For small and medium-sized businesses, expanding internationally can be a difficult process. In this video clip from "The Rank" on Motley Fool Live, recorded on March 28, Fool.com contributor Jamie Louko explains how Global-e (GLBE -2.15%) has made it easier for these types of companies to move into overseas markets and is an attractive investment.
10 stocks we like better than Global-e Online Ltd.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Global-e Online Ltd. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of March 3, 2022
Jamie Louko: Global-e basically wants to make borders agnostic. That basically means it wants to help SMBs be able to expand internationally easier and sell to international customers easier. Basically, it does that by partnering with international payments providers, shipping providers overseas. It also has knowledge in languages, in cultures, and things like that across the world, that make it easier for small medium-sized businesses who might not have those capabilities to expand better into international regions.
It recently partnered with Shopify (SHOP -2.37%). Shopify took a stake in Global-e in exchange for merchants on Shopify to actually be able to use Global-e's products. Considering that Shopify is a massive business for these SMB customers, it really opens up Global-e to a wide customer base. I just want to pull out some metrics from their most recent quarter that I really think are strong. Their churn was just 2% while their net dollar retention rate was 152%, which means that including churn customers from the year-ago period are spending 52% more today than they were in the year-ago period. Really strong there.
They did have a net loss for the full year of about $75 million. However, that was related to their Shopify warrants, which imposed a cost of $84 million. Without those warrants, they would've had a net income and they're also free cash flow positive. I mean, very small business, it's only about $4 billion dollars, but a lot of potential in the e-commerce market and decent financials to back it up.
