Global-E Online Ltd. (GLBE) Earnings Call Transcript & Summary

Good morning, everyone, and welcome to Global-e's 2025 Investor Day. Thank you very much all for coming, both in person and virtually. As management can be making forward-looking statements during today's presentation, I wanted to take a moment just to pause with our safe harbor statement. Great. So we have a lot of great speakers today. I'll just make my way through the agenda very quickly, and then we can move on to the real stuff. Starting off the morning is going to be Amir Schlachet talking about Global-e's vision and road map. We're then going to move to Yehiam to talk about product and technology. And then Nir will discuss global markets -- Global-e's go-to-market strategy, excuse me. After a brief break, we'll have Matt walk through our customer panel with FIGS and [ Keith ] talking about the partnership with Global-e for global growth. After that, Ofer will move on to financial strategy for Global-e. At the event -- at the end of the event, we'll actually open it up for Q&A with management. With that, I'll turn it over Amir Schlachet, CEO, Global-e.

Thanks, Mike. Yes. Sorry about my last name. Thank you. For everybody who doesn't know me, I just go by Amir. Don't try pronouncing my last name. So thank you all for coming. As Mike said, it's great to see you all on this great weather day here in New York, both in person and on the webcast. And I want to start today off -- we have a lot of materials prepared for you guys, but I want to start off by taking you through kind of just high level the Global-e story because I know not everyone is fully versed on the story. Some people are a bit newer to it. So I actually want to start top down. So as you all know, probably, our mission at Global-e is to power better global e-commerce. So if you look at the e-commerce market, it's actually steadily gaining share out of total retail. That's probably no surprise for all of you. You all feel that probably in your normal lives, as more and more consumers over time move to shopping online and more and more brands move to relying on online sales as their main strategies. And yes, you can see that on the graph. For more than a decade now, e-commerce is steadily gaining share out of total retail. There was an acceleration during COVID with store closures, then normalization in 2022 with the reopenings. But overall, if you look at the graphs, you see that it's a very clear and secular trend of moving to online. But when you dive one layer deeper,and you look at global direct-to-consumer online, which is the kind of the holy grail for any brand out there, brands immediately face a very complicated maze of problems and issues and barriers that prevent them from being able to transact directly with those consumers worldwide. As soon as they need to sell to someone outside their domestic market, all of a sudden, everything becomes complicated. Everything -- every aspect of the transaction becomes a barrier. And the reason why it's so hard for them to do that is just look at what it takes in order to localize the consumer experience for a single market. This example, it can be a U.S. retailer or a U.K. retailer for that matter, trying to sell to the Netherlands, which is a very big and important e-commerce market in Europe. So all of a sudden, they need to change almost every aspect of the experience on their site. They need to cater to the local language. They can get by with English in the Netherlands, but at least, the important bits need to be local like marketing messaging, and the checkout need to also be provided in local language. They need to price everything correctly in euros as local Dutch consumer would expect. They need to support local payment methods. If you try to sell to Dutch consumers and you don't support iDEAL and Klarna, you're basically missing out on more than 2/3 of how Dutch consumers are used to paying online. You need a good shipping offering, sorry, at an attractive price. And you need to support the European and the Dutch-specific import regulations, duties, VAT and so on. And that's just for a single market. And even that is a moving target because look on the right side, on all the recent and expected changes in import regulations and duties and taxes regimes, where we're all kind of focused here in the U.S. about the recent changes in tariffs, but this is not unique to the U.S. Yes, maybe it's making a lot of headlines now, but regulations change on a regular basis. Countries change their VAT rates, their import regime, their low value good stacks regime all the time. And as a merchant, you need to stay compliant, and you need to be up to date. And that's just a single market. If you now multiply it, if you want to sell globally, multiply that complexity by 50 markets or 100 markets or 200 markets. It's virtually impossible to do this merchant. There's no one size fits all here. The consumer preferences, local regulations and requirements are vastly different if you want to sell to a Brazilian customer or to a Swiss customer or to a Japanese customer. There's no one size fits all. You can't do it just by yourself. And what that means is that brands are just not realizing their global direct-to-consumer e-commerce opportunity. And they know that because they look at their traffic patterns. The average brand that has some brand equity will have a hefty chunk of its traffic coming from nondomestic markets, sometimes, as high as a third or even more of its traffic, because of the way they build their brand today or relying on social media, social marketing influences. It's all global by design. But then when it comes to the bottom line, the share of actual sales to international consumers is typically far, far less than their share in traffic because of all these barriers and issues. And this is exactly where Global-e come in -- comes in. What we've built is a full end-to-end platform that solves these problems in one go for both sides. For the shoppers, we provide a seamless, fully localized consumer experience right there on the brand side. And at the same time, for the merchant, we increase conversion rates, and we reduce and remove all the risks and complexities that are typically involved in selling internationally. And the way we do it, the way we simplify this experience on both sides is via a full end-to-end comprehensive platform and set of services that we integrate or allow our brands to integrate to via a single integration through which they get access to all the necessary capabilities and services. So once they are integrated, once our solution is integrated and live on their existing store, they get full access to all the deep localization capabilities that are required in order to create that seamless shopping experience on their side. Out of the box, their site now supports local messaging in more than 30 different languages, more than 100 different currencies, more than 150 different payment methods. So shoppers can pay just like they're used to paying domestically. We precalculated and guarantee the duties and taxes, so there are no surprises for the merchants or the shoppers upon delivery. We work with a network of more than 20 different carriers in order to provide multiple shipping options at different service levels at attractive prices. We facilitate easy local returns for in case shoppers need to return something. And as I said, we de-risked the transaction. We take the fraud risk upon ourselves. We take the duties and taxes risk. We take the foreign exchange risk on returns. So for the merchants, it becomes just as easy as selling domestically. But we actually don't stop there because apart for all these advanced and sophisticated capabilities, we also have another thing. We have a lot and a lot of data. As we scale up, as we work today with more than 1,400 enterprise merchants and many more on our own managed markets and Shopify, and we transact more than tens of millions of transactions a year, billions of users, interactions all around the world, that very diverse and very broad set of data allows us to create very, very meaningful insights for our merchants. We basically slice and dice all this data, feed it through very sophisticated statistical algorithms that enable us to take a certain merchant situation, it can be a new merchant, it can be an existing merchant, and provide data-driven, very kind of curated, we call them Smart Insights, they take into account the vertical that they're in, the price point, the origin and destination market and other parameters in order to provide very specific, very curated advice that tells our merchants not just what they can do with all these capabilities that we bring to them through our platform, but actually, what our data shows that they should do and exactly how they should configure all the elements of the international shopping experience on their site in order to have the optimal conversion rate and take advantage of that international opportunity. And when you combine that kind of capabilities and know-how, you get a very, very seamless, fully localized customer experience right there on their site. From the moment the shopper enters a globally enabled website, our technology will recognize where they're coming from based on the IP address or they can also switch that manually. And they'll get greeted into the site with marketing messaging in local language that is customized based on our data that shows what works best in that specific situation in order to reduce bounce rates. We will then localize the entire browsing experience on the site with localized pricing and product availability. We localize the entire checkout experience, offering the full landed cost, inclusive of all the duties and taxes, shipping and so on. So there are no surprises for the shoppers. They know exactly how much they're going to pay. I mentioned earlier we work with a wide network of carriers, so we can offer multiple modes of shipping at attractive prices. We can let shoppers self-select, those that care more about time versus those that care more about price of shipping, and also those that prefer to use one of our specialized shipping methods like cash on delivery, like delivery to drop-off points, all depending on what we know, again, from our data that consumers prefer in that specific market. We then let them pay using their preferred local payment method, and we don't stop there. We support also the after-sale experience in case they need some help. We provide customers -- multilingual customer services, and we facilitate return through a fully managed returns process and returns portal. So a full end-to-end solution. And that set of capabilities, that value that we are able to deliver to our merchants and their consumers worldwide is really what has propelled our tremendous growth since inception. We started the company in 2013, Shahar, Nir and myself, with nothing, just an idea. And now some 12 and a bit years later, we're here trading -- expecting to trade this year more than $6 billion for our merchants on the platform, generating close to $1 billion in revenues, continuing to grow fast, and have all this growth done in a very durable and scalable way as we generate cash and a high adjusted EBITDA margin. And that success is, of course, thanks to the thousands of different merchants that have basically chosen Global-e to be their partner and to enable their international direct-to-consumer sales, including some of the world's most iconic brands. We have 2 of our favorite brands joining us today for a panel later on. But I think you can recognize here many different brands across different verticals, different price points from luxury to everyday fashion, different types of merchants from kind of established brands that have transformed into the digital world and like adidas or Hugo Boss and are now moving to the next stage to direct-to-consumer internationally using Global-e. Basically you name the brand, the vertical that they're in, the type of merchant that they are, we can add value to them and help them to fulfill their own goals of going global and selling direct to consumer around the world. And I think the reason -- or the fundamental reason why these brands trust us with their global sales is because our business model is tightly coupled to their success. We work on a success-based model. So the only way we can generate revenues is by enabling our merchants sales around the world. And you can see that when you look at our tremendous revenue growth that grew almost 7x since our IPO and how tightly it's coupled to the growth of GMV, which is essentially the sales that we enabled for our merchants. And in order to maintain that value generation for merchants that is at the basis of this fully aligned business model is our technology. And in order to achieve that, we keep investing and reinvesting in building additional capabilities, sharpening our existing capabilities, adding more operating models, adding more optionality to our platform that enables us to cater to more and more merchants around the world and more and more merchant situations. And you can see that from our investment in R&D. Yehiam, our CTO, is going to dive a little bit deeper into that in the next session. But if you just look at our investment in R&D, which has grown sevenfold since the IPO, I think it speaks for itself. But at the same time, we operate on a very, very efficient operating model, and we keep our eye always -- we don't just want to grow for the sake of growth. We want to make sure that we build a longstanding, sustainable business model that's built on profitable growth, on durable growth and on cash generation. And that is evident, I think, from the fact that from the IPO, we've managed -- at the same time that we grew sevenfold revenue-wise, we're actually able to expand our adjusted EBITDA margin from just 9% at the time of IPO to 20%, which is what we expect to do this year. We've actually reached the 20% on a quarterly basis in Q4. And in '25, we expect to do that on an annual basis. So what drives this success? Or what drives the value creation that our platform provides for our merchants? And the basis of it, and I mentioned it briefly earlier, is a full end-to-end comprehensive tech platform that we've built, that takes care of all the different needs and requirements that are there in order to localize that shopping experience for the consumers and for the merchants alike. On top of that broad set of capabilities, we add data models using AI and machine learning and integrate that via APIs to external providers as well in order to provide that layer of applications that powers each and every element, each and every capability out of those that I mentioned earlier that together form that fully localized experience. On top of that, we add go-to-market elements such as demand generation, such as those Smart Insights that I mentioned in order to deliver the true value for our merchants to grow their business. So that tech sits in the middle and orchestrates all that we do, and that's connected to a very, very broad and growing set of Tier 1 providers, How there -- that are integrated into our platform via hundreds of APIs and together form the ecosystem that enables all of our services. And it starts from the e-commerce platforms. As you are all aware, we have integrations into pretty much any e-commerce platform out there. There's, of course, our longstanding and successful partnership with Shopify. We have great integrations and relationships with all the other leading platforms from Salesforce Commerce to Magento to BigCommerce, et cetera. For those of you that were around at the time of our IPO, maybe remember the this and will notice that there are many more logos on this slide because we keep adding more and more providers, more and more such integration. I think the recent one is SCAYLE, a fast-growing, successful e-commerce platform, that food integrating with SCAYLE and partnering with them. We got 2 very exciting deals already, Harrods and Manchester United, 2 great relatively new clients of ours. Same is true for payment providers. We keep adding integrations to additional payment gateways in order to create both redundancy and capabilities and performance on the payment side, additional carriers to better our logistical reach and performance and so on and so forth. Now the combination of investing in our technology and constantly expanding the ecosystem of partners that we work with is really what drives our innovation all across the board, all across the different elements of our offering, from the very beginning, from the relatively new demand generation capabilities that we went live with Borderfree, which you have an example here is one of them. Nir will talk a little bit more about that later on. Through adding, as I mentioned, additional capabilities around payments, additional optionality and sophisticated logistics offerings, through to investments in better and better risk management models for the sake of our merchants and, of course, keeping us and our merchants always fully compliant with local regulations, with local duties, taxes, tariffs, et cetera, all the way to completely new operating models, if it's the relatively new multi-local offering that we added just a few years ago, if it's support for digital goods, which we are enabling, as we speak and, of course, many capabilities that are starting to rely more and more on artificial intelligence, both internally to make our operations more effective and efficient and also, externally, like our -- for example, our multilingual customer services. So really, innovation all across the board is driving that growth. And when you look -- I think the best evidence probably to that value that we deliver to our merchants through innovation is the very fast growth in the number of merchants that are joining us along the way. If you look at just the enterprise side of the house, we've tripled the number of merchants -- of enterprise merchants that we had at the time of the IPO, but we've actually quadrupled the number of large merchants, those that generate more than $1 million of revenues, on our platform. I think this is evidence to the growing value that we bring to our clients. And we don't just add additional merchants to the platform. We also add services like multi-local, for example. Multi-local was virtually nonexistent on our platform when we IPO-ed. There was just kind of initial attempts. Now if we fast forward to 2025, we expect around 15% of our GMV to be generated through this innovative offering, which is mainly catering to our larger global mega brands. We're also entering new verticals as we go along. Again, an example is consumer electronics. Virtually nonexistent when we IPO-ed. Now expecting to do more than $0.25 billion just in this vertical in 2025 alone. So if you will broaden the lens for a second and look at the TAM that we are going after, it is already massive. Even if we just look at global B2C cross-border trade, that's already more than a $1 trillion market. And it's continuing to outpace on its growth the domestic e-commerce. But actually, with the new models,in place, especially multi-local and others, we're actually expanding the TAM that we play in towards the broader global e-commerce opportunity and expect over the next few years to capture more and more out of that opportunity. I think that rapid growth that we have already generated and expect to continue generating in both the levels of our activity, the visits in the site, the interactions and the number of merchants, that yields two things that go hand-in-hand. One is scale, of course, generating economies of scales -- economies of scale, enabling us to operate on an ever more efficient model and giving us constant access to Tier 1 providers that complete our ecosystem. But at the same time, that data asset that I talked about and our ability to harness it generates what we call internally economies of skill and basically knowing more and more what these best practices are, what are those insights and things that only we can come up with because we are the only ones that have that combination of scale and know-how and broad view over the entire value chain that is required in order to sell effectively internationally. And that combination of scale and skill is what's driving our very effective competitive flywheel effect because the better our insights, the sharper our insights, the better performance we can generate, the better conversion uplift we can generate for our merchants. On average, we generate more than 40% conversion uplift, broadly speaking, to our merchants. It's a massive -- it's not just a marginal improvement. It's a complete change in how they do their business internationally. The more of that conversion uplift we generate, the more sales these merchants have. The more sales they have, the more merchants also join our platform because we have more case studies and more track record. The more data we gather, which enables us to even sharpen our insights even further and so on and so forth, and that's a very, very powerful dynamic flywheel effect that's propelling our business forward. Now if I pause for a second and take a look at the road ahead, we're very excited as you probably noticed from what we've been able to achieve so far, but we're actually much more excited by what is in stock for us for the next near term and long term. Because if we look at the road ahead of us, first of all, you saw the TAM that we're in. There's still a massive opportunity to grow both with our existing merchants, capturing more and more of their business and bettering our performance with them and, of course, also to add additional merchants in all the geographies that we already operate in. In addition to that, there is still a lot of room both for geographical expansion to support more outbound markets. We grew from supporting 9 outbound markets at the time of our IPO just under 4 years ago to close to 40 different outbound markets that we support today, but there's still more room for growth, still additional lanes that we can support on the outbound and expansion to additional verticals. I mentioned consumer electronics. We've also had, in the last years, a lot of success entering the sports teams vertical, and there are additional verticals that we think that over time we can expand into. Nir is going to go into a bit more depth at our -- into our go-to-market strategy later on, but I'll just mention for now that another thing that we are constantly transitioning over time is from doing mostly outbound sales, which is what we did, I would say, many years ago to relying much more today on channel partnerships to be a force multiplier, if you want, on our ability to reach new merchants, both in our existing geographies and new geographies. Another thing we can do using our very longstanding and intimate relationships that we have with all of our merchants is also to go beyond the, I would say, baseline value that we bring to them, which is already very meaningful for them and very broad. We think that, over time, we can add more and more value-added service -- services, I'm sorry, on top of that, driving more value for merchants and increasing even further the stickiness of our services. Some of those we've already mentioned and will mention today. Like Borderfree, for example, which is our demand generation service like global duty drawback, but there are many others that we believe we can develop over time in order to broaden even further the scope of our work with these merchants. Now if I look at the slightly longer horizon, managed markets, which is our solution developed together with Shopify aimed at the masses of relatively smaller merchants on the Shopify platform, that's showing very good signs of initial traction. And we believe that over the next few years, with additional investments, with additional work hand-in-hand with our partners at Shopify, we can actually drive this line of business into a very big opportunity by itself. And lastly, if I look even further into the horizon, we operate today almost solely in the B2C market. But if you look at the B2B market, there's actually a massive opportunity there as well. B2B is always slightly behind B2C in terms of adoption of new operating models, of new solutions, innovative solutions such as ours. But fundamentally, there's no reason why B2B brands will not be able, in the future, to cater to their business customers around the world directly in the same manner that the B2C brands that are working with us are doing. And we believe that in the longer term, we can actually play in that arena as well and rely on the know-how and capabilities that we've already built, plus new capabilities that we know we need to add in order to lead that market as well. So that's what I wanted to cover kind of to start the day off. If I summarize what we've -- what I've talked about is, first and foremost, I think it's very clear. We are the clear market leader in the global e-commerce enablement field, and we operate in an already big and fast-growing market opportunity, which we are capturing more and more of. We drive revenue growth for our merchants. And therefore, for us, that's the fundamental 100% alignment between us and our merchants that is enabling us to propel the business forward. And we do that on the base -- on the back of continuous -- continuously innovating, continuously adding additional services, additional capabilities, additional offerings to our platform. We don't just invest in capabilities. We invest in data as well and in harnessing the fast-growing data asset that we have, and that is powering very, very compelling competitive flywheel effects that are furthering -- further increasing our quality and performance gap versus anybody else. And we do all of that on the back of a very attractive, scalable, yet profitable growth model. And as we look into the future, we actually see many different avenues for additional growth over many years to come, both in the near term and the longer term. So with that, I want to hand it over to Yehiam, our CTO, to lift the hood a bit on Global-e and give you a glimpse -- a deeper glimpse into the tech that enables all of this. And I'll let him take it from here.

