Why Global-E Online Shares Are Plummeting Wednesday

Global-E Online Ltd. GLBE reported third-quarter FY23 sales growth of 27% year-over-year, to $133.605 million, missing the consensus of $140.97 million. Gross Merchandise Value (GMV) rose 35% Y/Y to $839 million.

Adjusted gross profit was $59.3 million, an increase of 36% year over year. Adjusted gross margin expanded by 290 bps to 44.4%.

Loss per share of $(0.20) beat the consensus loss of $(0.23).

Adjusted EBITDA in the third quarter of 2023 was $22.1 million, an increase of 76% year over year.

"We are excited about Shopify Inc. SHOP Markets Pro going into general availability in the US and remain focused on executing across all our strategic vectors, as we continue to capture the immense greenfield opportunity ahead of us," commented Global-E CEO Amir Schlachet.

4Q23 Outlook: Global-E Online expects sales of $178 million-$186 million, vs. the consensus of $194.87 million. It expects adjusted EBITDA of $31.5 million-$36.5 million.

FY23 Outlook: The company reduced the revenue outlook to $563 million-$571 million (prior expectation $570 million-$596 million), vs. the consensus of $588.85 million.

GLBE narrowed its FY23 GMV forecast to $3.493 billion-$3.543 billion (versus prior $3.48 billion - $3.64 billion). 

GLBE sees Adjusted EBITDA of $89.1 million-$94.1 million (prior $85 million-$93 million).

Price Action: GLBE shares are trading lower by 25.46% at $29.50 premarket on the last check Wednesday.