Global-E Online Ltd.

Welcome to Global E first quarter 2024 earnings announcement conference call. This call is being simultaneously webcast on the company's website in the investor relations 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 of Ofra Karan, Chief Financial Officer, and Nir Devi, Co-Founder and President. Amir will begin with a review of the business results for the first quarter of 2024. Ofra will then review the financial results for the first quarter of 2024, followed by the company's outlook for the second quarter and full year of 2024. 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 risk and 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 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 of 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 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 make 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 the statements are made or to reflect the occurrence of unanticipated events. Please refer to our press release dated May 20, 2024 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 or as superior to financial information prepared and presented in accordance with GAAP. We use these non-GAAP financial measures for financial and operating 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 operating decision making. For more information on the non-GAAP financial measures, please see the reconciliation tables provided in our press release dated May 20, 2024. 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 May 20, 2024. I will now turn the call over to Amir, co-founder and CEO.

Thank you, Erika, and welcome, everyone. With the financial results of Q1, which we are releasing today, we are off to a great start of what we believe will be yet another pivotal year of growth for Globally. GMV, revenues, and adjusted EBITDA all beat the top of our forecasted range for the quarter, with GMV growing 32% year-on-year, revenues growing 24%, and adjusted EBITDA growing 47%. These strong results manifest our team's continued execution across all elements of the business, coupled with our effectiveness in controlling costs and the fact that macro conditions during the quarter were slightly more favorable than what we initially anticipated back in February. Moreover, we remain confident in our ability to uphold our plans for the remainder of the year, as is reflected in our updated guidance for the full year of 2024. Most notably, the large client launches planned for the second half of the year are on track, and Shopify Markets Pro continues to amass merchants at the planned pace. Among other things, we believe both these factors will contribute to our ability to accelerate growth in the second half of the year. Later in this call, Ofo will review our Q1 results in more detail, and he will provide you with our guidance for Q2 and our RAISE guidance for the full year of 2024. But before we do that, I would like to share with you some of the exciting business developments we have seen recently. During Q1, we continue to experience strong demand for our services across all markets we operate in. Q1 saw many renowned brands go live with global e-services. In the U.S., designer brands Donna Karan and DKNY, footwear brand Hey Dude by Crocs, and sports fashion brand Golf Wang all went live. as did Imperial Workshop, our first U.S. merchant on the Wix platform. Thanks to the combination of Wix and Globally, all aspiring Jedi Knights can now do their essential lightsaber shopping online on the Imperial Workshop website, regardless of where they live. Of course, as long as it's not in a galaxy far, far away. During the quarter, we also launched with lingerie brand La Senza in Canada, as well as high street fashion brands Hobbs and T.M. luggage brand Antler, and a homewear brand Sew Home in the UK. In Europe, we launched with the French vintage style fashion brand Louise Michat, with fashion brands Gérard Darrel, Sewo, and Carreau, and with the renowned luxury lifestyle brand Repetto, which thanks to Glovali can now sell its iconic ballerina shoes worldwide as seamlessly and effectively as it does so in France. The quarter also saw the launches of innovative fashion brand Markane and the online store of workwear and protective gear retailer Engelbert Strauss, both in Germany. Moreover, we launched with the leisure brand Pacha in Spain, with its famous cherries logo, women's luxury fashion brand Costaleros in Greece, and the fashion brand Roboto in Sweden, among many others. Our business in APAC continues to expand all the time as well, with examples of recent launches in the region being Infamous Swim and Carla Zampatti in Australia, HiMumo by Avex and CommonSmart in Japan, DIY Watch Club in Hong Kong, and more. During Q1, we also continued our efforts to expand our business with existing merchants and with brand groups. As such, we opened new markets for Adidas and Duane, and went live with Infiniment, an additional brand from the Coty group. We also went live with Tap to Style, a new brand by Motes in Italy, who themselves just went live the previous quarter, and with EnNormal, a new Spanish brand from the Kemper Group. With dozens of other brands going live, and with robust integration and sales pipelines, we believe we can continue on our growth path into the future, as more and more merchants put emphasis on global direct-to-consumer sales. Switching gears, I would like to update you regarding the various components of our strategic partnership with Shopify. On the 3P, or direct integration side, the migration of our historical merchant base onto the new native integration is nearing completion. And the team's focus has turned now towards the continued gradual transition of all Shopify merchants onto checkout extensibility. On the 1P, or Shopify Markets Pro side, merchants continue to sign up and go live, gradually amassing GMV at the planned rate. In parallel, the teams on both sides continue to work on developing additional features and capabilities, further enhancing the solution's reach. Given the large market potential on the Shopify platform, and as adoption of the Innovative Markets Pro solution continues to rise, we remain highly convinced in our ability to capture a meaningful part of this massive market opportunity over the course of the next few years. With all these exciting developments and with many others across the entire business, we continue to believe more than ever in our ability to exhibit long-term and durable growth as we capture more and more of the vast greenfield opportunity that lies ahead of us. I will now hand it to offer our CFO to take us through the quarterly numbers in more depth, as well as present our updated guidance going forward.