Thank you very much, Amir.

Thank you.

Good morning, everyone. I'm Yehiam Shinder, Global-e CTO. In this session today, I would like to walk you through our product and technology story. It's a story of scale, innovation and excellence that power Global-e merchants. We are going to explore the way our technology is shaping the future of global e-commerce. First, let's start with our key performance metrics. In 2024, we delivered 2 billion site visits with over 120 billion API calls. In addition, at peak, we delivered 15,000 API calls per second. We managed to deliver this tremendous volume while achieving an uptime of 99.98%. We are 100% cloud native, and we are integrated with more than 300 third-party APIs via open APIs framework, which allows us to connect to key e-commerce partners. With more than 50% of our workforce in R&D, we continuously innovate. And last year, we delivered 542 versions to production. At Global-e, our commitment to R&D and continuous innovation is clear. We increased our R&D spend by 3.5x, crossing the $100 million mark. Our team also tripled over this year, and we also expanded our footprint into 9 different R&D locations. This strategy allows us to tap in towards top talents, support our merchants within the region and also accelerate innovation. Our success is built on 4 pillars. The first one is a robust and scalable architecture that delivers reliability at scale. The second is our continuous innovation of product and technology that drives new capabilities all the time. The third pillar is entering end-to-end security and trust, which keeps our merchants and shoppers safe. And lastly, it's the high-performing team that makes all of this happen. Let's take a closer look. Global e-commerce requires reliability at scale. Our first pillar, a robust and scalable architecture, allows businesses to grow without limits. Over the past 4 years, we experienced significant growth in platform demand and usage. API calls have surged 8x, crossing the 120 billion calls per annum, reflecting a dramatic increase of platform volume. The total number of products managed by our system grown by 5x. And most importantly, number of orders increased by 4.5x, demonstrating that our usage increase not only reflect high usage of the system, but also driving real growth for our merchants. This continuous -- this combination of rising API calls, product expansion and order volume demonstrated that our architecture and scalable cloud-native platform can handle the growing demands. Our platform is built on a 100% multi-tenant cloud powered by AWS and cloud-first CDN for content delivery. We ensure high availability of the platform by building in significant redundancy and also deploying a fully functional and disaster recovery setup in a separate AWS region. This allows us to ensure availability at all times of both the PCI and public environments. This architecture is highly scalable and capable to handle any volume and demand. We are committed to continuous investment in state-of-the-art technology and also keeping our infrastructure up to date and keep optimizing it more and more. Our continuous investment keeps our platform in the forefront of innovation and allows to handle any demand. Our architecture is bit in 4 different layers. The first layer is the infrastructure, which is powered by AWS and Cloudflare, and this actually allows us to operate our entire platform. Then we have the core capabilities, which are the essential functions of our systems, such as the checkout payments, fulfillment, communication, fraud prevention, data and security. These core capabilities are then wrapped with another layer of APIs, which allow simplicity, extensibility and also fast integrations. We have different APIs for order creation, returns, dispatch notification, gift cards, refunds, tracking events and shipping documents. The last layer is the product features that actually represent the end user functionalities like localized checkout, different payment gateways and methods, carriers integrations, price calculation, duties and taxes, to name only a few. This leveled approach allow us to ensure that every component is optimized for scale. It also allows us to easily integrate with different partners across the ecosystem. Global-e's robust architecture powers more than 1,400 under direct and thousands of indirect merchants. Now let's explore the way our architecture seamlessly connects to the ecosystem. Our platform sits at the center of a very connected ecosystem and connecting to a wide range of partners in fulfillment and logistics solutions, payment providers, fraud management tools and also various of e-commerce platforms. Our open API approach actually allows us rapid and flexible integration and integrating with partners, merchants and the other parties at a fast manner. In essence, our platform is access to the central hub of the global e-commerce ecosystem, delivering a seamless experience for both our merchants and shoppers. Here you can see 2 merchants, Logitech and Harrods, that -- a testament about our capabilities to onboard very robust and complex projects in a fast time to market. Harrods managed to replatform the entire e-commerce system in under 6 months. And Logitech described Global-e as the one of the most -- the fastest and most versatile e-commerce projects they ever had. This testimony only speaks directly about our robust architecture and agility that allows us to support high-scale merchants with very unique requirements and a fast onboarding time. Our second pillar is continuous innovation of technology and product. At Global-e, we believe that true innovations comes from collaborative inputs we get from different parties. On the left side, you can see the different sources for the inputs like discussion with merchants, requirements from partners, internal ideas and also advises from external experts. These inputs are then becoming a requirements that are moving into a process of design, development and QA. The output of this process is a swift innovation delivered across our platform and APIs. We also put in focus stability and security in every product for release. By codeveloping features in partnership with our ecosystem, we continue to refine our platform and meet our -- to meet our merchants' and partners' needs. Earlier, Amir presented our broader product road map. Our rapid growth and evolvement of solutions allows us to innovate even faster, and I would like now to show you a few examples of that. AI is core of everything we are doing in the company today. We have multiple use cases in play and others that are being deployed across our different platforms and services. The first example is our AI-powered chatbot for customer services. Returns can be a major pain for both customers and merchants, and these solutions streamline the entire process. By leveraging AI, we guide customers step by step throughout the return process, reduce the support overhead and overall improve the post-purchase experience for the shopper. This video demonstrating our sales chatbot guiding a buyer through the return process. As you can see, it takes the shopper step-by-step through the journey, starting from choosing the product you would like to return, selecting a return reason and, finally, generating the return label. Pay attention to how intuitively it leads the shopper through the different phases of this process. Now return is only one use case of the chatbot. Today, the sales chatbot is handling more than 50% of the total customer services tickets. It also improved significantly the shopper experience, allowing to receive a return label about 10x faster than it will take in if you would open a support ticket. The second example is related to extending our omnichannel capabilities. We developed a new feature called BOPIS, buy online, pick up in store. It allows the shopper to choose one of the merchant's physical location as the order pickup location. It also presents multiple advantages both to the merchants and the shoppers like leveraging the local store inventory, reducing shipping costs, allow immediate replacements and also increase the footfall to our merchant stores. This feature actually streamlined between the online and offline shopping experiences and also improve the shopper experience and provide our merchants tangible benefits. The next example is a key area that we are focusing on, which is developing more self-service capabilities for our merchants that will allow them to manage their e-commerce business independently and in a very intuitive way, one of the recent developments we did related to self-service analytics. Our merchants can access now to a Live View dashboard to track the daily sales performance in real time. In addition, they have access to the sales and funnel performance dashboards in which they can track their different location, countries and geographies and also track top KPIs, such as orders, returns, average order value and conversion rate. By providing our merchants access to this data, we allow them to get into a much faster data-driven decisions, improving their operations, increasing conversion rates and ultimately driving additional growth. The third pillar is our security, which is a key in our platform in order to ensure the safety of our merchants and shoppers. We took a holistic approach from cloud infrastructure to secure software development process. We built security into every level of our organization. On the cloud infrastructure level, we leverage Cloudflare for traffic protection and Netskope for secured access. This ensure that our perimeter is well defended. On the local endpoints, we use different tools for protecting devices and user identities, reinforcing zero trust model. We also adhere to leading security standards and testing protocols such as PCI, SOC 2, ESL, SOX and GDPR, and we are doing continuous penetration testing to validate our defenses. On top of that, we have secure software development process that is baked into our SDLC in which we are doing automatic call scans and periodic security audits to ensure that our code is written in a very safe way. By integrating security across cloud endpoints, compliance and secure coding, we ensure that every transaction and piece of data is secured and safe. Our last pillar is our high-performing team, a cornerstone of our success. Our R&D team is composed of over 600 engineers, which 200 out of them are software developers. The team grew significantly over the last 4 years, and we also expanded our global footprint. We have strategically located R&D centers in key markets, and this allows us to attract top talents and also support our merchants within the regions. To support our ambitious goals and fast growth, we're attracting top talents and continuously invest in their development. Let me highlight 4 aspects of our approach. First of all, we built a structured onboarding program, which immerses new hires into our culture and technology fast. They handle real-life projects from day 1, making sure they are productive and comfortable with their journey early. Our R&D team is built under a guild structure, which compose from specialists from different domains like software development, QA, DevOps and AI. These specialists collaborate on solutions and making sure we apply the same standards between different teams. The guilds also take active part in hiring and onboarding our new employees. Our shift test approach and continuous integration and continuous delivery ensures that we test everything early in the process, ensuring that security standards are being met and that performance metrics are being followed. This allows us to catch things early in the process and, by that, deliver high-quality software and -- in a faster manner. Finally, we empower our engineers with cutting-edge AI tools like Cursor, Copilot and other LLM coding assistants. By doing that, we allow our engineers to foster also a learning culture that make them keep finding new ways to optimize the way they develop software. By 2027, we aim that 50% of Global-e code will be generated by AI. By that, we'll be able to accelerate innovation in an efficient way. All together, these strategies provide an environment that allows our talent to develop and our innovation to accelerate. Let me summarize the 5 key takeaways of our discussion today. Our highly scalable platform was built by diverse, experienced and agile teams, ensuring resilience, adaptability and continuous innovation at scale. Our technology is seamlessly embedded into a wide ecosystem in having deep integration, frictionless connectivity and enhanced capabilities for merchants and partners. AI is driving efficiency and smarter solution and also allow us to provide a much more personalized shopping experiences. We see AI as a key in everything we are doing these days and in the future. We adopt a robust approach for security that spans from different layer of our organization. And this approach ensure that both our merchants and customers can trust our platform to protect their most sensitive information. Lastly, we continuously innovate across technology and product. We're driving smarter solutions. We provide our merchants self-service capabilities. And overall, we deliver more and more features that support our merchant growth. In closing, I would say that Global-e is more than e-commerce platform. It's the engine -- the power of global commerce and the platform that combines state-of-the-art technology, continuous innovation and a world-class team that deliver unparalleled results. Thank you very much for your attention, and I look forward to discuss any questions you may have during the Q&A session.

