Ofer Koren: As we see it in our numbers and in our funnel, we remain on track to achieve our annual target for new bookings, which will make a 2023 a record year for us. We haven’t seen any notable changes in the time it takes to either sell the sales cycle itself or to onboard the clients, so we’re quite optimistic on the contribution of our enterprise funnel towards 2024 onwards. In terms of additional factor, which is which is Shopify Markets Pro as stated, it was launched into general availability in the U.S. in September. Since then, we’ve started to see really nice adoption, to-date with thousands of merchants that actually activated the solution, and we do accept it to give us an additional acceleration into 2024 onwards.
Scott Berg: Got it. Helpful. And then I know it’s a small sample size in September and October. But implementation of customers kind of going into the strong holiday season, does the modestly changing same-store sales environment may be negatively, or even positively impact your ability, or your customers’ desires to make sure these – make sure your solutions implemented before the strong holiday selling season? Thank you.
Nir Debbi: Sure. Then typically, as you mentioned, we do see late October, early November, push from clients to actually go live pre-peak to enjoy the localization and the extra services we provide during peak period. This – goes the same for this year. We have seen dozens of clients that actually launched with us in the last few days prior to the cold freeze that us as well as the merchants imposed for peak trading. We do expect maybe two more days of launches and then it would go into the quiet period in terms of launching and the focus would go into the peak trading. However, we are very happy with the launches, with the sales cycle, as well as onboarding to launch and the multi-year dynamic, we haven’t seen any changes there. The change where we’ve seen and Amir and Offer spoke about, is actually within same-store sales – which is much more affected by consumer sentiment.
Operator: Our next question comes from Alex Toepfer with Goldman Sachs. Please proceed with your question.
Alex Toepfer: Hi everyone. This is Alex on for Will. Congrats on the launch of Markets Pro this quarter. We know it’s still early, but we were wondering if you could share some color on the — what you’re seeing in terms of the typical merchant profile, maybe like GMV size, cross-border mix and the popular verticals you’re seeing getting adopted. And then my follow-up, can you just talk about how much of the lower fulfillment take rate in the last couple of quarters has resulted from multi-local adoption versus sort of the mix shift towards standard shipping from Express? Thanks.
Nir Debbi: Hi Alex, it’s Nir. I’ll take the first question related to Shopify Markets Pro. As you mentioned, it’s still early days for the adoption of the solution. But the early adoptions we see on average would be smaller in size than what we see on our enterprise solution as we expected. So it’s much easier to onboard many more clients than what we can onboard in a certain time period, on enterprise platform. However, they are much smaller in scale. So the second part of your question, I’ll refer it to Ofer.
Ofer Koren: Thank you, Nir. So in terms of the fulfillment take rate, the higher share of impact is from multi-local adoption. Actually, a lot of it is from merchants that have already onboarded a year ago and are growing with us. And from time-to-time, we do launch an additional merchant that prefers to work based on this method, because they are large and they have global inventories that they can utilize. And the remaining is from a certain shift from Express to standard, as you mentioned.
Alex Toepfer: Got it. Thank you very much.
Ofer Koren: Thanks, Alex.
Operator: Our next question comes from Kunal Madhukar with UBS. Please proceed with your question.
Kunal Madhukar: Hi. Thanks for taking my questions. Our thoughts definitely go out to you guys that are sitting in a war zone, especially after the tragedy. One, on the weakness in Europe and in the luxury, can you help us understand how big of an exposure you have to luxury and then to European consumers. And then I have a follow-up?
Ofer Koren: Hi. Thank you for the question. It’s Ofer. Basically, we grew during COVID very fast with luxury brands that have adopted direct-to-consumer once they understood that physical stores are closed, and we grew very fast. As you know, we have quite few LVMH brands. We did launch additional three this quarter. Luxury is a wide definition, but currently, it’s approximately 25% of our GMV. Regarding Europe, Europe is a large inbound market, and it’s approximately 30% of our inbound sales.
Kunal Madhukar: Thank you. And then as we look at your marketing efforts on behalf of Shopify Markets Pro customers, is there an opportunity for take rate expansion if you start offering them marketing services with some spread?
Nir Debbi: Yes. So I’ll just clarify on the difference between Shopify Markets Pro and our enterprise business. On Shopify Markets Pro, there is no marketing efforts from the Global-e side, not onboarding the merchants or selling to the merchants in order to use the platform. And not on the service side, we just offer localization. On the enterprise platform, I would say the investment in marketing, to bring the clients onboard and launch them, of course, is with the company. To those clients, we started to offer indeed marketing service. We’re still in the early days. It is part of the assimilation of the Global — of the Borderfree acquisition capabilities into globally, which is still undergoing on the marketing side. However, we see a nice adoption and growth already at the early stage.
