What happened
Shares of Global-e Online (GLBE 4.85%) are marching higher today on the heels of strong fourth-quarter results. Shares of the cross-border e-commerce specialist were up 19.1% as of 12:24 p.m. ET on Thursday.
After the market closed on Wednesday, Global-e delivered somewhat mixed fourth-quarter results. Revenue that rose 54% year over year to $82.7 million beat consensus expectations by $5.1 million. On the bottom line, a noncash expense related to stock warrants held by Shopify (SHOP 4.76%) led to a loss of $22.5 million instead of the modest profit Wall Street was expecting.
So what
Investors were quick to overlook the loss Global-e reported thanks to guidance for 2022 that exceeded expectations. The company expects total revenue in this year to land in a range between $411 million and $421 million. That's at least $44 million more than the average Wall Street analyst who follows Global-e expected the company to forecast.
Image source: Getty Images.
Strong headline numbers weren't the only signs of success pushing up Global-e's stock price today. Investors can clearly see the business becoming more profitable as it scales up. The company reported a fourth-quarter gross profit that grew 110% to $91.4 million.
Now what
Global-e Online has big plans for 2022 that could cause the company to revise its guidance estimates even higher. The company is already an indispensable partner to merchants in and out of the U.S. that would like to reach a large international market without all the headaches that come with cross-border commerce.
Global-e Online's ongoing integration with Shopify merchants is proceeding as planned. With access to popular direct-to-consumer brands including scrubs from FIGS and hoodies from Kanye West, the Shopify integration could help the company beat analyst expectations in the quarters to come.