Thank you very much, Yehiam. Thank you very much, everyone, for joining us today. It's a pleasure to meet in person and even 4 years after the IPOs, it's nearly a month shy of 4 years at most. So it is an exciting opportunity for us. Global-e has done a very strong performance over the last 4 years since IPO. On average, we've grown 4 to 5x versus a global e-commerce market in each and every of the years since the IPO. We were able to do it by a combination of things from growing our own clients fastest than what the market is growing, winning more business from our existing clients as well as winning more and more business out of the market itself. We did it on a multilayer GTM strategy that is compiled at the bottom of it of the basis for all, which is winning more and more new business and scaling up our ability to win new business. We're doing it through a better and a more proficient direct sales approach combined with the ability to do it in many more markets. Amir spoke about our market expansion. We came out of around 10 markets at IPO to 39 markets that we will be able to transact with merchants out of within 2025. So it's scaling the direct sales capabilities across those markets. And on the top of it, the continuous widening of our channel partnerships. The second layer of our growth that has contributed a lot into our ability to continue and scale at high pace is actually growing our own merchants. Both Amir and Yehiam spoke about it. We continue to invest heavily in our product development in order to give better capabilities to our merchants, in order to change with their needs as they grow and scale as well as giving them more data to transact better with the capabilities they get from us. This extra growth creates confidence and relationships that actually drive the second layer of growing within our base, which is actually land and expand, where we get more markets from large enterprises that launch with us and continue to grow with us over time, giving us more share of their business. And on top of it, we complete it with additional value-added services such as a global duty drawback program, such as demand generation and other tools we provided our merchants over time. And all of it comes and is wrapped with the ability of Global-e to actually branch out into additional business models around us, that allows us to actually capture more time and more business outside the traditional cross-border business we came from. So once we double click into the first part of winning new business, then I would say it's a base of it. It's actually the fact that we expanded dramatically our approach into -- it's more than 30. It's actually 37 markets that are already transactional, 2 markets that are going to be transactional within the next quarter, bringing us to a total of 39 markets around the world. A huge -- I would say, a huge growth we were able to make in a very efficient manner. Still maintaining our S&M under control and our operational expenses under control, but this allows us, I would say, to continue and grow with our brands and also win new brands in territories we couldn't do before. Going into those markets, what's driving our growth within them is actually that we have a very sophisticated approach into how we source leads or prospects into our system, how do we calculate them. We use multiple technology -- technological tools in order to do it and data sources that we crunch automatically through our models into a place where we actually see a prospect and what this prospect is actually worth for Global-e, what platform is coming for. So we know what's the level of complexity we see in investing in him. So if he has his own built-in home platform, however, it's very small, we know that it might not be a high priority. So we look at what platform is coming from, what's the percent of international traffic it gets, what's the level of localization that he currently have, how good is his proposition in each and every market. All of this is being done automatically through the tools and actually being uploaded into a CRM systems that actually allows us to see fair market, all our relevant prospects. And on the back of it, we can look at and add and continue to enrich that data. Then we add into how do they do an international demand generation, do they spend money, do we see them -- do we see any signals, did they go into a funding round, did they change management, did they hire a new VP for international, a lot of signals that we had. And on the back of it, we decide how to make the approach to them. So a combination of the size, the complexities, opportunity would actually decide where to go from an automatic sequence down to a junior employee or to a very senior member of our staff that would actually reach out. And all that, when we go into the larger ones, we map it through our growing channel partners. So we might decide that it's even not a direct approach, despite the fact that we found, we understood that there is an opportunity. Now we will direct it to a channel partner that we know is very much connected to that client in order to get a better response from the client and actually expedite our ability to onboard this client. And this is, of course, coupled with our growing ecosystem. We do have a lot of clients that are being onboarded all the time. Yehiam spoke about it from the technical side that we grew from around 90 external APIs to around 300. Those 300 are actually providers that work with us. They make money when we make money. They grow their business when we grow our business. They have an inherent incentive to work with us, channel clients towards us because they see the growth of those clients as they continue to enjoy it. And that what led into what you see here that we got in 2024 to a point that more than 60% of our business, of our book GMV in 2024 actually came through channel partners. Some of them, our channel partners that 2 years ago were not part of our network. If we just -- Amir mentioned the 2, and he spoke about SCAYLE. SCAYLE came in and on the back of SCAYLE joining us saying, "We want a partnership with you." Within a year's time, we got Harrods into the roster and Manchester United into the roster, 2 of our largest brands that just launched in 2024. Within those channel partners, we have 2 that are more strategic. They have been with us for a long period of time. On the one hand, we have Shopify. We are already 5 years into the partnership with Shopify. The initial term was 3 years, and then we continue and extend our partnership every year. And within that, we also expanded the partnership. When we launched the partnership with Shopify, it was just for the 3P solution, which is our enterprise platform. I think a bit shy of a year later, we expanded this partnership to also power Shopify Managed Markets. So we extended and widened the partnership. And now we continue and extend this partnership going forward. Same goes with DHL that has been with us for 10 years. It's a very long-lasting partnership. We believed it. It's doing great for us. It's doing great for DHL. And it allows us not only to enjoy MFN or preferable rates. It allows us to provide our merchants with those partners a better service level. We have access to the relevant team. We get better service. Our merchants enjoy better service through our relationship with these partners. And the last thing that we do, when we look at how we go to market to win new business is actually taking advantage and acting proactive on changes that are happening in the market. I'm not sure you all heard of it, but there are some recent issues around tariffs around the world. Recently -- it's recently in the news and not -- maybe some of you follow it. On the back of it, on the one hand, it creates pressure. Look at yourself. Everybody here around the room is aware of it from the laughs that I hear. It means that our merchants, for sure, are aware of it. And other merchants that are not our merchants are aware of it, and consumers are aware of it. On the one hand, short term, yes, it creates pressure. It creates pressure on consumer sentiment because you start to hear a lot of discussion about it will make pricing higher. It will cause inflations. People are likely to cut down on their spending. That might be a reasonable outcome for the short, midterm when you look at the consumer side. However, when you look at the broader picture, it makes life more complex, and this is where Global-e drives complexity, and making complexity simpler is where Global-e makes its money. We know how to tackle things that are very complex and make them simple. Just think about the duty changes now for a European merchant that is selling, on average, 50% of his products that are country of origin China. Now the 10% that were levied -- and then the extra 10% that were levied on China, what he needs to do in order to work with that is not just saying, "Okay, I'll bump my prices 20% up to the U.S." No, because of the extra 10% that are actually suspending the $800 de minimis, now he needs to be able to make sure that he has a carrier that can actually deliver duty guaranteed products into the U.S. Because maybe he was selling a $200, $150, $100 average order basket, he could use whoever he wanted. It was never stopped in customs. Now it's all going to be stopped in customs. If you don't have the right carrier, you just can't get goods into the country. So you need to switch a carrier. You need to make changes to pricing to a specific country. You need to make sure that if you have a duty tariff set and you show guaranteed landed cost, you need to adjust it duty calculation. And all of that is for a single market. It might be, if you're European, on average, 15% to 20% of your business. So the complexity it's creating for you is huge, and this is where Global-e gives you simplicity. We tell you what to do. We tell you what we expect the effect on your business would be. We can calculate it for you because we run it for our existing brands. We run it through our systems. We know how much of the products sold to the U.S. for a country of origin China. We know what would be the effect. We tell you how much you should uplift your prices in order not to hurt too much your conversion rate. We will transfer seamlessly your orders into relevant carriers that can actually get it into the country. And if we do more than that, we can even connect that into a plan that can assist you with duty reclaim for the 10% or 15% returns that you have out of the -- back from the U.S., saving you another 1% or 2% of your total cost of trading into the U.S. So this is only one market. But now look about it when it evolves. Canada is implementing 25% -- or implemented 25% on the U.S. for certain HS code. You need to be a PhD to understand how does it apply to me, what -- do I sell this HS code, is this 5%, 7%. You don't need to do it with Global-e. This is our business. We'll tell you what's the effect on you, and we will tell you what to do with that. That's why we love it. That's why on the back of such events, Global-e is reaching out and explaining to merchants the value we can bring. Over time, we believe, as we've seen it happening in actual in Brexit, over time, it will bring more business to Global-e. So all in all, the combination of those channel partners, direct sales, more markets, being proactive is what's driving this exceptional growth in our ability to win new business out of the market. In the last 4 years, Global-e has quadrupled. The new bookings of GMV into our platform, just to give some perspective, in 2020, our entire platform GMV for the year, as Amir showed it, was $770 million. We signed 50% more of it new business only in 2024. That's how we do better on executing on our go-to-market strategy, winning new business. And these are some of the names. Each one of them is amazing by itself, but these are some of the names that just joined us in 2024. Victoria's Secret, amazing brand. It was the second largest client of one of our competitors that decided to switch to Global-e. Harrods jumped straight into the top 5 clients of Global-e. Harrods came out of the debacle of Farfetch. So we win business. Some of it is out of the market that did not have any solution. Some of it, as you've seen in this example, is actually coming out of being able to demonstrate what we built over the years, the strength of it versus competition and bring more business to us. Third example is the same, Manchester United. Together with SCAYLE in partnership, we actually replaced Fanatics and went into Manchester United. So we have a lot of nice names. We do a lot in growing the business, and this is just for 1 year. Think about all the changes, new verticals, sports goods. Just below it, look at Logitech. Amazing brand. It's our first really nice brand that is actually the bread and butter of consumer electronics. And when you win such a brand, you get a certificate of excellence within the vertical. And this will allow us to propel our -- and double up on our penetration efforts into bringing much more consumer electronics. Supreme, amazing, direct-to-consumer, super amazing brand. We go with them. We open market by market in addition in new territories, and it's just firing up like crazy. So quite a lot that you see all around new businesses, which we were able to acquire. And these businesses are from different verticals. The largest vertical for us would be apparel and accessories. That would be the largest. This is what people like to buy on the consumer side the most. Then you would have the likes of consumer electronics and a lot of beauty and cosmetics. Sport and fitness is actually growing for us. So it's still small, but it is growing very rapidly for us. And most of our business is done with the brands. In the past, if you look at Global-e 5 to 10 years ago, we have a much larger share of retailers. Over time, you see the brands are moving forward, wanted to transact globally directly with our own consumers. So we see the growth in share of our trading in 2024, reaching 70% that is actually brands that actually selling directly around the globe. And that takes us to the second layer that finalized our win new business layer, and now we're going into how we grow our business with existing, which is, I would say, a multiplier of growth. This also is comprised out of 3 components that we spoke about, and now let's dive into how we grow our own clients. We have a team of CSMs, almost, I would say, 100 of them. Together with data analysts that are supported them, they are based in each and every geography we operate merchants from. So the CSM is the focal point for our merchant. Anything they need, they are their ambassador within Global-e. They need to bring the knowledge of Global-e to the brand of onboarding. This is before the merchant even launched on Global-e. The moment a merchant is signing in parallel to the tech track of getting them live, a CSM is sitting with them and rebuilding the global proposition in order to make sure that out of the gate, the clients feel the difference. Our consumer feels the difference of trading with them. And this leads to what Amir mentioned earlier. Out of the gate, once you going live with Global-e, on average, our merchants see typically 40% growth in sales conversion. And this is huge because the most expensive thing for a merchant is actually sales and marketing, traffic generation in online. The cost of it is firing it up. It's killing the brands. And if you can get 40% more of existing traffic that is already coming to your site and you already paid for it, then this is a tremendous out-of-the-gate result that we can bring on the combination of our capabilities, our know-how and the dedicated support they get from our team. Over time, the CSM is the one that should bring the Global-e knowledge into the merchant because what we guided you when you onboarded is not the same on what I can tell you a year later. I know your data. I know how your consumers reacted to what Global-e has done with you, to the new capabilities. You didn't transact in a local currency. You didn't have duties embedded into the price. You didn't have iDEAL or you didn't have Klarna embedded. Now we learn a lot, and we continue to optimize because we get you into a peer group. We look at how you trade versus your peer group in each and every market. We do it on a relative conversion rate, so we can actually take everyone into the same language. And this allows us to tell you you're doing not as good as X, which is your -- not the merchant, but your peer group. And we know why. We can tell you why because your return offering is not in par. You offer a return in Germany for EUR 15. He offers it for EUR 5. This by itself caters for around 15% conversion. You offer outbound shipping for EUR 10. He offers -- they offer it on average for EUR 5, the best practices. If you match that and you're just thinking your prices, your AOV, you increase at 2%, you will get another 7% uplift. We have this data. We know how to embed it for you. And over time, this is what our CSM are bringing to the fingertips of our merchants in order to grow them faster. And this is combined with the ongoing product innovation that Yehiam spoke about. Our approach to the product innovation is merchant based. Yes, we do look ourselves. We do understand changes in the market. We do things that are internally driven, but a lot of it is from listening to clients. Clients are more sophisticated. We have a diverse ecosystem of clients. We have those that are just direct-to-consumer. All of their business is online. We have those that are traditional. We hear them all. We listen to them all. Once a year, we take all of our top 100 merchants into 3 events around the globe, sitting with them, listening, sharing what we think is the road map, getting their feedbacks and aligning in order to make sure that we develop what they need in order to do better going online, but making it simpler for them to trade better. And the result of that effort is actually translated into numbers because it's not only that we get a push once we onboard them into the Global-e platform. But over time, when you look at our different cohorts, since inception, actually, we are at a 4x on average cohort growth. We don't only onboard them. We continue to grow them over time. We grow our clients. You see it in our NDRs that are tracking over the 120%. You see it in the first year of typical onboarding that gives them 40%. All of it over time translate into a huge tool of growth coming out of our existing clients. And when you grow your clients and you have a track record, you make your merchants your own brand ambassadors. I didn't double click on it, but when you look at where we get our business from, 62% was channel partners. We spoke about the 29%. It was direct. 9% is coming out of ambassadors that are our clients. They are actually doing -- bringing clients to us. Those are inbound. A lot of them are merchants bringing other merchants to us or people that are actually moving from one place of employment to others. We have e-comm Director for the fourth time working with Global-e. They switched 4 positions. 4 positions, what they thought was a successful decision or a good decision to bring to the new job was actually coming and bringing Global-e in, which we highly regard as a testimonial of success. And when your brands are happy with you, it gives you 2 levers of growth. One, you grow with your own brand. So especially when you go to the larger brands, Disneys of the world, the adidas of the world, you don't get everything. They don't just say, "Oh, take my e-commerce." But over time, they trust you and you do good work for them, you actually win more and more business. You can see the adidas example here where some of it was planned between '21 and '22. Other is actually continue to expanding it. And when you see the numbers of markets, it's not just a number by itself. It's a much bigger market over time. Usually, you start with a smaller market. And if they gain confidence, more and more larger markets are being moved to Global-e. And the same goes into brand groups. You can see that we have a continuous growth over the last 6, 7 years with the LVMH Group. I think that, today, we have over 30 maisons out of LVMH with us, and it continues to track year after year. We have it since 2018 with Pink and Marc Jacobs. But it's now 6, 7 years that we are on the road, and we continue to onboard more and more maison out of LVMH. And this trust goes back to the flywheel effect that Amir spoke about. I'm not going to bore you again with a robust explanation about that. More data, more merchants, more trading brings a small merchant, gives us better advice and actually that drive a competitive -- that is driving our competitive moat. And the competitive moat, Global-e is by far the market leader in global e-commerce enablement. However, we do have competition. We have competition that is an outlet through a branded marketplace. In the past, we used to see it more. We spoke about Far Fetch with Harrods. We spoke about the world solutions for luxury, especially like [ Mattress Fashion ], like NET-A-PORTER, a lot of them are either not with us anymore or not doing well. So this is not doing great. As brands continue towards direct-to-consumer, and we enjoy the trend, we do see some point solutions in the cost -- we do see some point solution in the cross-border arena itself. None of them was able to scale as Global-e scaled. If I would look at my competitive landscape 5 years ago, it was much stronger players versus Global-e to speak about 10 years or more than that when we just started and there were different competitors, much stronger than us, we managed to execute better. We managed to generate, I would say, that flywheel of data and capabilities and scale. And it's a game of scale in global e-commerce that makes it very hard to compete with. But that goes into our main challenge. It used to be and it still is the vast majority of TAM is within in-house. And this is where we need to continue and educate merchants. And that goes back into my approach on the opportunistic changes. When it becomes more complex, we need to educate merchants that it's better to do it with a trusted partner, that this is his day to day. He knows how to take those complexities out of your eyes. You don't need to all the time employ your team in doing things that are not the core business of what you know to do as a brand, and this places us in a very good competitive place. And the last bit that is actually driving Global-e growth is our ability to move into adjacent businesses, leveraging what we built in Global-e, leveraging our capabilities and know-how and trying to push it into additional TAM that we see applicable. We just recently launched Borderfree.com. That was, I'd say, one of the key pillars why we decided to buy Borderfree a couple of years ago. We wanted to give a tool because of the growing cost of demand generation, and we're seeing our merchants struggling to invest in growing their global presence. And if they need to cut down, as everybody now is against stress, the first thing that is being cut down is international markets because they have own buyers. And here is where Global-e can play a big part, giving them an access to demand generation at scale at a guaranteed ROI of 10x, which is amazing for virtually any brand. We have more than a base of more than 2 million registered users on it. And I think we can play the video now, and on the back of it, I'll speak about initial numbers since we launched it. [Presentation]

