Madison Schrage

Madison Schrage asked about the expected model impacts for a merchant choosing the new 3 B2C solution versus the existing multi-local route. She also requested an update on the performance and progress of the borderfree.com marketplace.

Answer

President Nir Debbi detailed that the 3 B2C solution significantly reduces the effort and overhead for a merchant compared to a full multi-local setup, as Global-e handles the operational heavy lifting. CEO Amir Schlachet reported strong progress for borderfree.com, noting its contribution to participating merchants' GMV has already grown from under 3% at the recent Investor Day to over 4%, with a long-term target of 5-10%.

Madison Schrage inquired whether the expenses for the demand generation platform are recurring and asked for any geographic callouts regarding market strength or penetration goals.

Answer

CFO Ofer Koren confirmed that demand generation expenses are ongoing, not one-time, though Executive Nir Debbi clarified they won't materially alter the overall S&M spending level. Ofer Koren also highlighted that while consumer sentiment improved globally, Europe showed the strongest rise, albeit from a low base, and is performing well as a destination market.

Asked about the progress and launch timeline for the freemium versions of Makeswift and Feedonomics, whether the long-term 80% gross margin target has changed, and what conditions would lead to the low end of the revenue guidance.

Answer

Travis Hess reported that self-serve Feedonomics is in beta and will launch soon, while self-serve Makeswift is on track for late this year or early next. Daniel Lentz reaffirmed the high 70s to low 80s gross margin target. To hit the low end of guidance, they would need to see increased churn and a sustained macroeconomic downturn that impacts new deal conversions, neither of which they have seen yet.