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01/10 20:09
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary and Q&A indicate strong financial performance with significant growth in GMV and revenue guidance, a strategic partnership with Shopify, and new offerings like 3B2C. The Q&A reveals positive sentiment towards the Shopify partnership and new initiatives like Shop Pay. Despite some uncertainties, such as the success rate of cross-selling ReturnGo's client base and competitive impacts, the overall outlook is optimistic, supported by strong guidance and strategic partnerships, suggesting a positive stock price reaction.
GMV (Gross Merchandise Volume) $1.45 billion, up 34% year-over-year. The increase was attributed to strong trading volumes and resilience despite tariff dynamics.
Revenue $214.9 million, up 28% year-over-year. Growth was driven by increased volumes processed through the platform and healthy margins.
Adjusted Gross Profit $99.9 million, up 24% year-over-year. Growth was due to higher service fee revenue share in the mix.
Adjusted EBITDA $38.5 million, up 23% year-over-year, with a margin of 17.9%. Growth was driven by business expansion and operational efficiency.
Net Profit $10.5 million, compared to a net loss of $22.4 million in the same quarter last year. The improvement was due to reduced amortization expenses related to Shopify warrants and business growth.
Free Cash Flow $63.5 million. Strong cash generation was highlighted for the quarter.
ReturnGo Acquisition: Acquired ReturnGo, an AI-enabled return and exchange solutions provider, to enhance post-purchase solutions for merchants.
3 B2C Offering: Developed an innovative solution to help global brands offset costs due to rising tariffs, gaining traction among merchants.
Borderfree.com: Onboarded over 250 merchants, contributing to over 4% of sales from this channel.
Geographic Expansion: Expanded into multiple countries including Europe, Australia, Japan, Hong Kong, Central and Eastern Europe, and Taiwan with various brands.
New Merchant Launches: Launched with notable brands like SteelSeries, GANNI, JAKI, Escentual, StadiumGoods, Bandai Namco, Nanushka, Almada Label, SKYLRK, and Life360.
Financial Performance: Achieved GMV of $1.45 billion (up 34% YoY), revenue of $215 million (up 28% YoY), and adjusted EBITDA of $38.5 million (up 23% YoY).
GAAP Profitability: Achieved GAAP profitability with a net profit of $10.5 million compared to a net loss of $22.4 million in the same quarter last year.
Operational Efficiency: Improved operational efficiencies, reducing G&A expenses as a percentage of revenue.
DHL Partnership: Extended a long-term strategic partnership with DHL for an additional 3 years.
Shopify Collaboration: Continued collaboration with Shopify to update managed market solutions.
Duty tariffs and global trade uncertainty: The company highlighted ongoing uncertainty around duty tariffs and their potential adverse impact on global trade in the latter half of the year. This could affect trading volumes and overall business performance.
Changes to U.S. de minimis exemption: Upcoming changes to the U.S. de minimis exemption later in the month could create challenges for trading volumes, although the company anticipates limited impact based on recent patterns.
Higher tariffs and rising costs: The company faces challenges from higher tariffs, including the suspension of the de minimis exception for products from China and Hong Kong. This could increase costs for merchants and impact sales.
Complex global e-commerce environment: The increasingly complex and fast-changing global e-commerce environment poses challenges for merchants, requiring constant updates and compliance with changing tariffs and trading regulations.
Integration of acquisitions: The acquisition of ReturnGo, while expected to enhance post-purchase solutions, may have a limited negative impact on adjusted EBITDA in 2025 due to integration costs and planned synergies.
Q3 2025 GMV: Expected to be in the range of $1.455 billion to $1.495 billion, representing a growth rate of 30% versus Q3 of 2024.
Q3 2025 Revenue: Expected to be in the range of $214 million to $221 million, representing a year-over-year growth rate of 24% at the midpoint.
Q3 2025 Adjusted EBITDA: Expected to be in the range of $37.5 million to $41.5 million, with a margin of 18.2% at the midpoint.
Full Year 2025 GMV: Anticipated to be in the range of $6.22 billion to $6.52 billion, representing a 31% annual growth rate at the midpoint.
Full Year 2025 Revenue: Expected to be in the range of $921.5 million to $971.5 million, representing a growth rate of 26% at the midpoint.
Full Year 2025 Adjusted EBITDA: Expected to be in the range of $180 million to $200 million.
GAAP Profitability: Expected to be GAAP profitable moving forward and for the full year of 2025, marking the first full year of GAAP profitability.
Impact of ReturnGo Acquisition: Expected to have a slight positive contribution to revenue and a limited negative impact on adjusted EBITDA in 2025, with profit impact close to neutral by 2026.
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The earnings call summary indicates a generally positive outlook with strong financial performance and optimistic guidance. The company anticipates GAAP profitability for the full year 2025, and the ReturnGo acquisition is expected to positively impact revenue. The Q&A section highlights stable same-store sales growth and a confident new merchant pipeline. While there are slight weaknesses in specific regions, the overall sentiment is optimistic. The $200 million repurchase plan and the absence of significant negative factors further support a positive sentiment rating. However, the lack of specific guidance for 2026 and some regional weaknesses temper the outlook slightly.
The earnings call summary and Q&A indicate strong financial performance with significant growth in GMV and revenue guidance, a strategic partnership with Shopify, and new offerings like 3B2C. The Q&A reveals positive sentiment towards the Shopify partnership and new initiatives like Shop Pay. Despite some uncertainties, such as the success rate of cross-selling ReturnGo's client base and competitive impacts, the overall outlook is optimistic, supported by strong guidance and strategic partnerships, suggesting a positive stock price reaction.
The earnings call presents a positive outlook with strong financial metrics, including a 34% YoY GMV increase and reduced net losses. Despite uncertainties like tariffs and competitive pressures, the company maintains optimistic guidance and expects higher margins later in the year. The absence of a share repurchase program is a minor negative, but strategic initiatives like AI investment and market expansion are promising. The Q&A session didn't reveal major negative trends, and the company's leadership in e-commerce remains strong. Overall, the positive financial performance and strategic growth plans suggest a potential stock price increase.
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