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Global-e Online Shares 25% Higher After Raising Guidance

By Michael Dabaie

 

Global-e Online Ltd. shares rose 25% to $34.24 in late morning trading after the company raised its full-year guidance.

The platform for cross-border e-commerce boosted its full-year revenue guidance to $406 million to $426 million, up from prior guidance of $383 million to $403 million.

The company guided for gross merchandise value of $2.45 billion to $2.55 billion, above the previous guidance for $2.28 billion to $2.4 billion. GMV is the combined amount the company collects from shoppers and merchant for all components of transactions, including products, duties and taxes and shipping.

Global-e in early July closed its acquisition of the Borderfree cross-border ecommerce solutions business from Pitney Bowes.

"Back in mid-May, when we discussed our Q1 results and forward outlook, we mentioned the heightened uncertainty towards Q2 resulting from macro induced factors and the war in Ukraine," President Nir Debbi said in the company's conference call. "However, today I am happy to report to you that the initial signs of improvement we saw in early May turned out to be indeed the precursors to further improvement in the second half of the quarter."

The Russian, Ukrainian and Belarusian markets, representing less than 2% of company activity, remains closed, Mr. Debbi said.

"However, activity in other regions in Europe moderately picked up back for May onwards, despite macro concerns," he said.

Second-quarter revenue was $87.3 million, up 52% and beating FactSet consensus for $83.5 million. Loss per share was 31 cents, versus FactSet consensus for a loss of 30 cents.

"While the overall e-commerce market growth in the first half of 2022 has been softer, merchants are continuing to prioritize and accelerate the shift towards direct-to-consumer, and the cross-border opportunity remains massive," Chief Financial Officer Ofer Koren said.

 

Write to Michael Dabaie at michael.dabaie@wsj.com

 

(END) Dow Jones Newswires

August 16, 2022 11:17 ET (15:17 GMT)

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