Research Article

Why Global-e Is A Buy Right Now

May 3, 2023

Updates

Business Overview / Sources of Revenue

Global-e Online Ltd (GLBE) is a leading platform specializing in enabling and accelerating global, direct-to-consumer cross-border e-commerce for merchants worldwide. The company earns revenue primarily through service fees charged to merchants for its technology platform, which manages currency conversion, local payment methods, tax calculation, and shipping logistics[3][5]. In 2024, Global-e generated $579.5 million in revenue—approximately 78% ($450 million) came from service fees, while 22% ($129.5 million) was from fulfillment services, including warehousing and delivery solutions[3]. Key markets include North America and Europe, with growing presence in Asia-Pacific as cross-border e-commerce expands[3].

Revenue Growth Potential and Recurrence

Global-e Online Ltd (GLBE) has a large share of recurring revenue, primarily from ongoing service fees and fulfillment services that e-commerce clients rely on for global sales operations[1][5]. The company reported a 32% increase in annual revenue to $752.8 million in 2024[2], with service fee revenue and fulfillment services growing 30% and 53% year-over-year, respectively[5]. Looking ahead, GLBE’s revenue growth potential remains strong, with 2025 guidance projecting a 25% increase to between $917 million and $967 million[5]. Over the next 5+ years, the firm is well positioned to maintain double-digit growth, supported by its expanding merchant base, recurring revenue streams, and global e-commerce trends[1]. The three-year average revenue growth rate stands at 45.3%, indicating robust momentum[1].

Economic Moat Factors

Global-e Online Ltd (GLBE) appears to possess a narrow economic moat, supported by several factors. Its e-commerce platform specializes in cross-border transactions, simplifying international sales for merchants with localization and seamless payment options, creating switching costs for clients who become reliant on its integrated, country-specific solutions[1][4]. The company’s scale and data advantages in global e-commerce provide network effects, as more merchants and shoppers using the platform enhance its value and local expertise[1]. GLBE’s extension of its agreement with Shopify, a major e-commerce player, further strengthens its market position and offers a degree of unique partnership exclusivity[3]. While not a wide moat, these attributes—especially switching costs, some brand recognition, and growing network effects—contribute to a solid, albeit narrow, economic moat[2]. However, competition in e-commerce platforms and potential margin pressures temper the moat’s breadth.

Leadership

Global-e Online Ltd.’s leadership team is led by CEO and Co-Founder Amir Schlachet, who has held the CEO role since founding the company in May 2013[1][2][3]. Schlachet owns approximately 2.18% of the company, valued at around $127.2 million[2]. Other co-founders, including Nir Debbi and Shahar Tamari, are also part of the experienced management team, which has an average tenure of 3.9 years[2]. Recent executive promotions and board additions, such as the appointment of Sony Ventures CEO Gen Tsuchikawa, reflect Global-e’s emphasis on innovation and global expertise[3][4][5].

Financial Health

Global-e Online Ltd (GLBE) has a strong balance sheet, with $444.8 million in cash and zero debt, giving it a very healthy cash-to-debt ratio[5]. The company generates positive and growing free cash flow, with free cash flow increasing at an annual rate of 46.7%[5]. While Global-e is currently unprofitable, it has a cash runway exceeding three years due to its positive free cash flow[5]. The company has not been dilutive in recent years and has not issued new debt; in fact, it has reduced its debt from previous years to zero[5].

Last updated Jun 10, 2025