Earnings Roundup: GlobalE: Strong Results,Volatile Stock
Global E earnings:
The company once again produced very strong reports for the past quarter:
Record revenues of $59.1 mln 77% growth yoy and exceeding analysts estimates by $3.46 million. This exceeds the company's guidance of $55 million
Gross Merchandise Volume 86% increase yoy
Margin is 38.6% vs 30.2% in Q3 2021
Adjusted Ebitda $7.7 mln vs $2.7 mln the previous year.
Gross profit grew by 127 % year-on-year, reaching $22.8 million.
Additional merchants added from the LVMH luxury group and Jabra and Sennheiser in electronics
Addition of Alo Yoga and Netflix (merchandise) first large vendors through the Shopify platform
Partnership with Australia Post and Transcosmos in Japan
GlobalE has significant potential for growth. The benefits of the Shopify partnership are just starting to show up in revenue. Geographically,* Shopify has huge potential growth in US and Asia outbound. Revenue is currentl UK 47% European Union 23% and US 29% with Asia less than 1%. Clearly there is much room to go in growing revenues across the globe.
As it did in the previous quarter Global E once againraised its guidance:
Q4 Full Year 2021
GMV $465-475 mln $1.4-1.42 bln
Revenue $76.4-78.4 mln $239 -$241 mln
Adjusted EBITDA $7.3-8.3 mln $27.9 -28,9 mln
GlobalE stock .while still twice the value of its IPO price did suffer significant declines since its secondary offering on September 15 at $64. In the few days before the earnings release Glbe traded as low as $48.19 on November 10 on extremely high volume. It has since recovered with a gain of over 15% November 16 closing at $63.91 but it is well below its all time high of $83.77. With the price decline comes a lower valuation p/s is now close to 34 vs 48 when the price was at its' peak.
GlobalE is not heavily followed by analysts. Based on the 7 firms that do cover it all raised their targets after the earnings release with the average forecast at $76.86 even the lowest target of $68 is 23% above the current market price.