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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.

Qualitative Acheivements:

  • 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.

Future Guidance:

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

Stock Performance

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.

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