Shopify Inc.
CEO : Mr. Tobias Lütke
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | 25.7% YoY | -1410.4% | 65.9% | 2023-02-15 |
Harley Finkelstein says,
Revenue Growth and Penetration
- Shopify’s revenue grew 21% YoY reaching $5.6 billion in 2022, on top of 57% growth in 2021 and 85% growth in 2020.
- Shopify’s penetration of the US e-commerce market is currently 10%, with this year’s GMV surpassing $197 billion, representing a growth of over three times since 2019.
Merchant Success and Black Friday Sales
- Shopify powered over $0.5 trillion in global commerce since its inception.
- Merchants had their most successful Black Friday and Cyber Monday selling period ever, generating $7.5 billion in sales over that period, a growth of 21% YoY on a constant currency basis.
- Approximately 52 million consumers worldwide purchased from brands powered by Shopify, representing a 12% increase from the same period in 2021.
New Products and Enhancements
- Shopify launched several new products and enhancements to existing products in 2022, including Shopify Audiences, Shopify Collabs, POS Go, Tap to Pay, integrated Twitter Shopping and YouTube channels, and expanded the Shop app.
- Shopify Markets and Markets Pro were launched to lower the barriers for merchants to sell globally.
- Commerce Components by Shopify was introduced as a large enterprise solution.
Investment Themes
- Attracting more buyers through more channels, including off-line GMV with continued growth, point-of-sale product, and Shop App enhancements.
- Going global with Shopify Payments, Point-of-Sale, Shipping, and Capital expanding to more countries to make selling internationally easier, with Markets Pro being a fully integrated merchant-of-record solution.
- First sale to full scale, with enhancements to Shopify Functions, Hydrogen, Oxygen, and expanded back-office merchant solutions.
New Subscription Prices
- Shopify announced an update to the subscription prices on Basic, Shopify, and Advanced plans, which will enable Shopify’s exceptional value to continue as they solve more difficult problems in the industry and empower more entrepreneurs.
- The new prices went into effect immediately for new merchants and will take effect on April 23 for existing merchants.
Jeff Hoffmeister says,
GMV and Revenue Growth
- Merchants GMV in Q4 2022 was $61 billion, up 13% YoY or 17% on a constant currency basis, outpacing overall U.S. retail growth of 6%.
- Revenue for the fourth quarter grew to $1.7 billion, 26% YoY growth, or 28% in constant currency.
Merchant Solutions Business
- Merchant solutions revenue was $1.3 billion, increasing 30% YoY or 32% on a constant currency basis.
- $34.2 billion of GMV was processed on Shopify Payments in Q4, 23% higher than Q4 2021.
- Subscription solutions revenue was $400 million, up 14% over Q4 of 2021.
Total Attach Rate and Monthly Recurring Revenue
- Total attach rate has grown to 2.85% in Q4 of 2022, up from 2.55% in Q4 of a year ago.
- Monthly recurring revenue (MRR) exceeded $109 million, up 7% YoY.
- Contribution from our plus merchants to total MRR increased YoY to 33% from 29% in Q4 of 2021.
Operating Expenses and Adjusted Operating Income
- Operating expenses were $987 million for the quarter, which includes a real estate impairment charge of $84 million.
- Adjusted operating income for the quarter, excluding the real estate charge was $61 million.
- Stock-based compensation for Q4 was $142 million.
Outlook for Q1 2023
- Q1 revenue is expected to grow in the high teens on a YoY basis.
- Q1 gross margin is expected to be slightly higher than Q4 of 2022.
- Q1 operating expenses are expected to be up in the low single digit percentage versus Q4 of 2022 when excluding one-time charges.
- Stock-based compensation for Q1 is expected to be in line with Q4 of 2022.
- Capital expenditures for Q1 are expected to be in line with what was spent for the full year of 2022.
Q & A sessions,
Commerce Components
- Allows large brands to combine the best parts of Shopify with their existing in-house systems such as storefront, checkout, data and compliance, and shipping infrastructure.
- Post-launch response and interest has been positive among large enterprise retailers and merchants.
- Opportunity for Shopify to further expand market and future-proof businesses.
Shopify Plus
- Merchants are upgrading to Shopify Plus from core plans and leaving existing platforms to join Shopify Plus.
- Continues to do well and offers everything that Shopify offers.
Deliverr Integration
- Completed in July, roughly 6 months into integration.
- $8 million spent on CapEx in Q4 and Shopify being mindful before ramping up CapEx.
- Business model and leveraging partners allows Shopify to be more thoughtful in terms of how they leverage Deliverr.
- Software brought by Deliverr is proving to be a real differentiator.
No bad stock 