Global-E Online Ltd
NASDAQ:GLBE
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Global-E Online Ltd
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Greetings and welcome to the Global-e Third Quarter 2021 Earnings Call. This call is being simultaneously webcast on the Company's website. In the Investors Section under News and Events, for opening remarks and introductions I will now turn the call over to Erica Mannion, at Sapphire Investor Relations. Please go ahead.
Thank you and good morning, with me today from Global-e are Amir Schlachet, Co-Founder, and Chief Executive Officer, Ofer Koren, Chief Financial Officer, and Nir Debbi, Co-Founder and President. Amir will begin with a brief review of the business results for the third quarter, ended September 30, 2021. Ofer will review the financial results for the third quarter, followed by the Company's outlook for the fourth quarter and full year of 2021, we will then open the call for questions. Certain statements we make -- make constitute forward-looking statements and information within the meaning of Section 27-A of the Securities Act of 1933, Section 21-E of the Securities Exchange Act of 1934 and the Safe Harbor Provisions of the U.S.
Private Securities Litigation Reform Act of 1995 that relate to our current expectations in futures and views of future events. These forward-looking statements are subject to risks, uncertainties, and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including those set forth in the section titled Risk Factors in our prospectus filed with the SEC on September 13th, 2021 and other documents filed with our [indiscernible] to the SEC.
These statements reflect management's current expectations regarding future events and operating performance, and speak only as of the date of this call. You should not put undue reliance on any forward-looking statements, although we believe that the expectations reflected in the forward-looking statements are reasonable. We cannot guarantee that future results, levels of activity, performance, and events and circumstances, reflected in the forward-looking statements will be achieved or will occur. Except as required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise after the date on which the statements are made, or to reflect the occurrence of unanticipated events.
Please refer to our press release dated November 9, 2021 for additional information. In addition, certain metrics will be discussed today. Excuse me. We will discuss today non-GAAP metrics the presentation of this financial information is not intended to be considered in isolation or as a substitute for or superior to financial information prepared and presented in accordance with GAAP. We use these non-GAAP financial measures for financial and operating decision-making. And as a means to evaluate period-to-period comparisons. We believe that these measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making.
For more information on the non-GAAP measures -- excuse me, the non-GAAP financial measures, please see the reconciliation tables provided in our press release dated November 9, 2021. Throughout this call, we provide a number of key performance indicators used by our management and often used by competitors in our industry. These and other key performance indicators just discussed in more detail in our press release dated November 9th, 2021. I will now turn the call over to Amir, Co-Founder and CEO.
Thank you, Erica, and welcome everyone. I hope everyone is keeping safe and healthy. Thank you all for joining us today for our quarterly earnings call. And let's jump straight into our Third Quarter results. I'm proud to report that Q3 was another record quarter for us. Gross merchandise value or GMV grew to $352 million or 86 % growth year-on-year. Revenues for the quarter were $59.1 million, representing 77 % year-on-year growth. Our gross profit grew even faster by a 127 % year-on-year, reaching $22.8 million.
Our growth profitability margin, fervor expanded in Q3 to 38.6% up from 30.2% in Q3 of last year. Thanks to our growing economies of scale and increased efficiencies. Adjusted EBITDA for the quarter, totaled $7.7 million, almost tripling year-over-year. Attributed primarily through our highly efficient operating model. Before we dive fervor in, I would like to mention that from a broader market perspective. During Q3, we have started to see signs of the anticipated return to normality in e-commerce growth trends.
We have seen key markets beginning to exhibit various levels of COVID relief in the form of reopening of physical retail, swinging the pendulum of consumer spend, slightly back from the record levels of e-commerce market share we have witnessed throughout the height of the pandemic. That being said, we expect e-commerce to continue gaining market share faster than during pre -pandemic times. As new consumer audiences, as well as small to large brands alike, are shifting more weight towards e-commerce. With any commerce, the D2C or direct-to-consumer cross-border e-commerce market opportunity, is immense and continues to grow significantly faster than the overall e-commerce market. As such, during Q3, we continued to reinvest heavily into our business and have made great progress across all our key strategic growth levers.
First, we continue to onboard more merchants onto our platform across all geographies we operating while expanding our work with existing merchants and brand groups. For example, our relationship with the LVMH Luxury Group continued to develop. As during Q3, we launched with 2 more group houses and [indiscernible] ends the 4 asset. The latter contributing to our growing business in Asia-Pacific. Another example of a successful new mark merchant relationship is the fast-growing sports clothing brand, aloe yoga, which is our latest large enterprise brand to go live on the Shopify platform.
