• Shopify’s 1Q revenue achieved $1.86 billion, demonstrating a 23% improvement year on year (y/y) and beating the estimated $1.84 billion.
• Monthly recurring revenue reached $151 million, which is a 30% growth y/y, exceeding the estimated $149 million.
• Merchant Solutions revenue settled at $1.4 billion, a 24% increase y/y, surpassing the estimated figure of$1.34 billion.
• The subscription revenue displayed a 34% hike y/y, making $511 million, toppling the estimated value of $498.1 million.
• Gross merchandise volume was $60.86 billion, showing a 23% rise y/y, and beating the estimated $59.46 billion.
• Adjusted EPS came to 20 cents, improving significantly from 1 cent y/y, and outdoing the 17 cents estimate.
• Gross payment volume totalled $36.24 billion reflecting a 32% increase y/y, surpassing the estimation of $35.06 billion.
• Adjusted gross profit was $962 million, higher than the forecasted $943.6 million.
• The company’s adjusted gross margin reached 52%, slightly above the estimate of 51.3%.
• R&D expenses fell by 27% y/y, down to $335 million.
• The company’s latest ratings consist of 26 buys, 21 holds, and 3 sells.
Shopify on Smartkarma
Analysts at Baptista Research have recently published a bullish report on Shopify Inc. on Smartkarma, praising the company’s strong performance in the previous quarter. The report titled “Shopify Inc.: Global Commerce Leader Unveils AI-Powered Breakthroughs! – Major Drivers” highlights key achievements such as the success of Shop Pay, which contributed to a significant $12 billion in GMV along with a 50% year-over-year increase. As part of their analysis, the report delves into a fundamental examination of Shopify’s historical financial statements.
A look at Shopify Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.8 |
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., a cloud-based commerce platform provider, is poised for a promising long-term outlook according to Smartkarma Smart Scores. With excellent scores in Resilience and Momentum, Shopify demonstrates strong adaptability and market performance. The company’s ability to weather challenges and maintain positive growth momentum bodes well for its future prospects. While Value and Growth scores indicate areas for potential improvement, Shopify’s overall outlook remains favorable, supported by its innovative approach to facilitating omni-channel experiences for merchants.
Smartkarma’s assessment reveals that Shopify’s emphasis on resilience and momentum positions it well for sustained success in the competitive e-commerce landscape. Although Value and Growth scores suggest opportunities for further enhancement, Shopify’s dedication to providing a platform that showcases merchants’ brands effectively underscores its commitment to long-term viability and growth. As Shopify continues to evolve in serving its Canadian customer base, investors may find confidence in the company’s ability to navigate challenges and capitalize on market opportunities.
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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