Global-E Online Ltd. (GLBE) shares plunged 10.11% in after-hours on Wednesday, January 19, 2022, and closed the daily trading at $34.84. However, in the regular trading session, GLBE’s stock gained 0.60%. The stock volume remained 2.49 million shares. GLBE shares have moved down 21.71% in the past week. Over the past three months, the stock has lost 38.02%, while over the past six months, it has declined 34.33%.
Let’s have a brief look at its recent news and developments.
GLBE Closed Flow Commerce acquisition
On January 04, 2022, Global-e (GLBE) closed its previously reported acquisition of Flow Commerce Inc., a technology-based cross-border e-commerce software solution for emerging brands.
Global-e acquired Flow Commerce for $500 million (in equal portions of cash and Global-e shares). Global-e issued to Shopify a warrant for approximately $70 million in Global-e shares, as part of the expansion of the strategic partnership between the companies. Flow is expected to generate approximately $20 million in net revenues in the calendar year 2021.
The acquisition will strengthen Global-e’s offering and capabilities, allowing Global-e-access to an additional addressable market of small merchants.
Global-e also announced major management changes with the closing of the Flow Commerce acquisition.
- Rob Keve, formerly Flow’s CEO, will join Global-e’s leadership team and will head Global-e’s newly formed SMB division.
- Mike Bryzek, formerly Flow’s CTO, will join Global-e’s leadership team and will serve as its Chief Product Officer. Mike will replace Ira Vinitsky, who has asked to step down after leading Global-e’s product organization for more than 8 years.
- Adi Waiss will join the Global-e’s management team as its global EVP of Projects.
GLBE latest financial results
On November 09, 2021, Global-e Online Ltd. (GLBE) released financial results for the third quarter of 2021 as well as the outlook for the full year 2021.
Q3 2021 financial highlights
- GLBE reported total revenue of $59.1 million in Q3 2021 compared to $33.32 million in Q3 2020.
- The cost of revenue was $36.3 million compared to $23.3 million in Q3 2020.
- The gross margin in the third quarter of 2021 was 38.6%, compared to 30.2% in the third quarter of 2020.
- Total operating expenses were $50.9 million compared to $7.9 million in Q3 2020.
- It suffered a net loss of $28.5 million in Q3 2021 compared to a net profit of $1.2 million in the year-ago period.
- Adjusted EBITDA was $7.7 million compared to $2.7 million in the third quarter of 2020.
FY 2021 revised financial outlook
For FY 2021, Global-e is expecting,
- Total revenue in the range of $239 million to $241 million compared to previous guidance of $227 million to $231 million.
- Adjusted EBITDA in the range of $27.9 million to $28.9 million compared to previous guidance of $22.0 to $24.0 million.
Well, as of this writing, we have no recent news or development to justify its plummeting in the after-hours on Wednesday. Let’s see how it performs on Thursday?