Ferber exemplifying the value of our strategic partnership with Shopify. This quarter also -- so several merchants expanding the scope of their partnership prove us to additional lanes. Notable -- notable examples include a consumer electronics brands, Sennheiser, which added 15 additional markets. The luxury jewelry brand [indiscernible] part of the carrying luxury group, that added the U.S. and Europe as well.
Spanish footwear brand, Camper, which added support for 15 new markets. Second, our direct sales channels continued to be augmented by an ever-expanding list of strong channel partners. The latest partnership we announced is with the Australian Post group, yielding us access to their vast restraining and client base, and providing further support for our penetration into the APAC region. Third, we continue to develop and enhance our multi-local support features and capabilities. Launching [indiscernible] our first global consumer electronics brand. As well as with the football club [indiscernible] United, representing the latest addition to our growing list of Sports Club merchant partners.
Another notable feature we deployed for our merchants at the beginning of Q3, with support for the new OSS and IOSS valuated tax regimes in Europe [indiscernible]support provided natively by the Global-e platform. The otherwise complicated transition, from the old distance selling VAT regime to the new IO assess one, was seamless and transparent for all our merchants. Driven more, due to the complexity which is involved in supporting the new regime, some of our merchants such as the Sports Club arsenal for example, which in the past operated in Europe by themselves, chose now to move the European markets to be operated by globally. Across all these channels, our pipeline remains stronger than ever.
Fourth, we continue to put significant effort and resources into our fast-growing strategic cooperation with Shopify. We are seeing great market traction with the Shopify merchant base. As part of our partnership with enterprise merchants such as Netflix and other yoga, as well as with a growing number of smaller emerging brands. On the technical side, we recently completed the first phase of our new native integration into Shopify. With the first pilot merchants or the live and selling through the new seamless plug-in. Netflix, who might have already mentioned, is actually one of the first enterprise merchants to be selling through the new native integration.
Over the next quarters, we intend to continue working to get [indiscernible]Shopify in order to roll out the additional phases of the new native integration, which is expected to lead to an even more seamless merchant go-live process. Last, but not least, in pilot to capturing our fast organic growth opportunities consistent with our previously announced strategy. We intend to continue exploring synergetic M&A opportunities as non-organic options to further enhance our platform capability. As you all know, our people have always been the key element of our success.
As such, throughout Q3, we continue to recruit many more great and passionate individuals. They joined our super talented and dedicated teams around the globe, helping us build sound foundations of our continued future growth. As part of these efforts, we also recently signed a long-term lease for a new R&D center and headquarters in Israel. We cannot wait to move to our new home in Q2 of next year, once our innovation work is done. We're still in the early innings of direct-to-consumer cross-border e-commerce. And within it, we believe that we are just taking off. We are a reputation-first Company. And merchants’ recognition of the tremendous value we create for them and for the entire ecosystem continues to grow.
Day-in and day-out, more and more merchants from around the world are coming onto our platforms to grow their international business and serve their shoppers around the world. We believe that our leading end-to-end solution, coupled with our execution capabilities, position us for rapid growth and success well into the future. And with that, I will hand it over to offer our CFO to go over our financial results in more depth, as well as provide our outlook for the remainder of the year.
Thank you, Amir. And thanks again everybody for joining us today for our quarterly earnings call. We are pleased that our business has been tracking well and our strong growth momentum continued throughout Q3. I'd like to point out again that in addition to our GAAP results, I'll also be discussing certain non-GAAP results. Our GAAP financial results along with the reconciliation between GAAP and non-GAAP results can be found in our generated $352 million of GMV and increase of 86 % year-over-year. We continue to tap into the massive opportunity of the direct-to-consumer across border e-commerce market, which is growing much faster than the overall e-commerce market while the reopening of physical retail and the return of e-commerce growth rates to normality is evidenced.
