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Shopify $SHOP 1Q22 Earnings 
https://abs.twimg.com/emoji/v2/... draggable="false" alt="💪🏻" title="Aangespannen biceps (lichte huidskleur)" aria-label="Emoji: Aangespannen biceps (lichte huidskleur)">
- Rev $1.2b +22%https://abs.twimg.com/emoji/v2/... draggable="false" alt="↗️" title="Noord-oost pijl" aria-label="Emoji: Noord-oost pijl">
- Gross Profit $638m +14%https://abs.twimg.com/emoji/v2/... draggable="false" alt="↗️" title="Noord-oost pijl" aria-label="Emoji: Noord-oost pijl"> margin 53% -354 bps https://abs.twimg.com/emoji/v2/... draggable="false" alt="↘️" title="Zuid-oost pijl" aria-label="Emoji: Zuid-oost pijl">
- NG EBIT $32m -85%https://abs.twimg.com/emoji/v2/... draggable="false" alt="↘️" title="Zuid-oost pijl" aria-label="Emoji: Zuid-oost pijl"> margin 3% -1867 bps https://abs.twimg.com/emoji/v2/... draggable="false" alt="↘️" title="Zuid-oost pijl" aria-label="Emoji: Zuid-oost pijl">
- NG Net Income $25m -90%https://abs.twimg.com/emoji/v2/... draggable="false" alt="↘️" title="Zuid-oost pijl" aria-label="Emoji: Zuid-oost pijl"> margin 2% -2362 bps https://abs.twimg.com/emoji/v2/... draggable="false" alt="↘️" title="Zuid-oost pijl" aria-label="Emoji: Zuid-oost pijl">
- OCF -$53mhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="↘️" title="Zuid-oost pijl" aria-label="Emoji: Zuid-oost pijl"> margin -4% -1809 bps https://abs.twimg.com/emoji/v2/... draggable="false" alt="↘️" title="Zuid-oost pijl" aria-label="Emoji: Zuid-oost pijl">
- Rev $1.2b +22%
- Gross Profit $638m +14%
- NG EBIT $32m -85%
- NG Net Income $25m -90%
- OCF -$53m
Business Metrics
- GMV $43.2b +16%https://abs.twimg.com/emoji/v2/... draggable="false" alt="↗️" title="Noord-oost pijl" aria-label="Emoji: Noord-oost pijl">
- Subscription Rev $345m +8%https://abs.twimg.com/emoji/v2/... draggable="false" alt="↗️" title="Noord-oost pijl" aria-label="Emoji: Noord-oost pijl">
- Merchant Rev $856m +29% (payments, capital & markets)https://abs.twimg.com/emoji/v2/... draggable="false" alt="↗️" title="Noord-oost pijl" aria-label="Emoji: Noord-oost pijl">
- Payments GPV $22b +27%https://abs.twimg.com/emoji/v2/... draggable="false" alt="↗️" title="Noord-oost pijl" aria-label="Emoji: Noord-oost pijl">
- Payments Penetration (GPV/GMV) 51% +500bpshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Grafiek met stijgende trend" aria-label="Emoji: Grafiek met stijgende trend">https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Groot wit vinkje" aria-label="Emoji: Groot wit vinkje">
- Shopify Capital $347m +12%https://abs.twimg.com/emoji/v2/... draggable="false" alt="↗️" title="Noord-oost pijl" aria-label="Emoji: Noord-oost pijl">
- MRR $105m +17%https://abs.twimg.com/emoji/v2/... draggable="false" alt="↗️" title="Noord-oost pijl" aria-label="Emoji: Noord-oost pijl">
- GMV $43.2b +16%
- Subscription Rev $345m +8%
- Merchant Rev $856m +29% (payments, capital & markets)
- Payments GPV $22b +27%
- Payments Penetration (GPV/GMV) 51% +500bps
- Shopify Capital $347m +12%
- MRR $105m +17%
Management Guide
- FY22 Revenue growth - Lower in H1, Highest in Q4
- FY22 Subscription Solutions Revenue growth similar to FY21
- FY22 Merchant Solutions 2X fasterhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="💪🏻" title="Aangespannen biceps (lichte huidskleur)" aria-label="Emoji: Aangespannen biceps (lichte huidskleur)">
- FY22 Revenue growth - Lower in H1, Highest in Q4
- FY22 Subscription Solutions Revenue growth similar to FY21
- FY22 Merchant Solutions 2X faster
1 | Not overly concerned with “slower” revenue growth
- Toughest comps in 1Q21
- 1Q21 Rev $989m +110%https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Raket" aria-label="Emoji: Raket">
- 1Q22 Rev $1.2b +22%https://abs.twimg.com/emoji/v2/... draggable="false" alt="↗️" title="Noord-oost pijl" aria-label="Emoji: Noord-oost pijl">
“Q1 not being the easiest start to the year…22% revenue growth…on top of a 110% growth last year during lockdowns and boosted by stimulus.”
