Shares of global direct-to-consumer (DTC) e-commerce specialist Global-e Online(NASDAQ: GLBE) were up 11% as of 1 p.m. ET on Wednesday, according to data provided by S&P Global Market Intelligence.
Global-e Online reported third-quarter earnings Wednesday morning and delivered sales growth of 32%, along with an increase of 41% in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization).
However, what really seems to have prompted the stock's upward trajectory today was management's guidance for sales and adjusted EBITDA growth to accelerate to 34% and 55%, respectively, in the fourth quarter.
GAAP profitability for Global-e?
Global-e solves a wide array of problems facing brands selling internationally, ranging from duty drawback programs and calculating regional taxes to offering payments and pricing in local currencies along with multilingual shopping services. In simplest terms, the company takes care of all the complexities of international sales that a company doesn't want to (or cannot) handle.
This value proposition is becoming a no-brainer for many brands across the world, and Global-e's revenue has more than quadrupled since 2021. Despite this incredible growth, chief executive officer and founder Amir Schlachet announced that new merchant bookings were at all-time highs, pointing to the potential for continued high growth in 2025.
The company also went on to announce that it is on track to record GAAP (generally accepted accounting principles) profits for the first time in 2025. This achievement, paired with Global-e's gross profit margin improving from 32% in 2021 to 43% today, shows that the company's operations are scaling wonderfully and may even be trenching a valuable moat around itself.
Add in that Global-e is Shopify's exclusive provider for cross-border solutions, and the stock seems to deserve today's jump.
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Josh Kohn-Lindquist has positions in Global-E Online and Shopify. The Motley Fool has positions in and recommends Global-E Online and Shopify. The Motley Fool has a disclosure policy.