Total revenue for the 3 months ended September 30th, 2021 were $59.1 million, up 77 % year-over-year. Service fees revenues where $23 million up 89 % fulfillment services revenue were up 71 % to $36.2 million. The higher growth in service fees revenues relative to fulfillment services revenue was driven mainly by the launch of our multi-local offering, for which we typically do not provide fulfillment services as the model is largely based on local shipping. Another factor is a decrease in the customs clearance fees revenues, revenues, alongside custom clearance costs, as a result of the new OSS and IOS rules related to cross-border e-commerce VAT in and into the EU, which came into 4th on July as we mentioned in our previous call.
While we generated considerable growth across the business, we have continued to experience higher face growth in our U.S. outbound revenue, reflecting the strength gaming reputation of globally in the U.S. market. U.S. outbound revenue was up 91 % year-over-year. In addition, during the quarter, we were pleased to see continued significant contribution of GMV and revenue from some of the new logos we launched during the year. Now, let's review the Income Statement in more detail. Gross profit continues to grow significantly faster than our top line as we continue to improve gross margin -- gross margins leveraging our scale and improving efficiencies.
In Q3, gross profit was $22.8 million up 127 % year-over-year. And representing a gross margin of 38.6% compared to 30.2% in the same period last year also affected by the higher share of service fee revenue. We are very pleased with our margin expansion when we continue to put efforts to support this trend. Moving on to operational expenses. On the R&D front, we continue to invest in the development and enhancement of our platform to further expand our offering and lay the foundation for future growth. As Amir mentioned during Q3, we continued the development of the new Shopify platform integration, in collaboration with Shopify themes. We have already launched the first pilot including the onboarding of Netflix.
R&D expense, excluding stock-based compensation, was $6.4 million or 10.8% of revenue compared to $3.6 million or 10.9% in the same period last year as we scale up our investment in R&D, total R&D spend in Q3 was $8.3 million. We continue to invest in sales and marketing to support our fast-growth and capture the growing market opportunity, and we continue to see a very healthy and growing pipeline while still maintaining high efficiency levels. Sales and marketing expense excluding the amortization expenses related to the Shopify Warren was $5.4 million or 9.2% of revenue, compared to $2.2 million or 6.5% of revenue in the same period last year. Shopify warrants related amortization expense was $29.4 million, including these expense, sales and marketing expenses for the quarter totaled $34.9 million.
General and administrative expense, excluding stock-based compensation was $4.5 million or 7.5% of revenue compared to $1.7 million of 5 % of revenue in the same period last year. This expense reflects the full-quarter impact of additional expenses related to being a public Company, including our D&O insurance policy costs and also one-time costs related to the follow-on secondary offering, which we executed during the quarter. Total G&A spend in Q3 was $7.8 million. Adjusted EBITDA totaled $7.7 million representing a 13.1% adjusted EBITDA margin, increasing from $2.7 million or 8.2% margin in the same period last year.
Net loss was $28.5 million compared to a net income of $1.3 million in the year-ago period, a direct outcome of the amortization expense related to the Shopify warrants net profit, excluding the amortization expense related to the Shopify warrants, was $0.9 million. Switching gears and turning to the balance sheet and cash flow statement, we ended Q3 with $492 million in cash, cash equivalents, including short-term deposits and marketable securities, which reflects the high level of liquidity. Operating cash flow in the quarter was $5.5 million compared to a negative operating cash flow of $0.5 million a year ago due to the increase in adjusted EBITDA.
Moving to our financial outlook, we are raising our Q4 and full-year guidance. Our guidance reflects the strong momentum of the business alongside the normalizing of e-commerce growth rate due to the reopening of physical stores. For Q4, we're expecting GMV to be in the range of $465 million to $475 million. At the midpoint of this range, this represents a growth rate of 55 % versus Q4 of 2020. We expect Q4 revenue to be in the range of $76.4 million to $78.4 million. This represents a growth rate of 45 % at the midpoint of the range versus Q4 of 202.
For adjusted EBITDA were expected a profit in the range of $7.3 million to $8.3 million. For the full-year of 2021, we are raising our guidance and anticipate GMV to be in the range of $1.41 to $1.42 billion, representing nearly 83 % annual growth at the midpoint of the range. Revenue is expected to be in the range of $239 to $241 million representing a growth rate of 76 % at the midpoint of the range. For adjusted EBITDA, we're expecting profit of $27.9 million to $28.9 million. Our outlook for the full-year of 2021 reflects additional investments in personnel-related costs, sales and marketing, and product development, as well as incremental general and administrative costs associated with being a public Company.