- Toughest comps in 1Q21
- 1Q21 Rev $989m +110%
- 1Q22 Rev $1.2b +22%
“Q1 not being the easiest start to the year…22% revenue growth…on top of a 110% growth last year during lockdowns and boosted by stimulus.”
- 1Q22 Rev $1.2b +22% https://abs.twimg.com/emoji/v2/... draggable="false" alt="↗️" title="Noord-oost pijl" aria-label="Emoji: Noord-oost pijl">“Q1 not being the easiest start to the year…22% revenue growth…on top of a 110% growth last year during lockdowns and boosted by stimulus.”" title="1 | Not overly concerned with “slower” revenue growth- Toughest comps in 1Q21 - 1Q21 Rev $989m +110% https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Raket" aria-label="Emoji: Raket">- 1Q22 Rev $1.2b +22% https://abs.twimg.com/emoji/v2/... draggable="false" alt="↗️" title="Noord-oost pijl" aria-label="Emoji: Noord-oost pijl">“Q1 not being the easiest start to the year…22% revenue growth…on top of a 110% growth last year during lockdowns and boosted by stimulus.”" class="img-responsive" style="max-width:100%;"/>
2 | Will have easier comps going forward from 2Q22 onwards, especially 4Q22.
“For 2022, we expect revenue growth to be lower in the first half and highest in the fourth quarter of 2022.”
“For 2022, we expect revenue growth to be lower in the first half and highest in the fourth quarter of 2022.”
3 | Making fulfilment even easier.
“Right now, merchants have to fumble through this maze of freight providers, 3PLs, middle- and last-mile carriers…
And so what SFN handles is sort of that post-order phase of the merchant supply chain.”
“Right now, merchants have to fumble through this maze of freight providers, 3PLs, middle- and last-mile carriers…
And so what SFN handles is sort of that post-order phase of the merchant supply chain.”
4 | Acquiring Fulfilment Tech Provider Deliverr https://abs.twimg.com/emoji/v2/... draggable="false" alt="👍🏻" title="Duimen omhoog (lichte huidskleur)" aria-label="Emoji: Duimen omhoog (lichte huidskleur)">
- For $2.1b, 80% cash, 20% stock
- “gains visibility and control of movements along the supply chain”
- “perfect fit for Shopify is that it& #39;s software first…asset-light, means that we can manage our CapEx”
- For $2.1b, 80% cash, 20% stock
- “gains visibility and control of movements along the supply chain”
- “perfect fit for Shopify is that it& #39;s software first…asset-light, means that we can manage our CapEx”
- For $2.1b, 80% cash, 20% stock- “gains visibility and control of movements along the supply chain”- “perfect fit for Shopify is that it& #39;s software first…asset-light, means that we can manage our CapEx”" title="4 | Acquiring Fulfilment Tech Provider Deliverr https://abs.twimg.com/emoji/v2/... draggable="false" alt="👍🏻" title="Duimen omhoog (lichte huidskleur)" aria-label="Emoji: Duimen omhoog (lichte huidskleur)">- For $2.1b, 80% cash, 20% stock- “gains visibility and control of movements along the supply chain”- “perfect fit for Shopify is that it& #39;s software first…asset-light, means that we can manage our CapEx”">
- For $2.1b, 80% cash, 20% stock- “gains visibility and control of movements along the supply chain”- “perfect fit for Shopify is that it& #39;s software first…asset-light, means that we can manage our CapEx”" title="4 | Acquiring Fulfilment Tech Provider Deliverr https://abs.twimg.com/emoji/v2/... draggable="false" alt="👍🏻" title="Duimen omhoog (lichte huidskleur)" aria-label="Emoji: Duimen omhoog (lichte huidskleur)">- For $2.1b, 80% cash, 20% stock- “gains visibility and control of movements along the supply chain”- “perfect fit for Shopify is that it& #39;s software first…asset-light, means that we can manage our CapEx”">
5 | Shopify No. 2 in US Retail Commerce after $AMZN
6 | Revenues are still growing.
