Navigation. During the quarter, we also expanded our relationship with several of our merchants, serving more and more lanes for them. Among these, we can mention Cartier, Stussy, Suunto, the French brand DeCouples, and the Spanish food tour brand Camper, all of which added additional key lanes to be operated by Globally. In addition, the German audio equipment brand Sennheiser added the U.S., one of its largest destination markets, to be operated by Globally, continuing our growth in the exciting new vertical of consumer electronics. Besides our strong momentum in the markets we already operate in, namely North America, the UK, and continental Europe, we also continue pursuing our geographical expansion efforts. We expanded our team on the ground in Tokyo, established a partnership agreement with the Japanese global digital transformation leader, Transcosmos, and now also have our first team member on the ground in Melbourne, Australia, with the first reputable Aussie merchant already signed. On the strategic partnerships front, our joint efforts together with Shopify to deliver the new native integration remain on track. We recently met additional important milestones in the technical development roadmap and are gearing up towards general availability of the new integration once we complete the pilot phase. All the while, we continue to onboard new Shopify-based merchants of various sizes on the existing third-party integrations. As a matter of fact, some of the new brand launches I mentioned earlier, such as Fenty Beauty, Easy Gap, and Navigation, are all Shopify-based, as is the remarkable direct-to-consumer healthcare apparel and lifestyle brand FIGS, which is the latest Shopify-based enterprise merchant to launch with us just a couple of weeks ago. I'm also happy to let the fans of the UK-based Formula One racing team McLaren know that you can now order your favorite merch. regardless of where you are in the world, as McLaren recently implemented Globally's offering on their headless Shopify-based online store. Finally, I would like to give you the latest update on the strategic acquisition of Flow Commerce we signed in Q4. We closed the transaction early in Q1 this year, welcomed the team into the Globally family, and immediately went full steam ahead with integrating Flow's team and capabilities into Globally. The motivation for the acquisition was our strategic wish to better support emerging brands as well as be able to provide our solutions to channels in white label form. As such, and based on Flow's technology, we recently established a new channels and emerging brands division. The division's first priority is to complete and launch the first channel partnership agreement, which is already signed with Shopify. and on which work is well underway by the former FlowTech and product organization, augmented now by personnel and know-how from GlobalEase teams. In addition to pursuing various other white-label channel opportunities, the new division is now in the midst of formulating its new go-to-market strategy and productizing additional aspects of our branded offering, taking into account GlobalEase know-how, scale, and expertise in order to ensure we deliver the best experience for the world's emerging brands. We expect this strategic work to continue over the next couple of quarters as we gear up to launch this exciting new offering towards the end of the year. In parallel to our strong push into the channels and emerging brand space on the back of our flow commerce acquisition, looking ahead to 2022, We first and foremost plan to continue leveraging our clear market-leading position to continue our accelerated growth across North America, the UK, and continental Europe, in all of which the market is still very much greenfield. As in the past, this will include signing up new merchants, expanding our relationships within brand groups, and operating additional lanes for existing merchants, leveraging both our ultra-efficient direct sales channels and our growing list of strategic partnerships with the likes of THL, Shopify, Klarna, Facebook and others. In addition, we plan to continue investing into building our offering and presence in the APAC region, both directly and through local strategic partners such as the Australian Post Group. While we expect our existing markets to continue exhibiting fast growth well into the future, Given the large untapped potential in the region, we do expect APAC to start gaining a meaningful part in our activity mix in the coming years. On the product side, over the last quarters, we welcome many new members to our expanding global R&D team as we continue to reinvest into product innovation and the building of new capabilities as future growth levers. Over the course of the coming year, We plan to continue adding more localization capabilities to the platform, with emphasis on further developing the granularity of our multi-local support features. Furthermore, we expect some of the value-added services we are piloting with, such as demand generation, for example, to move towards full-scale deployment throughout the few next quarters, providing merchants of all sizes with yet another layer of differentiated services and support for the growth of their cross-border business. During 2022, we also plan to begin a few additional pilots of our new managed services offering towards a full launch next year. 2022 started well, both in terms of activity and in terms of new business coming in, and we are optimistic regarding what this coming year has in stock for cross-border D2C in general and for us in particular. As Ofer will describe in more details in just a few minutes time, we are guiding for strong GMV and revenue growth of 70% in 2022 at the midpoint of the range, representing our strong market leadership position and the vast and long runway that lies ahead of us. With the conclusion of our first decade of operations already in sight next year, we believe we are literally just at the beginning of this exciting journey. As we continue our relentless focus on flawless execution, on operational excellence, and above all, on delivering exceptional, consistent, and long-term value to all our loyal merchants, the future looks bright, with tremendous opportunities for long-term growth ahead of us. And we very much plan to continue seizing them, effectively and efficiently, as we have done to date. And with that, I will hand it over to Ofer, our CFO, to go over our financial results in more depth, as well as provide more details regarding our outlook towards 2022.