In conclusion, we believe that there are tremendous opportunities for more high - passed growth well above the market's average in the years to come. We are gearing ourselves up in order to be well-positioned to capture all of these opportunities, exciting times ahead. And with that, Amir, Nir, and I are happy to take any of your questions. Operator.
We will now begin the question-and-answer session. [Operator Instructions ] If you are using a speakerphone, please pick up your handset before pressing the keys [Operator Instructions ]. At this time, we will pause momentarily to assemble our roster. The first question comes from James Faucette with Morgan Stanley. Please go ahead.
Thank you very much and thanks for taking the time today. I want to ask first on your demand and ability to fulfill. Are you seeing any adverse impacts right now from the well-publicized supply chain constraints, etc. that seemed to be in the market impacting good production globally. And if so, has that been, how are you factoring that into your outlook in planning?
Thanks, James. Thanks for the question. This is Amir. Generally speaking, we, ourselves, daunting [Indiscernible] or any interruptions due to the challenges in the global logistics market was a reason that basically our entire volume of shipments goes the via air and we have very good and close relationships with our strategic logistics partner that -- partners in general that give us priority. Most of the challenges currently are in the world are in sea freight and not in air. Having said that, we do see from time-to-time some challenges for merchants Some of our merchants have some inventory issues from time-to-time, but nothing material and nothing that to-date has made any disruption in our business or in our merchants ' business.
Got it, and then you highlighted that you're in -- you're starting to see good movement with Shopify merchants and you're in the pilot phases. How are you thinking are better said, how should we be thinking about that ramp on the pace at which it ramps? How big of a merchant base within the Shopify group or you currently engaged with and ultimately targeting, just a bit more color on what the ways to track and anticipate the evolution and ramp up of that relationship?
Hi, James. Thank you for the question [indiscernible] -- we do expect some growth in the next quarters as we see demand and bookings of large Shopify merchants such as add – ons [indiscernible] just launched with us or Netflix and continue to build up. However, as we see strong bookings momentum also with large brands outside Shopify to our partnership with SFCC, e-commerce, and others. We do expect the growth of Shopify, sharing mix to be gradual. But overall, we see our bookings growing at a fast pace versus last year. Last year, we nearly -- we more than doubled our new GMV bookings versus 2019, We expect this trend to continue as this year with bookings. Currently, the Phase 2 more than doubled versus 2020 numbers.
That's great. Thank you so much.
The next question comes from Samad Samana with Jefferies. Please go ahead.
Hi. Good morning. Thanks for taking my questions. Maybe a follow-up to James ' question around Shopify. The Company rolled out Shopify markets during the quarter, and we get a lot of questions about maybe what the difference is between what Shopify markets is and what Global-e is offering. And we think we know the differences, but just -- could you help us maybe clarify how you think about Shopify markets and how that impacts the relationship that Global-e has with Shopify.
Thank you for the questions [indiscernible] Basically, as we see -- and Shopify sees it as well. Shopify markets is a complementary solution towards Global-e also, Shopify Markets comes to cater for a smarter SMB brands that is the vast majority in terms of number of Shopify clients. However the vast majority of the potential GMV in cross-border trade-in is concentrate that the thought 1-2 % percent of Shopify emergence. And Zoe's do need, I would say, a more comprehensive solution including the [indiscernible] solutions with Global-e provide, including the high touch.
I would say, guidance into best practices including customer services around the world in multiple languages that are not part of the coolant all future in Shopify markets offerings. So with much more differentiation on high-touch services that are catered more for the larger brand. Good morning, Fools. A larger Brent.
Great. That's helpful. And then maybe if I think about the guidance and I know you have some color around it. But as we think about the maybe some of the like, if it could double-click on it. How are you thinking about -- have you factored in that maybe some of your clients may be impacted by supply chain issues? Or just -- are you factoring in that the world will be more open? Just maybe help us understand some of the factors that have been kind of accounted for in that initial outlook for the fourth quarter.
Thank you so much, Ofer. Do you want to take that question?
Sure. Samad, thank you for the question. I think that even though there was a lot of uncertainty during the year, when we initially planned 2021, we thought that there might be some COVID relief at some point in time and we took that into account even in our original planning. Basically that was taken into account through Q3 and Q4, so it was already baked in our original guidance. And as we went through the year, we saw that we were sort of picking up momentum and growing fast as we were able to update the guidance every quarter. And we are raising the guidance also towards Q4. We feel confident and I think all those factors are already baked in our guidance.
