What happened
Shares of Global-E Online (GLBE 0.76%) charged sharply higher Tuesday, surging as much as 29.5%. As of 11:38 a.m. ET, the stock was up 27.9%.
The catalyst that sent the e-commerce cross-border specialist higher was the company's quarterly financial results, which were far better than investors had expected.
NASDAQ: GLBE
Key Data Points
So what
Global-E Online generated second-quarter revenue of $87.3 million, which jumped 52% year over year, pushed higher by gross merchandise volume (GMV) of $534 million, which surged 64%. This resulted in a loss per share of $0.25.
To give those numbers context, analysts' consensus estimates were calling for revenue of $83.5 million and a loss per share of $0.30, so Global-E cleared both those hurdles with ease.
Investors were particularly excited about the company's improving adjusted gross profit, which surged 77% year over year, resulting in an adjusted gross margin of 41.8%, much improved from 36% in the prior-year quarter.
Global-E also announced a major partnership with Disney to support the House of Mouse with its sale of consumer products to customers around the globe.
Now what
Investors will recall that Shopify (SHOP +2.65%) inked a strategic partnership with Global-E Online, making it the exclusive provider of cross-border services for its merchants. Additionally, Shopify currently holds roughly 14.4 million shares of Global-E Online stock, a 9% stake valued at nearly $507 million. This gives the company a large and growing base of potential customers in need of its cross-border services.
NASDAQ: SHOP
Key Data Points
Perhaps most importantly, after slashing its full-year guidance last quarter, Global-E shocked investors by not only increasing its outlook but also raising it to its highest point so far this year. The company is now expecting revenue of $416 million at the midpoint of its guidance (up from $393 million), which would represent growth of about 70%.
After a beat and a raise, investors are clearly convinced that the death of e-commerce has been exaggerated, proving once again that Global-E Online stock is still a buy.