So basically, we launched it in November, just 3 months ago. We are still in the early days. We still learn a lot, but I can tell you we're quite happy with how we see it forming up. We had, in the last 3.5 months, 2.5 million visits to borderfree.com. 0.5 million of them were actually redirected from within borderfree.com to our clients. On average, for the plus 200 merchants that already participate in the Borderfree program, more than 2.5% of the revenue on global came out of borderfree.com and its marketing activities. For the top performer within them, we crossed 10% of the global sales that are actually coming from the affiliate of borderfree.com, where we drive the traffic to them through our marketing activities. We have more than 170,000 subscriptions of new members within that period into the borderfree.com program. And we got word exposure with, I would say, basically transacting in more than 100 markets. We just recently got our first 2 success studies out of it. Really nice brands. Many of you I'm sure know, both Frank & Eileen, and APL. Frank & Eileen, 14% of the sales GMV in the period came out of borderfree.com marketing activities. It's huge. It's a huge proportion that we managed to do for them. Over time, we aspire with the changes and adjustments we are now doing to Borderfree.com that many others would follow towards the 10% mark. It's not only that it's great for that brand, which will enable us to sell it much more when we go into the second phase of rolling it out to more merchants within the Global-E arena, and much more than that, it creates another competitive barrier. Think about the merchants that Global-E is creating 5%, 10%, 15% of this business, if someone now comes and wants to sell an alternative cross-border solution or a global e-commerce solution, even if he's offering at 0.5% cheaper, no one wants to lose a tool that is actually driving 10% of its growth. Acquiring new merchant or new consumers they're super expensive. So it's another layer of stickiness and another layer in growing our clients' businesses into the future. Same goes for APL, 6.7% of the GMVs globally. 30% higher AOV with shoppers that were introduced to them to the brand through Global-E, actually transacting was sold already in 21 markets. The next initiative that we launched couple of years ago is Shopify managed markets. We did it on the back of extending our partnerships that I spoke about with Shopify from only the 3P solution, which is our enterprise platform, into what we call 1P, which is globally behind the scenes, powering Shopify managed markets, unlocking a vast TAM opportunity. A lot of it are smaller merchants at what we can handle, or we would take on the enterprise platform. We -- in the last 18 months since we actually went into GA and launched the product, we were able to get it as simple as less than 1 day onboarding time, on average, to onboard and transact with Global-E is 6 weeks to 12 weeks. Here, you see less than 1 day. Some of them are going live within 2 hours. They are able to transact by pressing a button, 2 hours later, they're actually transactional on managed markets, that allows us this crazy amount of brands that already transacted on own managed market, which is more than 10,000 merchants that actually utilize the solution, selling to more than 170 markets worldwide. We are working closely with Shopify in order to see how do we increase the adoption? How do we make it, I would say, X time bigger than what it is now as part of it. We are investing heavily now in changing elements of how we built it, not on the consumer side. Consumer would not see major differences. But much more at the back end side, making it super seamless to adopt to the merchant, not only to onboard. Onboard is already, as you see, quite sophisticated, but actually as simple as trading domestically with Shopify today. We want to make it seamless for them within the same dashboard, within the same processes, within the same payouts system, and the same payout calendar. So a lot of it is being done behind the scene, and we hope to deploy it within the coming 2 quarters. Also Amir mentioned it, we expanded our business model into global e-commerce. We used to be cross-border e-commerce. That was our main focus. Today, we have 15% of our business, which is global e-commerce. In order to get on a high-growth platform over time from zero in 2020 to 15% that it's expected to be in '25, you understand that the growth of multi-local for us, is much more than the 15% that is reflected on the overall. It's growing tremendously for us. Allowing us to access TAM that we couldn't access before. Allowing us to bring clients from vertical, we couldn't access before because they don't do cross-border, because of registration, licenses, et cetera, which is, I would say, a great business that we believe would continue to fuel our growth into the future. And the last bit, when we speak about new TAM opportunity, is actually B2B, or global business-to-business e-commerce. The potential for it is immense. The contribution today for us is very low. However, the value itself is tremendous. Its $20 trillion market that is currently trading B2B e-com. But most of it, by far, is centralized in domestic e-commerce because the cross-border e-commerce for them has the same difficulties that Amir presented, that are facing also B2C merchant. However, if we are able to build over time solutions for them, utilizing our core competencies, we have core competencies about transacting in multiple countries. However, they required some variation of it. In order to remove the specific barrier for B2B, it requires some variation because they don't use B2C carriers. It's not just putting a 2-kilo parcel and send it over. It can be something that need a freight forward. It can go maybe freight by air, but most likely, it will need freight by sea. And it might be that it does not require a full container, but it just needs to have a pilot on a container. So you need to have a solution that allows it seamlessly for them to be able to do it for you to that lane. It goes into having an IOR, because if you want to give a guaranteed landed cost to someone that is buying a $50,000 machine from you, and you're not a tech expert on how is it to import into Switzerland, you need someone that can actually be the clearance on the other side. where Global-E can actually leverage our capabilities, not our current capabilities, by the way. Today, we are -- our business is based on a personal import of the consumer, but actually Global-E, building and accelerating our model of being an IOR for such clients in order to give a guaranteed lending also to B2B down into the formal clearance on whatever required as former clearance. So there's huge opportunity. I believe that the next wave of growth would be from those clients targeting global e-commerce because the rationale to cut out the middle man that was in the past in B2C, because we spoke 10 years ago with -- 5 years ago, with Versace, with Adidas, and told them about global e-commerce, they would tell you, no, we have a distributor in country A, we have a distributor in country B. We don't want to interfere with our business. And then you've seen it changing over time, accelerated in COVID, but changing over time, where they actually take the ownership of the e-commerce to become global because they want to own the client relationship. The same logic applies here. So over time, we believe that if we build the right solution. And we see the platforms -- e-commerce platform are moving that direction. Sales for Shopify others. We believe that if we take part of that, it will create a next wave of growth into the longer term for Global-E. So just to summarize what we spoke about. We have a highly efficient S&M model and approach allowing us to enjoy less than 9 months payback period despite the fact that we are growing dramatically on new bookings year-by-year. Our channel partnerships are evolving and growing, actually hitting a record of more than 60% of our business coming out of channel partners, and we expect that to continue going forward. It allows us also to go upscale because the larger brands, the super large brands, work with consultants and agencies, et cetera. And in order to get to them, you need to have channel partners, said, believe in you. We have multiple levers for growth, not only from winning business in the market but from growing our core business and continue to execute well on getting our clients to grow. We have a data-driven consulting approach that are getting us very close to the clients, making the relationship type as a partnership creates much lower attrition rate out of our platform. And we have a lot of new horizons we spoke about, to support growth in the longer term. Engines like demand generation, like managed markets, like B2B. So quite a lot of things for us to do. Thank you very much.

We're going to take a 15-minute break. So there's coffee and snacks in the same room, we have the breakfast, and the restroom is past the elevator. And then we'll come back here at 11:25. [Break]

All right. Just wanted to get the session kicked off here. First and foremost, I want to thank 2 of our most, let's just say exciting brands for joining us today. Never an easy one to step away from the day to day. So honestly, thank you. And more importantly, excited to hear the story. And I think there's a few things that, obviously, we'd love to walk the forum through here today. So first off, introduction. So why don't we start with Michelle. Maybe you can give a quick introduction on yourselves and then the brand as well.

Sure. Hi, everyone. Thanks for having me. My name is Michelle Wasserman, and I have a background in scaling retail businesses for nearly 20 years. And I am currently the GM at FIGS, of the international business. And FIGS is a medical apparel and lifestyle brand with a mission to serve those who serve others. And it's been a really incredible journey at FIGS and partnering with Global-E.

Thank you. Dan?

I'm Dan Elmoznino. Good to meet everybody, and thank you for having me as well. Similarly, I have a long background within the e-com space. And I work with KITH about 8 years, full time. And it's been an exciting journey for everybody who doesn't know what KITH is. We're -- we're a lifestyle brand as well in a very different way. We are a retail -- we foundationally, we founded as a footwear retailer, we've converted into the fashion space. We do multi-season product, a lot of collaborative release product. Definitely an exciting space. As many growing -- fast-growing businesses, you wear multiple hats. So like as a title I wear Chief Brand Development, Chief Web, whatever, that chief expansion, whatever the growth requirement has been over the course of the years, but we're in very, very good hypergrowth state and globalizing is a very big piece of that and happy to be a part of it.

Are there chief travel, chief store, chief -- yes, lots of Chiefs. But no, I think it's exciting because I know we've heard throughout the discussion this morning a lot about enablement, right? Global enablement. Why typically, brands would partner, whether they do it in-house, whether they have a current setup establishment today. But more importantly, why did you decide to go with an e-commerce enabler, right? And I want to start that question maybe Michelle, with FIGS. And tell us your story, tell us your journey. I know we've been partnered for many, many years. But curious on what that initial excitement really took place?

So FIGS expanded internationally into 3 markets since 2020. And at first, we did it all in-house. The demand was good. The customer experience was very poor, and it was very operationally complex. So we decided to partner with Global-E for 4 reasons. The first is we always put the customer first. So customer experiences is obviously very important. And the ability to localize is -- and near customer expectations around payment setup, obviously, currency, payment options, messaging, and even language. So customer experience is first. Second is, I always like to think of our team. And so having that support around global compliance management and tax payments as well as other operational complexities. And then as a P&L owner, profitability. So I know -- we partnered a lot on profitability and -- but it's a big benefit to partner with Global-E because we have shared scale and so much better parcel rates than we would achieve on our own, especially to some of our emerging markets, as well as duty and tax drawback for returned items. So there are so many components to selling Global-E, and we have a lot of support on everything that might make it complex. And really cumbersome. And then the fourth is, it's very easy to continue to expand Global-E. So we'll call Matt, and we'll open a new market and...

Kind of usually turn them on.

No, but we'll talk about it. And there's very little dev work needed to expand Global-E. And so it just really supports our strategy in terms of reinforcing the customer and then managing the business successfully.

And then I'm going to -- I mean, same question, but digging a bit deeper on some of your -- because I know we've been working together since 2019. So we've been together for a while. And I know your challenges are differ than the average retailer, right? Tell us your story, tell us some of the challenges, tell us some of the barriers you face at KITH.

So first of all, I want to keep going after Michelle because it just covers most of my answers regardless. So -- but I would say that further to the specific nature of what KITH was dealing with at the time. Our e-com scaling and globalization goals in 2018 were similar in the sense that we were doing it in a very painful way. Like at the time e-comm used Pitney Bowes or whatever the service was and you printed a label and you attempted to do this DDP process -- DDU process rather. And then you have a consumer who would just reject the package saying, I didn't know whatever the price was. So looking back out -- looking back on it, I remember the process reviewing it, speaking with Matt, speaking with the team, speaking with other people in the landscape. And I think that to answer the question more specifically that you asked, the challenge that we face is we're a high-volume merchant in the sense of we get throttled, we get butted. We were dealing with a lot of flash selling issues, significant flash selling issues. And when I thought of what was the key for the partnership, it wasn't necessarily just the idea of selling international. There are multiple solutions. But when we were reviewing the solutions, what we found at Global-E, and specifically with Matt, was the direct interest to partner with developers. And I think that our integration was one that was so unique and such a spin-off within the Global-E landscape because we literally built our own scaled version of how do we mitigate flash selling. So we would actually take sales. We built a program that was unique within Global-E, and I think that knowing that I had a partner that was able to scale with me in response to the market, and in response to the consumer behavior, and trying to get very desired product, created a massive difference to the landscape. That was just offering international shipping service partnerships. So when we were able to see a partner that had a development team that can dedicate hours and resources independently to our needs and then work with logistics partners that we were working with at the time to personalize that experience as well. And we can have a lot of control over a very limited amount of product versus a very high amount of demand, and we were able to take massive entries. Look at fraud patterns and work with a cart partner who was able to really specify that to us was extremely differentiating factor and to this day has been the most meaningful part of the partnership. Like I have a specified tailored need to our business where in a market, most people want to cover 80%, and not really focus on the rest.