Great. And maybe I'd like to squeeze in a third one. Just -- Amir, we'd mentioned M&A came up on the last call. The Company had brought it up, so I'm just curious if any update on the M&A front, especially with us being fairly close to year end should we still have that in mind for 2021? Or should we -- and I'll be starting to think about that more as a 2022 type of event?
Yeah, thanks so much. Indeed, we are -- we continue to explore potential M&A opportunities. We still -- we have some in the pipeline in various stages. We do still expect, I would say at least one announcement potentially this side of Christmas. And yes,. As we mentioned in the past as well, we do view non-organic growth as a means to enhance our capabilities of the platform and our reach. So we definitely expect to continue exploring these in 2022 as well.
Great, thanks for taking all my questions and congrats on all the success.
Thanks a lot, Amir.
The next question comes from Brent Bracelin with Piper Sandler. Please go ahead.
Thanks for taking the question here. One for Amir and a clarification for Ofer. Amir, it's exciting to hear that the Netflix merch shop and LO GoGo live on Shopify's platform this quarter. I was hoping just to drill down a little bit and really looking for color on like the scope. Deployments. Are you lighting up a handful of [indiscernible] similar to the traditional merchants are your lighting them up globally? How long the on-boarding process take in that kind of high patch approach? Just any additional color as you think about kind of on-boarding now, new merchants via -- that Shopify integration will be interesting. Thanks.
Yeah, just -- Brent just to make sure you're asking in terms of whether it's the regional or global in terms of the market that we support for these brands or in terms of our ability to deploy the solution for brands around the world on Shopify. Just I want to make sure that I'm answering the right question.
Yeah. Just love to know onboarding Iike how much -- how challenging it was onboard the merchant number 1 and then number 2, you've talked about a camper going to 15 new markets. You typically start with the retailer, large retailer, and a handful of markets and then spanned over time. Is that the same deployment method for these or do they light up in all 200 markets as they launched?
Got you and thank you for clarifying. So first in terms of deployment, both these merchants deployed the Global-e with us, so it wasn't a gradual or a subset launch. It -- it really it's on a case-by-case basis with the larger merchants, these 2 specific ones regard irrespective of the fact that they are on Shopify just as merchants decided to launch in entire world at the first go. In terms of complexity and deployment, I would say they were fairly in-line with our regular process Netflix,as we mentioned on the call, went on the new integration.
So as you can probably imagine, since this is our first deployment, there were some additional steps and checks and it was slightly more complex from a project point of view. But all in all, I would say there is -- there is nothing out of the ordinary in terms of these merchant deployments.
Helpful color there and just clarification for Ofer, gross profit. You talked about triple-digit growth here in Q3, outpacing revenue. What drove the gross margin expansion, particularly on the software services side, and how sustainable are those trends? Thanks.
Thank you for that, Brent. As you know, we have a very clear trend of gross margin improvement over time, which on a macro level is a result of our focus on leveraging our growing scale and ongoing proximization. In this specific quarter, the main drivers behind the improvement where the higher share of service fees and also the increase in service fee take rate. The ongoing optimization of our payments, shipping and fraud management component. And there was also a slightly favorable mix. Ans as we go forward, we think this is fairly sustainable and we will continue to put a lot of efforts to leverage our scale and continue to support the general trend of improvement.
Great to hear. Thank you.
Thanks, [Indiscernible]
The next question comes from Paul -- Pat Walravens . Please go ahead.
Hi, Jerry Marine [indiscernible] Thank you so much for taking our questions and congrats on the nice results here. So first, how do you think about the potential to expand into other verticals? And then second, can you just remind us of your GMV concentration from your top merchants and then maybe how you see that changing over time? Thank you.
[indiscernible] Thank you for this question and offer you can take the second one.
Yeah, thank you for the question. In terms of expanding our reach into new verticals and I think that overall Q3, we managed to penetrate 2 new significant verticals. One of them is consumer electronics, with the successful launch of the Jabra across multiple geographies, as well as substantial increase in operations within [indiscernible] and which is consumer electronics as well. So this building, our foothold into consumer electronics, where we haven't traded much [Indiscernible]. This also support our new, I would say, business mode this splash vertical, which is a multi-local approach.
