What happened

Shares of cross-border solutions company Global-e Online (GLBE 2.44%) gained 14% in June according to data provided by S&P Global Market Intelligence. It's benefiting from rising investor confidence as it continues to demonstrate strong growth, and overall investor enthusiasm in the market.

So what

Global-e provides cross-border solutions for e-commerce retailers. These are functions like localized checkout, global shipping options, and instant customs calculations. Its solutions are pre-packaged but customizable, making them ideal add-ons for e-commerce retailers of any size looking to expand their markets. While its client list includes some of the largest and best-known retailers you can think of (think Disney, Macy's, and Nordstrom, it also works with small outfits and everything in between.

It has a partnership with Shopify, which invested in Global-e and offers its services to its millions of merchant clients. One of the ways Shopify is dealing with its own struggles is by turning some of its focus to cross-border e-commerce, and Global-e is its signature partner.

The high-growth trend was amply illustrated in the 2023 first quarter. Revenue increased 54% year over year to $117.6 million, and it added prominent brands like Kylie cosmetics and Rebecca Minkoff to the platform. It also expanded its partnerships with existing clients like Disney Europe, which added the U.K. market, and Bulgari, which added another 30 markets to its program.

Global-e also demonstrated stronger profitability during the quarter. Adjusted gross margin increased by 2.3 percentage points to 41.4%, and net loss improved from $53 million to $43 million.

As the economy remains crunched, growth is expected to decelerate. However, management slightly raised full-year guidance after the first-quarter report from about 39% at the midpoint to 41%.

Now what

Global-e has incredible growth opportunities between expanding its client base and increasing gross merchandise volume. The latter should happen organically when the economy shapes up, and scale should lead to improving profitability and eventually, not in the too-distant future, net profits.

The stock is up more than 100% in 2023 as investors see the potential, but it's not too late to buy. It is expensive though, trading at close to 15 times trailing 12-month sales. That's a high for this year, but vastly below its valuation just after it went public in 2021. There's a lot to expect for this growth stock, so risk-tolerant investors can still buy in at this price.