And I think the first day we met you told me, if you're going to want to partner with KITH, I've had a sale that will literally shut down the platform that serves me today. And Global-E needs to be ready. And you're right. And I think it's one of those we're having that investment, having the team relationship and being able to build together, you also helped us build those capabilities, which obviously has been longstanding and helped us evolve our offering as well in the market. So thank you for that. And now I'm going to shift into the multi-local strategy, right, which has been a big topic for today around brands that are starting to really accelerate. And I think through your journeys, although it started out as breaking down some of those very -- we think of them as basic barriers, which is not basic to many. We started to see inventory positions in entering different markets as a strategy to expand Global-E in a more economical efficient way. Whether it be for brand focus, whether it be for logistics, what have you. So I'm going to start with KITH on this one because I think your journey started when Brexit hit.

Correct.

So tell me the entry into Europe, the strategy on how barriers you face and the journey there?

So same kind of theme. We really work together very closely, actually on a very personalized approach. We took a very fast growing flash site within kith.com. And at the same time, we expanded our physical footprint, our retail footprint, we have close to 15 global doors. Continuing to grow, adding more annually. But our main goal at that point was to partner our expansion physically in Europe with a European entity website. So I would have a product that was already grounded for my retail, and I would open a third party 3PL in that location, then I would have a digital experience. Working with Global-E directly as a Shopify e-comm store, we really recognized after looking at the hurdles and specifically around this flash selling issue that was happening at the time, that we would actually entertain and work on a solely based Global-E shopping cart. So I have no native shopping cart even until this day on my EU website. So eu.kith.com operates independently of kith.com. And within that integration, we built an exclusive cart experience. With that, at the exact same time building it, Brexit gets finalized between -- and it really changed a lot of what the intent there was. But again, working with Global-E, understanding what was going to happen once product was grounded within EU, how we would serve those customers differently and what that user experience was going to be, still feeling localized within both of those markets. We've been able to sustain and have a very, very healthy business where U.K. actually is the largest ship to countries within our EU portfolio.

And on the FIGS front, tell us, right? And I know the journey started single DC and I think the approach and yes, go ahead.

So for localization it's really important for the customer experience to mirror your positioning as a brand. And so -- there are some brands where there's a lot of pull and you just need to enable it and the traffic comes. And then FIGS is a little bit earlier on our international journey, where we're still building our relationships. And so that premium experience and matching customer expectation is so important. And so we localize the site to varying degrees, depending on the market and its needs, but site assets and merchandising and then obviously, the currency and payment options. But as we look to support our international customers more so those who follow FIGS may know that we're exploring additional international DCs. And we're really excited to bring the product closer to the customer. And even when we do so, we will continue to partner with Global-E because we are able to take advantage of continued parcel rate efficiency, the local currency and payment options, which, again, we would not necessarily partner with some obscure payment providers. And Finland and -- but those are really important to the customer. But then also, we will continue cross-border transactions because it will help us with our inventory management and reduce that complexity. So we're excited. We're still earlier on our journey, but we're excited in the next couple of years to take those steps.

We're excited to be there with you. And I think it's one that -- and I quote you on this one, to have a single site, and serve physician inventory around the world is the dream. To be able to have local inventory and not have to build up that tech debt is something that -- and I see that's where it's heading. I really do. And I know that there's a lot of complexities to make that happen and to enable it, but obviously further on in the journey, but not far behind in the journey. But it's exciting for us to see and be part of that together. And I know the team had mentioned earlier tariffs. So I think this is going to be a new theme that we have to talk about in every meeting that we're in, and we are making sure that we keep your e-mails full with what's happening. But curious on the overall tariff situation, the trade war, how is it impacting your business? And how do you foresee this really impacting your strategy on FIGS?

Fortunately, FIGS does not have a lot of exposure to China and is not produced domestically. So we aren't that impacted today, but they're outside of the dynamic environment that we are experiencing today. There's a lot of change globally. The other day, I received an e-mail from Global-E saying, in the Middle East, HS codes are now 12 digits instead of 8 digits. Japan now requires payment authorization to a second degree. HTS codes for certain categories in Canada now have a different duty rate. Increased tariffs on -- in Finland and Israel. And then it says -- so I'm like, wow, but then it says as with all duty and tax regulations Global-E has automatically implemented these changes. No action is needed on your end. I'm like, as an operator, those are the words you want to hear. You want to be up-to-date with the information, but not necessarily spending your time focusing on the dev work that is required to support those changes. So thank you.

Well, I didn't write that e-mail.

Somebody wrote that email.

Yes, exactly. But on the KITH side, right? So it started in Brexit, then evolved to where we're at now. I'm curious on how you see the tariff situation. A similar question, right, impacting your business and I mean you do understand.

It impacts the business. I think the one thing that's shown us was on the last administration change we had, there was the original tariffs within China. At the time, we were sourcing product from there. And I think -- that was the awakening of you have to stay as a brand as ready as possible. You want to have diversity within production. You want to have options and understand what is going to maintain -- help you maintain margins. Like, ultimately, these are margin hits and you're going to absorb them on the business side, and you're going to try to find a way to manage production and source products in more efficient ways as much as possible. So to me, the awakening came years ago -- the first round. And it's shown us that you have to stay as ready as possible to just be agile to respond to the market. Consumer demand -- I'm in a fortunate position, as I say, a lot of that stuff. I have a product that's within consumer demand. I create demand within our own brand storytelling. But ultimately, it's not like I can just pass any of the stuff down the line. So we're very conscious of pricing. We've really tried to maintain a zero price raise as much as possible. So internally, it means that somebody's got to eat it, or you got to be better in how you get product. But the consumer reaction, fortunately has not been as painful. And again, having a product that's limited in nature and staying very engaged with the consumer and maintaining demand is, for us, the biggest focus. As long as people are still buying, we'll have to increase our volumes, but we can sustain.

Protected against the bots. But yes, no, and I think it's one, and I know it's been mentioned also, but these tariff changes, yes, although heightened now, has really been around for quite some time, right? Whether it be Australia implementing GST, whether it be Norway, whether it be Switzerland, whether it be the Eurozone, whether it be the U.K. and Brexit, what we saw, right? So I think, yes, it's very highlighted now, and there's a lot of agility that's needing to take place right now behind the scenes and make sure that profitability stays key for what the brands are doing, but it's one of the most important things. And keeping the brand profitable and growing in a market that's ever so changing is -- it needs to happen. And I've got 2 closing reflections, which I want to dig in on a bit. But number one, right? What is one key piece of advice that you would give for anyone entering their international journey in a similar spot to where you may have started yours? And this one I'm going to tee up and let anybody answer.

So at FIGS, we like to really think about what is our value proposition as a brand, where we have the greatest expertise and we focus those resources in-house. And then we partner with best-in-class companies to support and leverage their expertise in areas that are less key to us as a brand, but very important to us as a business. And so that's where finding the best partners and being aligned in how we serve our customers is so important.

And you know I'm going to put you on the spot, right? Because we do have data-driven insights. You've heard Amir, or you've heard Nir, you've heard -- I think everybody has mentioned the insights that we drive. So I want to talk about this one journey that you took into Canada, where you challenged the...

It's not a journey, it was a bet.

And I'm curious about that overall friendly wager and what was the outcome?

So just to bring everyone along on this journey. So we talked a lot about customers' expectation around pricing structure. And so in Europe, duties and taxes are included in all of the pricing. In the Philippines, it's added at checkout. In Canada, duties are included in the base price. Taxes are added at checkout. And every country has a different version based on their customers' expectations. Early on, in my journey with FIGS and Global-E, I really wanted to keep prices as low as possible for our Canadian customers. And so I said, Matt, let's just -- let's add duties at checkout, it's fine. He's like, "I don't think so. I don't think so. We have a data-driven insight that tell us not to do this". It was just a couple of week test. But needless to say, I lost a bet.

You owe me dinner.

I do. I still owe you dinner, I know. But here I am.

But it was, and it was a fun one. I think as you see it, it's just always -- and we have a good laugh about it, and I'm not going to get into it with you because the first time I met Dan massaging my shoulders saying there will be a moment, where I offer free shipping, Matt, today is not that day. Just make sure my clients can buy seamlessly, but advice to the room, fellas?

We have a really strong philosophy during what we call hyper growth for us. And it's be great at what you're great at. Like I'm great at storytelling, creating product and focusing on this transitional period of retail experience. So with retail experience experiential activations, pop-ups, product, again, storytelling partnerships and evolving product is really our core function. I don't really want to get into the business of figuring out how to land the VAT reconciliation in Belgium. It's just not -- it's not my core strength, and it's not something that I'd want to take and tackle and now do that for 29 countries within one region and then figure out what are my most popular countries have to continue to reconcile. I think it's been an evolution of proving that. The case study shows that working with a partner that can handle that side of the business, handle localized currency, and remit me my net dollars to continue doing my business is the core function and the core focus for the business in every aspect. I want to work with partners that are going to make it seamless, provide me the opportunity to expand and not weigh me down with as much burden as possible. So they're great at what they are great at, I'm great at what I'm great at, we find each other. We find the points -- what needs to review and we continue to go from there. And like I was saying, for the idea that it can continue to kind of be the case, look at some of these largest platforms that handle commerce for most of the large brands in the digital space. They're looking and they found ways to integrate this into their service offering because that is now what was being asked to them. So when you see a Shopify or a Salesforce work directly with the Global-E, I think it proves more to that point that merchants were feeling too weighed down by a process that is basically impossible unless you have a really large accounting and reconciliation team and find a partner that can just handle that and do it for you. And as long as everything is reconciled properly, I provide a file to my accountants to my auditors and I close out my year, and that's just what it is. And that -- it doesn't need to be more than that.

Excellent. And with that said, I just want to thank you because I think I know we mentioned it earlier, coming out here away from the day to day. I know you're in Japan and Honolulu, I know you're in L.A. I know it's not easy to get away, especially for any sort of speaking like this. So thank you. Thank you for the input. Thank you for challenging us on the platform and obviously, the insight and guidance for the room today. Appreciate it.

Thank you. Thank you for having us. [Break]