So both [indiscernible] and as Amir mentioned earlier, Leeds United, are example of merchants that are moving into our multi-local approach, where we support domestic interaction with consumer worldwide. So we do not only across border more than where your shift for a single pivotal into multiple countries, it's actually deployment in multiple countries around the world and transacting locally with the clients. So we see quite a lot of expansion though, and we do expect additional very large brands to join us over this model in the coming quarters or quite expansion in those 2 verticals as it -- in parallel to the continuous growth in our accruent main verticals it on fashion [indiscernible] cosmetics, jewelry, and others.
Referring to the second question, we have a relatively fragmented merchant base, our largest merchant share is decreasing over time. Although this merchant is growing very nicely, but the entire Company is going faster. So the largest merchant is less than 10 % of GMV. And then the top 10 including the largest merchant, are less around, I would say 30 % of GMV. And again, give -- give you some color on that. Some of those top 10 are actually new merchants just on-boarded and came into this lift. So it's -- I would say it's a dynamic structure, but all in all it is relatively fragmented.
Helpful. Thank you and congrats on the quarter again.
Thanks a lot.
The next question comes from Josh Beck with KeyBanc. Please go ahead.
Thanks team for taking the question. I wanted to ask an industry question. You talked a bit about the reopening and certainly the impact on e-commerce. At the same time, it seems like there are a lot of folks that are going back to work and they're going back to dining and right there's a bit of an apparel super cycle. I think that's also taking place. Some other companies have certainly called out strength in that vertical. So I'm just kind of curious how you would maybe balance those 2 factors and how they could interplay as we go into next year?
Yeah. Thanks, Josh. Sure. As though I would say, you are right. So we agree with this observation on the one hand, there is physical reopening on the other hand, there are other factors that are contributing to the continued growth in e-commerce spending general and e-commerce spending in particular. And I would say all in all, the trends that we're seeing in the numbers and in our interactions with our clients or are pretty much in line with the numbers that we baked into our guidance so [Indiscernible] -- you should take our kind of guidance as is our view on how the market will continue to evolve.
Okay? Very helpful. And I wanted to ask a take rate question, I realize this is not how you manage the business it's much more of an output but I'm getting lots of questions on it. So when we -- when we do look at the fulfillment take rate, obviously it was down. I think sequentially and year-over-year. And it seems like there's a tax regime change from VAT to the one-stop shopping and certainly it seems to be a bit more simplified, that more streamlined. Obviously not material to the gross profit take rate that went up, but
should we think about this is more of an effectively like baseline in 3 Q2 -1 that incorporates that. And as we move forward and again, I know it's not the most important metric, but it's going to be more influenced by things like mix and other factors. So just want to kind of clarify the change in the quarter and what we should be mindful of in the future as well.
Sure. Thanks. Josh. Ofer, do you want to give just some color around our take rate dynamic?
Sure. So yeah. As you said, take rate has decreased this quarter when -- where actually service fee take rate has slightly increased to 6.5% while as you mentioned, the decrease in overall take rate was the result of the expected decrease in fulfillment take rate. There are 2 main drivers for that. The first one is -- is the fact you just mentioned, the OSS and IOSS implementation in Europe and that yes -- that's one time I would say one-time step-down. We don't expect to see additional influence from this change. The second driver is the fact that we have launched our multi local offering, which for us is a very exciting opportunity which we discussed in the previous quarter.
For the multi-local offering, we typically do not provide fulfillment services as the model is largely based on local shipping. So basically those two factors are -- have influenced our take rate. But at the same time also contributed to our higher gross margin in -- in this quarter. One of them is sort of a one-off step down and the other will [indiscernible] a Company as in future quarters.
Crystal clear. Thank you, Ofer. And thank you, Amir. Appreciate it.
[indiscernible]Thanks y'all.
The next question comes from Scott Berg from Needham. Please go ahead.
Hi, everyone. Congrats on the strong quarter and thanks for taking my questions. I guess I wanted to start off on the kind of comparing maybe the most recent quarter with the time frame from a year ago. As you look at new customers that you sold in the quarter is the I don't know is the onus or pressure on them to be able to more quickly or accurately fulfill global e-commerce sales as strong as what it was maybe a year ago, kind of the during the earlier phase through the pandemic or is there--is maybe the priority not as strong in a global e-commerce requirements.
