Global-e Online Ltd. ($GLBE) Earnings (Q2 FY22)

 Global-e Online Ltd. ($GLBE) Earnings and Opinion:


Global-e Online is a company in the Consumer Cyclical sector and operates in the Internet Retail industry. The company provides a platform to enable and accelerate direct-to-consumer cross-border e-commerce internationally. Global-e Online was incorporated in 2013 and is currently headquartered in Petah Tikva, Israel. The company was first traded on the stock market in 2021.

Global-e Online Earnings Results:

  • Gross Merchandise Volume of 534M beating expectations of 500M
  • Revenues of $87M beating expectations of $83M
  • Adjusted EBITDA of $11.1M beating expectations of $3.2M
  • EPS of -$0.31 missing expectations of -$0.30
  • Guidance beat expectations in all metrics for both Q3 and FY22
Opinion:
Global-e Online is currently popping today, up over 20% after reporting earning before the market opened this morning. The company killed the earnings report and it is showing by the increase in their stock price. They are also dictating a move for a lot of the other online payment companies. The one thing I am surprised about though is the fact that Shopify isn't up on the earnings report. Shopify and Global-e Online have a partnership in which Global-e Online does all the cross-border services for the Shopify merchants. The strategic partnership is starting to look like a solid deal for both of the companies. Back to Global-e Online though, they killed it on EBITDA which means it could be inching closer to profitability. I know EPS missed, but it was very slight and shouldn't make that much of a difference. One of the big determining factors was the guidance put in place showing some solid optimism for success in the second half of their fiscal year. As far as valuation goes, the company trades at a 19.20 P/S ratio which is way above industry average. The annual revenue growth has some room to grow, but is looking pretty solid currently. The cash levels outweigh the total debt by a fair amount which is a solid foundation for them. In my opinion, this is a stock with a lot of potential. The thing that stands out to me is the partnership with Shopify. I would consider adding this to my portfolio, but I am in the midst of diversifying away from Tech. I can see a lot of upside in the long-term with this stock. If you have some extra cash laying around, this has the potential to become a multi-bagger.


*Information from Yahoo Finance, Consensus Guru, Motley Fool, CMLVIZ

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