All right. So it's good to see all of you here, and thank you for coming and participating in our first ever Investor Day. And I'll start off with the financial strategy, so we can try to keep pace, so we can keep ample time for Q&A later on. So since this is an Investor Day, I thought why not start with asking why own Global-E or why consider owning the Global-E stock. So I think that it has been illustrated in the previous sessions that we operate in a large and fast-growing market. Not only that, but we are well positioned to capture growth, increase our share within that market and continue to grow rapidly in the coming years. So this is the first reason. #2, we have a diverse, wide and growing customer base across different industries, different verticals, from apparel to consumer electronics, across different geos from the U.S. through Europe to our latest penetrated market of APAC that we are very excited about and different customer sizes from the smallest SMBs that are currently serves on managed markets to the largest, most prestigious global brands. So a large and diversified customer base. And 3, we have executed well. And I think that we have shown over the years, a very strong financial performance. We have grown rapidly our top line, while expanding our margins, and that has enabled us to show very strong cash generation. So just a few high-level points why we think Global-E is a unique opportunity within tech in general and within e-commerce enablement in particular. And as I mentioned, we have built a very strong track record of execution. We are an execution-first company and we are very proud in the fact that we have been able to achieve or even surpass all of our business and financial pre-IPO targets. And see it here on the right-hand side, but I will double click so we can see a few more numbers. So as we already mentioned, our TAM has grown significantly in the last few years, since our IPO. On the one hand, there is organic growth direct-to-consumer cross-border is growing fast, and this expands our TAM. But on top of that, we have been able to expand our offering over time and open up new TAM that now we are after. GMV has grown very rapidly, and we expect to see 8x growth from the time of the -- or less pre-IPO year, which is 2020 to 2025. Revenue, which is driven by GMV follows the GMV trailer and we expect to see 7x growth from 2020 to 2025. As I mentioned, not only that we have been able to grow our top-line rapidly, but at the same time, we were able to also expand our margins. As you can see, we have surpassed our non-GAAP gross profit pre-IPO target of 40%, significantly has landed on 46% in 2024. And our adjusted EBITDA in Q4 '24 is 20%, which was our long-term adjusted EBITDA pre-IPO target. All of that had translated very nicely into free cash flow generation. We've generated almost $170 million of free cash flow in 2024. So you've already seen our GMV figures. I think I'll just run very shortly again. We have been able to grow very fast from $774 million in 2020 to over $4.8 billion in 2024 and we're expecting to hit over $6.3 billion in 2025. This isn't just important because obviously, all of us here in the room want Global-E to grow fast. But this also creates and enables us to build a significant competitive position. As we scale up, we become more efficient. But not only that, we are able to reinvest more and create more value for the merchants by expanding our product and building new capabilities. And this further strengthens our competitive position and enables us to go after this massive market. We believe that in the next few years, we can continue this rapid growth. And in a few minutes, I will share with you our view of the next few years' financial targets. As you have seen in the previous session, we put the merchants in the front and center. Without the merchants, we don't have a business. The merchants stay with us, we grow with them and they grow with us as reflected in our NDR and GDR figures, our NDR has been typically above 120%, and our GDR has typically been over 97%. The existing merchants play a significant role in our future growth as well as I will illustrate a bit later, when I will discuss our growth algorithm. Our business is also becoming more and more diversified over time. Our top 10 merchants generated 36% of our GMV in 2020. When we look at the 2024 figures, the top 10 merchants are now generating only 25% of our GMV. And those are actually much larger merchants. Over the years, we've been able to attract larger merchants to our platform. And if we look at the top 10 list -- the current top 10 lists, only 3 of the merchants were part of the top 10 in 2020. Not only that our merchant base is diversifying. Also our destination markets are highly fragmented. We have only 3 markets, we generate more than 10% of our business. Those are the U.S., Canada and the U.K., while we operate in close to 200 destination markets, most of them are sub 2% of the total GMV that is generated on the Global-E platform. So very fragmented merchant base, also a very fragmented destination markets. The outbound markets, we've seen a lot of dynamics around that in recent years. The U.S. currently represents over 45% of our business. It has grown very nicely for us in recent years. So thank you for that, Matt. And Europe and the EU, I should say, and the U.K. combined represent also over 45% of the business. We have had -- we saw great success in the last 2 years in developing new outbound markets, especially with APAC-based brands. We've invested in that in the last 24 months. And while the others here, which are mostly APAC represents just 6% of the business. They've been growing at a very fast pace. And we believe that there is significant potential even in the near future and definitely in the long term in APAC. Revenue follows GMV, it's driven by GMV and follow GMV pretty closely. It has grown at a slightly lower pace 7x from 2020 what we expect to see in 2025 with a CAGR of 47% over that period. And for those of you that are maybe newer to the story, I would like to take a minute and discuss our business model. So as I think, it is easy to understand. Everything is driven out of GMV for us. And we have 2 main revenue generation pillars. The first one is service fees, and the second one is fulfillment services revenue. Service fees is charged for the utilization of our end-to-end platform. And it's based on a take rate model as was mentioned earlier, we believe that, that is the right model for us as it aligns the interest of the merchants and us. We make money only if the merchants grow as it is volume driven. Fulfillment services are generated mainly from shipping and return services that we provide our merchants and the pricing of those services are based on rate cards that we offer to our merchants. Service fees revenues have contributed just below 50% of our overall revenue, while fulfillment services have been just above 50% of our overall revenue. However, when we look at the contribution to the gross profit line, it is slightly different as the margins of service fee are significantly higher. Service fees contribute approximately 70% to our gross profit line, while fulfillment services contribute the remaining 30%. Our gross profit growth has been outpacing our top line growth for the last few years. We are obviously very happy about that. And we have been leveraging scale efficiencies. You've heard the term scale a few times today. It is very important for us. It enables us to drive efficiencies and also invest more in optimization. And this is what we have been doing for the last several years. In addition to that, also, there was an impact from the higher share of service fee revenues that grew over time. And all of that has enabled us to increase gross margins from 32% in 2020 to around 46% in 2024. So we believe that we can continue and optimize. We see more potential on operational leverage in the coming years, but we will continue to invest in optimization and to leverage our scale over time. We are running a very efficient business model. First and foremost, it's a game of, again, scale. As we scale up, we are able to drive efficiencies. And as I mentioned, more importantly, create more value for the merchant. We call it economies of scale and also economies of skill as those data insights are also driving a lot of value for the merchants and in return, helping us to grow the business for Global-E. On the R&D side, we have a multi-tenant platform approach, which enables us to be very efficient. All enhancements and development of most of the enhancements and upgrades to the platform are basically open for all merchants that are active on the platform, making it very efficient. We develop a future once and then it serves the existing merchant base and is open to any new merchants that will join. Also, as Nir mentioned, we have a very efficient go-to-market strategy. which is based on the growing recognition that Global-E has in the market, but also a lot on the channel partnerships. The channel partnerships enables us to be very efficient on the go-to-market approach and maintain our costs at a relatively low level. In addition to that, as we grew, we grew not as a pure SaaS company. And in order to do well, we needed to really have a DNA of efficiency in the company. And this is actually something that we continue to nurture and we believe that it is in our blood to try and optimize and be as efficient as we can. While we believe that we will need to continue and reinvest in the growth of the business on the product side, on the sales and marketing side, but at the same time, stay very efficient as we have been able to do in recent years. All of that has enabled us to improve our adjusted EBITDA margin significantly. And adjusted EBITDA is a very important KPI for us as it translates very nicely into free cash flow. Adjusted EBITDA margins have grown from 9% in 2020 to 20% in Q4 in the last quarter of 2024. And based on our guidance, we expect to see it hovering around that level in 2025 as well. It has grown 14x from 2020 or we expect it to grow 14x from 2020 to 2025. As I mentioned, this has translated -- adjusted EBITDA is translated very nicely into free cash flow generation. Typically, free cash flow margins are slightly above adjusted EBITDA margins. And as you can see, in 2024, we hit a record adjusted CRE free cash flow margin for Global-E, reaching 22%, which we are very happy about. But we do think that we can continue and improve this KPI over time. I think we've discussed our growth algorithm in different ways throughout this day. But before we will discuss our financial framework for the future, I thought it would be a good idea to jump again into this. So we have a multicomponent growth algorithm. The first component, the basic component and the most important component for us is the existing merchants. And basically, existing merchants growth is driven by 2 sources. The first one is what we call same-store sales. So basically, it's driven by the growth of the e-commerce market and the direct-to-consumer channel within it. On a typical year, this would be a high-single-digit to a low double-digit number. On top of that, as mentioned previously, we have the land and expand motion that is relevant mainly for large brands that typically land on the platform with a subset of the geos or the lanes and then over time, once they gain trust, they add additional markets. You've seen the biggest example previously, and then there are a lot of other good examples. The second layer is merchants that have onboarded in the previous year. That's still part of our NDR. And those merchants basically are growing very fast in the first year for 2 reasons. One is Essence, the other one is Technical. In terms of Essence, there is a significant uplift when our brands initially start working on the Global-E platform. As Nir mentioned, the typical uplift would be 40%, and we see that over the first few months of activity. So that is a very important growth driver. On top of that, there's the annualization impact of those merchants on board at a certain point in a given year. And then in the next year, it's the first time that basically we see a full year of activity. Basically, those 2 components built are NDR. The next one, which is extremely important is the contribution of new merchants that have onboarded within a given year. That number has been growing from year-to-year. It's becoming -- it's a challenge. As the base growth we need to bring in more, but we have been able to do that. And as Nir previously shown, 2024 was a record year for us in terms of signings. Not all of those merchants have already onboarded. Some of the onboarding will take place in 2025. But basically, this is the third piece of our growth algorithm. The next one is new TAM or additional TAM. In the short term, and we see a lot of potential, a much larger potential in the longer term. We have managed market, Shopify managed markets, which is already contributing, and we see a lot of massive potential for the future after we go through this a few more month of investment that we Shopify to align the merchant experience. And we see also new opportunities. We've discussed B2B it will take time to get there. We still have a lot of work in order to touch that TAM. But we believe that this is a massive opportunity. And in the longer term, we can reach that TAM and we can develop additional business initiatives. On top of all of that, and that doesn't contribute to GMV, but it may contribute to revenue. We have all our value-added services initiatives, and this is definitely important in order to create more volume and better engage with the merchants, but also to generate additional take rate. So we've mentioned demand generation, we mentioned duty drawback, and there are additional initiatives in place. Moving on to our financial framework or 4-year plan that we would like to share with you. As we've already reached also passed all of our business and financial targets or pre-IPO targets, we thought this would be a good time to share our vision of what we would like to achieve in the next few years. On the GMV side, we believe that we can continue to grow rapidly. And the time frame for this is 2025 to 2028. We believe that we can continue to grow the pace of high-20s to low-30s over that period of time. In terms of revenue, we believe that we can grow in the mid-20s, though it's slightly lagging behind GMV because we do believe that multi-local will continue to play a role in our growth story. In terms of margins, as I previously mentioned, we do believe that we can optimize and continue to inject efficiencies into our business. We think a lot of it would be on the operational leverage side. So in terms of non-GAAP gross margin, we believe that our target is to be at the high-40s. And we believe that this could generate an adjusted EBITDA margin in the low to mid-20s. And as I previously mentioned, adjusted EBITDA historically translated very well for us into free cash flow generation. We believe that we can get over this period through a free cash flow margin in the mid-to-high 20s. So we think that this is challenging, but a very achievable target. That will enable Global-E to be a much larger, and a stronger cash generating company in the coming years. We believe that this plan will enable us to generate over $1 billion in free cash flow in this 4-year period. And we have different plans on how to allocate this capital. Our first priority, as always, is the opportunity we see is massive, is to reinvest in organic growth. So we will continue to invest in our product, in our R&D and building capabilities and in our go-to-market, while maintaining efficiencies as we did in the past. The second pillar is inorganic growth. While we don't have any specific targets at this point in time, we are looking at different opportunities, mainly for complementary product offerings and capabilities, that can accelerate our time to market or inject new capabilities that we currently don't have in Global-E. We believe that after integrating flow and border free, which are already well in place. This would be a good time to look at additional opportunities. And then the third pillar would be share repurchase, and we are considering it. We don't have an exact time frame for that or a specific volume we thought about, but this is something we are considering and we may introduce in the near future. So this is how we think about capital allocation in the coming years. And to summarize, Five key takeaways. The first one is that we built a very strong track record of execution, delivering on our business and financial objectives. We are also well positioned in a massive market, and we believe that we can capture additional share and grow rapidly in the coming years in a very efficient way as we did in recent years. We will continue to prioritize top line growth. Again, the opportunity out there is massive, and we will continue to do that. But at the same time, we will also continue to optimize and build efficiencies. We believe that this is a key for our future success. We expect to generate over $1 billion of free cash flow in the next 4 years, 2025 to 2028. So I'll leave you with that. And after setting up the stage, we can go to Q&A.

We're going to start the Q&A. I just ask that you wait for the mic to get near you for the benefit of the webcast.

Brent Bracelin, Piper Sandler. For me, the big takeaway from the presentation was multi-local. The new disclosures here, this is a bigger business than the Shopify markets -- managed markets opportunity next year, almost 2x larger, growing triple digits. How big is the multi-local market opportunity? Does tariffs actually -- could tariffs actually accelerate that multi-local business? And then maybe for you, Ofer, could you talk about the unit economics of that relative to maybe gross margin impact, maybe lower take rate overall? Just those 3 things, just given how big multi-local is and triple-digit growth, certainly much faster than I would have thought.

Thank you, Brent. We do believe that multi-local opportunity is massive. Some of it is, as presented, I think, in the session that Matt led is hand-in-hand working with current clients within the growth journey to go into a multi-local setup because it's more efficient economically for them and supporting also physical presence, they are evolving into, et cetera. But most of it for us is winning business out of new terms that we couldn't address before. I think that early this year, Logitech was the largest example of lending such a business that is multilocal by nature. We had a few smaller ones before, but it takes us into a single cloud, it is a different scale. On the back of it, we believe that we will continue to win more. We see it in our pipeline. We see it in our funnels. We direct our sales approach and sales team towards it. So I do believe there's a massive opportunity that we will continue to see over there. You asked about the connection to that and to the tariffs, I think, they're highly connected. Multi-local will get a huge push out of tariffs, if merchants are afraid of a trade war that is coming, it will push it much faster towards especially the larger ones into their larger lanes into a multi-local setup that would allow them to leverage economies of selling wholesale into the market, enjoying a lower hit on the P&L. And this is where Global-E can actually leverage new capabilities we bring into the market. We spoke about the 3B2C. 3B2C can allow a merchant to avoid a local setup in market in order to go multi-local and just use a wholesale entity registered entity without any operations linked to it, to import into a market, saving huge amounts of cash on union taxes burden, and through Global-E just continue selling domestically through a legal entity in country of Global-E that is selling it -- as if he's buying it domestically from the importing company and selling it to the consumer. So we have seen adoption of this model. We have a couple of large brands that are going to adopt that model to at least to large markets in the coming future. And we will believe it will be a key selling point going after new clients in the coming weeks and months.

In terms of the impact of -- on economics, maybe I would just start by saying that this is mostly relevant for large brands, building an inventory, not the 3B2C, the full multi-local approach is building additional inventories in other markets has a cost associated with it and adds complexities. In terms of the impact on our financials, the main impact is on the fulfillment services side because now when the inventory is domestic fulfillment becomes domestic as well, which makes it much simpler. And it is also a lower cost, which means that there are 2 alternatives. 1 is that the merchants would just handle it independently. Again, it's a relatively simple transaction in this case. And then we get no fulfillment revenue or the other alternative is that, in some cases, merchants want us to handle it end-to-end, just to put all that hustle aside and just focus on the brand and the product. But in that case, also the take rates would be lower, since now it's a domestic shipping transaction.

Koji Ikeda from Bank of America. Maybe a follow-up here on multi-local. It does seem like tariffs are a big driver for a lot of your companies to think about adopting multi-local strategies. And while that's great for you're helping the customers get the product to where they need to for their customers, what's the driver for these customers to ever go back to what they were doing before, meaning could it be potentially a take rate accelerator for you as tariffs come off in the future or potentially not, could we see take rates improve? Or are these customers structurally changing the way and the way that they're thinking about getting their products to the end market.

Generally, thinking of it, I believe it's a structural change. We don't see a lot of examples of merchants moving into a multi-local setup and scaling down again. We have seen a few, it's not that we haven't. We have seen a few merchants that took that step because they found it very compelling because the cost of domestic shipping looked much simpler or the time to ship a parcel to the client might be shorter. However, the level of SKUs that they had that require the level of inventory in country versus the scale in sales did not justify the savings that they had, and they ended up maybe with something that looked on an order level, looks like a better commercial, but they ended up losing money from the new setup because they didn't have enough scale in order to take into the overhead of the double inventory, et cetera. So on that, I think, that if you do it while you have already scale to see it going back would be the case as there might be some that's a tipping point for a decision was or will be the new tariffs because new tariffs, if you pay now an additional 25% on a retail price, and now you can move into a 3B2C model or a local setup that would be a 50% on a wholesale or a cost price, which is 50% of it, you save actually 12%, 10% to 12%, it's huge. So it might drive a decision also for merchants that are a bit subscale to actually do the model over time if those tariffs are actually removed. Will it happen? Will this scale back? Or will they stay with a new setup? I think time will tell.

Samad Samana from Jefferies. First, I just want to say it's amazing, there's a lot to celebrate over the last 4 years since the IPO. So congratulations on all the success. Maybe a couple of questions here. First, just on borderfree.com, you have 200-plus customers. What's the gating factor to maybe getting the rest of those 1,400 enterprise customers in the full installed base to sell on it? And can non Global-E merchants sell on there? And is that a potential customer acquisition vehicle? Essentially, just trying to see what both the existing base opportunity to get that to is -- and how you can attract others through it?

So we have high aspirations for Borderfree.com, Yes, I'll start from the later. We do believe that if we build it right, and we scale it to the level of scale it can get to. It will be a competitive tool for us to win more business in the market versus competition and also from in-house showing and demonstrating we can guarantee to your traffic in different countries at a guaranteed ROI is just to open the countries by yourself or try to grow within the country is an expensive adventure. However, in order to do it, we need to show that we're bringing success to our current clients using it. It's true for selling it outside. It's true for selling it inside. The early adopters, the 200 merchants. We're happy with the explanations and we're happy with the understanding of the opportunity and embraced it. I think that it will be a few waves of education for the rest of our client base in order to try and drive adoption. We don't expect to have a 100% adoption across the platforms. We have merchants with very strong brands in the key location. Some of them will not join as we look into the future. But we do believe that 2-digit percent of our volume and a nice 2-digit percent of our volume over time, will adopt. Once they adopt, it's actually creating a network effect because once every merchant that joins the platform, actually, from his own sales through the platform from his own checkout. We have a tick-box score at borderfree.com, that people can opt into Borderfree. This would scale the memberships. And if we continue to scale the memberships significantly and as we scale the platform more joining it, we will have a tool that, that if you look at it, for any single merchant out of Global-E, his own clients' contribution into that platform is sub 1%. So actually, in return, you get 99% clients that are not your clients, which actually allows you to get to an efficient brand awareness and grow your brand in the market. We believe that once brands understand it and the scales would bring it more and more in the success stories that you've seen. They just came out of the oven in last week. It's fresh. We're building it now. It's coming now. We are doing learning. The platform we came out of the gate in November is not the platform that is trading now for Borderfree.com, in March. And it's for sure, will not be the platform and the capabilities that you would see when you go into it in June. We are evolving. We have a lot to do. And I believe it can be a great tool into our future growth, and especially to our merchant's future growth.

