Global-E Online Ltd.

Welcome to the Global E second quarter 2023 earnings call. This call is being simultaneously broadcast on the company's website in the investors section under news and events. For opening remarks and introductions, I will now turn the call over to Erica Mannion at Sapphire Investor Relations. Please go ahead.

Thank you and good morning. With me today from Global E are Amir Shloket, co-founder and chief executive officer, Ofra Karim, chief financial officer, and Nir Devi, co-founder and president. Amir will begin with a review of the business results for the second quarter of 2023. Ofra will review the financial results for the second quarter of 2023, followed by the company's outlook for the third quarter and full year of 2023. 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 our 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 and our prospectus filed 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 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 make no obligations 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 the statements are made, or to reflect the occurrence of unanticipated events. Please refer to our press release dated August 8, 2023 for additional information. In addition, certain metrics we will discuss today are non-GAAP metrics. The presentation of this 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 operational decision making and 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 August 8th, 2023. 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 August 8th, 2023. I will now turn the call over to Amir, co-founder and CEO.

Thank you, Erika, and welcome everyone to our Q2 Earnings School. Our second quarter financial results, all of them exceeding our guidance, depict the continuation of a very strong business momentum and growth trajectory. Our quarterly GMV amounted to $825 million, or 54% year-on-year growth, and our revenues grew by 53%, reaching $133 million in the quarter. Our adjusted gross profit margin continued to expand, from 41.9% in Q2 of last year to 43.3% in Q2 of this year, thanks to our growing economies of scale and improved efficiencies. Finally, our adjusted EBITDA for the quarter came in at $21 million, nearly doubling that of the same period last year. As usual, Ofra will describe in more detail our quarterly financial results, as well as our updated guidance for the next quarter and for the full 2023 fiscal year. However, before I hand the call over to Ofra, I would like to walk you through some key updates regarding our business. On the merchant's front, we continue to onboard many new merchants located all around the globe and trading in various different verticals. Just to name a few examples, we recently went live with renowned fashion brands such as LK Bennett and Club de London in the UK, Monday Swimmer and Pepper in the US, Tara Jarmone in France, and the iconic denim and fashion brand Diesel in Italy. We also went live with the UK-based recycled gold and silver jewelry brand Misoma, with the innovative protective cases brand Moose, and many others in various product verticals. From a geographical standpoint, in parallel to our continued growth in our established markets across North America, the UK, and continental Europe, we continued our rapid expansion in the APAC region as well, with several Australian brands going live including Venroy, Rolly Nation, Lahana, and Lilibod, with numerous Japanese brands going live, including Hinoya, 45R, Etude, Nubian, and Anasui, and with the go-live of our first-ever Korean brand, High End Sale. Moreover, during Q2, we went live with our first-ever Swedish brand, the vegan cosmetics brand Swati, bringing the count of our active outbound markets up to 29. Equally important, we continued our expansion efforts within existing merchant groups, with notable examples this quarter being Orveda, which is another brand from the large beauty and fragrance group Coty, and Givenchy Beauty, which is part of the LVMH group of brands. Moving on to some additional elements on our strategic roadmap, we continue to consolidate and streamline our platform stack post our two acquisitions of Flow and of Borderfree. In parallel, we are also continuing the migration process of all our legacy Shopify-based enterprise merchants onto the new native app. On the SMB platform side, we continued our joint work with Shopify on the necessary preparations for the release of Shopify Markets Pro into general availability in the US, which is expected to happen later in the year. Based on the results and feedback from the first live batches of early access merchants, we continue to be optimistic regarding the potential future impact of this innovative new offering once it is released and scales up. Given all these developments, as well as many product features being constantly developed and rolled out, we continue to expand both our technological teams and our commercial teams around the globe. But at the same time, we remain as committed as ever to doing so in a responsible and sustainable way, as is evident from the healthy growth in our adjusted EBITDA, a good proxy for our free cash flow, which is outpacing the growth in revenues. And with that, I will now hand it over to Ofer to take you through the quarterly figures in more depth, as well as present our updated guidance.