Globus Maritime Limited Q4 FY2021 earnings call

• 2021 was an exceptional year with the fourth quarter being the strongest in the company's history, surpassing $0.5 billion in quarterly GMV and $1.45 billion in annual GMV. - The market opportunity across regions and market segments is immense and growing, with the impact of the COVID pandemic on merchants' priorities being largely permanent. - In the fourth quarter, Global-e launched with brands like Fenty Beauty, Yeezy-GAP, NVGTN and expanded relationships with merchants such as Cartier, Stussy, etc. - Geographically, the company expanded teams in Tokyo, Melbourne, established partnerships in Japan and Australia. - The joint effort with Shopify for the native integration is on track, and the acquisition of Flow Commerce was completed with integration underway.

In the fourth quarter of 2021, Global-e achieved a GMV of $505 million. The annual GMV in 2021 summed up to $1.45 billion, representing more than 87% growth compared to 2020. For the fourth quarter, revenues were $82.7 million, and the full-year revenue was $245.3 million. Service fees revenues in the fourth quarter were $35.5 million, up 73%, while fulfillment services revenue was $47.2 million, up 43%. In the fourth quarter, gross profit was $32.7 million, with a gross margin of 39.5% compared to 33.5% in the same period last year. The full-year gross profit in 2021 reached $91.4 million, a 110% year-on-year increase from $43.5 million in 2020.

For Q1 2022, GMV is expected to be in the range of $446 million to $456 million, with revenues in the range of $74.5 million to $76.5 million. For the full year 2022, GMV is anticipated to be in the range of $2.45 billion to $2.5 billion, revenues in the range of $411 million to $421 million, and adjusted EBITDA in the range of $38 million to $42 million. The Flow acquisition is integrated into the guidance but weighs on adjusted EBITDA in the near term.

• Supply chain challenges and merchant inventory shortages could impact the business. - Regulatory changes, such as those in Europe with VAT, may affect merchants' decisions. - Forward-looking statements are subject to risks, uncertainties, and assumptions beyond control, and actual outcomes may differ materially from expectations.

Q: Congrats on a nice quarter. I was hoping I could ask a question about how you're thinking about the opportunity with Shopify over kind of the longer term...

A: Nir Debbi: First of all, we're very excited looking forward to the general availability of our native integration for the enterprise product on Shopify platform. For this product, we are aiming and focusing our efforts on merchants that currently have cross-border activities, most of them. Looking further into the future, as part of our enhanced partnership with Shopify related to the Flow acquisition, we do expect to support many more smaller merchants. Many of them are would be new into cross-border activities.

Q: I wanted to talk about acquisitions. And I guess, within acquisitions, how much are you contemplating Flow will contribute this year? And how should we think about its impact on the overall P&L, including profitability?...

A: Ofer Koren: Basically, Flow is integrated into our guidance, and they do represent over 5% of the top line. However, they are weighing on our adjusted EBITDA, mainly in the next 2, 3 quarters as Flow's adjusted EBITDA is not positive yet. Nir Debbi: Thank you, James. So basically, looking into the future, we do expect that in the next quarter, we will be focused on integrating Flow as part of the Global-e offering, building the bridge of Flow into the emerging brands' native support of Shopify as well as enhancing their capabilities towards better support for SMBs.