And maybe just a quick follow-up. But for -- on the -- I think I saw on the slide that there's the indirect partners accounting for 60% of GMV might have been new GMV. But can you tell us, who those indirect partners are, I think I have a suspicion on at least one? And how do you diversify that over time just from a concentration standpoint?

Okay. So I think this is a good question for Nir as well. But we have -- I'll start and I'll let Nir [indiscernible] I think that this -- the channel partnership has grown very nicely for us in the last few years. Some of it is driven by our efforts and some of it is just driven by the natural cadence of our recognition in the market. So it makes it a lot more interesting for the parties to be involved in that. And as Nir mentioned in his session that in many cases, there's also an inherent interest of the partner to provide us leads because the carriers, we see more packages are flowing through them. The payment processes, we see more volumes, so payment processing, going through them and so on and so forth. So I would say this is the framework, and I'll let Nir continue from here.

So the immediate aspects, as you can believe, we're on the board, it can spend from DHL to Shopify. But the beauty of it is that you would be surprised on the composition of these channel partners and what they bring to us with the names that are actually in that roster. And not only that it's different names, they change all the time. If you look at 2023, Scale as a Partner brought us zero, which is nothing. The contribution of the GMV signed in 2024 from scale by itself was over 10% of our booked GMV that year. If you look at FedEx, FedEx brought us nothing in 2023. FedEx gave us a few percentages already in 2024. You can scale it up and look at how it evolves. It can go into the likes of Accenture. We never worked with Accenture in the past. Accenture is a gateway for very large brands that makes with their decision with consultants. We just had a breakthrough for the first time. Accenture brought to us a client ready to go after they sold it a couple of weeks ago. So it's evolving, it's changing. I think -- and it will continue to propel our growth over time. And it's not just the name you thought about, it's a much more evolving landscape of global, but also local players. It can be a domestic agency in Australia that fell in love with it. And just go client by client in the roster and fueling around 15% of our growth in Australia. So it can come from multiple places, but channel partnership is one of our key levers to future growth.

And I just want to add on that and Nir kind of teed it up that apart from being a force multiplier for our growth generally in the markets that we are already working, it's also become an important component of expanding to new markets because historically, before we had the track record and the ability to really work with these global partners, starting a new market was just coming over, putting a flag in the ground saying we're open for business and starting to go after clients, and it's very odd. Even if you have a great track record in other markets, it's still very hard to get those first meaningful clients on board. So over the recent years as we've gained more experience and more credibility to work with these global partners, it's also serving as an important component of us hitting the ground running, if you want, and we've seen that in markets. You mentioned Australia. Japan was also a great example of opening the business not just with a strong team on the ground and a strong focus on the market, but also on the back of a strategic partnership from the get go. In this case, with transcosmos and with the local DHL branch that really has enabled us to get out of the gate much quicker than we previously did when we opened new markets.

Way, way, way in the back.

I would certainly echo the thoughts and having you all join today. I have 2 questions. The first is kind of a follow-up to Samad's question. But if you zoom out and think about the value-add services that's in your road map broadly speaking, -- how do you -- how we ultimately monetize those? Is this really just trying to push more volume, more GMV into the platform and you'll indirectly monetize some of those offerings through that? Or is there an opportunity to maybe even change the business model slightly with what those services could be?

So I think it's both, depending on what the service and how we decide to go with it into market. On the one hand, you have a service like global duty drawback program. Global duty drawback program allows our merchants much more simplicity and allows a much better consumer experience because wherever you buy from the world, from a brand here in the U.S., once you make a return, you will be refunded in full. You will be refunded for the duty and taxes you paid in your country, and the merchant is actually kept whole as globally he is taking that cost into our cost structure for the insurance plan that is global duty drawback program. However, in order to make that insurance plan good for you as a merchant globally developed duty drawback across multiple geos, making our cost of trade offering that insurance cost effective because in many countries around the world, I can actually reclaim the money back from the authorities that any merchant by himself would find it difficult or impossible to do. So on that, yes, we are selling it. We are making a margin on it. So it will affect our top line once it continues its adoption. Same goes into a demand generation. Demand generation is a service that we are doing at scale. We are making it cost efficient to merchants. We give a guaranteed ROI related to it. For the first year now, we decided specifically even not to charge for it because we wanted to scale because there is an efficiency of scale once you get it into a volume, however, over time, yes, it will contribute to our take rates because we will charge for it. We will charge something that is much more efficient for a brand and to try to do it with Meta in multiple countries, et cetera. But over time, yes, we will charge for it. Some of the services are actually part of leveraging or giving you better capabilities. We will not charge for them direct as a service. If you look at 3 B2C, we will allow you better access into certain countries to optimize your cost of trade. On the back of it, we believe that it will grow you faster. If you grow faster because you have a better economic model into the market and you can be more aggressive in your demand generation operations, in your pricing, you will grow faster in market. We will get a percent out of it because we are aligned with you on the business model. So some would be from that, some will be from actually charging for these [indiscernible].

Helpful. I guess I should have said Scott Berg at Needham for the transcript that will be out from this. But my follow-up is for you, Ofer. If you think about your '28 target model that you have out there, I think what's interesting in the Global-e business since your IPO is while you've had 11 points of leverage on the adjusted EBITDA line, roughly speaking, is you've had almost zero leverage, though, in your operating expenses. All the leverage is coming in the COGS line, right? You've had 28% of your revenue flowing through your OpEx pretty consistently from the, but your '28 model kind of reverses that a little, but you're going to get less leverage in the gross margin line. Where does that ultimately come from? Is it just natural leverage in the model? Or will there be, I don't know, slightly different composition, I think of in '28?

So yes, as you rightfully mentioned, we expect things to slightly change in the coming years, and we expect to see most of the margin expansion driven from operational leverage. I think that the main item that we can create efficiencies on, as Yehiam mentioned, is the R&D side. AI will play an important role. But in addition to AI, we have also different initiatives, and also scale plays a significant role here. I think that we have reached a scale that enabled us to create operational leverage efficiencies. We have been able to do that around G&A. I think we can continue and do that. We have the potential of doing that around R&D and around some of the sales and marketing components as some of it is variable costs on the sales and marketing. The rev share and some of the other costs are variable costs. But we definitely believe that there is a significant potential to gradually pull that operational leverage and improve margins.

Great. It's Pat at Citizens. So Amir, it seems to me the biggest question is, can you guys keep executing against this opportunity, right? And so as CEO, what do you think are the top 2 or 3 things that you need to get right to make sure that your team can keep executing against it?

Yes. I think, first of all, you're right. And I think what has brought us here to where we are today is a combination of a great market opportunity, a great model to seize that opportunity and relentless execution in doing so. And honestly, I think that's -- these are also the components that would drive our growth for it, and we covered some of those during the various presentations. One is continuing to innovate and continuing to push and have our team push to innovate across the board, enabling additional openings of new TAMs, new opportunities and new ways to capture the existing TAM with both our existing merchants and the new merchants that are going to join the platform. I think the second component is continuing to find ways within our go-to-market strategy. Part of it is, as we mentioned, leveraging more channel partners, making our sales processes, even more effective and efficient going forward because there's no shortage of opportunity. It's about being able to balance between our wish to prioritize growth and grow the business across the board with keeping our reputation. I think you heard from our clients here on stage, just how important in central the Global-E offering is within their ability to grow their business. This is key for us. And whenever we prioritize growth, but whenever we need to take a decision between growing that 1 or 2 extra percentages versus risking the reputation in -- or our ability to support our merchants 100%, we will always choose to go for the service levels because we think that over time, this is what's going to enable us to continue and work and grow with these merchants and win that trust from additional merchants down the line. And the way to do all of that is by remaining super focused. And I think probably most of the work, you see here part of the management team, there are additional members of management in various roles around the world. I think as a team, I probably wouldn't be exaggerating if 80% of our work goes into thinking about that, managing that, managing that downwards towards the respective teams and making sure that everybody remains super focused on achieving those goals, but doing it in the most efficient way possible. I think with those components in place and our relentless focus on execution as a leadership team and as an entire organization, that's what's going to drive our success in the coming years.

And just one note -- one sentence to double click on it. I think it starts and ends with our commitment to our merchants. If you look at the 6 people sitting here on the stage, everybody is wearing clothes only from our merchants. No one in management is allowed to wear anything that is not for a merchant. So unfortunately, it's not fixed. My mother still regrets I'm not a doctor, but unfortunately, it's not fixed. But it goes from a Hugo Boss to Sandro, to Rag & Bone, to HOKA, to Adidas, you can go and test each one with his own tests, but they're not allowed to show up with anything anywhere that is not from clients. So that's part of our DNA. It starts at management, but it filters down. It creates a level of commitment. We are partnering and we built our business on our reputation, our connection to merchants, and we will not lose this focus. This would stay with us wherever we go at whatever time frame.

It's Mark Zgutowicz with The Benchmark Company -- over here. It's been quite informative. Just hoping you could maybe talk a little bit about managed markets. Obviously, you have 2 very different merchant bases here. And I think your go-to-market has evolved a bit over the last year or 2. So if you could perhaps just talk about the 2 primary learnings that you have gained there? And then sort of how that's changed your go to market? Do you have a different sort of addressable number in terms of Shopify merchants that you can monetize. And then Nir, you talked about perhaps 2 or 3 primary investments that you're making now. Maybe a little more specific there and what that might mean in terms of incremental GMV coming from Shopify over the next 24 months?

Sure. The managed markets, we launched it 18 months ago into GA. On the success side of it, I think we were able to perfect almost the onboarding of merchants into the solution to hit 10,000-plus merchants active on the platform is a huge success for Global-E. You looked at our enterprise platform. In the last 12 years, we amassed 1,400 clients. That was what we were able to achieve and what we are able to cater for in terms of onboarding enterprises. With this platform in 18 months, as we amassed 10,000-plus merchants, which is a completely different process at scale. However, as we evolved, we've seen that, first, we had a lot of learnings about the size of the clients that are actually adopting it, why they adopt it, why those that don't adopt it say they don't want to adopt it. And based on those learnings together with Shopify, we decided that we need to do adjustments to our back end as priority. We prioritize, and we know about some elements that we still need to handle on the consumer side, on the shopper experience. It can be down to returns and due to drawbacks, et cetera. However, as we see it in the back end, we need to streamline some of the basics of how the experience is for the merchants using Shopify combined with Global-E in managed markets versus using Shopify domestically, in the way the transaction is reconciled, in the way the payouts are working in multiple ways that is not familiar for them or require them to use separate systems or approaches. And if we want the adoption to be growing exponentially and not to grow from 10,000 to 12,000, 15,000 or 20,000 maybe within quarters, and we want to do, I would say, a much stronger growth into the future, then we need to address those issues. Shopify are experts in it. Shopify were able to build [ 1 million ] merchant business as they have the expertise. We take their leadership on it. They have better guidance and also on how to do it. And we are now, together with them, both teams on both sides are aligned on what we need to do. We are working to do it in the coming 2 quarters. And hopefully, this side of Christmas, we would launch -- we would do a relaunch to the market of the solution with a lot of changes to the back end.

Got it. That's helpful. And then a quick follow-up, perhaps for Ofer. Just on the services take component, if you think about your long-term guidance, is that -- is the assumption there that will continue to perhaps decline marginally or do you expect any growth in that services take rate that's implied in your guidance?

Yes. So regarding the take rate in general, as reflected in this high level guidance, we expect it to continue and moderately decrease. We expect that to happen mostly on the fulfillment services side. Again, the main driver behind that is the growth in share of multi-local that we expect to continue to see in the coming years. We expect service fee take rates to stay relatively stable. We do not expect to see any significant upside in the short term. In the longer term, if we are able to execute well on the value-added services, we might see some upside.

James Faucette, Morgan Stanley. I wanted to ask about kind of tariffs a little bit, and I think it's something we're all grappling with. And thinking about how you've incorporated those into your outlook. And I guess my question is the following. I think you make a pretty compelling case for why the increased complexity would be really attractive to existing merchant customers and partners as well as incremental ones. On the other hand, I think we're all grappling with a little bit what the elasticity of demand might look like and how you built that into your forecast, especially if you can tie it back to -- you said that you'd had similar experiences in Australia and U.K., et cetera. What do you see in those markets? And then how did you flow that through? Are you expecting like, "Oh, we're going to see twice as many merchants, but 10% reduction?" Or just any color you can give us so we can sensitize ourselves to that.

Yes. Thanks, James. So basically, it's -- of course, it's put in the disclaimer that it's an evolving situation in production. None of us know where -- we know where it started. I don't think anybody knows where it ends, potentially not even the people that are driving this. But putting that aside, I think our experience shows, and that's what we baked into our guidance going forward is that, yes, it may have some impact in the shorter term around consumer demand that is reflected in our -- kind of in our same-store sales figures. By the way, maybe not even because of pure economic reasons just because of perceptions and because of just people reading in the papers that, yes, this may lead to a recession and sometimes these are our self-fulfilling prophesies even if there's no real reason for them to retract their shopping habits. But as long, I would say, as the situation doesn't become nuclear tariff warfare, we think that within the realms of what we've seen, you mentioned Australia, there were other cases in recent years of countries that have introduced duties and taxes and no value goods, we've seen at the end that the impact is not massive. Yes, the prices may go up a bit. But by the way, prices go up a bit irrespective of additional tariffs going into effect just because brands sometimes update their pricing. And at the end of the day, especially in the verticals that we concentrate in, the elasticity can absorb, I would say, normal levels of tariffs. In the longer term, on that, we are actually very confident that this will drive eventually more business to us on that. As Nir mentioned, I think earlier, we have pretty similar experience in a similar situation with the Brexit happening a few years ago. We've seen that in other cases, we've seen that GDPR. We've seen a lot of complex regulations that kick in at the end of the day, and I think Michelle and Dan mentioned it when they spoke, that increased complexity is something that as a brand, you're -- that's not your expertise. And that's -- you're happy and rightly so to make that the problem of somebody else, the problem of somebody who's an expert in that and who is geared to do that at scale. So I think as these trade barriers amass, longer term, we're very confident that it's going to drive more business. We're already seeing some early signs of that with merchants, both existing and new merchants approaching us wanting to accelerate their thinking and their checks on what it would mean to work with Global-E with tariffs being the most probable driver behind that.

