Why Global-e Online Stock Fell Today

Shares of Global-e Online (NASDAQ: GLBE) 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.

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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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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