Wow, Shopify — exciting earnings call earlier today! Revenue beat expectations and grew 110% YoY to $988.6m, and gross merchandise volume grew 114% YoY to $37.3b. Digging a bit deeper, though, here are some other insights from the presentation. 1/8

Compared to last quarter, GMV is down 9% (normal, given post-holiday season slowdown), but revenue is still up. This was driven by increased subscription revenue (up 15% QoQ). 2/8

To me, this emphasizes Shopify’s diversification, because they can generate revenue (and also profit) in multiple ways. This quarter suggests that those different revenue streams aren’t entirely correlated — which, in effect, strengthens their moat. 3/8

Their vision for Shopify Capital is really promising, and they’ve reached a cumulative $2b+ funded since 2016. By allowing merchants to skip the bank, Shopify reduces the friction for getting access to credit products (essential for entrepreneurs as they scale). 4/8

Also, just think about the amount of transaction data that Shopify can leverage here — they should be able to optimize risk and diversify their capital allocation with significantly more insight than other lenders. 5/8

Shop ( https://shop.app/ ) saw more registered users and monthly active users. In fact, MAU grew faster — it was up 26%, and registration up 7% QoQ. This means that engagement is going up, which should drive even more merchant adoption (cross-group network effects)! 6/8

They're building tools for merchants to sell on IG, TikTok, Pinterest, etc. They’re converting potential competitors into collaborators, which appears to be their strategy (ex: developer platform). All while giving control back to merchants and pushing into social commerce. 7/8

Also, a small side note, I love their new narrative around “becoming the world’s entrepreneurship company.” They are literally expanding their total addressable market by making it way easier for more people to create and innovate! 8/8