7 | Cohort Growth still Strong
8 | MRR still rising - 38% CAGR
9 | Subscriptions Revenue growth largely due to Shopify Plus
- $32m (30% of MRR +400bps)
- Growing larger merchants faster
- $32m (30% of MRR +400bps)
- Growing larger merchants faster
10 | Long-Term Operating Leverage, Near-Term spending more especially on R&D +600bps and S&M +600bps decreasing EBIT margins
11 | Gross Margins will continue to decline due to increased mix of lower margins Merchant Solutions (payments
12 | Priorities and Focus.
13 | Shopify POS (Offline)
“Shopify has been developing the world& #39;s best point-of-sale retail software for years, and it& #39;s now at the point where all merchants who came to Shopify during the pandemic can leverage it. No need to go back to their old, dilapidated POS systems.”
“Shopify has been developing the world& #39;s best point-of-sale retail software for years, and it& #39;s now at the point where all merchants who came to Shopify during the pandemic can leverage it. No need to go back to their old, dilapidated POS systems.”
13 | cont’d
“…knows how much stronger the Shopify point-of-sale value proposition is relative to stand-alone offerings.”
“As POS Pro added more merchants, locations and geographies in Q1, we grew offline GMV by nearly 80% YOY as we continue to gain share.
“…knows how much stronger the Shopify point-of-sale value proposition is relative to stand-alone offerings.”
“As POS Pro added more merchants, locations and geographies in Q1, we grew offline GMV by nearly 80% YOY as we continue to gain share.
14 | Beyond Online, the commerce platform of choice for both online and offline.
“…GMV, including offline, grew even faster at a 57% CAGR since 1Q20…opportunity…is beyond just online. It& #39;s to be the commerce platform of choice in any environment and on any surface.”
“…GMV, including offline, grew even faster at a 57% CAGR since 1Q20…opportunity…is beyond just online. It& #39;s to be the commerce platform of choice in any environment and on any surface.”
15 | Benefiting from both Online & Offline.
“…offline stores are reopening…now migrating over to our point of sell product.
…becoming the most important piece of software they use isn& #39;t necessarily just online or offline, it& #39;s all of those merchant solutions as well.”
“…offline stores are reopening…now migrating over to our point of sell product.
…becoming the most important piece of software they use isn& #39;t necessarily just online or offline, it& #39;s all of those merchant solutions as well.”
16 | Now blending software for logistics/fulfilment
“That& #39;s why we& #39;re creating the world& #39;s most merchant-obsessed, end-to-end software and logistics platform, fully integrated into the Shopify ecosystem.”
“That& #39;s why we& #39;re creating the world& #39;s most merchant-obsessed, end-to-end software and logistics platform, fully integrated into the Shopify ecosystem.”
17 | Warehouse Mgmt System to start by end 2Q22
“Our proprietary warehouse management system we& #39;ve been developing is now running in our key warehouse locations and will handle all SFN order volume by the end of Q2 2022.”
“Our proprietary warehouse management system we& #39;ve been developing is now running in our key warehouse locations and will handle all SFN order volume by the end of Q2 2022.”
18 | Agnostic and happy to integrate Amazon extending Prime offering to Merchant’s owned sites
“thrilled…and want to share this broadly with small merchants across the Internet.”
“happy to integrate this into Shopify”
“thrilled…and want to share this broadly with small merchants across the Internet.”
“happy to integrate this into Shopify”
19 | Helping Customers Solve Problems.
“People come to Shopify to solve a single problem. And then once they come in, they realize we can solve more of their problems.”
“People come to Shopify to solve a single problem. And then once they come in, they realize we can solve more of their problems.”
20 | Proposed Founder Shares
“the Board thinks this is a better governance structure for the future. And so that& #39;s why it& #39;s included.”
And all about Tobi Lutke.
“the Board thinks this is a better governance structure for the future. And so that& #39;s why it& #39;s included.”
And all about Tobi Lutke.
A rare combination of high growth, large market opportunity, supported by multiple growth vectors, optionalities and pillars, improving profitability with a global platform, scale & operating leverage, run by mission-driven management.
High growth tempered near-term by 1Q21 tough comps, to improve into 2H22. Acquisition to strengthen logistics offering and with POS build for offline builds foundation to become the dominant provider of essential internet infrastructure for commerce (both online & offline).
