Patrick Wolfsen

Patrick Wolfsen asked for a simple explanation of how Global-e's duty drawback service works and what is required to roll it out in new countries. He also questioned the path for non-GAAP gross margins, comparing the current 46% to the fiscal 2025-2028 guidance of high 40s.

Answer

Nir Debbi, Co-founder and President, Global-e, explained duty drawback using a U.S. to Canada example, illustrating how it reclaims duties on returned goods to optimize merchant cost structures. Amir Schlachet, Co-founder and CEO, Global-e, clarified that gross margins were not expected to significantly increase, with the focus on bottom-line profitability and cash generation. He affirmed that the company is on track to achieve high 40s gross margins and expects to maintain similar levels, potentially improving slightly over the plan's term.

Patrick Wolfsen from Citizens Bank requested a simplified explanation of Global-e's duty drawback mechanism and the requirements for its rollout in new countries. He also questioned the trajectory of non-GAAP gross margins in relation to the company's 2025-2028 guidance.

Answer

Nir Debbi, Co-founder and President, Global-e, illustrated duty drawback with a U.S. to Canada example, explaining how it reclaims duties on returned goods to optimize merchant costs. Amir Schlachet, Co-founder and CEO, Global-e, clarified that gross margins are expected to remain in the high 40s, with the primary focus on bottom-line cash generation and adjusted EBITDA improvement, aligning with long-term targets.