Why Global-e Online Stock Fell Today


Shares of Global-e Online (GLBE -16.91%) plunged 16.9% on Wednesday after the direct-to-consumer cross-border e-commerce specialist announced solid quarterly results but disappointing forward guidance.

On Global-e’s record quarter despite macro uncertainty

Global-e’s results looked decent at a glance: Fourth-quarter 2023 revenue grew 33% year over year to $185.4 million, translating to a net loss of $22.1 million, or $0.13 per share (narrowed from a loss of $0.18 per share in the same year-ago period). Most analysts were modeling roughly the same net loss on lower revenue of $182 million.

Global-e CEO Amir Schlachet said he was “pleased” with the quarter, noting the company drove a 42% increase in gross merchandise volume (GMV) to $1.189 billion. Global-e also saw adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) soar 61% year over year during the quarter to $35.2 million.

“Despite the volatility in consumer sentiment we witnessed in 2023 and the prevailing uncertainties in macro conditions entering 2024, we remain extremely optimistic regarding our long-term growth prospects and believe we are well positioned to continue on our path of durable and profitable growth in the coming years,” Schlachet stated.

What’s next for Global-e investors?

For the first quarter of 2024, however, Global-e issued guidance for revenue to be in the range of $138.5 million to $145 million — well below estimates for $150.5 million — assuming GMV of $875 million to $915 million. Global-e also told investors it expects full-year 2024 revenue of $731 million to $771 million, the midpoint of which is around $5 million below consensus expectations.

In the end, this was a reasonably solid quarter for Global-e as it works to narrow its losses and sustain outsize top-line growth. But with shares already up nearly 40% year to date leading into this report, it’s no surprise to see some investors taking profits off the table, given its revenue shortfall relative to Wall Street’s high bar.

Steve Symington has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Global-e Online. The Motley Fool has a disclosure policy.


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