Global-E Online Ltd.

Good morning. Welcome to the Global Ease Second Quarter 2025 Earnings 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 introduction, I will now turn the call over to Alan Katz, Investor Relations. Please go ahead.

Thank you and good morning, everyone. With me on the call today are Amir Slecha, Co-Founder and Chief Executive Officer, Ofer Koren, Chief President, financial officer and Ne'er-dee co-founder and president. Amir will begin with a review of the business results for the second quarter of 2025. Ofer will then review the financial results of the second quarter, followed by the company's outlook for the third quarter and full year 2025. We'll then open the call for questions. Certain statements we make today may constitute forward-looking statements and information within the meaning of safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including and without limitation to statements regarding our future results of operations and financial position, growth strategy and plan, and objectives of management for future operations, including onboarding new merchants, expanding our offerings, and introducing and integrating new solutions are forward-looking statements. 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 from the section titled Risk Factors in our annual report on Form 20F, filed with the SEC on March 27, 2025, 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. We should not put undue reliance on any forward-looking statements. 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 statements are made, or to reflect the occurrence of unanticipated events. Please refer to our press release issued today, August 13, 2025, 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 from or as a substitute for or superior to the financial information prepared and presented in accordance with GAAP. We will 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 these non-GAAP financial measures, please see the reconciliation tables provided in our press release issued today. Throughout this call, we've brought 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 issued today. I will now turn the call over to Amir, co-founder and CEO. Amir, please go ahead.

Thanks, Alan. I would like to start by welcoming everyone to our second quarterly earnings goal of 2025. We achieved another quarter of strong results coming in above the high end of our GMV and revenue guidance ranges and at the top end of our EBITDA guidance range. We are proud of the entire Global E team for their continued great execution throughout the quarter, which enabled these strong results. While we continue to see some uncertainty around duty tariffs and their potential adverse impact on global trade in the back half of the year, we nevertheless believe that our strong GMV and top line growth to date, together with our raised guidance for the year, demonstrate the resilience of our business model and the great value that merchants see in our services. We finished Q2 with GMV of $1.45 billion, up 34% year over year. and with revenues of almost $215 million, up 28% year-over-year. In terms of profit, our adjusted gross profit for Q2 was just shy of $100 million, up 24% from last year, and quarterly adjusted EBITDA was $38.5 million, up 23% compared to the same quarter last year, resulting in a 17.9% margin. In terms of our financial performance, I also want to highlight that this quarter we achieved another important milestone in our journey as a company, that of sustainable GAAP profitability, with the net profit in the quarter coming in at $10.5 million, compared to a net loss of $22.4 million in the same quarter of last year. The amortization of the majority of the Shopify warrants is now done, with the rest expected to be fully amortized by early 2026. As such, we expect to be GAAP profitable moving forward in subsequent quarters and for 2025 to be our first full year of GAAP profitability, a testament to the strength and durability of our business model, as well as our relentless focus on execution and operational efficiency. Looking at the broader business performance metrics, we have seen the positive trend trading patterns from Q2 continue through the beginning of Q3 to date. While there is some level of uncertainty for the back half of the year, given the expected upcoming changes to the U.S. de minimis exemption later in the month, we anticipate it will not have a major impact on our trading volumes. This is based on the trading patterns we have seen in the last few months during tariff changes, the limited impact of the suspension of the de minimis exception for products with country of origin China and Hong Kong that already took place this May, and our 3b2c mitigation which is available for merchants trading large volumes into the U.S. In terms of our business growth, during Q2, we continue to see strong growth across many geographies and cohorts of merchants. As always, our growth was underpinned by our focus on bringing strategic solutions to an increasingly complex and fast-changing global e-commerce environment. Serving as a recent example, globally, merchants trading to and from the U.S. enjoying valuable peace of mind. They know that irrespective of how frequently tariffs and trade limitations are updated, Globally not only makes sure they remain 100% up-to-date and compliant, but also helps them to navigate complex business decisions, lowering as much as possible the impact of these tariff changes on their sales. Moreover, in the face of higher tariffs, either due to the upcoming change to the de minimis exception or other tariffs, Our 3B2C solution and the ability to provide duty drawback further increase the attractiveness of our solution. We are seeing these resulting increased interests within our new merchant pipeline and within our conversations with existing brands. Before we move on to our Q2 results and forward guidance in more detail, I would first like to go through a few recent exciting business developments. First, we extended our long-term strategic partnership with DHL, entering into an additional three-year agreement. This is our second renewal with DHL since our IPO, and our partnership with them remains very strong and fruitful. This new agreement enables us to provide excellent service to merchants and shoppers alike, while creating value for both Globally and DHL. Second, as we announced two weeks ago, we acquired ReturnGo, a leading provider of AI-enabled return and exchange solutions. This acquisition is designed to elevate our native post-purchase solutions for our merchants, in parallel to our partnership with industry leaders leading return solutions such as Loop. As we integrate ReturnGo's advanced technology for automating returns, exchanges, and other post-purchase flows into our tech stack, we believe this will enable globally merchants to provide more flexible, best-in-class return experiences to their customers worldwide. ReturnGo is the third acquisition that we have made since our IPO and is an exciting addition to our offering. Third, I wanted to provide an update on our 3B2C offering. As discussed on the last call, we developed this innovative new offering in record time to enable global brands to leverage their international footprint in order to partially offset costs due to rising tariffs. Given the addition of recent changes to tariffs, and most notably the suspension of the de minimis exception, we have seen growing traction for this offering with interest from both existing and new merchants worldwide. I also wanted to quickly note that we remain on track in terms of updating our managed market solution, working in close collaboration with our partners at Shopify according to our joint plan. Lastly, an update on borderfree.com. our demand generation platform. We continue to onboard new merchants onto borderfree.com in Q2 and now have more than 250 merchants using this platform. We continue to see encouraging results with an increase in the contribution of sales from merchants utilizing borderfree.com in Q2 reaching over 4% of sales that originated from this channel. In terms of enterprise sales progress in the quarter, We experienced continued strong demand for our services across different markets, as a large number of brands went live with Globally during Q2. A few notable examples of brands that launched with us in Q2 are SteelSeries, a gaming consumer technology company, and Gani, a well-respected fashion brand, both from Denmark. Jackie, a fashion brand from the UK, known for its beautifully curated affordable collections. and the UK beauty retailer Essential. Stadium Goods, one of the premier global resellers of sneakers and streetwear out of the US that also has its own in-house apparel line. Bandai Namco, a Japanese gaming and media conglomerate with whom we launched in EMEA in Q2. Nanushka, a fashion brand which is our first merchant based out of Hungary. Almada Label, a rising star in luxury fashion out of Finland. Skylark, the new fashion brand from Justin and Hailey Bieber, which we launched within one week of engagement. And lastly, Life360, an exciting consumer tech merchant and our first subscription brand. We also expanded with a number of current merchants, entering into new geographies. For example, with VOE, we added multiple countries in Europe, as well as Australia and Japan. We launched in Hong Kong with Bang & Olufsen, Onitsuka Tiger, and Diesel. We added Central and Eastern Europe for Jones Road Beauty, the fast-growing makeup brand, and Bennett Winch, the luxury luggage brand, used our services to enter into Taiwan. With the traction we are seeing in the business and the pipeline, the launch of new brands and expansions with existing ones across our various geographies, we believe we are well-positioned to continue on our path towards our long-term targets of continued, durable, and profitable growth well into the future. I will now hand it over to Ofer to take us through the quarterly numbers in more depth, as well as our increased 2025 guidance and Q3 outlook.