William Nance, Goldman Sachs. Maybe just to follow up on that last point you made. It seems like one of the big themes for today is the acceleration in multi-local and in part impacted by the trade situation. I'm curious if you've had conversations with existing merchants that's a -- the increase in complexity means, I want to give you more of my business that I may be doing in-house today certain markets or geographies because the complexity is accelerating. I'm wondering if there's been evidence of that so far, if there's anything baked into your expectations in the near term. And if there's any way of sizing what your wallet share is with existing customers and where there may be the large opportunities to expand that relationship over time?

Yes. I do think we're seeing that. I think it's conversations in 2 different streams that we're seeing right now with merchants that let's just say have built-out models that are looking to us to simplify where they're heading and what they're looking to achieve, which is just simplification and being able to run a single site with inventory position and leverage the gains of having inventory in market. So I think there's new conversations that are happening in markets that traditionally with some of these global brands, we may not have operated where now we are. And then I do think when you look at the existing base, and I mean we are having conversations on this often, right, with merchants that are looking to understand now who are at a scale, where do I put inventory next? And more importantly, how do I do that from a single site, yet leverage the inventory position in market, but then leverage the global entity structure behind it, which allows me to settle locally in a market that may not be a cross-border market for that matter. So we're seeing it in the 2 streams right now in the field without a doubt. It's a conversation that we're strategically having with all of our global brands, and it's only accelerating.

You see it with the brands we just spoke about this morning, large American brands that launched with us recently, don't do with us Canada and now we're looking into moving Canada to Global-E because the cost of adapting to the changes is high on that side. We do think in Australia. We have a few examples already in the funnel of midsized merchants with Global-E, but large merchants on the overall. The U.S., for example, is 40% of their business. They did it by themselves. Now they want to move into Global-E because the cost of changing and maintaining it became just way higher. So if Global-E can come with a solution such as the 3 B2C that allows them the simplicity without doing any local operations now in country, which is alternative to it, then we have a fair chance of winning that as well. So a lot of opportunities now that are running around. I think that if we play our cards right over the long term, it will be a successful Global-E.

Appreciate that. And then just on a different note, the commentary on Borderfree seemed pretty upbeat today, some of the recent success stories that you have with customers post the relaunch of the platform. I guess in the near term, do you see the renewed momentum that Borderfree has stabilizing the revenue growth in that platform? I know that you called that out as a headwind last year. And maybe if you could help think through what some of the recent kind of impacts on revenue growth have been from that platform and how those are likely to evolve?

So unfortunately, Borderfree platform is not rising back from the dead. We are sunsetting the platform, Borderfree at the end of this year. Platform is going down as we mentioned. And we guided for in the past, it's a completely different and separated business on Borderfree.com. Borderfree.com, we just love the name Borderfree. So we used it into our demand generation growing business. We just borrowed the name. It is growing. We are very excited about it. The Borderfree platform by itself is end of life. It's going down in December. The current trend of -- the current merchants that are left trading, volume is very minimal. And most of them have already migrated to Global-E. The last 2 large names are expected to migrate in Q1 of 2026. So yes, they will go dark for a short period, but because of the time it takes them to migrate our very legacy, I would say, client, it takes same time to migrate. They will be a quarter dark, but they will migrate. On the back of it, we will shut down the platform. We did take and built aside, we forked out the Borderfree.com business. This one is considerably scaling, and we do see it as a huge tool for our future. We did take also some of the services out of the core technologies that were based on a very good micro service technology. So we took some of those services around tokenization, around GSS which allows us to reconcile each and every transaction to see that what we send to the PSP is actually, we get the same amount back into our bank accounts, et cetera. We had some very good tools that we took in. And most of the development team, again a very good development team was, I would say, embedded into our different development teams around the world.

[ James McCarey ] from Fred Alger Management. My question is more broad on the guidance, which -- thank you for going out to 2028. It's a very long-term guidance, which is very encouraging. But I wanted to ask if you had any comments or any further clarification on your confidence, like what gives you confidence to go all the way out to 2028. What do you have the most line of sight into in your guidance? Do you have a lot of confidence about expanding gross margins like you can kind of guarantee that? Like what -- any kind of line of sight questions going out to 2028?

Obviously, when you provide a high-level guidance for a 4-year period, you have less certainty on the year 3 and year 4 compared to a 1-year guide. But we believe that based on the fundamentals that we presented today, the strength of the market, the vast time that is out there, our capabilities and the strong market positioning that we have and the multiple growth levers that we have presented, we can achieve those targets. As we mentioned, we have proved in the last few years. We have a very, very strong track record of execution and of achieving our targets, and we are quite confident that we can achieve those targets as well. Obviously, as we scale up, growth rates will slightly decrease. We have seen that in previous years. And you have seen that our guidance is lower compared to previous year's growth rate, but we are quite confident that we can achieve that.

And I'll just take advantage of not being the CFO and say that we actually -- if I look back to when we set our long-term targets as part of the IPO process, we have much better line of sight now and much better confidence now in our ability to achieve these long-term targets than we had in 2020 and 2021 when we set out those goals. So hopefully, that gives you a sense.

Andrew Bauch from Wells Fargo. Just wanted to -- I know you gave guidance on the full year just a month ago, but there's been a lot of headlines between now and then. And I would like to get a sense of activity levels as you kind of -- as we were about to end the first quarter here, your confidence in the first quarter guide and in the full year 2025 guide. Apologies for the short-term question, but I know it's on a lot of people's minds?

Yes. So yes, as you mentioned, we are mainly discussing the longer term today. But as we mentioned during the earnings call and also on additional calls that we had following that, we have expected and we see a certain level of -- not a certain level, normalization of growth rates or consumer confidence going into the first quarter. We've expected that it's currently trading around our expectations. As you know, it has been very volatile in the recent years, and we have seen a lot of volatility during any given year. But basically, we -- so far, it has been going more or less according to our expectations, and as just a few weeks passed since we've guided for the year, I don't think we have much better visibility regarding Q4. So we are quite confident that we can achieve the 2025 guidance.

And then you mentioned in the presentation M&A continuing to be part of the long-term strategy. Is any of that kind of contemplated in the guide you gave today? The industry is really kind of consolidated over the last couple of years with you guys being the beneficiary. So trying to get a sense of other good assets in the market today that you think would be a good fit in the Global-E umbrella.

We haven't baked any explicit M&A into our guidance. And -- to be honest, when we look at M&A, and I think Ofer alluded to that in his presentation, we are mainly looking at future M&A opportunities as opportunities to augment our capabilities in our -- and add new services debt or new features to our platform and our service offering, where it would be more beneficial and more time effective and cost effective to buy versus build. We think that we are at that point, I would say, in our life as a company, that was, by the way, the rationale behind both the acquisitions we've already done. As we've hopefully established, there's no shortage of growth opportunity out there. So we're not going to seek acquisition for the sake of growth. We bought Flow because we wanted the technology stack. We knew that we wanted to get deep into the SMB world. And we knew that we couldn't do that on the back of a platform that was built for enterprises in mind, and Flow had just that. They had a great tax stack that was purposely built for kind of self-onboarding, self-management with really kind of SMBs in mind. It lacked the scale and know-how that only comes with working with large enterprises that can really drive the product forward and the scale for it. So it was a natural combination. Yes, on the back of it, we got some business, but that wasn't the original intent. And as Nir just said, Borderfree was almost to the extreme because we actually took into account that we will have considerable churn off the platform. We knew that many of these legacy brands are not going to be in a position to reintegrate into the Global-E platform, but we wanted the great marketing assets that Borderfree have built as a springboard to creating our demand generation offering, which we're starting -- you're starting to see today. So even those 2 acquisitions were aimed at kind of buy versus build for capabilities, and that's how we look at it going forward.

Maddie Schrage with KeyBanc. Nice to see you all again. Going back to your long-term growth drivers, thinking about B2B. Curious to know if you have any customers currently utilizing globally for B2B or maybe any trials that you have so far? Also curious if those customers would be more likely to take your multi-local offering. And then also wondering if the platform today is equipped to handle B2B or if you need to do additional investments for the platform?

So we do have a small portion of our business that is B2B today as well. However, it's a B2B that behave as a B2C. It can be workshops that are buying spare parts from Land Rover. It can be a beautician or a beauty parlor buying from one of our cosmetics brands to our shops. So it's -- but it goes as a parcel -- both of them as a parcel that behaves as a B2C. It's within the realms of being eligible for being a personal import, not a formal clearance, et cetera. It does not require freight forwarding. They do not have credit accounts that we need to charge a credit account instead of a bank transfer or payment in a credit card. So on that aspect, we do have them. We are able to zero rate VAT. For example, within Europe, you type in your business number. We recognize we do a check. We run an API call. We see that you are an eligible business. Actually, you were zero rated for VAT. So instead of paying now a 19% German VAT, you're paying zero at the point of transaction as you are qualified as a business. So some of it, we have built in, but we need to do much more if we want to do it at scale. The big scale is doing business in certain countries as they are IOR globally becoming the IOR importing formal clearance into the country. It's coming out of offering delivery solutions at our freight forwarding solution. And once we evolve into that into supporting credit accounts, et cetera, I believe that we will be able to take much more into the larger B2B opportunity.

I think we have time for 3 more questions.

Nir, one for you. Just as we think about the channel bookings -- and sorry, I know you're getting all the questions here, but -- just what are your opportunities for incremental channel partners? I know you mentioned Accenture, but just thinking about new geographies and new end markets and how do you think that bookings mix should evolve over time?

You can ask Matt. My view, they should grow, no. In my view, -- no, no, you can ask him about his complaints on me. My view, they should grow dramatically over time. I think Global-E is on the launch pad, and the fact that we only made $1.1 billion and not $1.5 billion is that -- Matt and his team here and the other equivalents, other -- around the world don't run fast enough. We gave them an amazing tool. They need to leverage it. But putting jokes aside, I think that we are now in a place where we can win much larger businesses than what we could in the past. And if you ask me and you look at new bookings into the future, when I look into a long-term strategy, my thoughts on the new bookings is how do I get Apple to work with Global-E. I already get into consumer electronics. I was able to launch Logitech this year. I start to get credits that I'm eligible within consumer electronics. Now how do I get Samsung? How do I get Apple? How do I get a $1 billion GMV from a single client? How do I get them to be convinced that instead of using a distributor in Israel, today -- if you want to buy an iPhone in Israel, you need to go to a iDigital. Who the f*** is that? Sorry -- iDigital. Why do I need to buy from them? I want to buy from Apple. There's no reason that I can't buy from Apple. I think that over the time, we will be able to get there as well. So I think we have a tremendous business opportunity. It's evolving over time. If you had asked me 5 years ago, would Adidas be a large client and growing, I would say, this is my aspiration. This is my dream. Disney, that's a dream. They are already here. I think the next dreams are cracking into Samsung, cracking into Apple, finding a way to work with doing B2B or B2C for NVIDIA and others, I think it's doable.

This is [indiscernible]. So just a quick follow-up to that question. I mean, as you mentioned, the platform has evolved quite a lot -- quite a bit and you've been able to get larger and larger customers. I mean how much more you're doing with customer segmentation among your enterprise customers to just optimize that lifetime value and also make sure there's good efficiency in terms of go-to-market and development resources. But also just for your -- the smaller merchants and your platform, what could be some of the pricing opportunities to increase their lifetime value?

In terms of pricing, as I said and said that earlier as well, merchants are our partners. We never lose focus on the board. We need to grow their business. In order to make more money, we don't need to charge them more money. I don't think and I don't believe, at least not -- in the positions we are in the company that trying to increase pricing would be where we get leverage. That's not where we're heading. I think we can bring much more value into the partnership and get paid for the extra value that we bring. That's our focus, that would be our focus in the future. I think that this model of business where we make money, where our clients grow enabled us to be aligned with them on their growth target and not try to take an additional cut out of what they do. I think it makes us a better partner, and it makes them stick with us for a longer period of time. As you can see from our multiyear GDR, we intend to keep it. It does not take into account that, yes, we want to grow our margins. We did it over the years, but we do it out of going into new geographies, going into new verticals, going into new segments of businesses. And we will do much more of it from value-added services in the future as we now have a very large installed base, and we can actually give them more services and take share in different activities we didn't take share in the past.

And I just want to augment with -- I think also another component, which is kind of implicit and everything that you heard so far is that a lot of the product innovations that we showed you and that Yehiam showed you around all the different aspects of our product and the -- our constant strive to add more and better and more diverse providers to our ecosystem. A lot of it is also driven not just to attracting new customers and entering new verticals, et cetera, which is very important, but also to better our performance and use our data and those insights that we talk a lot about to better our performance across all our merchant base. So even smaller merchants that are maybe trading their entire global potential with us, they are not just trading a subset of countries or trading all geographies with us, even for those as we better or sharpen our insights and better our performance, it's aimed at that as well. And an increase of 1% in the conversion rates across the board because we were now doing better on, let's say, acceptance rates on payment acquiring in doing automatic re-routes across different payment providers in order to give a better consumer experience and heightened acceptance rates. That's something that we do that impact our entire merchant base, and a lot of our product innovation focus goes into that. Because as Ofer showed you, our clients, they stay with us for a long time, they grow with us, and that's a big focus element for us as a company. So I think we're getting signs here that it's the last question.

Yes. Arthur Weise with Kingsland, just a kind of a bigger picture question. What are the greatest barriers to global brands joining the platform. And when you looked out to 2028, do you think that top 10 customer profile will look different in terms of who they are and what percent of GMV they represent?

So I think that and I allow myself looking at our history, just from 4 years ago, our top 10 clients, 7 of them weren't with Global-E in 2020. And the scale of those 7 is much bigger than anything we had in 2020. If I look forward into 2028, if we are able to deliver on what we think we can in terms of winning new size of enterprise merchants coming through channel partners in verticals we couldn't do before, I do believe we will have new merchants into our top 10. And more than that, I think our top 10 average size of a merchant would be double what it is today.

Lunch is going to be served down the hall past where you had breakfast.

So thank you very much. We don't want to keep you from lunch, but we will be around, so we can continue to discuss any additional questions you have over a fuller stomach. But thank you once again for coming here today. Thank you for everybody on the webcast for joining us. Unfortunately, we're not going to be able to enjoy the great food, but we very much look forward to our continuous interactions with all of you, both in our quarterly interactions and in the coming Investors Day as a whole. Thank you very much.