Hi Scott, thank you for the question. Basically we haven't seen a change in the sentiment of our merchants toward cross border, I think even on some aspects or some merchants its other way around but we see more I would say momentum towards E-commerce as a secular trend of the growth of E-commerce expected to continue. We've seen it with the rollout of multiple new markets with existing, you've seen it in our land and expand number that is actually driving a substantial part of our growth. And so we do see emergence continue to explore avenues to continue and expand in e-commerce, especially globally commerce.
So we haven't seen, concentration back to my bias toward my home country [indiscernible] back to physicals. So still, as we see it, and we are quite optimistic about the long-term trend. As we see, super Tier 2 brands opting towards our modern and towards the e-commerce cross-border. We do see this trend continue over time. Maybe with some normalization that this offer explained is already baked into our numbers.
Very good, helpful. And then I wanted to ask a question on your press release. You talked about some strength in U.S. outbound sales there. But how does the playbook work in selling to merchants in the U.S.? Is it very comparable in similar to as you sell some of the more established markets and maybe or is the playbook maybe focused a little differently as you engage with U.S. merchants?
Thank you for the question. It's Nir again, basically the playbook itself for the approach to the clients will --I would say, guiding them through the solution until we signed the roll-out. Is the same across all different territories – is [indiscernible] flavors to it as the European merchant has different key geographies he wants to focus on. They have more focus on the VAT related issue in their home market. The [indiscernible] which we don't see as for U.S. brands but these are flavors on the same process. In terms of the pipeline itself, in the U.S., we see a bit more mix towards a Shopify merchants and Shopify has a stronger position in the U.S. versus more traditional market where we see other platforms and in more significant shows that mix.
Thanks for the color, quite helpful.
Thanks, Scott,
[Operator Instructions ] The next question comes from Brian Peterson with Raymond James. Please go ahead.
Congrats on the really strong results and it's great to hear that you guys are -- are winning seemingly every team in the premier like, that's near and dear to my heart. But so first question I just wanted to ask kind of on the land size with customers, so we obviously cross-border is very, very thematic and it sounds like you’re landing at larger levels than you were a few years ago. I'm curious how many geos, on average, dozen new merchant takes maybe versus a year or two ago what is the reasonable expectation for that metric going forward?
I think that's the answer to the question will depend based on the merchant size to start with, any merchants that we define as less than it, very large enterprise would usually rollout all international in the market it gets goals outside this whole market, or maybe two home markets because they are already establishing two, is they will hold out also international and activities at the get go. With a large more traditional brands, as the likes of the Hug boss, the VERSACES of the world, you would see a more of a We'd say a phased approach is a do have tradition distribution agreements around the well at, basically, we see more phased rollout in countries where they can actually go and do e-commerce [indiscernible.]
And then they roll out another batch and over time, once we have the ability and then -- and can actually deploy more markets, we see additional expansion. But I would say pure players and all the clients that are not really -- I would say large traditional ones we would see fall markets at once. Usually on average, we see merchants trading at close to 160 and 170 active markets.
Got it. That's great color on that. And maybe, maybe a higher-level question broadly. You mentioned returning to normal. I think we're all trying to figure out what that is here, but you guys are launching with new merchants. You're expanding with those merchants. There's Geo expansion and obviously cross-border, I think is growing faster than overall E-commerce so we tried to unpack that a little bit. What is the same store GMV from brands and regions that have been on the platform for more than a year? Any sense for how to unpack that? Thanks, guys.
Yeah. It's true that everybody is trying to understand what normalization actually means and yet, I think we all feel that. I would say generally speaking that the -- if you look at the e-commerce equivalent of store-in-store growth from our--for our merchants it remains strong. We obviously don't -- we don't disclose the exact numbers but I would say it's a stronger double-digit growth for our -- for our merchant base year-on-year. Even through this gradual normalization.
Thank you.
This concludes our question-and-answer session. I would like to turn the conference back over to Amir Schlachet for any closing remarks.
Thanks a lot. Thank you all for your questions and on behalf of Ofer, Nir, myself and the entire Global-e team, I would like to thank you all for joining today and for your continued interest in Global-e. I would also like to take this opportunity and thank our growing list of merchants around the globe, for their ongoing trust and partnership. Finally, I would like to thank our super dedicated and passionate team of employees around the globe who strive tirelessly every day to fulfill our vision and make the future of Global-e commerce truly order agnostic. Goodbye all. Take care. And we very much look forward to speaking with you again on our future earnings call.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.