- Shopify’s 3Q revenue surpassed estimates, coming in at $1.71 billion, a 25% increase from the previous year. This beat the estimated $1.68 billion.
- The company’s monthly recurring revenue was $141 million, showing a 32% year-on-year increase and matching the estimate of $141.2 million.
- The Merchant Solutions revenue was $1.23 billion, 24% higher than the previous year and above the estimated $1.2 billion.
- Subscription revenue also surpassed expectations, reaching $486 million, a 29% increase from the previous year. This beat the estimated $471.4 million.
- Gross merchandise volume stood at $56.2 billion, a 22% increase from the previous year, beating the estimated $54.42 billion.
- The adjusted EPS was 24c, a significant improvement from the loss per share of 2.0c from the previous year. This also surpassed the estimated 15c.
- Gross payment volume was $32.8 billion, showing a 31% rise from the previous year and surpassing the estimated $31.33 billion.
- The adjusted gross profit was $905 million, 33% higher than the previous year and above the estimated $870.2 million.
- The adjusted gross margin was 53%, a 3% increase from the previous year and higher than the estimated 52.1%.
- R&D expenses decreased by 24% from the previous year to $313 million.
- The company’s year forecast sees capital expenditure at about $45 million.
- Shopify received 24 buys, 25 holds, and 1 sell in recent evaluations.
Shopify on Smartkarma
Analysts from Baptista Research have been providing coverage on Shopify, an e-commerce platform provider, on Smartkarma, an independent investment research network. According to the research reports, the company has managed to exceed analyst expectations in terms of revenue as well as earnings with strong financial results. Baptista Research analysts also noted that Shopify’s focus on improving the merchant experience, including pricing changes and innovative product offerings, contributed to strong top-line growth and attachment rates across the Merchant Solutions product suite.
In another research report, Baptista Research analysts noted that Shopify managed to surpass the revenue expectations as well as the earnings expectations of Wall Street. The company continued to build its merchant base in Q1 with excellent growth in all geographies and merchant sizes. GMV was $50 billion in the first quarter, up 15% year on year or 18% in constant currency terms, as merchants delivered another robust quarter of growth.
A look at Shopify Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Shopify Inc. is a cloud-based commerce platform that helps merchants create an omni-channel experience to showcase their brand. With a Smartkarma Smart Score of 1-5, Shopify has a long-term outlook that rates Value at 2, Dividend at 1, Growth at 2, Resilience at 4, and Momentum at 3. This indicates that Shopify is a strong and resilient company that is growing steadily, and is well positioned to provide a valuable omni-channel experience for their customers in Canada.
Shopify’s Smartkarma Smart Score gives confidence that the company is well-positioned to deliver long-term value to its customers. With a strong Resilience score of 4, Shopify is well-equipped to weather economic downturns and other challenges, and its Momentum score of 3 indicates the company is growing steadily. This is further supported by its Value and Growth scores of 2, indicating that Shopify is well-positioned to provide a valuable and consistent experience to its customers in the long-term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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