What happened
Shares of Global-e Online (GLBE 0.78%) crashed on Thursday, plunging as much as 15.7%. As of 3:22 p.m. ET, the stock was still down 14.2%.
The catalyst that sent the cross-border e-commerce specialist crumbling was its quarterly financial report, which was something of a mixed bag.
So what
Global-e Online generated third-quarter revenue of $105.6 million, up 79% year over year, pushed higher by gross merchandise volume (GMV), which surged 77%. Unfortunately, most of the additional revenue didn't make it to the bottom line. The company reported a net loss of $64.6 million, resulting in a loss per share of $0.41.
To put those numbers in context, analysts' consensus estimates were calling for revenue of $101.7 million and a loss per share of $0.30.
The company launched cross-border partnerships with a number of high-profile consumer brands, including Mattel (MAT 0.67%), fashion designer Karl Lagerfeld, U.K.-based men's clothier Drakes, and Italian Football Club Inter Milan.
E-commerce platform Shopify (SHOP 0.14%) has an ownership stake and strategic partnership with Global-e Online as the exclusive provider of cross-border services for its merchants. Shopify currently holds more than 17.4 million shares of Global-e Online stock, a 10.2% stake worth more than $366 million.
Now what
On the conference call to discuss the results, co-founder and CEO Amir Schlachet said that Global-e was well on the way to integrating its recent acquisition of Borderfree, resulting in cost synergies over the next several quarters -- which accounts for some of the hit to the bottom line.
Global-e also lowered its full-year guidance, citing "two extraordinary factors" -- the usually large foreign currency swings and an unnamed "very large merchant," that was originally scheduled to go live in the fourth quarter being postponed until the first quarter of 2023.
That said, the company is still expecting revenue of $407.7 million at the midpoint of its guidance (down from $416 million), which will still represent growth of about 66%.
The global cross-border business-to-consumer (B2C) e-commerce market is expected to grow from $794 million last year to $3 billion by 2028. As the leading provider of cross-border services to merchants, Global-e is well positioned to benefit from this trend.
